Arm Chains

Arm Chains
Arm Chains

Evolution of the concept of managing demand. Chain Management (DCM) from POME by Gautam KOppala.

Management concept in the evolution of demand chain management. (DCM).

The concept of management come and go. Some people up, blow and fell back like fireworks. Something like a North Star still shining brightly, and act as a guide for navigation at sea. Management storm Problem priority is to learn how to distinguish between fashion and time,. Innovative ideas. Problem is to find ways to use Idea of the kinds of methods and tools that we need a way to provide knowledge to change their thinking and what the best way is to design the process of conversion.

One way to do it. Distinguish between the idea and the rest is to take a holistic approach and see if the bits fit together to create a new When Taylor writes about his scientific management. Summary of observations and what will happen in the research and practice. He founded the theory - or the frame of reference. - Happened to industrial society. One reason for the success of the deal. Science is a clear requirement for a new paradigm to guide the transition from ship to manufacturing industry

We do not need a new paradigm for Transition from industrial society, digital This is something that clearly is trying to happen '. A review of the island and a new frame of reference. popping up in the ocean. Business strategy and management. What is needed is a frame of reference that can help a holistic approach to the problem of water separate the island bridge.

Demand chain management. (DCM) is a major new business models to help in this. Electrolux, which is one of the leading electrical appliances in the world have created their own version of DCM needs to be the leader of the flow is called. - And words that are carefully selected. Refers to the needs of the consumer-centric, with all activities based on consumer insights. Shows the flow of value though,. Secure and anxious Warranty. - As opposed to chain links were connected. Leadership refers to the fact that current demand is not unit Projectal to be managed. Flow requirements is a process. The lead can cause the value of any network. Their efforts must be supported by an executive who had a vision of what can be done.

Humans are not limited to. Many of the tools as well as his vision.

(Columbus Christopher).

Evolution of the concept of management influence many things. One of the most important. Management vision, which is important for the identification and application of methods and related tools. Other new tools that will create new possibilities. Information and communication technology. (ICT) is a major cause for renewal. - Enabler also important in the transition from old industries to new digital world. Availability of new ICT equipment is rapidly increasing, and the trick is. Find the one that has been used and what purposes. - With operations driven by business needs and not by the availability of technology.

External development should be analyzed. And by priority. External opportunities and threats should be converted into action and adaptation within - Call the review and restructuring. Increasing global competition makes the pressure on. proaction over reaction - and it is important to identify trends early and benefit from them. For example, ID is displayed. Needs of consumers and their attempts to change the volatility of a threat to opportunity is the main objective. DCM.

Current thinking has its roots very deep into history But before this vision could not be contacted due to lack of effective tools can now be recognized. The following problems and asked that the new approach to be taken for Create sustainable change. To get a better understanding of this should look back in history to learn from experience and see how the concepts of management to go. Developed from time to time.

If you want to see in the future, we will have to look back.

The spread of the concept as follows. S - DCM curve with normal shape. early adopters and later also became clear that there is no full implementation of the project in each sample is a concept that does not suit every environment. We can be found in Development of the concept of managing others. In 1981, is the development, production, sales and marketing direction to the background in the development of the concept of the flow of material (Ericsson, 1981) I want to show that the idea of building one another and develop a part in responding to problems created by the original concept. The best part of the concept. Still long and smooth, while the lack of negative. Overlapping in time are still slow to introduce new concepts while early adopters will issue a new concept better. A large, global competition becoming more and more dangerous behind the delay is the concept of the life cycle. - Such as product life cycle. - The shorter time was.

The orientation of production.

In the early decades. 1900, the orientation of production has been developed to meet the natural increase Industrial product demand. Scientific management focused on process and the possibility of increased production through rationalization Terms of Taylor's references and a new approach and tools. Hasten the growth and development. Keith (1959) summarized the philosophy of management for Pillsbury. 1891-1930 year, said: "It is our duty to grind flour quality. However, higher sales and important business idea is built on the availability of wheat, electricity and water. - -. Busy neighborhood and the growth of the market or the demand for more and better flour. Cheap 'like a narrow view that is causing the problem, while increasing productivity and product to get rid of the problem. Previously, the author observed, pointing to the needs of the market. Big problem in 1915 Shaw wrote, "Although we will remain for all possibilities offered by increased productivity development over Existing distribution. We need to find markets for the products we produce. Today the most important issue is the study of the distribution system in the same way that we have Of manufacturing "But, still attached to slow the direction of production through the year. 1950 and 1960.

Be on sale

In Year 1920, a view that is focused on sales development with. Borsodi (1929) summarized the change in focus by saying that the date is missing on a formula for big profits. Only the manufacturing, production increased. - Production more. Distribution of age here. "Philosophy's changed to Pillsbury. : 'A company that produces flour with a variety of products for the consumer market, we must class sales forces to get rid of all types can be produced in a good price' (Keith,. 1959).

