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Manufacturing flow process lead to shorter cycle times
The manufacturing process is produced and supplies products to the
distribution channels based on past forecasts. Manufacturing processes
must be flexible to respond to market changes, and must accommodate
mass customization. Orders are processes operating on a just-in-time
(JIT) basis in minimum lot sizes. Also, changes in the manufacturing
flow process lead to shorter cycle times, meaning improved responsiveness
and efficiency of demand to customers. Activities related to planning,
scheduling and supporting manufacturing operations, such as work-in-process
storage, handling, transportation, and time phasing of components,
inventory at manufacturing sites and maximum flexibility in the coordination
of geographic and final assemblies postponement of physical distribution
operations.
This concerns movement of a finished product/service to customers.
In physical distribution, the customer is the final destination of
a marketing channel, and the availability of the product/service is
a vital part of each channel participant's marketing effort. It is
also through the physical distribution process that the time and space
of customer service become an integral part of marketing, thus it
links a marketing channel with its customers (e.g. links manufacturers,
wholesalers, retailers).
This is not just outsourcing the procurement of materials and components,
but also outsourcing of services that traditionally have been provided
in-house. The logic of this trend is that the company will increasingly
focus on those activities in the value chain where it has a distinctive
advantage and everything else it will outsource. This movement has
been particularly evident in logistics where the provision of transport,
warehousing and inventory control is increasingly subcontracted
to specialists or logistics partners. Also, to manage and control
this network of partners and suppliers requires a blend of both
central and local involvement. Hence, strategic decisions need to
be taken centrally with the monitoring and control of supplier performance
and day-to-day liaison with logistics partners being best managed
at a local level.
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