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88-402: When referring to overstock merchandise in the form of consumer goods in a retail operation, the term refers to goods that have never been purchased by a customer but that are considered excessive stock from shelves and/or warehouses. Excessive stock is typically discarded of in the following ways: returned to the manufacturer or original distributor; liquidated to companies that then resell it on

176-539: A web search for "excess inventories" in 2003, with a majority of websites offering to buy or sell "excess inventories" in specific sales categories. Supply chain management In commerce , supply chain management ( SCM ) deals with a system of procurement (purchasing raw materials/components), operations management , logistics and marketing channels , through which raw materials can be developed into finished products and delivered to their end customers . A more narrow definition of supply chain management

264-430: A competitive advantage. In the late 1990s, "supply chain management" (SCM) rose to prominence, and operations managers began to use it in their titles with increasing regularity. A supply chain, as opposed to supply chain management, is a set of firms who move materials "forward", or a set of organizations, directly linked by one or more upstream and downstream flows of products, services, finances, or information from

352-706: A continuous information flow. However, in many companies, management has concluded that optimizing product flows cannot be accomplished without implementing a process approach. The key supply chain processes as stated by Lambert (2004) are: Much has been written about demand management . Best-in-class companies have similar characteristics, which include the following: One could suggest other critical supply business processes that combine these processes stated by Lambert, such as: Effective business process integration in supply chain management requires not only continuous communication, but also strategic coordination across departments and partner companies. The main reason for this

440-462: A dedicated cold storage facility on-site. These catered for the overseas trade. They became the meeting places for overseas wholesale buyers where printed and plain could be discussed and ordered. Trade in cloth in Manchester was conducted by many nationalities. Behrens Warehouse is on the corner of Oxford Street and Portland Street . It was built for Louis Behrens & Son by P Nunn in 1860. It

528-697: A domestic storeroom. But as attested by legislation concerning the levy of duties, some medieval merchants across Europe commonly kept goods in their large household storerooms, often on the ground floor or cellars. An example is the Fondaco dei Tedeschi , the substantial quarters of German traders in Venice, which combined a dwelling, warehouse, market and quarters for travellers. From the Middle Ages on, dedicated warehouses were constructed around ports and other commercial hubs to facilitate large-scale trade. The warehouses of

616-455: A few key strategic activities. This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories. It is not clear what kind of performance impacts different supply-network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among

704-410: A fundamentally new system. This leads to a panarchical interpretation of a supply chain, embedding it into a system of systems , allowing to analyze the interactions of the supply chain with systems that operate at other levels (e.g. society, political economy, planet Earth). For example, these three components of resilience can be discussed for the 2021 Suez Canal obstruction , when a ship blocked

792-772: A product. This set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands. Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management (storage and inventory), and non-asset-based carriers, and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution, and performance management. Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or customers in their role as components of supply chain networks. This variability has significant effects on supply chain infrastructure, from

880-405: A range of commercial functions besides simple storage, exemplified by Manchester's cotton warehouses and Australian wool stores: receiving, stockpiling and despatching goods; displaying goods for commercial buyers; packing, checking and labelling orders, and dispatching them. The utilitarian architecture of warehouses responded fast to emerging technologies. Before and into the nineteenth century,

968-534: A second near Riverside, California . The centroid near Dayton is particularly important because it is closest to the population center of the US and Canada. Dayton is within 500 miles of 60% of the US population and manufacturing capacity, as well as 60% of Canada's population. The region includes the interchange between I-70 and I-75 , one of the busiest in the nation, with 154,000 vehicles passing through per day, of which 30–35% are trucks hauling goods. In addition,

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1056-447: A source to a customer. Supply chain management is the management of such a chain. Other commonly accepted definitions of supply chain management include: Mentzer et al. make a further distinction between "supply chain management" and a "supply chain orientation". The latter term involves a recognition that a business strategy cannot be fulfilled without managing the activities of suppliers and customers upstream and downstream, whereas

1144-463: A stage 2 supply chain, these are integrated under one plan, and enterprise resource planning (ERP) is enabled. A stage 3 supply chain is one that achieves vertical integration with upstream suppliers and downstream customers. An example of this kind of supply chain is Tesco . It is the third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and

1232-420: A storage temperature as low as −25 °C. Cold storage helps stabilize market prices and evenly distribute goods both on demand and timely basis. The farmers get the opportunity of producing cash crops to get remunerative prices. The consumers get the supply of perishable commodities with lower fluctuation of prices. Ammonia and Freon compressors are commonly used in cold storage warehouses to maintain

