Proximity of the supplier's partners can have a substantial effect on the SCOR model. In the planning process, the time allotted for transportation is reduced. In case of sourcing, the time takes for manufacturer personnel to reach the suppliers decreases. Making is also positively affected; the supply specifications can be changed at a shorter notice if the supply chain partners are close. If the supply chain partners are close, delivery can be faster.
Similarly, the returns reach the manufacturing firm quickly allowing the manufacturer to modify, repair, or remake the products returned. The major goal of the supply chain management is to reduce supply costs, improve product margins and increase the production capacity of the producers. Nearness of supply chain partners reduces the costs of supply. It will also reduce the time of delivery as well as improve the plan of the SCOR model.
Based on the statement above regarding the proximity of suppliers' partners that impacting the SCOR model. Would you offer few examples to show how your company would decide your partners based on proximity?
We see the planning process. My company picks plastic pellets from wholesalers because the distance from the manufacturers is too long. Usually, the purchaser drives to the wholesaler, inspects the quantity available at his warehouse and immediately orders the pellets to be picked up in a truck. Had our plant been moved close to plastic pellet makers, our company could have loaded plastic pellets direct ...
This response presents a brilliant discussion on SCOR model