Impact Of E Commerce On Adidas

Impact Of E Commerce On Adidas The next of kin of Adidas registered and laid a foundation named after Adi Dassler in 18th August, 1949. According to a source, removable studs were athletes, footballer footwear choices. Its first soccer appearance was the miraculous victory of Germany against Hungary named as Miracle of Bern in 1954. The presiding years were a talk through aiding an unconventional performance, commitment that desire athletes both from indoors (table to lawn tennis) and outdoors (short to long jumps) etc events. A remarkable high jumper Fosbury Dick stepped into lime light in Adidas foot wear world in the late 1960s. The company has progressed from the death of Adi Dassler to the era of his family members including wife, son and daughters 1980s. with new management in place, where the company CEO became the driving force with Robert Louis Dreyfus reshaping its early functions from being manufacturing and sales to marketing company in 1990. This transition processed to a public liability company, floating on Frankfurt and Paris Stock Exchange in 1995. While in 1996, it achieved a 50% apparel sales increase which recorded its splendid year. As in December 1997, Adidas acquired a Salomon Group (Bonfire, TaylorMade, Salomon and Mavic) renaming as Adidas Salomon AG. The momentum of the new brand started gaining ground with a noticeable digit during the first half of 1999. Remarkably produce efficiency programmes and ambitious growth in 2000. The Olympic Summer Games and the European Soccer Championship, where Ian Thorpe takes three gold medals, contribute to the companys growth. In January 2006, Adidas bought over Reeboky a well known sporting goods industry as its competitive worldwide platform while beginning wider range of product, stronger presence and dominance across athletes, teams, leagues and events. In May the same year, Adidas was renamed from Adidas Salomon AG to Adidas AG were her core strength was narrowed in the apparel, golf category and athletic footwear market. How it used to do business and how e-commerce has transformed its method of working. Adidas earlier business days used to be from factory to warehouse and distributing to different locations, supplying to larger shops. Then, they advertise their goods and service via TV, Radio, and Billboards. But today e-commerce has changed it all by emerging innovation of ecommerce interest. A lot has seen the profit made from this technology and more are still on its way while transforming the pattern businesses transact with each other, in the awake of globalization Online market has not risen to a new height with the significant growth of e-commerce. More also, there has been a communication aspect of customer service to consider, by e-commerce, they found a way by communicating to their customers in electronic. Companies offer a higher percentage of independence for customer products and services of which its top notch deliverable is communicated. So, in that way web and the internet have made it easier for their customers to see what product they want online and order and pay online. The E-commerce Advantages and Disadvantages on Adidas. Customers empowerment: It is a trend that will continue with greater broadband penetration. The adoption of mobile browsing further increases accessibility and the use of social networking sites. This connectivity between consumers offers marketers the opportunity to leverage a growth channel and face the disturbing reality that brands are no longer solely in charge of the information consumers have available to them. Consumers are undoubtedly firmly in control, and with this empowerment have come a greater sense of expectation around service levels and value, and also gives customer wider range to choose from. The objectives to reach diverse people, culture and region promote the sensation around a defined market niche becomes the primary focus of marketing and communication. Most marketing companies communicate with prospective customer in other to establish relationship that may or would result in lasting trust by volunteering free or a trial based product that will build expected brand awareness. Marketing communication maintains customers trust by providing information and reinforcing a purchase habit about the brand benefit. The main objective is based on maintaining a database of customers that would patronize company product and reinforce relationship for prospective retailers and customer base. And product range is where the customer can select online what good and whats not good for and decide what to shop online. Price is where you can check on the favourable goods which is lower is a different product and different company by differentiating which cheaper and better product to buy from. Many Associated costs both in financial and social terms. New skill sets: By increasing awareness, technology and globalisation demand with a new approach from the learning and development specialist. The challenge today is about creating an effective environment in which learners develop the relevant knowledge and skills. This requires a new mindset and skill set from learning and development specialist. Keeping up with technological changes and reviews the case for a global convergence of approach to learning, training and development and determines the extent to which the national cultural differences matter. Retraining staff: By giving employees renewed skills through retraining can be of benefits to them as well the company. This also means their employees are tooled up, which is always of benefit to the company and facing the world which is changing all the time. The present job market requires people to constantly need a portfolio of skills, which means turning a boost for staff if they are given retraining by their firm. Positions downsized or eliminated: Downsizing simply