1320-399: A structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration". The importance of supply chain management proved crucial in the 2019-2020 fight against the coronavirus (COVID-19) pandemic that swept across

1408-432: A useful economic consideration. In mathematics and physics , a centroid is the arithmetic mean position of all the points in a plane figure . For supply chain management, a centroid is a location with a high proportion of a country's population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centroids have been defined, one near Dayton, Ohio , and

1496-455: A warehouse complex on the road towards Ostia, demonstrates that these buildings could be substantial, even by modern standards. Galba's horrea complex contained 140 rooms on the ground floor alone, covering an area of some 225,000 square feet (21,000 m ). As a point of reference, less than half of U.S. warehouses today are larger than 100,000 square feet (9290 m ). The need for a warehouse implies having quantities of goods too big to be stored in

1584-896: A warehouse may be referred to as a godown . There are also godowns in the Shanghai Bund . A warehouse can be defined functionally as a building in which to store bulk produce or goods ( wares ) for commercial purposes. The built form of warehouse structures throughout time depends on many contexts: materials, technologies, sites, and cultures. In this sense, the warehouse postdates the need for communal or state-based mass storage of surplus food. Prehistoric civilizations relied on family- or community-owned storage pits , or 'palace' storerooms, such as at Knossos , to protect surplus food. The archaeologist Colin Renfrew argued that gathering and storing agricultural surpluses in Bronze Age Minoan 'palaces'

1672-400: A warehouse to store and distribute the goods in response to local sales demands. This process includes managing tasks such as sorting, packaging, and delivering straight from the local warehouse accordingly. Overseas warehouses can be principally divided into two types: Self-operated and Third-party public service warehouses. Self-operated overseas warehouses are established and administered by

1760-401: Is supply chain resilience , defined as "the capacity of a supply chain to persist, adapt, or transform in the face of change". For a long time, the interpretation of resilience in the sense of engineering resilience (= robustness ) prevailed in supply chain management, leading to the notion of persistence . A popular implementation of this idea is given by measuring the time-to-survive and

1848-494: Is a four-storey predominantly red brick build with 23 bays along Portland Street and 9 along Oxford Street. The Behrens family were prominent in banking and in the social life of the German Community in Manchester. An Overseas warehouse refers to storage facilities located abroad. It plays a pivotal role in cross-border e-commerce trade, where local businesses transport goods en masse to desired market countries then establish

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1936-745: Is also important for organizational learning. Firms with geographically more extensive supply chains connecting diverse trading cliques tend to become more innovative and productive. The security-management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by the ISO and the IEC . Supply Chain Management draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach. An important element of SCM

2024-559: Is concerned with topics related to resilience , sustainability , and risk management , among others. Some suggest that the "people dimension" of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda. Supply chain management, techniques with the aim of coordinating all parts of SC, from supplying raw materials to delivering and/or resumption of products, tries to minimize total costs with respect to existing conflicts among

2112-404: Is important for the success of a cold storage facility. It should be in close proximity to a growing area as well as a market, be easily accessible for heavy vehicles, and have an uninterrupted power supply. Plant attached cold storage is the preferred option for some manufacturers who want to keep their cold storage in house. Products can be transported via conveyor straight from manufacturing to

2200-525: Is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute of Web 2.0 is to help navigate the vast information available on the Web in order to find what is being bought. It is the notion of a usable pathway. SCM 2.0 replicates this notion in supply chain operations. It is the pathway to SCM results, a combination of processes, methodologies, tools, and delivery options to guide companies to their results quickly as

2288-441: Is more economical in operation. The temperature necessary for preservation depends on the storage time required and the type of product. In general, there are three groups of products, foods that are alive (e.g. fruits and vegetables), foods that are no longer alive and have been processed in some form (e.g. meat and fish products), and commodities that benefit from storage at controlled temperature (e.g. beer, tobacco). Location

2376-542: Is that it can effectively improve agility. At the same time, this integration can help businesses respond quickly to changes in demand and improve customer satisfaction. Integration of suppliers into the new product development process was shown to have a major impact on product target cost, quality, delivery, and market share. Tapping into suppliers as a source of innovation requires an extensive process characterized by development of technology sharing, but also involves managing intellectual property issues. There are gaps in

2464-416: Is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials , work-in-process inventory , finished goods, and end to end order fulfilment from

