The world of supply chain management benefits directly from using the creative and the critical side of your brain. Nowhere is this more evident than in the management of inventory. It should come as no surprise that many creative ways exist to address the value, velocity, and volume of inventory across a supply chain. But, at some point creative thinking must give way to critical thinking as these ideas undergo a thorough analysis. Based on the information shared within the chapter which do you think would be most creative for your organization if they were a global company? Explain your reasoning for selecting this model.
Chardonnay Schwartz
Greetings class and professor,
This world is interconnected by various forms of transportation in order to accomplish the mission. Based on the information learned this week and the need for creative acts within an organization I would combine containerization in conjunction with Just-In-Time inventory management systems.
First, the basis around containerization is putting two or more different packages or items in one large box for a single shipment. This creative form of transportation has revolutionized logistics by allowing companies to make less trips, use less packaging, and optimize production through bulk shipments.
Secondly, just in time transportation allows companies to schedule drop offs perfectly for a customer to be there for the package. This allows companies to be more efficient, reduce operational costs, and enhance customer service.
Lastly, combining these two logistical innovations can create a powerhouse for my organization. This would allow my global company to utilize containerization concepts with JIT for optimal organizational performance. Utilizing containerization will standardize the shipping process across the board globally, leaving less room for error when shipping overseas. Continuing, this will allow my company to ship bulk products to various locations, when combining this concept with JIT the potential for loyal customers will grow with improved delivery ratings.
These two methods stand out for their ordinary but extraordinary concepts. Both concepts take basic logistical concepts such as packaging, stability, efficiency, and effectiveness a transformed them with the everchanging times to produce a higher satisfaction rating. I believe these two concepts together create a powerhouse in the logistical realm, putting my company on the map.
Sources:
Danese, P., Romano, P., & Bortolotti, T. (2012). JIT production, JIT supply and performance: investigating the moderating effects. Industrial Management & Data Systems, 112(3), 441-465.
Watada, J., Roy, A., Kadikar, R., Pham, H., & Xu, B. (2019). Emerging trends, techniques and open issues of containerization: A review. IEEE Access, 7, 152443-152472.
Jamian Ross
When considering the most creative inventory management model for a global company, several factors come into play, including adaptability, efficiency, scalability, and sustainability (Mwakakungu et al., 2019). One model that stands out in this is the “Just-in-Time” (JIT) inventory management system. This model aims to minimize inventory levels by synchronizing production with customer demand. Instead of holding large inventories. Instead of holding large inventories, organizations utilizing this model rely on suppliers to deliver raw materials and components just in time for production, and finished goods are shipped to customers immediately after production. This minimizes the risk of obsolete inventory. By eliminating excess inventory, JIT forces companies to identify and address inefficiencies in their processes. Moreover, this model enables companies to respond quickly to changes in customer demand and market conditions. With real-time inventory data and flexible production capabilities, companies can adjust their production schedules and supply chains accordingly (Mwakakungu et al., 2019).
Furthermore, JIT promotes sustainability by minimizing waste and reducing the environmental impact of production and transportation. By producing only what is needed when it is needed, companies conserve resources and lower their carbon footprint. This aligns well with the growing trend of corporate social responsibility and environmental stewardship, enhancing a company’s reputation and brand image in the eyes of environmentally conscious consumers and stakeholders (Mwakakungu et al., 2019).
Despite all these benefits, JIT also presents challenges and risks, particularly concerning supply chain disruptions and dependencies; relying on just-in-time deliveries increases vulnerability to disruptions such as supplier failures, geopolitical events and natural disasters. This means that global companies must carefully assess and mitigate the risks through approaches such as diversification of suppliers, strategic partnerships and robust contingency plans (Mukwakungu et al., 2019).
Reference
Mukwakungu, S. C., Mabasa, M. D., Mankazana, S., & Burakeye, S. A. (2019). The impact of just in time (JIT) in inventory management–perspectives from two case studies in a South African environment.