means lying off employees. Management staffs discuss in team determining the cost needed to reduce the expenses and what it takes to secure a high financial reserve. For these very reason downsizing occur, it is normally whereby it is the main fact that fewer employees are necessary to maintain a successful operation, and in many cases where technological advance or breakthrough makes it possible to replace a previously human job. It can also be caused by market or change in government policies which force corporate executives to make coinciding decisions regarding their staff. More also, the major problems in todays business world are the salaries being paid to the workers, since employers are not paying their workers high wages, the workers have little to put back into economy. This forces the companies to downsize to keep from going under. What risks both social and financial the company incurred in introducing an e-commerce system to an organisation. Talking of strategic risks,, there are also many practical risks to manage which if ignored, it can lead to bad customer experiences and bad news stories which lead to damage to the reputation of the company. However, if the customers experience a very bad service, and stop using it, and switch to other online option. Experience which can include the following: . Hackers penetrating the security of the system and stealing credit card details. . Problems of fulfilment of goods ordered online, meaning customer orders goes missing or is delayed and the customer never returns. . E-mail customer-service enquiries from the web site dont reach the right person and are ignored. . Web sites that fail because of a spike in visitor traffic after a pea-hour TV advertising campaign. . Involve in Potentially breaking privacy and data protection laws. The impact that e-commerce has had on its consumer. When exchange of money for goods services happen within or as a transaction between two or more people, its normally done in actual store through business making in person. Electronic commerce or e-commerce as it is widely known suddenly became much more common place, the ability to make a purchase solely on online without having to leave the home was a new idea that has since changed the face of business. Websites such as Amazon.com and Ebay.com were pioneers in this field. In this present days, there are lots of e-commerce websites that people can purchase items from, everything from books and clothing to groceries and pc, tv, phones can now be bought through a website, it all have an impact on economy. By servicing making a doctors appointment can be done through the internet. People can now shop online in the privacy of their own homes without ever having to leave. Using ATM makes it easy for withdrawing cash, and blog for comments. E-commerce has also made it easy for geographical reach, and also can help on online auction. How the company met the challenge of new technology. We can say it is all about improving performance, they explore new processes and technologies when environmental considerations comes in, then the companys team identifies the performance enhancing technology which allows them to build to build the high performance equipment in the most environmental friendly way. There are ways the company met the environmental issues, by change of infrastructure, environmental adaptation, how the component is made and the choice of materials. This is where the company will explore if the component can be thinner, using the less materials means, less waste, less embedded carbon. The component can be made from a lighter material, then that will also reduce carbon emissions, making them for a lookout for bio-based alternatives. Lastly, their current development involving the amount of glue used has been reduced by using laser welding or mechanical locking design, thereby reducing emission What security issues it encountered. Technology: Faces the problems of hackers which break into the entire networks using unsecured wireless devices or access point. Unauthorized users can piggyback onto unsecured networks to use the bandwidth to perform illegal activity and steal sensitive data. Hackers can flood the wireless network with data to make it unusable. Financial: The financial security issues which are complying with the respective applicable laws and regulations. Not ensuring full, fair and accurate, timely and comprehensible disclosure of information in reports, documents and all other publications prepared by them. Not ensuring the timely and accurate documentation of all business transactions in the Adidas group, and that all the assets and resources used by belonging to or entrusted to the Adidas group, are handled responsibly. By not maintaining and share the knowledge required for dealing with financial matters. Physical: In a business environments, physical security of the server maybe lacking or even nonexistent, they encounter problems with employees who steal or sabotage company data, with all the added risk of the network based attacks, the sever will be subjected to connecting it to the internet, keeping the server secured is more of a challenge. Like file security, share security, and password security. Documents which also commonly encountered security problems which can also use troubleshoot and resolve the problems quickly. Though with the password, file and network policies in place to secure access to the server, there is no substitute for solid physical security of the server, if anyone, thief or employee, has physical access to the server, company data can be deleted, compromised, or stolen. How it was able to take advantage of new distribution and sales channels. The function is organised in three distinctive channels, wholesales, retail and e-commerce. By creating business models, their aims are to service multiple customer and consumer needs to fully