2552-523: The Financial Times . In 1983 WirtschaftsWoche in Germany published for the first time the results of an implemented and so called "Supply Chain Management project", led by Wolfgang Partsch . In the mid-1990s, the term "supply chain management" gained popularity when a flurry of articles and books came out on the subject. Supply chains were originally defined as encompassing all activities associated with

2640-461: The time-to-recover of the supply chain, allowing to identify weak points in the system. The APICS Certified Supply Chain Professional (CSCP) program emphasizes the importance of managing risks and enhancing resilience. According to APICS, in order to manage global interruptions and preserve operational continuity, a robust supply chain is vital. More recently, the interpretations of resilience in

2728-496: The velocity of inventory movement. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. In Peter Drucker 's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. According to Drucker, "the greatest change in corporate culture—and

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2816-551: The "Industrial Structures Section." In the UK, warehouses are classified under the Town and Country Planning Act 1990 as the industrial category B8 Storage and distribution . Types of warehouses include storage warehouses, distribution centers (including fulfillment centers and truck terminals), retail warehouses , cold storage warehouses , and flex space . According to Zendeq there are 13 types of warehouses: These displayed goods for

2904-410: The 1890s. They were used at first mainly for lighting and soon to electrify lifts, making possible taller, more efficient warehouses. It took several decades for electrical power to be distributed widely throughout cities in the western world. 20th-century technologies made warehousing ever more efficient. Electricity became widely available and transformed lighting, security, lifting, and transport from

2992-406: The 1900s. The internal combustion engine , developed in the late 19th century, was installed in mass-produced vehicles from the 1910s. It not only reshaped transport methods but enabled many applications as a compact, portable power plant, wherever small engines were needed. The forklift truck was invented in the early 20th century and came into wide use after World War II . Forklifts transformed

3080-571: The 1960s and developed through the 1990s by the introduction of enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value-added and reducing costs through integration. A supply chain can be classified as a stage 1, 2, or 3 network. In stage 1–type supply chain, systems such as production, storage, distribution, and material control are not linked and are independent of each other. In

3168-465: The 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances , and business partnerships, significant success factors were identified, complementing the earlier " just-in-time ", lean manufacturing , and agile manufacturing practices. Second, technological changes, particularly

3256-462: The 21st century, we are currently witnessing the next major development in warehousing, automation . A good warehouse layout consist of 5 areas: Warehouses are generally considered industrial buildings and are usually located in industrial districts or zones (such as the outskirts of a city). LoopNet categorizes warehouses using the "industrial" property type. Craftsman Book Company 's 2018 National Building Cost Manual lists "Warehouses" under

3344-625: The I-75 corridor is home to the busiest north–south rail route east of the Mississippi River . Warehouse A warehouse is a building for storing goods . Warehouses are used by manufacturers , importers , exporters , wholesalers , transport businesses, customs , etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns, or villages. Warehouses usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for

3432-460: The activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners lead to the creation of the concept of supply chain management. Supply chain management is concerned with improving trust and collaboration among supply chain partners, thus improving inventory visibility and

3520-443: The assumptions of globalization, outsourcing and linear supply chains and to envision alternatives; in this example this could lead to local and circular supply chains that do not need global transportation routes any longer. Six major movements can be observed in the evolution of supply chain management studies: creation, integration, globalization , specialization phases one and two, and SCM 2.0. The term "supply chain management"

3608-459: The basic European warehouse was built of load-bearing masonry walls or heavy-framed timber with a suitable external cladding. Inside, heavy timber posts supported timber beams and joists for the upper levels, rarely more than four to five stories high. A gabled roof was conventional, with a gate in the gable facing the street, rail lines or port for a crane to hoist goods into the window-gates on each floor below. Convenient access for road transport

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3696-467: The canal for several days. Persistence means to "bounce back"; in our example it is about removing the ship as quickly as possible to allow "normal" operations. Adaptation means to accept that the system has reached a "new normal" state and to act accordingly; here, this can be implemented by redirecting ships around the African cape or use alternative modes of transport. Finally, transformation means to question

3784-552: The capacity of manual labour to lift and move heavy goods. Two new power sources, hydraulics , and electricity, re-shaped warehouse design and practice at the end of the 19th century and into the 20th century. Public hydraulic power networks were constructed in many large industrial cities around the world in the 1870s-80s, exemplified by Manchester . They were highly effective to power cranes and lifts, whose application in warehouses served taller buildings and enabled new labour efficiencies. Public electricity networks emerged in

