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Logistics - Supply chain synchronization

Q: Beside nodes, performance cycle involves inventory assets. Inventory consists of which kind of stocks?

base - stock : held at a node and is typically 0,5 of the average shipment size Safety - stock : exists to protect against variance in demand and supply

6 important questions on Logistics - Supply chain synchronization

What is supply chain synchronization?

Multiform operational integration across a supply chain, in order to let all participants benefit from jointly planning and implementing logistical operations. Coordination of flows of materials, products and information is needed between partners, but also within individual companies. The goal is to reduce dwell time (time when the product is not gaining any value).

What is performance cycle structure?

Represents the elements of work necessary to complete the logistics related to customer accommodation, manufacturing or procurement. Because it integrates various aspects of work, the performance cycle is the primary unit of analysis for logistical design and synchronization. Information and transportation links all firms functioning in supply chain (all links are referred to as nodes)

Beside nodes, performance cycle involves inventory assets. Inventory consists of which kind of stocks?

base - stock: held at a node and is typically 0,5 of the average shipment size
Safety - stock: exists to protect against variance in demand and supply

What is the logistics performance cycle?

The logistics performance cycle is the basic unit of supply chain design and operational control. In essence, the performance cycle structure is the framework for implementation of integrated logistics across the supply chain.

What are dilemma's in reducing the logistics performance cycle uncertainty?

A major objective of logistics in all operating areas is to reduce performance cycle uncertainty. The dilemma is that the structure of the performance cycle itself, operating conditions, and the quality of logistical operations all randomly introduce operational variance.

What's the goal of performance cycle synchronization?

The goal of performance cycle synchronization is to achieve the planned time performance. Delayed performance at any point along the supply chain results in potential disruption of operations. Importance to speed is directly related to performance consistently. Given consistency as the primary goal, faster order cycles reduce inventory risk and improve turn performance.