Can anticipatory logistics work in the corporate world? Why or why not?
Supply chain management is the driving factor of the supply chain process, and is one of the most important factors in the business world today. Products originating from raw materials, international sales shape the foundation in which a supply chain is built and has complex and significant contributions to the overall success. A customer’s demands and requirements need to have special attention paid to them to ensure that orders are accurately shipped, arrive on time undamaged, and with the correct specifications as designed. SCM is essential to minimizing the amount of access inventory and cut the unnecessary cost ...view middle of the document...
Not only are these individuals a part of the SCM process SCM also encompasses the management of materials, information regarding the material, and the funds to supply the materials for the raw production stage. . Supply Chain management is a process that is continuous, but can slow or even stop if the SCM process cannot see the needs of the customer, and not move the product in real-time to the customer. SCM is vital to the supply and demand concept, a foundation in which the SCM is built upon.
Anticipatory Logistics and the Military
The ability to predict the needs of the customer and also move an item or product as needed to maintain the sales and operational flow is Anticipatory Logistics. With the concept of Anticipatory Logistics, it provides the supply chain the opportunity to become an endless cycle of production and boost sales of items and products. Technology, especially integrated computer systems are the backbone of the concept of anticipatory logistics. For instance in the military we use a computer system called SARSS(Standard Army Retail Supply System) is an integrated computer system in which customers who need Class IV, III, VII, IX, and II parts blast their parts via the PBUSE system, or SAMS-E systems to the SARSS box so that the parts are placed in queue to be pulled at the nearest SSA(Supply Support Activity) for pick-up by the customer. The parts requested are in these computer systems and allow for the customer to order them at will. Not to mention that the AL works in this fashion for the SSA. There are OH(on hand) balances, and then there is retention points. The on OH shows how many parts of a certain NSN(National Stock Number) we have in stock and are able to supply to a customer. The AL comes into effect when we are dealing with the retention point. Once a part has been depleted or falls below the authorized quantity to be stocked the SARSS system automatically reorders that part to ensure that it may be on stock for customers to order. The Army has successfully managed to perfect the art of Anticipatory Logistics always providing the customers with parts. Anticipatory Logistics was a must for the military sector of the U.S. because of the rapid changes in the battlefield and the need for parts on the drop of a dime. Commanders in the military realized that this was the only way to ensure that all vehicles and personnel were in tip top shape and always in operational order.
Anticipatory Logistics in the Corporate World
Anticipatory logistics is us primarily by the US Army however the concepts of anticipatory logistics run a close line to supply chain management that the concept can be applied in the...