3872-399: The chain partners. An example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill demands and the warehouse for which lower inventories are desired to reduce holding costs . In 1982, Keith Oliver , a consultant at Booz Allen Hamilton , introduced the term "supply chain management" to the public domain in an interview for

3960-423: The complexity and speed of the supply chain increase due to global competition; rapid price fluctuations; changing oil prices; short product life cycles; expanded specialization; near-, far-, and off-shoring; and talent scarcity. Increasing volatility has characterized supply chains since about 2000. Douglass in 2010 referred to an SCM management style known as "extreme supply chain management", which: recognizes

4048-557: The cross-border e-commerce enterprise. They only provide logistics services like warehousing and distribution for their own goods, implying that the entire logistics system of the cross-border e-commerce enterprise is self-controlled. On the other hand, a Third-party public service overseas warehouse is built and run by a separate logistics enterprise. There, they provide services including order sorting, multi-channel delivery, and subsequent transportation for multiple exporting e-commerce companies. This kind of warehouse broadly indicates that

4136-533: The delivery speed has certain advantages, which can improve the product price and increase gross profit to a certain extent. At the same time, it can also improve the consumer experience and stimulate the second consumption, so as to improve the overall sales. Modern term: Fulfillment house The main purpose of packing warehouses was the picking, checking, labelling and packing of goods for export. The packing warehouses: Asia House , India House and Velvet House along Whitworth Street in Manchester were some of

4224-440: The dramatic fall in communication costs (a significant component of transaction costs), have led to changes in coordination among the members of the supply chain network. Many researchers have recognized supply network structures as a new organizational form, using terms such as " Keiretsu ", "Extended Enterprise", "virtual supply chain", " Global Production Network ", and "Next Generation Manufacturing System". In general, such

4312-459: The elaborate Watts Warehouse of 1855, but four more were opened before it was finished. The Main Benefits of Retail Warehouse Challenges of Retail Warehouse Cold storage preserves agricultural products. Refrigerated storage helps in eliminating sprouting , rotting and insect damage. Edible products are generally not stored for more than one year. Several perishable products require

4400-544: The entire e-commerce logistics system is under third-party control. The fundamental business operations in overseas warehouses include the following: 1. Sellers send bulk products from their home country to an overseas warehouse where the staff undertakes inventory and shelving. When a buyer places an order, the seller sends delivery instructions to the warehouse system and local delivery is then executed based on those instructions. 2. In instances of issues with sellers' accounts or incorrect labels, goods need to be returned to

4488-460: The evolution of processes, methods, and tools to manage them in a new era of globalization and specialization. One element of this is the growing popularity of supply chain collaboration platforms that connect multiple buyers and suppliers with financial institutions, enabling them to conduct automated supply chain finance transactions. Web 2.0 is a trend in the use of the World Wide Web that

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4576-450: The expansion of supply chains beyond national boundaries and into other continents. Although the use of global sources in organizations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with

4664-419: The firm or the supplier-buyer relationship. Among the few exceptions is the relational view , which outlines a theory for considering dyads and networks of firms as a key unit of analysis for explaining superior individual firm performance (Dyer and Singh, 1998). The management of supply chains involve a number of specific challenges regarding the organization of relationships among the different partners along

4752-412: The flow and transformation of goods from raw materials through to the end user or final consumer , as well as the associated information flows. Mentzer et al. consider it worthy of note that the final consumer was included within these early definitions. Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve

4840-669: The former term is used for "the actual implementation of this orientation". Supply chain visibility, in its origins, was concerned with knowledge of the location/production stage and expected delivery date of incoming products and materials, so that production could be planned, but the development of the term has enabled it to be used to plan orders using knowledge of potential supplies, and to track post-production processes as far as delivery to customers. Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships, and control associated business processes. The overall goal of

4928-527: The foundation layers of establishing and managing electronic communication between trading partners to more complex requirements such as the configuration of processes and workflows that are essential to the management of the network itself. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to

5016-419: The goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing. In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements, as the supply chain extended beyond the company walls and management

5104-512: The home trade. This would be finished goods- such as the latest cotton blouses or fashion items. Their street frontage was impressive, so they took the styles of Italianate Palazzi . Warehouses are now more technologically oriented and help in linking stocks with the retail store in an accurate way. Richard Cobden 's construction in Manchester's Mosley Street was the first palazzo warehouse. There were already seven warehouses on Portland Street when S. & J. Watts & Co. commenced building