leverage brand potential, be more responsive to market developments and manage channel synergies by establishing best practices worldwide. They based on availability, convenience and breadth of product offering, as a result, continuously refining the distribution proposition with a strong focus on controlled space includes: . Own-retail business . E-commerce . Mono-branded franchise stores . Joint ventures with retail partners . Co-branded stored with sport organisations and brands To increase the global brand presence and ensure further growth of our business, their global sales function has set up a comprehensive initiative called integrated distribution roadmap. The initiative encompasses a joint approach between the three channels to identify where they want their brands to be represented and in which distribution format in key markets. The initiative will allow us to define how best to capture the consumer in the biggest and most attractive cities around the world without cannibalising the brands and distribution mix. The roadmap is designed to ensure market share growth in underpenetrated affluent cities. Examine what impact that e-commerce has had on the business. The impact of e-commerce on the business has been huge success by enabling businesses and consumers to connect with each other to exchange and share information anyway anytime. Has also made an impact on warehousing space reduction, wider range of customers, more commendation, stock control, stock/share trading. Establishing an online presence to maintain their competitive edge, along with high speed internet connections, the internet has become an essential tool for any business to compete domestically of globally. Businesses are developing web sites to provide their consumers and business partner with information. Show specific reference to increased competition. Several competing firms which are fiercely competing with Adidas which include Nike, Umbro, Puma, Fila, Reebok and Fortune Brands Inc. Adidas did ensure that their goods are high quality at a reasonable price in order to keep the market share. Lower overheads/increased sales etc. Financial expenses income up: Increased income of 28% to à ¢Ã¢â‚¬Å¡Ã‚ ¬133 million in 2010 from à ¢Ã¢â‚¬Å¡Ã‚ ¬19 million prior year, mainly due to an increase in interest income as well as positive currency exchange rate effect. The sales development is driven by the positive rising in consumers confidence as the global economy continues to improve. Financial expenses decrease: Financial expenses decreased 34% to à ¢Ã¢â‚¬Å¡Ã‚ ¬ 113 million in 2010 (2009: à ¢Ã¢â‚¬Å¡Ã‚ ¬ 169 million). The non-recurrence of prior year negative currency exchange rate effects as well as lower interest expenses contributed to the decline. What legislation both old and new it had to deal with. Trademark: Its logos (three strides, the globe and trefoil devices), not limited to mark word as Adidas alone but all included, are registered trademarks of Adidas, unless state otherwise including affiliates. Not to use, copy, reproduce, republish, upload, distribute, modified and post transmit in any form from Adidas trademarks, without Adidas prior consent neither advertisement nor publication is permitted even though it might pertain major distribution gains on site materials. In any external internet site is the creation of links, hypertext, links or deep links between the site and other internet site is prohibited without the express consent of Adidas. Thus, this includes links to partners that may use Adidas logos as part of a co-branding agreement. Although Adidas seeks to protect the integrity of its site, the site can link to have their own separate privacy policy but Adidas is not responsible and cannot be liable for the content and activities of these sites. Copyrights: Adidas remains the sole owner of entire content contained in the copyright portfolio. Only if the specific or indicated documents within the site state otherwise but you remain unauthorized to print, download, audio, document, view, play, reproduce, license, produce, transfer or sale any content, but you may be authorized to view, play videos or audio found within the site information, personal and non-commercial purposes only. Nevertheless, if authorized under the law relating to copyright, you may not reuse any Content without first obtaining the consent of Adidas. In downloading software applications such as; videos, wallpaper, icon and screensavers etc. from the Site, these software, includes any files, images incorporated in or generated by the software, and data accompanying the software are licensed to you by Adidas. Adidas does not transfer title to the Software to you. You own the medium on which the Software is recorded, but Adidas retains full and complete title to the Software, and all intellectual property rights therein. You may not redistribute, sell, decompile, reverse engineer, disassemble, or otherwise reduce the Software to a human-readable form. Differing countries regulations and legislation: Its a world of different countries with different rules, regulations and laws, within each country rules, regulations and laws for that country apply. Your own countrys legislation does not apply to any other country. And another countrys legislation does not apply to your country. Different countries have different rules. Its a way of country of origin to differentiate the product. More also, its the requirements for a country of origin markings which are complex and depend on import country requirement for disclosure is essential too. While so many product made within European Union carry the marking Made in EU. Shipping products from one country to another will have to be marked with the country of origin, and country of origin trade preference programs, antidumping and government procurement. What monopoly powers it had to deal with both within its own