Essay About Nikon’S Concept And Nikon’S Scm

With the use of research – discuss Nikon’s concept of network design & as a group, how you would ensure that Nikon’s SCM (supply chain management) operates at a maximum level of efficiency & effectiveness. Organisations have come to realise the importance of having a high functioning supply chain network. A Supply chain network design is a method of finding and establishing facilities, determining the capacity the organisation will need, determining a method to acquire demand through the network and selecting the appropriate transportation mode that will supply the required level of customer service at the lowest cost. (‎Santoso, 2016). A basic supply chain model begins from where the product is sourced from that is a production plant and moves to its distribution centres to reach its final consumer. (‎Santoso, 2016).In a supply chain network design there are some complex factors that need to be considered  ,these factors include the sourcing and acquiring of materials, capacity constraints, transportation modes, lead times and all the costs involved. (‎Santoso, 2016). Nikon is an organisation that has three manufacturing plants. This organisation has to manage and ensure that all the manufacturing plants are always operating at their optimum levels. In order for Nikon to perform at their optimum level, the production facility will need to ensure that they have the right amount of materials, and also the materials used is of the right quality, workers are also an important contribution to the production process as the right amount of workers employed are adequate enough to operate the equipment as well as to maintain a problem free production process.  Nikon decided to outsource its distribution and logistics because their current infrastructure could not handle the work load thus UPS was selected as their distributor, they were set to  manage air and ocean freight and customs related brokerage.(2005). Nikon merchandise is transported to the UPS Supply Chain Solutions Logistics Center main campus( distribution centre), here the Nikon products are packed with accessories according to set specifications. The products are then ready to be distributed to the intermediaries that sell the Nikon products to the final consumer. UPS has a system in place to avoid stock outs and also gives Nikon advance shipment notifications throughout its operations in its markets.UPS acts as third-party operators as they have an agreement with Nikon to distribute the Nikon merchandise to buyers in the United States, Latin America And the Caribbean. In return Nikon will pay UPS an agreed amount for the service that UPS provides.UPS is creating a range of innovative solutions to support Nikon s supply chain.(2005) Efficiency is a measure of the way that the allocation of resources maximises outputs with the given inputs and technology. (Pienaar, Vogt, and Cronje, 2012). Efficiency is producing the products at the lowest possible cost and this cost also includes the logistics of getting the products to the final consumers. Nikon can do many activities to ensure maximum efficiency. Greater efficiency can be achieved th rough eliminating wastes in the processes. Nikon can do this by implementing the lean manufacturing system. This system focuses on eliminating waste by eliminating all the activities that are not adding to the customer. (Pienaar, Vogt, and Cronje, 2012). The lean system has three important pillars eliminating the wastes involved, involving everyone in the organization which also includes to using their ideas and continuous improvement, where the organization will see that there is no destination but the business is an endless journey that always needs improvement. (Pienaar, Vogt, and Cronje, 2012).