5192-518: The industrial revolution of the 18th and 19th centuries fuelled the development of larger and more specialised warehouses, usually located close to transport hubs on canals, at railways and portside. Specialisation of tasks is characteristic of the factory system , which developed in British textile mills and potteries in the mid-late 1700s. Factory processes sped up work and deskilled labour, bringing new profits to capital investment. Warehouses also fulfill

5280-399: The integrated planning and execution of processes required to optimize the flow of materials, information and capital in functions that broadly include demand planning, sourcing, production, inventory management and logistics—or storage and transportation. Supply chain management strives for an integrated, multidisciplinary, multimethod approach. Current research in supply chain management

5368-424: The late 1990s and has taken root primarily in transportation and collaboration categories. This has progressed from the application service provider (ASP) model from roughly 1998 through 2003 to the on-demand model from approximately 2003 through 2006, to the software as a service (SaaS) model currently in focus today. The term SCM 2.0 has been coined to describe both changes within supply chains themselves as well as

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5456-441: The literature on supply chain management studies at present. A few authors, such as Halldorsson et al., Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide theoretical foundations for different areas related to supply chain by employing organizational theories, which may include the following: However, the unit of analysis of most of these theories is not the supply chain but rather another system, such as

5544-430: The loading and unloading of goods directly from railways , airports , or seaports . They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets and then loaded into pallet racks . Stored goods can include any raw materials, packing materials, spare parts , components, or finished goods associated with agriculture, manufacturing, and production. In India and Hong Kong,

5632-421: The loss of millions of currency units as the product 's freshness may deteriorate to such an extent that it cannot be sold, as is the case with dairy products, fresh baked goods, flowers, produce, fish, and meat. It is also true of consumables such as oil, gasoline, paints, and medications. Time-sensitive items such as periodical literature are similarly at risk. Crandall and Crandall reported 238,000 responses to

5720-423: The middle of the 19th century. Strong, slender cast iron columns began to replace masonry piers or timber posts to carry levels above the ground floor. As modern steel framing developed in the late 19th century, its strength and constructibility enabled the first skyscrapers. Steel girders replaced timber beams, increasing the span of internal bays in the warehouse. The saw-tooth roof brought natural light to

5808-1002: The need for collective, rather than sequential, risk management and facilitates collaboration on a new scale that is necessary for survival. It challenges companies to be "perpetually vigilant". Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. In an example scenario, a purchasing department places orders as its requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through business process integration , e.g., using electronic data interchange . Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires

5896-402: The overall value chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is a leading reason why supply chain specialization is gaining popularity. Outsourced technology hosting for supply chain solutions debuted in

5984-422: The overseas warehouse for correction and re-sale. 3. A common transfer practice combines Amazon's FBA service with third-party overseas warehouses, where goods are initially stored and then intermittently moved to FBA for replenishment, while concurrently shipping from overseas warehouses. 4. The warehouses also handle supplementary services such as product returns and exchanges. By using an overseas warehouse,

6072-421: The players. From a systems perspective, a complex network structure can be decomposed into individual component firms. Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance. In

6160-427: The point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain . SCM is the broad range of activities required to plan, control and execute a product's flow from materials to production to distribution in the most economical way possible. SCM encompasses

6248-461: The possibilities of multi-level pallet racking of goods in taller, single-level steel-framed buildings for higher storage density. The forklift, and its load fixed to a uniform pallet , enabled the rise of logistic approaches to storage in the later 20th century. Always a building of function, in the late 20th century warehouses began to adapt to standardization, mechanization, technological innovation, and changes in supply chain methods. Here in

6336-407: The secondary wholesale or retail market; sold at an extreme discount to existing customers; or sold to salvage companies which then process metals and components of value. Techniques such as supply chain management and lean manufacturing are intended to avoid the excessive development of inventory. The initial damage caused by excessive stock is an early exhaustion of cash flow , which leads to

6424-434: The sense of ecological resilience and social–ecological resilience have led to the notions of adaptation and transformation , respectively. A supply chain is thus interpreted as a social-ecological system that – similar to an ecosystem (e.g. forest) – is able to constantly adapt to external environmental conditions and – through the presence of social actors and their ability to foresight – also to transform itself into

6512-402: The software is to improve supply chain performance by monitoring a company's supply chain network from end-to-end (suppliers, transporters, returns, warehouses, retailers, manufacturers, and customers). In some cases, a supply chain includes the collection of goods after consumer use for recycling or the reverse logistics processes for returning faulty or unwanted products back to producers up

