The success of complex supply chain networks existing between business units greatly depends on proper communication and managerial support. In every business operation, there involves supply chain network of suppliers, manufacturers, distributors and demand markets. “A supply chain network economy describes the environment (competitive and cooperative, in parts) of all the market-related and operation-related activities of business firms, who belong to many supply chains, and these supply chains compete in several related markets.” (Zhang Dong & Nagurney, 2003, p.6).
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The business operations of the three facilities at the Oregon are interrelated to each other in the supply of materials and inventory. The materials required for the T& P facilities are produced and supplied by the S facility. The inventory and material warehousing for the T & P facilities are also arranged in the S facility. Thus there exists supply chain of materials and product parts in between the facilities. The materials and inventory required for the operations in the T & P facilities are stored in the warehouse attached to the S facility. Due to lack of proper communication between the facilities, the inventory management is not properly functioning. This leads to delay in transshipment of materials and inventory for the T & P facilities. The transshipment problem affects the regular business operations in the T & P facilities and this results in a business crisis. Complex supply chain networks existing between the facilities are not functioning properly due to the problems in communication and inventory management areas. To overcome the defects in the complex supply chain existing between the facilities a systematic approach is necessary.
“To compete and succeed in today’s demanding marketplace, companies must create and maintain the most efficient supply chain possible. Strategic supply chain design and analysis must consider a wide range of alternatives, including site locations, product mix, transportation, inventory deployment, suppliers, cost-service levels, and constraints, as well as supply chain operations.” (i2 supply chain network design and analysis, 2009).
Following is a systematic framework for analyzing the behavior of complex supply chain networks and supply chain drivers in the three facilities:
Supply Chain Design and Infrastructure Planning
Design and development of supply chain network must be based on the requirements of inventory and material transshipment in between the facilities. The infrastructure requirements for the proper functioning of the network have to be identified and analyzed by the managers.
Inventory Planning and Control
Inventory management is highly essential for keeping efficiency in the supply chain network. Without adequate inventory planning and control, the supply chain network cannot function properly.
Time and cost requirements
The required time and cost for the transshipment of inventory in between the facility has to be identified for designing the supply chain network adequately.
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Human resource requirements
Human resource required for the well-functioning of the supply chain system needs to be identified along with their key roles in the supply chain network.
Analysis and reporting
This will help to provide valuable decision support to the supply chain managers. Evaluation and controlling of the functions of supply chain can be effectively carried out through periodical analysis and reporting of the operations of the supply chain network.
The above discussed systematic framework will be helpful for identifying and analyzing the behavior of complex supply chain networks and supply chain behavior existing in the three facilities.
- Zhang, Ding., Dong, June., & Nagurney, Anna. (2003). A supply chain network economy: Modeling and qualitative analysis. 6. Web.
- i2 supply chain network design and analysis. (2009). i2: The Supply Chain Results Company.