market and issues affecting it. It had to deal with control and without any competition, since they have other competitors; it has to deal with price control. Like the Microsoft which is an example of monopoly, using its power in one area to gain market share in another area. Because it had a monopoly for web browsers Controlling different stages of production, new web browsers were at a disadvantage because it was too much effort to change from the wed default browser. Show how e-commerce has opened up new lines of communication within the company. E-mails: Electronic mail is a message sent across through the Internet, or a system for transferring messages between computers, mobile phone or other communications upload on the Internet. The time scales high when email servers are networked to all computers in big medium size company, the server have gateways which computer systems or networks enable all users to send information anywhere/anytime to any system in the world. All internet service provider (ISP) and online services enable rich messaging experience. Text: Its a fast way of communicating to customers and getting feedbacks, its a speed way of send sales promotions, confirmation of orders and confirmation of payments. Mobile phones: Which is known as Scan2buy, which is mobile phone services for e-commerce for company to maximise their profits and move into the growing mobile phone ecommerce market. Can also be used for of payment, its in operation in Japan, which helps customers to make purchase or transfer using simple text messaging on their mobile phones. Pagers: Its a product with a services and business communication solutions, by enhancing collaborative sharing of information in a grid pattern especially when the issue of e-commerce whose pivot lies on a very secure communication channel and data transmission layer for organizations reputation. E-Newsletters: This is a way for communication, to reach out to the customers, to make them aware of the companys product or services and to give them reason to buy the companys product. Its a type of communications includes the companys brochures and various forms of advertising, contact letters, websites and anything that makes the public aware of what the company do. Social networking: Social network is based on a social structure through internet-based social networking system through variety of websites that allows users to share content and interaction around similar interest. It has created a great opportunity for businesses to generate interaction with the present and potential customers through the web based sites established for the purpose. With the ongoing commitment, you can create a niche market through sites such as Twitter, MySpace and Facebook. Global impact of e-commerce: With the new payment systems such as the electronic cash, it has changed the customers financial lives and shakes the foundations of financial systems. Can help customers services greatly be enabling customers to find detailed information online, its a fast way of business operations. Conclusion: The Company has greatly gained a huge benefit by using e-commerce, because by using the new technology which introduces new frame of servicing experiments in other to deliver precise, fast, efficient, reliable and retrievable customer expectations.

Continuous Professional development Essay

Continuous professional development (CPD) is a framework of learning and development that ensures a professional’s competency, effectiveness, knowledge, skills and practice are continually kept up to date through ‘lifelong learning’ strategies and activities. There is not a fixed CPD standard or structure and a ‘one size fits all’ process would not work for all professions and individuals who work for companies with diverse objectives and working practices. The various approaches may have common themes and goals such as setting objectives for development and charting progress towards them, or asking questions such as where I want to be, and how I plan to get there. Reflection is also a key element of the process. Just as important is the motivation and responsibility of professionals for keeping their own skills and knowledge up to date. An early definition of CPD was developed in 1986 by the Construction Industry Council (UK). However, Friedman et al. (2000) found that it was still the most commonly cited definition of CPD among UK professional bodies in 1999. ‘The systematic maintenance, improvement and broadening of knowledge and skills, and the development of personal qualities necessary for execution of professional and technical duties throughout the individual’s working life’. The Chartered Institute of Personnel and Development (CIPD) suggest the following elements of a good and broad CPD structure. be a documented process be self-directed: driven by you, not your employer focus on learning from experience, reflective learning and review help you set development goals and objectives include both formal and informal learning. CIPD further suggest the benefits to CPD practitioners provides an overview of your professional development to date reminds you of your achievements and how far you’ve progressed directs your career and helps you keep your eye on your goals uncovers gaps in your skills and capabilities Opens up further development needs provides examples and scenarios for a CV or interview demonstrates your professional standing to clients and employers helps you with your career development or a possible career change. CPD can involve any relevant learning activity, whether formal and structured or informal and self-directed. Good CPD practice will include a variety of learning models that help professionals remain competent and up to date. Whatever the model or structure the process should highlight the needs of the job, strengths and weaknesses of learners and their future goals