6600-414: The subsequent loss of disposable capital available for investing. If a company has too much overstock inventory on its books, it may affect sales to the point where the company has to go out of business. Although this is rare, when overstock inventory is not properly managed and becomes too large a percentage of total inventory, it can result in bankruptcy. With perishable supplies, excessive stock can cause

6688-473: The tallest buildings of their time. See List of packing houses . The more efficient the pick and pack process is, the faster items can be shipped to customers. Pick and pack warehousing is the process in which fulfillment centers choose products from shipments and re-package them for distribution. When shipments are received by the warehouse, items are stored and entered into an inventory management system for tracking and accountability. Picking refers to selecting

6776-542: The temperature. Ammonia refrigerant is cheaper, easily available, and has a high latent heat of evaporation , but it is also highly toxic and can form an explosive mixture when mixed with fuel oil. Insulation is also important, to reduce the loss of cold and to keep different sections of the warehouse at different temperatures. There are two main types of refrigeration system used in cold storage warehouses: vapor absorption systems (VAS) and vapor-compression systems (VCS). VAS, although comparatively costlier to install,

6864-407: The term became widely adopted after the publication of the seminal book Introduction to Supply Chain Management in 1999 by Robert B. Handfield and Ernest L. Nichols, Jr., which published over 25,000 copies and was translated into Japanese, Korean, Chinese, and Russian. This era of supply chain management studies was highlighted with the development of electronic data interchange (EDI) systems in

6952-435: The top story of the warehouse. It transformed the shape of the warehouse, from the traditional peaked hip or gable to an essentially flat roof form that was often hidden behind a parapet . Warehouse buildings now became strongly horizontal. Inside the top floor, the vertical glazed pane of each saw-tooth enabled natural lighting over displayed goods, improving buyer inspection. Hoists and cranes driven by steam power expanded

7040-495: The trading port Bryggen in Bergen, Norway (now a World Heritage site ), demonstrate characteristic European gabled timber forms dating from the late Middle Ages, though what remains today was largely rebuilt in the same traditional style following great fires in 1702 and 1955. During the industrial revolution of the mid 18th century, the function of warehouses evolved and became more specialised. The mass production of goods launched by

7128-550: The value chain. Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and become more flexible, they reduce ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform

7216-451: The value chain. Formal and informal governance mechanisms are central elements in the management of supply chain. Particular combinations of governance mechanisms may impact the relational dynamics within the supply chain. The need for interdisciplinarity in SCM research has been pointed out by academics in the field. In the study of supply chain management, the concept of centroids has become

7304-581: The way business is being conducted—may be the accelerated growth of relationships based not on ownership, but on partnership." This approach allows companies to leverage the strengths and capabilities of various partners to achieve greater efficiency and innovation, ultimately enhancing overall business performance. In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett-Packard , to successfully operate collaborative supply networks in which each specialized business partner focuses on only

7392-564: The world. During the pandemic period, governments in countries which had in place effective domestic supply chain management had enough medical supplies to support their needs and enough to donate their surplus to front-line health workers in other jurisdictions. The devastating COVID-19 crisis in US has turned many sectors of the local economy upside down, including the country's storied logistics industry. Some organizations were able to quickly develop foreign supply chains in order to import much needed medical supplies. Supply chain management

7480-458: Was a critical ingredient in the formation of proto-state power. The need for warehouses developed in societies in which trade reached a critical mass requiring storage at some point in the exchange process. This was highly evident in ancient Rome, where the horreum (pl. horrea) became a standard building form. The most studied examples are in Ostia , the port city that served Rome. The Horrea Galbae ,

7568-428: Was built-in via very large doors on the ground floor. If not in a separate building, office and display spaces were located on the ground or first floor. Technological innovations of the early 19th century changed the shape of warehouses and the work performed inside them: cast iron columns and later, moulded steel posts; saw-tooth roofs ; and steam power. All (except steel) were adopted quickly and were in common use by

7656-803: Was distributed across specialized supply chain partnerships. This transition also refocused the fundamental perspectives of each organization. Original equipment manufacturers (OEMs) became brand owners that required visibility deep into their supply base. They had to control the entire supply chain from above, instead of from within. Contract manufacturers had to manage bills of material with different part-numbering schemes from multiple OEMs and support customer requests for work-in-process visibility and vendor-managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of several individual supply chains specific to producers, suppliers, and customers that work together to design, manufacture, distribute, market, sell, and service

7744-446: Was first coined by Keith Oliver in 1982. However, the concept of a supply chain in management was of great importance long before, in the early 20th century, especially with the creation of the assembly line . The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and widespread attention to Japanese management practices. However,

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