How design thinking can turn SCM strategy into reality 

 Challenge : 

 Since the introduction of the term supply chain management ( SCM ) in 1973 . it has received ever- growing interest both in the literature as well as from industrial practice . A reason for this might be   that it has so many facets and that the tasks of accomplishing the aims of SCM are so demanding   that it is more an ongoing endeavor than a single short - term project . This broad scope of SCM   incurs the difficulty of finding a suitable definition and description of the term . 

 we are concerned with the future of advance planning system which may give rise to future   research . Three areas for improvements are proposed : Improvements which are possible within   the modules of today ’s advance planning system , issues which challenge the premises of today ’s   advance planning system , and last but not least two business functions are identified which should   be better integrated with advance planning system . 

 Selection : 

 The network of organizations that are involved , through upstream and downstream linkages in the   different processes and activities that produce value in the form of products and services in the   hand of the ultimate consumer . ’ This definition stresses that all the activities along a SC should be   designed according to the needs of the customers to be served . Consequently , the ( ultimate )   consumer is at best an integral part of a SC . The main focus is on the order fulfilment process and   corresponding material , financial and information flows . 

 Application : 

 Competitiveness and customer service The roof of the house of SCM depicts the ultimate aim of   SCM , namely improving competitiveness of a SC as a whole . This is achieved by directing the SC in a   sustainable , strategic position compared to its competitors . An important means to achieve this aim   is customer satisfaction . Excellent examples of how to focus SC processes on customers are given by   two case studies ( Berry et al . , 1999 ; Childerhouse et al . , 2002 ) , which––based on the work of   Skinner ( 1974 ) show how to analyses the strengths and weaknesses of a SC in a competitive   market . Concentrating on order qualifiers and order winners , a methodology is proposed for   market segmentation followed by the re - engineering of a specific order fulfilment process for each   market segment . 

 Insight : 

 An issue of the ‘ correct ’ input data for decision models . Although technically possible , there is no   direct link between an APS and a company ’s cost accounting system . The reason is that costs   calculated in accounting systems serve several purposes , like an ex post evaluation of the   profitability of a specific customer order or the total cost of a machine hour , but usually not to   become an input to decision models . Recently , there has been a renewed discussion about the   ‘ correct ’ inventory holding costs in purchasing models . The usual approach is to specify the   inventory holding cost per item per period as the interest to be paid on the value of that item . 

 Approach : 

 This approach is challenged in case there are different sources of supply for an item at different   costs per unit . Since it is not clear which items are withdrawn first e.g. the cheapest or the most   expensive ones the ‘ value ’ of the remaining inventory is no longer clear . One way to overcome this   problem is to convert the objective function into minimizing the net present value of cash flows .   However , assuming that compound interest is negligible , it shown that cost accounting figures may   still result in correct decisions , if holding costs are not attributed to inventory levels but to the   material flows . This example highlights the need for further research efforts for making use of   accounting data within APS . 


EMAIL: 
ID_NUM: 
NAME_STUDENT: 
PHONE_NUM: 
STREET_ADDRESS: 
URL_PERSONAL: 
USERNAME: 

### Task: You are a PII (Personal Identity Information) Detection. Given a essays written by students, you have to identify ONLY the following:
NAME_STUDENT - The full or partial name of a student that is not necessarily the author of the essay. This excludes instructors, authors, and other person names.
EMAIL - A student’s email address.
USERNAME - A student's username on any platform.
ID_NUM - A number or sequence of characters that could be used to identify a student, such as a student ID or a social security number.
PHONE_NUM - A phone number associated with a student.
URL_PERSONAL - A URL that might be used to identify a student.
STREET_ADDRESS - A full or partial street address that is associated with the student, such as their home address.
### Input: How design thinking can turn SCM strategy into reality 

 Challenge : 

 Since the introduction of the term supply chain management ( SCM ) in 1973 . it has received ever- growing interest both in the literature as well as from industrial practice . A reason for this might be   that it has so many facets and that the tasks of accomplishing the aims of SCM are so demanding   that it is more an ongoing endeavor than a single short - term project . This broad scope of SCM   incurs the difficulty of finding a suitable definition and description of the term . 

 we are concerned with the future of advance planning system which may give rise to future   research . Three areas for improvements are proposed : Improvements which are possible within   the modules of today ’s advance planning system , issues which challenge the premises of today ’s   advance planning system , and last but not least two business functions are identified which should   be better integrated with advance planning system . 

 Selection : 

 The network of organizations that are involved , through upstream and downstream linkages in the   different processes and activities that produce value in the form of products and services in the   hand of the ultimate consumer . ’ This definition stresses that all the activities along a SC should be   designed according to the needs of the customers to be served . Consequently , the ( ultimate )   consumer is at best an integral part of a SC . The main focus is on the order fulfilment process and   corresponding material , financial and information flows . 

 Application : 

 Competitiveness and customer service The roof of the house of SCM depicts the ultimate aim of   SCM , namely improving competitiveness of a SC as a whole . This is achieved by directing the SC in a   sustainable , strategic position compared to its competitors . An important means to achieve this aim   is customer satisfaction . Excellent examples of how to focus SC processes on customers are given by   two case studies ( Berry et al . , 1999 ; Childerhouse et al . , 2002 ) , which––based on the work of   Skinner ( 1974 ) show how to analyses the strengths and weaknesses of a SC in a competitive   market . Concentrating on order qualifiers and order winners , a methodology is proposed for   market segmentation followed by the re - engineering of a specific order fulfilment process for each   market segment . 

 Insight : 

 An issue of the ‘ correct ’ input data for decision models . Although technically possible , there is no   direct link between an APS and a company ’s cost accounting system . The reason is that costs   calculated in accounting systems serve several purposes , like an ex post evaluation of the   profitability of a specific customer order or the total cost of a machine hour , but usually not to   become an input to decision models . Recently , there has been a renewed discussion about the   ‘ correct ’ inventory holding costs in purchasing models . The usual approach is to specify the   inventory holding cost per item per period as the interest to be paid on the value of that item . 

 Approach : 

 This approach is challenged in case there are different sources of supply for an item at different   costs per unit . Since it is not clear which items are withdrawn first e.g. the cheapest or the most   expensive ones the ‘ value ’ of the remaining inventory is no longer clear . One way to overcome this   problem is to convert the objective function into minimizing the net present value of cash flows .   However , assuming that compound interest is negligible , it shown that cost accounting figures may   still result in correct decisions , if holding costs are not attributed to inventory levels but to the   material flows . This example highlights the need for further research efforts for making use of   accounting data within APS .
### Output: 