The orientation of this sales are in the market sellers when demand is higher than supply. But the situation is reversed when changes are thought necessary. Orientation instead of continuing sales by market orientation.

Direction of the market.

'New marketing concept' release. In early 1950 - the author makes the difference between the old and the production concept of selling and marketing new ideas. This focus on marketing and customer-centric focus in Analysis, planning, product development and profitability. - And not just sales volume.

Pillsbury's philosophy changed again for Date of marketing in our company. Seen as a duty to plan and execute the sale. - All the way from idea generation through the development and sales to customers. The market starts early and ends with the consumer. ... The marketing department for the entire organization's resources in the field of ideas for products and goods to the contract of sale '(Keith,. 1959) This command may be written today, the main difference that we now have the tools to bring it through. The focus has shifted from production to marketing of the products we produce. The consumer and want to leave. Companies to market.

But the concept of the new market start to build their own problems, which mostly comes from the orientation. Far by focusing on customer service and delivery. - Without a deep analysis of the concept and impact. Clear solutions popping up, but most of them do not use more than They generally want to maintain more flexibility and smaller batch in production, while focusing on the time of delivery. - And provide a higher inventories. The cost of shipping and handling. Lack of theoretical framework and common language in the production of tension and conflict between marketing and production. - And increase the struggle for power. Intellectual Property. This began the development orientation of the flow of material when it is clear that the problem can be solved only with a more holistic approach.

Material flow direction.

In the early 1960s, how the flow of the material began to spread in Sweden. Growth slowed until the end of 1960 and then closed when the concept of management. These materials were developed by close cooperation between universities and large industrial projects such as Volvo,. SKF, Atlas Copco, Sand and Astra Wikipedia, this method is called Management of It is a concept much broader and more strategic logistics at that time. (See Ericsson, 2003), especially Building Management. (MA) means "to plan Development Projects, control and review of the flow of raw materials from suppliers to users' (Ericsson,. 1969b).

The concept of focusing on the needs. Integrated management through inbound and outbound. From the start, the Supreme Court focused on the strategic coordination and efficient flow of materials. But also focus on the operation should start synchronization. Within the purchasing, production and distribution on the physical level of operations and strategy of the Restructuring. Companies should enhance cooperation and coordination of activities in different departments.

Focus on internal processes as a starting point for implementation. But it is clear that there is not adequate and effective internal relationships with suppliers and customers will need to be increased. And coordination. The first step is to increase cooperation in the supply side. Supplier development and evaluation and purchase. stockless, contract and joint development makership keywords. (Ericsson, 1969c) this

The next step is to increase cooperation with customers at the beginning Writers in the early marketing focused on consumer markets. But now interest in the marketing industry. - Increase (Ericsson, 1969a) - and hence the purchasing industry. 'Control' within the meaning of the word refers to the use of MA in the development of computer tools to manage the flow of material The first step will focus on the level of operations and strategy. Company, but later the Supreme Administrative Court as a strategic focus. - Not only to direct the function associated with the flow, such as purchasing, manufacturing and physical distribution. But also marketing and research and development and engineering

Stages of development administration. Materials / logistics concepts.

Before the development of the concept shows the normal growth curve. : Start with a relatively slow speed in the early years. 1970, as shown inbelow (Ericsson, 1981, 2003; Green,. 1989).

An early version of the logistics. - One that focuses on all charges. - To respond to the increase. The need for a holistic view of costs. How do growth and silo - Oriented as a result of the division have to go far. In 1950 this approach has begun. Shows the main weaknesses -. Trade off between the functions and agencies that are difficult to reach and sub-optimization of a large threat. Fortunately, new methods and tools that appear to solve the problem. Such models, operations research and computer technology emerging. So the first generation of materials management logistics. / Born in 1969 in response to problems and needs. - And the increasing availability of powerful tools.

Vision is' to ensure even flow of the continuous and stable quality of raw material suppliers. Users' (Ericsson, 1969b) is the order of navigation for the situation when all the members of the flow of thinking and acting as one. This vision is near. (1997) Towill concept of supply chain is seamless.

External conditions have changed again, with the rapid growth in the year. 1960 has been replaced by a zero growth 1970 The problem is that you can enjoy a large share of the pie is not growing. The solution is a second generation of logistics. - A focus on revenue - Depending on the logistics. Refers to the competition. One way to increase sales is to increase the visibility of the local shops and warehouses close to customers. The number of warehouses and the number of explosive items. - The capital tied up in inventory for a new challenge. This is called third generation of logistics. - Profit - oriented - those born in 1980.

