Subjects - Business

Supply chain management is a powerful management tool to win over competition. Well designed supply chain for different products will look different. Supply chain for supplying pasta will be different from supply chain for selling fashion jewelry or rushing airline spare parts. Supply chain for producing

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

and delivering pasta will be designed for productivity and efficiency. Supply chain for airline spare parts or offshore drilling equipment will give utmost importance to timely delivery and availability at any cost. Nature of the product, customer expectation, production method and parts used are some o

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

f the factors to be considered when designing a fitting supply chain. Demand and supply side uncertainty are the key determining factor when designing a supply chain for a product. Well designed supply chain that suits a product or category is a competitive advantage.

Product nature can be broadly class

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ified as either functional or aesthetic. Functional products like pasta have stable demand whereas demand for aesthetic products like fashion goods is erratic. Innovative aesthetic products enjoy high profit margins but at the same time have seasonal demand and short product life cycle. It is difficult t

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

o stock enough of each items from broader product portfolio but a stock out of a popular item can tarnish brand reputation. On the other hand functional products like pasta or bread have predictable demand. Product nature determines demand uncertainty which in turn determines the nature of the supply cha

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

in. While product nature lends demand uncertainty, supply side uncertainty can emanate from multiple factors. Uncertainty at the production stage can originate form unpredictable yield or change in production technology or change in process. Uncertain lead time, small supply base and weather are also som

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

e of the non-production factors that contribute to supply side uncertainty.

When the supply side and demand side variations are low, operational efficiency is the key to successful supply chain. Production intensive industries can improve operational efficiency by optimizing the production process and e

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

liminating non value adding activities. An important issue to keep in mind during supply chain design is visibility to actual demand from end customer. Stable demand from end consumers may become lumpy and unpredictable to second and third level suppliers due to bulk ordering practice of distributor and

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

retailer. Supply chain planning becomes difficult when the demand is unpredictable. Trust based collaboration between the supplier and buyer for sharing real demand information is the solution for avoiding demand lumping in the supply chain. Stable and even demand facilitates better demand forecast, effe

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ctive planning, optimum levels of safety stock, better customer service levels, less waste and improved profit margins. Logistics is core to operation of distribution intensive firms. Firms in distribution intensive industries like retail and 3PL must focus on improving logistic efficiency. Careful revie

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

w of transportation, storage and distribution network and practice will through some light into non value adding logistic tasks. Redesign of end to end supply chain can improve logistic efficiency. WalMart, a pioneer in retail supply chain, ships stable demand products directly to the store from its supp

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

lier thereby eliminating expenses due to intermediate handling, inventory management and transportation.

When the supply side uncertainty is high, risk pooling input materials can help Inventory can be piled up for low value input materials. Usually there is a risk associated with creative or high-value

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

parts. Inventory can be pooled, shared and managed along with other users if the inputs items are scarce high value items which are difficult to obtain in bulk. Maintaining substitute materials and alternative suppliers is a time tested tactic used to manage supply side risk. Practise of allowing substi

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

tute parts or materials earlier during the design time is also a supply side risk management strategy famously called as "Design for Supply Chain". Firms in the down stream of supply chain use more custom parts to differentiate their products from their competitors. Special attention is required to maint

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ain uninterrupted supply of such custom made parts critical to product differentiation. Various supplier relationship strategies such as controlling stake, partnership, future contracts and other supply hedges to secure steady supply of critical parts.

Demand is unpredictable for items like fashion appa

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

rel and hi-tech gadgets. These products rarely face any supply side uncertainty. Demand for items such as fashion apparel, movie and books are known only when the product reaches the store shelf. If the market reception for new items is not good, excess inventory is sold at a discount. Strategies such as

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

postponement, store level configuration, parallel features and Internet orders can help tackle excess stock due to unpredictable demand. HP, a leading consumer electronics manufacturer, tackled the problem of uncertain demand for its high end printers by postponing the minor but important assembly tasks

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

to regional distribution centers. Generic products are customized just before delivery time to meet demand for different types of same product. Reseller or dealer level configuration can be used to customize products which are easy to configure.

For low value items like self service manuals and warrant

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

y cards, printing and packaging in multiple languages is an effective strategy for multi national and multi cultural supply chains. Opening online channels may work well for items like music, video games etc. Apple iTunes site for iPod is a notable example. Dell’s popular assemble to order process for PC

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

manufacturing is a revolutionary example of supply chain design for demand volatility. Products with variable demand and supply can use a combination of above techniques. Collaborative demand forecasting with buyers and collaborative planning with suppliers can maximize the value of overall supply chain

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.subjects.org.ua/article/21352/subjects-Designing-a-Supply-Chain-for-Demand-and-Supply-Side-Uncertainty.html">Designing a Supply Chain for Demand and Supply Side Uncertainty</a>

BB link (for phorums):
[url=http://www.subjects.org.ua/article/21352/subjects-Designing-a-Supply-Chain-for-Demand-and-Supply-Side-Uncertainty.html]Designing a Supply Chain for Demand and Supply Side Uncertainty[/url]

The United States government criticizes China to resolve its rapidly growing trade deficit.

Company logo design forms an integral part in the brand building process of a company. A well build brand may need to change its business logo due to variety of reasons like mergers, acquisitions, change in business areas, product repositioning etc. Seeking help from a professional logo design company will not only enhance the look and feel of the company logo but will surely translate into better business returns for the company.

By hosting a fundraiser, not only are you helping your community but you will gain invaluable exposure for your business.

Tags

Links

Subjects - Designing a Supply Chain for Demand and Supply Side Uncertainty

Related Articles: