This is used to remove the sources of uncertainty. There are 2 basic ways to improve supply chains, by changing structure or infrastructure. Changes in structure are related to bricks materials while infrastructure change is related to people and systems.
Structural change includes capacity, facilities, process technology and virtual integration. There is long range and require capital. Infrastructural includes people, information systems, organization production an inventory control and quality control system. These are called soft changes.
The improvement should either reduce uncertainty or replenishment time reducing replenishment is a major approach to supply chain management. Replenishment time can be reduced by changing either the structure or infrastructure a long the supply chain.
Changes in structure rearrange the elements of the supply in the major way. Infrastructure can be improved by making partnership between suppliers and customers. It is alone by cross-functional which improves the communication between the departments. Another way is improving the information systems. Sales data from the final customer should be obtained and this is fed back through the supply chain.
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