Logistics: managing the global maze

Since the beer game we were playing during the last seminar caused some confusion in terms of coordinating the different stages in the supply chain, I found an interesting article in a journal specialized in logistics called “Logistics Management”. The article not only gives proof of what we probably have already suspected; that superior intra- supply chain coordination reduces inventory costs. It also sheds light on the results of an increase in collaboration with consumers. The article shows that the gain of investment in research of one’s consumer demands exceeds the additional costs of doing so. In easier words; by being able to predict better the future demands of our customers we save significant money from less inventory. Applied to our beer game in class, we could have predicted better the demand in the next turn and make it easier to plan. Unfortunately we could not ask our imaginary customers if they were in the mood for some more beer in the upcoming turn. However, the article might help us to understand the significance of a functioning information system within the supply chain.

Link: : http://bt.e-ditionsbyfry.com/publication/?m=24618&l=1%2F

By: Konstantin Brosch

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