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The Supply Chain The Supply Chain The Supply Chain The Supply Chain Forum of NITIEForum of NITIEForum of NITIEForum of NITIE

Basic Terms of Supply Chain ManagementBasic Terms of Supply Chain ManagementBasic Terms of Supply Chain ManagementBasic Terms of Supply Chain Management

Bonded storage: Secure storage of a product for which taxes such as excise tax, may become due,

when product leaves storage depending upon its destination. The warehouse owner guarantees to tax/tariff collecting agencies that product will not be released without payment of any taxes due depending upon where the product is shipped.

Beer game: A business game composed of a four

level supply chain. Early members of the chain (e.g., the manufacturer) do not see final demand directly, but only indirectly via the information, mainly in the form of orders received from their immediate downstream customer. Small

fluctuations in retail demand typically cause big fluctuations in demand seen by the manufacturer, illustrating the bull-whip

effect.

Deadhead: A positioning trip, in which the vehicle is empty (e.g., an empty return trip). A backhaul is preferred to a deadhead.

Advanced Terms of Supply Chain ManagementAdvanced Terms of Supply Chain ManagementAdvanced Terms of Supply Chain ManagementAdvanced Terms of Supply Chain Management

LIFR (Line Item Fill Rate): The fraction of line items that

are filled. For example, if a line item in an order requests ten units, then the line item is defined as filled only if all ten units are shipped. If all line items request just one unit, then the line item fill rate is the same as

the item fill rate. See also order fill rate and item fill

rate.

Reed-Bulwinkle Act: Legalized joint rate making by common carriers through rate bureaus; extended antitrust immunity to carriers participating in a rate bureau.

Obeya: Japanese word for "big room", similar in concept to a traditional “war room,” and containing charts and graphs which show milestones and progress to date, problem resolution activities, etc. A command center type atmosphere.

17th - 23rd AUG, 2011

To ensure a systematic and orderly way of solution to the problems, and their easy recorded is recommended widely known in the automobile market.

Advantages: 1. Easy and logically method, clearly shows Next steps of problem solution.

2. Often this is a required method of documenting the correction action for the customer.

3. An excellent way of reporting non-conformance’s to

suppliers and their corrective actions. 4. The method is known and used by all companies from

the automotive industry.

The 8 D problem solving

Methodology

GM to focus on smaller markets, to open 50 outlets in smaller towns

Car Maker General Motors is shifting its focus on tier III and smaller towns to boost its sales. GM

India president and MD Karl Slym told ET that the company is planning to increase its penetration in

smaller towns to beat the market slowdown. "In smaller towns, the impact of slowdown is very little as

people there don't rely much on car loans. With good monsoon in the hindsight and good signs this

year too, people in rural India are much comfortable," he said.

To tap the emerging markets, the company is planning to roll out 50 new outlets this year, all in

smaller towns and tier III cities. At present the company has 250 sales outlets in the country. "A

couple of years back; we would have our 60% per sales from metros and 40% from non-metros. But

now the figures have been reversed. Now with even deeper penetration in smaller cities, we expect

the sales contribution from smaller centre to go up to 70%," he said.

LINK: http://articles.economictimes.indiatimes.com/2011-08-13/news/29884301_1_beat-diesel-smaller-

towns-exports-cars

UniGroup launches new worldwide logistics division

As the current global workforce continues to remain in a fluid pattern

of activity, logistics providers are reinventing themselves to provide

value-added relocation services.

In an announcement made this week, UniGroup, Inc., the parent

company of transportation companies comprising United Van Lines,

Mayflower Transit and UniGroup Worldwide UTS, has introduced a

new global logistics company called UniGroup Worldwide Logistics.

UniGroup Worldwide Logistics specializes in tailored supply chain

solutions with a variety of global services including truckload, less-

than-truckload, flatbed and specialty transportation: freight

forwarding; distribution services; project management, IT relocations

and third-party logistics.

LINK: http://www.scmr.com/article/unigroup_launches_new_worldwide_logistics_

division/

Healthcare industry to expand and reconfigure their supply chains

Healthcare executives in the U.S., Europe and Asia are seeing both risks and opportunities as the

pace of change in the healthcare industry accelerates globally, according to a new UPS survey.

Facing unprecedented demands to reduce costs, keep up with fast-changing regulatory requirements

and ramp up innovation in the age of patent expirations and increased competition, executives are

making investment plans and looking to protect their intellectual property and market share.

Amid industry pressures and change, healthcare executives also are focused on investing in their

supply chains to increase their competitiveness. Technology investments ranked as the No. 1

strategy, with 86 percent of respondents reporting that they would invest in new technologies over the next three to five years.

LINK: http://www.logisticsmgmt.com/article/healthcare_industry_to_expand_and_reconfigure_their_supply_chai

ns/

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