Distribution Management in Small Medium Enterprises

Document Sample
Distribution Management in Small Medium Enterprises Powered By Docstoc
					Quality within Small to Medium size Enterprises (SMEs)




                                     Quality within
                                 Small to Medium size
                                  Enterprises (SMEs)

                               Cornering the supply chain

                          Author: Dr Rhys Rowland-Jones


 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)



DTI. 2005 Figures on SMEs

 • At present there are over 3.7 million Small to Medium
   Size Enterprises (SMEs) in the UK, this figure includes
   small firms which employ fewer than 10 people, and
   makes up over 90% of all firms in the UK, contributing
   around 40% to the to the UK’s Gross National Product




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)



Risky Business
 • Launching a small business can be risky and success is
   not always guaranteed. Businesses are most vulnerable
   to failure during the early years of trading, with 20% of
   new businesses folding within their first year and 50%
   within their first three years (DTI. 2005)




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)

                  Business executives' perceptions of
                      the quality of management
                                            0-10 Rating Scale
                       1995 & 1996                   1999 & 2000        2003 & 2004

       8

       7

       6

       5

       4

       3

       2

       1

       0
              Canada        USA           Germany      France      UK   Japan         Italy
                                                    Country
 Standards in Action
 www.bsieducation.org/standardsinaction
 Quality within Small to Medium size Enterprises (SMEs)



 What is Competitiveness?

Competitiveness is determined by the productivity with which an
 organisation uses its human, capital, and natural resources.

Productivity depends both on the value of products and services (e.g.
 uniqueness, quality) as well as the efficiency with which they are produced.

It is how firms compete in their chosen marketplace.

The productivity of “local” industries is of fundamental importance to
 competitiveness.


  Standards in Action
  www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)


SME Sources of Competitive Advantage
(based on Porter 1984)




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)



The SME in Context




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)



Managerial Issues
 • Concentration of resources on the firm’s core competencies such as
   supply chain management.
 • Increasing proportion of purchased goods and services as inputs
   into products.
 • Increased pressure to reduce inventories.
 • Applying advances in information technology to strategically
   manage supplier relationships and the supply chain itself.




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)



A Company’s Supply Chain




 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)


  Motor Vehicle Parts Distribution Chains
                                Dealer                                                Installer
                               network
                                                                                 Local
                                                                                 distributor

                                                                   Area
                                          Vehicle                  distributor
                                          manufacturer

                                                     Prime
          Distribution                               distributor                                   Distribution
           Chain of                                                                               Chain of Parts
              V.M.                                                                                Manufacturer
                                                                   Supplier



                                                               Sub-supplier


                                                                                               Source: Slack N.
                                Manufacturing                  Stockist                        ‘Operations Management’,
                                   Chain                                                       Prentice Hall 2004

                                                               Raw materials
 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)


      From cost driving prices up to prices driving cost down



                              Price
                                          Cost
                                                          Price




                                                                  Cost




                                             Time                  Time
                 From                                    To

 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)
                   Improving Performance Improvement
The Ferdows and DeMayer ‘Sandcone’ Model of Operational Improvement

                                                             Cost

                                                             Flexibility

                                                             Speed
                                                             Dependability

                                                            Quality

                                                         (FERDOWS & DeMAYER)
                                       Quality
                               Quality + Dependability
                          Quality + Dependability + Speed
                     Quality + Dependability + Speed + Flexibility
                Quality + Dependability + Speed + Flexibility + Cost
 Standards in Action
 www.bsieducation.org/standardsinaction
Quality within Small to Medium size Enterprises (SMEs)




     Discussion Questions



• Discuss and map the supply chain for your organisation
• What are the implications to your organisation’s overall product
  quality of this supply chain
• What kind of relationships does your organisation have with its
  supply chain?

 Standards in Action
 www.bsieducation.org/standardsinaction

				
DOCUMENT INFO
Description: Distribution Management in Small Medium Enterprises document sample