Synergy Of Incident Management And Real-Time Technology: The Next Step In The Evolution Of Supply Chain Management

Abstract

Over the last two decades, the culture of the supply chain environment has transformed from one of mass production and distribution to one centered on pull-based demand sensing and response.  This transformation, in turn, has necessitated the use of more efficient supply chain operations.  One of the cornerstones of efficient supply chain operations is just-in-time (JIT) delivery and inventory reduction, both in-transit and in-facility (Anderson et al 2003, Simchi-Levi et al 2000).  The goal of JIT, a sub-part of a larger concept referred to as time-critical logistics (TCL), is to facilitate the delivery of materials only as they are required.  This practice, in turn, leads to improved efficiency by reducing inventory costs and idled capacity.  In addition, JIT provides increased customer orientation and responsiveness; two very critical elements in an environment of intense competition and rising fuel prices.  A vital part of JIT is the routing and scheduling of shipments.  Therefore, in order to effectively manage JIT, accurate predictions of routes and travel times are essential. (Miller et al 1999).  The JIT approach has dramatically increased the importance of reliability and efficiency throughout supply chain operations, in such areas as the sourcing of goods, transportation, manufacturing, and distribution.