During the 1980s and early 1990, the integration needs more and better both inside and outside to increase - But the communication and integration of rapid development. Demolition and business process management. Depending on the time of arrest and, if used correctly will be the basis for the use of powerful tools and effective ICT, new

The fourth and fifth generation of logistics. - Each one-time processing and IT - based - caused them to act as a springboard for increased and improved supply chain. It also demonstrates the need to focus on process Inter - Projectal than in educational institutions in the chain. Explain the meaning of different focused on the changes. SCM (Cooper, Lambert and Pagh, 1998) implementation. SCM has enabled and facilitated by Two boxes, a key tool in the development of the year. 1990 - Management of business resources and logistics. e -.

Business management resource

During 1980, the need for deeper integration and synchronization process in the area of work is urgent. To not get stuck in the silo or line unit is a focus. During the division of resources and processes. Holistic view of resource management to run that business. (BRM) (Ericsson, 1990), it is embedded in the management literature, classical The four main resource is a 'man,. Materials, equipment and money '-. The data is an important resource new Will be targeted at. Create a framework for integrating resources and the flow of the process.

BRM is how to handle a wide range of holistic and it is clear that fast. This can also be used. Basis for the management process. Projectal focus on resource flows and processes is a good starting point for the process. - Oriented SCM and DCM.

E - Logistics.

BRM is the ancestor of the expansion of the concept of logistics to e - Logistics - a tool for improving relationships between Projectal its response to the growth of interdependence. Between logistics and ICT.

The evolution of the concept of logistics describes the interactions between vision and tools. Early in the history of the development of logistics,. The device was left behind and vision. We want more tools. - In the mid-1990s, but the tools and vision beyond the next renewal is to create vision and how to use new tools. (Ericsson, 1996, 2003) E - Logistics has launched to provide a framework for using new tools of logistics,. To manage its supply and use of ICT. - And the opportunities created by the interaction between them. E - Logistics is the development of increased cooperation in the supply chain and also creates opportunities for true consumer orientation.

New tools to continue growing at that time. Focus on changing the length and the use For example, the concept of rapid response is not new. But a new and deeper meaning when used in the customer service orientation. Fast-moving industry. New ICT tools - especially customer database. - To improve relationships with customers and helping the sales and the technical requirements. New tools for connectivity. Database of corporate and business use are also growing rapidly.

Supply chain management.

Concept development, supply chain management. In response to the importance of improving and expanding cooperation. Relationships in the supply chain to move from the long arm, which often adversarial transaction on a different level. - The beginning of the integration of collaboration and working together. Then e - Logistics with a focus on management processes are Home Enabler of SCM and DCM.

There are several ways to set. Business processes (Cooper, Lambert and Pagh, 1998) I have chosen to distinguish between the three core business processes. .

Time is cash,.

Time - To - Market and

Creation and retention of customers.

Time to cash process, including materials, including information And current payments.

Left to market the entire process of creating, developing and improving products and services.

Create customer retention and creation process. And maintaining customer relationships along the way from first contact,. Through sales, tracking and continuous improvement. (Ericsson, 2003).

The difference between Logistics and SCM is clear if we use this process as a starting point. The concept focuses on the flow of raw materials to end users. MA / logistics have focused on the importance of flow Material and information flows are connected. In other words, the process time to focus on cash

The concept of SCM is also considering two other key processes. Other -.

Time - to - Market and.

Creation and retention of customers.

Thus, the concept of a wider concept. SCM / Logistics MA, with emphasis on the integration and coordination relationships between Projectal and this process is to change the directions. Focus person for the supply chain as a whole. SCM is developed. Drugs for reoccurring problem in communication between the agencies in the chain. It is important to 'get the business that acts as a'. Clear on the fact that Have increased competition between supply chains from each project will be recognized and accepted. (Christopher, 1992).

But in practice is still very 'us'. And 'they' supply chains with customers both inside and outside. Everyone talks about how customer-centric. They are not in use. This will create problems. exacerbated when the shift of power to walk down the supply chain to the end customer. Global competition, increased volatility and lower life cycle of the product display. It is clear that the problem does not require a new business model.

New business models of evolution.

We need a completely new way of thinking to the problems we have created using the old way of thinking.

Evolution of the concept of DCM is perhaps a step The first key will be reviewed. Change from yesterday to tomorrow's business model shows that shows that we are moving from push to pull. - From SCM to DCM, we are moving. Model, according to yesterday's Independent,. Corporate berbasis device is intended for tomorrow's generation low production costs with a virtual network that uses objective data to create added value. Perceived by consumers. Large number of manufacturers producing and marketing-driven mass is replaced by mass customization, and market-driven one-to-one marketing.

If we believe that This description is quite clear about where we and where we are heading. The question is how to get there. The first step is to make the adjustment, some internal and external And alignment.