so learning gaps can be addressed. Listed below are examples and a short explanation of types of CPD learning and practice. The training model – often delivered by an expert in a classroom type environment. The award-bearing model – validation achieved via a standard or qualification. The deficit model – weak performance highlighted and measures taken to improve it. The cascade model – one learner cascading their learning down to other colleagues. The standards-based model – meeting standards, often highlighted in observations. The coaching/mentoring model – on the job training that includes shadowing. The community of practice model – secondment or interagency training initiatives. The transformative model – flexible approach involving many of the above models. My own development is based very much on the transformative model of CPD that involves a range of both formal and informal learning, this provides me with the up to date knowledge and skills I need to do my job competently. Schunk describes learning as, ‘Learning is an enduring change in behaviour or in the capacity to behave in a given fashion which results from practice or other forms of experience’. Schunk, Learning theories, 5th ed, 2008 Formal learning through training or qualification is often related to something specific, like a skill or competence. Formal training may include on-line and CD-ROM based courses or full or part time study leading to qualifications. Development on the other hand can be more informal and has a broader outlook on learning and may include private study such as reading, observing and reflection. Structured continual learning is important in any profession because new research and practices may require new knowledge and skills. For example the QCF Level 6 Diploma in Career Guidance and Development is one example of formal learning that I have considered and want to undertake. This is for both professional and financial reasons. Professionally it proves a level of academic ability, knowledge and credibility. It is the standard that many career companies now expect from professionals delivering career guidance in schools. Gaining the qualification should also help me remain competitive when applying for a job and hopefully keep me within a reasonable pay scale. Conferences, workshops and seminars also help keep professionals up to date with changes to practice and can be a vehicle for networks to be built up and experiences shared. On the job training such staff training, shadowing, secondment, coaching and mentoring all provide excellent provision for professionals to learn new skills and build up work based knowledge. Professionals may also learn by taking part in working groups or involvement in research projects. Babcock recognises the benefit of CPD and is committed to broadening and developing all employees’ knowledge and skills in the pursuit of excellence. They understand the process helps promote career development and ensure legislation and contractual agreements are met. The company handbook CPD at Babcock Education and Training – Guidance for Staff’, describes the process of CPD as, ‘’any activity which increases the knowledge, skills and understanding of staff, improves job satisfaction and raises company performance’’. The policy strongly advocates that practitioners should be accountable for their own personal growth and not solely rely on the company for training and development. It also requires professionals to maintain competent levels of learning as directed by their own professional bodies. If professionals are to be committed to their own CPD practice then there needs to be a certain level of self-motivation. Career Advisers as with all professionals need to remain competent to practice, regardless of whether they qualified yesterday, last year or twenty-five years ago. (Golding ; Gray, 2006) agree and suggest that the last day of professional training signals the beginning of lifelong learning. According to Maslow (1943) hierarchy of needs that suggests people are motivated by a range of wants such as basic needs from food and shelter right up to the final stage of self-actualization and fulfillment. Herzberg (1959) showed that to motivate an employee a business needs to create conditions that make them feel fulfilled in the workplace. He suggested motivators such as achievement, recognition, work itself, responsibility and advancement will motivate the worker to want to succeed and do well. Both models recognise that when conditions are right workers want to do a good job and find satisfaction in their work. I would argue that professionals such as career advisers go further by recognising their duty of care to clients and desire to serve them well by providing the best service possible. This is only achieved by having up to date skills and a positive outlook on personal learning and development. CPD clearly benefits professionals, employers, customers and users. For it to be best utilised practitioners may need some form of CPD training. Learning how to learn is a skill in itself, Joyce and Showers (2001) suggest that a positive impact on performance is more likely if training is provided on it. Cunningham (2001) agrees and says ‘’It cannot be ‘caught; people must be trained in the process’’ A full understanding of the CPD process gives the practitioner a methodical and structured approach to their learning that can be flexible and involve a number of learning styles that best suits the learner’s needs. My own CPD practice and planning is assisted through various policies and templates implemented by Babcock. Supervision meetings with line-managers take place every 6-8 weeks where performance against SMART targets (objectives broken down to specific, measurable, achievable, realistic and timely goals) are discussed and feedback given. Before annual reviews take place a pre-review template is filled