Alignment within

A clear requirement for working closely with the logistics. / SCM and relationship marketing (Ericsson is. 2003) concept of relationship marketing has developed into a customer relationship management. (CRM), which enables businesses to target customers more closely and strategies. One-to-one marketing appropriate and consistent with that. SCM is becoming increasingly important. The key is to knit together the knowledge and expertise. SCM with knowledge of the market. / Sales and buyer behavior. This is a question of strategy within the ring will be the needs of the people on the basis of sales and marketing. / And logistics strategy / SCM to create a demand must be the same fulfillment needs. In theory, this will be obvious. But still have a long way before it is used in practice.

External alignment.

External processes and systems will need to get the alignment and synchronization. .

  1. Recognition of the value of customers and markets must be defined. Question to answer 'what explicit and implicit needs and the needs of customers. ".
  2. The value chain process to answer that question. 'What's the process that must be synchronized in order to meet the needs and requirements of the section? ".
  3. Supply chain network structure defined. (Supply chain) must be set to answer the question, 'Who is a key member of the value chain that is associated with the process? ".
  4. Elements of value chain management. Defined on the basis of the question 'What level of integration and management should be applied to the process of linking each "(Cooper Lambert, and Pagh, 1998).

The research mainly focuses on the contemporary. Contact DCM in the field of business is in a relationship. B2B channel, but the interface between trade and the consumer is most important. Due to meet the needs of the consumer wants and needs vary. Focus on understanding our customers and the warmth of consumer needs and demands. The major difference between demand-driven. SCM and DCM.

Demand chain management.

In the past year has been a serious discussion. SCM and DCM have a choice of one or another Other? DCM should replace the SCM? DCM is not just another name for supply chain demand-driven, or is it all new? My conclusion is that DCM natural next step in the evolution of the concept of SCM based on the need to adapt to changing external and internal conditions and the availability of new tools are. This is a problem. Adapt to changing circumstances and to create and use the right tools.

Response is the key to the new global economy. - And for how DCM 'Ecstasy customers. - The profit is the battle cry of the new global economy. (Ericsson, 2003) The key is to create value for consumers. But in a way that effectively Cost and efficiency. In short, how the mission. DCM.

From a theoretical perspective, DCM is a logical approach and focus on creating new business models for the community. Digital and around the world. Competition intensified and the availability of new tools to encourage a shift in focus The question is, we can see signs of a new generation of plants. - Or the concept of fashion is just academic?


There is evidence of DCM appears some in the business. Electricity for the year. In the distribution channel has moved from manufacturers to wholesalers and retailers. Today is the power to consumers. This will allow direct contact between programmers and consumers. Very important to strengthen the competition. Dell has resolved this problem by working closely with suppliers and customers. However, most programs can not pass through an intermediary,. To our relations with the shop is very important because they form the main interface with the consumer.

Automotive industry has been trying to deal with this problem for some people. Time and using all types of electronic devices. However, in the year. 2001 industry analysts said the business model "for the automotive industry corruption '(USA. Today, 2001), GM has begun to create a new model for the automotive industry, and they launched the project to "create a digital loyalty network through demand and Integrated supply chain '-. The purpose of the benefits of closer integration of the purchase. / Marketing, SCM, and ICT.

Retail,. Wal - Mart is often referred to the use of Information, intelligence and work all projects meet the needs of consumers. Which makes it possible automatically to the product list of stores just two days after the operation. IKEA bad the ability to move goods quickly from suppliers through warehouses and shops are impressive. Product is a collection and distribution to consumers in a manner convenient. Speed through the chain IKEA measure the total cost of logistics for its transportation, storage and inventory investment. Cost of capital is very important and Companies often work with two sources. - One of the region and provide suppliers with lower prices in Asia - Control system allows to switch quickly, depending on sales.

Fashion Industry is currently form the basis of new business models and Spanish company Zara is probably the best example. In the volatile world of fashion trends on and off. Style that is fast and efficient to reduce the impact of Zara obsolete and bring new products to stores quickly.

Notes summary.

What we can learn about the development of the concept of management? Of course, we will see history repeat itself. - Ideas that come and go and come back. The form of a fine and complete. For example, the orientation of the Consumer will be highlighted in the year. 1950 is the key to success in the 'new marketing concept'. Today, it is the key to the success of. DCM - a deep insight into consumers and have more tools available than the orientation of the customer. However, it is clear that the operations are the same. The problem with the concept of marketing and still takes time.

Unlearning is harder to learn. - To change the tool easier and faster than Change of ideas. The process of change must be in accordance with the vision and the corresponding frame of reference from prior experience. Operations must be well planned and systematic And language are generally required to change the network การฝึกอบรมและการศึกษาที่สำคัญ!

Koppala Gautam,.

Writer POME.

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