in by the member of staff. This process alone demands employees to take time to reflect on their past performance and draw attention to skill gaps and future training needs. Another template used during the annual review guides both practitioner and line-manager through the process. This tool asks questions that demands a certain level of thought and reflection. Questions are asked around time spent on an activity, why it was done, what was learned and can it be shared with others. The pre-review template and review process agree much with guided reflective theory developed by Johns (1995) where he suggests a series of questions can challenge the motivation and rationale for actions. These questions from a third party can help guide learners through the reflective process. Johns suggested reflective diaries and sharing experience with others can lead to a greater understanding than reflections done alone. Though I do not keep a written diary of reflection I do reflect constantly and can relate to Schon’s ‘reflection in action’ and ‘reflection on’ practice. I also incorporate much of Rolfe (2000) Driscoll’s (2000) thinking by asking what, so what and now what into my practice. Another simple strategy I endorse and find useful is SWOT analysis, a technique accredited to Albert Humphrey in the 1950’s that asks practitioners to scrutinize their strengths, weaknesses, opportunities and threats. Practitioners can also be unaware of issues in their own practice, this is suggested by the Jo Harari window, developed by Joseph Luft and Harry Ingham in 1955; it proposes that others see things about us to which we may be blind. New objectives and action plans can then be agreed and formalised. Feedback from supervision and annual review meetings help to evaluate work and clarify agreed targets and future development tasks. The meetings also offer a platform to formally raise concerns or requests for training. A training request was made after I became aware of a number of young people in school who seemed to be unmotivated, withdrawn or depressed. I had no knowledge of mental health issues and felt out of my depth to offer solutions and wanted to be able to offer better front-line support. I approached my line-manager and it was suggested I investigate possible training options. I later attended three one day courses on adolescent mental health that were free of charge and run by Child and Adolescent Mental Health (CAMH). The training was around spotting mental health disorders, early intervention and ideas for support in school. Networking is also a valuable source of gathering information and developing support channels. It was through a network that I learned of the free training delivered by CAMHS. Another effective learning tool is observation. Feedback from formal interview observations and those from colleagues, teachers, pupils, parents and others has benefited my overall reflections and development by highlighting levels of performance. Critical thinking allows me to analyse different qualities, talents, views and opinions of others. I often ask myself whether I would have handled a situation differently to a colleague and would my actions have made the situation better or worse? Writing regular case studies has been useful when reflecting on my work. They help me focus on what went well and what hasn’t gone so well. The discipline of writing down events and analysing them requires much deeper thought processes. Attending regular training events and seminars ensures I remain up to date with new practice, law and policy changes. Training has broadened my knowledge around specialist areas such as homelessness and sex education. Some training programmes are also compulsory requirements of Babcock and include child protection training or online courses like equality and diversity. Attendance at staff meetings keep me up to date with events in the careers industry and practice at a local level. Often meetings include training workshops, group discussions and presentations from guest speakers. As a group member of the Career Development Institute I receive regular updates, advice and information on topical subjects through journals and annual conferences. In summary CPD is an investment that gives professionals a methodical structure to directly link learning with practice. It records learning undertaken and helps plot any future training. Confidence and professional credibility can be boosted and it may accelerate career advancement. Through creative thinking and tackling new challenges personal interest and job satisfaction can also be increased.

An Evaluation of the Relevance and Utility of Lean Manufacturing Approach to the Pharmaceutical Supply Chain

Introduction This critical analysis report is aimed at evaluating the relevance and utility of the Lean manufacturing approach to the pharmaceutical supply chain. It covers the principles and application of Lean manufacturing in supply chain management; its potential advantages to the management of quality and efficiency in pharmaceutical industry; and whether Lean is appropriate for the pharmaceutical supply chain. Novartis and Lundbeck case studies are used to describe how the Lean approach is applied to pharmaceutical industry. Principles of Lean manufacturing in supply chain management Lean thinking is a concept that describes a production philosophy aiming for progressive elimination of waste whist safeguarding the critical value (Ende 2011). According to (Sople 2012: 113), the principles of Lean manufacturing are â€Å"customer value, value stream analysis, demand pull, continuous flow, and waste elimination.† The purpose of a Lean supply chain network is to bring the lowest cost in differential customer value, which can be met through collaborative priorities in demand, real-time information on markets, and logistics delivery efficiencies, to name a few. The concept of networks of supply chain partners suggests that the success of companies is through their constant origination from new networks of supply chain partners in order to meet certain objectives. As a general rule, these constantly developing networks can act in response to the dynamic characteristic of customer demand (Sople 2012). The manufacturing function must not be the only domain to whic h Lean principles must be applied. Rather, it must also be applied across organisations in the supply chain to decrease the wastes usually associated with supply chain operations. The full benefit of Lean manufacturing and supply chain management necessitates that the scope of Lean implementations must go beyond a single function and must be structured as a part of managing relationships with customers and suppliers (Lambert 2008). It may therefore be analysed that with the adoption of Lean techniques, the management is tasked to align corporate activities with Lean manufacturing in supply chain management across organisational functions. Lean thinking also allows the organisation to direct business relationships with customers and suppliers. Application of Lean Principles Lean thinking is apparently applicable to pharmaceutical development and manufacturing (Wigglesworth and Wood, 2012). Lambert (2008) states that whilst the various material flows as well as flows of goods and information are the focus of Lean supply chain operations, Lean application to the management of supply chains is further from the physical flows of inventory. It also takes account of the entirety of the business relationship amongst firms. When a firm applies Lean manufacturing concepts to its supply chain management, it begins to focus on value drivers; revenue development; asset efficiency, and reductions in cost, inventory, and working capital. All of these are apparently beneficial to an organisation. Applying Lean thinking to supply chain management is very likely since both of them share commonalities, such as long-term perspectives, value and customer creation; systems view; and structured business relationships;amongst others (Lambert 2008). These commonalities indicate how much Lean thinking and supply chain management lend to each other. Based on this, one can conclude that Lean approaches are aligned to supply chain management and that the two are generally not in contrast with each other. Potential advantages of Lean approach to managing quality and efficiency in the pharmaceutical industry One of the potential advantages of Lean approach in the pharmaceutical industry is the reduction of cost of goods in pharmaceutical development and manufacturing. The implementation of Lean thinking can be carried out by developing workflows and infrastructures to reduce inventories (Ende 2011), which are in fact a target of quality and efficiency efforts within pharmaceutical companies. The concept of continuous manufacturing in pharmaceutical companies deals with the challenge of overproduction, which leads to surplus inventory and longer cycle teams. These are the focus of efficiency on which pharmaceutical companies must be engaged. Its significance is seen in the fact that excess inventory is considered the greatest waste because it brings upon itself certain costs related to the management, storage, and transport of inventories adding to the waste (Schneider 2010). Therefore, when Lean techniques are used, such wastes are reduced, if not totally eliminated within the pharmaceu tical firm. Novartis and H. Lundbeck case studies Novartis is one of the world’s largest pharmaceutical firms (Abreau 2013). The upstream part of its supply chain indicates flow of information and full visibility. Novartis uses product-to-demand technique based on demand, whereby its daily variable demand stream is integrated to production (AMR Research 2006). Between its levels of supply chain are limited visibility and flow of information (Abreau 2013). Despite being ranked number 2 behind Pfizer in cost of goods sold in 2006, Novartis decided to take on Lean principles and become the â€Å"Toyota of pharmaceuticals.† Using Lean principles, the company is focused on reducing its cycle time to 70 per cent and reducing spending by 40 per cent, as well as pursuing continuous manufacturing with raw materials going in one end of the chain and finished products coming out the other (AMR Research 2007). Along with this is the reengineering of every process and role, leveraging information technology, and setting up process-oriented teams in the absence of first-line supervisors so that personnel would report directly to one team leader (Shanley 2004). Here, one can see the application of Lean techniques to Novartis’ supply chain, thereby helping the company to improve its internal processes and eliminate waste. Lundbeck, on the other hand, is an international pharmaceutical firm that began its Lean adoption in 2005. The company went through certain phases in its Lean adoption, such as building consensus in the management group and running a range of Lean events and building a culture around these events. In the first phase, Lundbeck implemented 40 Lean events assisted by external experts, followed by 70 to 80 Lean events each year, with all personnel in the supply chain being involved (Simpler Consulting 2010). Through its adoption of Lean principles in its supply chain, the company was able to cut costs by 25 per cent. Workflow analysis within the organisation is also aided by video cameras, which leads to further improvements. Part of its Lean techniques adoption is the use of large bags instead of small box packaging, which reduced production delays from four hours to only an hour (Miller 2012). Is Lean appropriate to the pharmaceutical supply chain? Yes, Lean techniques are appropriate to the pharmaceutical supply chain. Despite Lean thinking’s origination from Toyota manufacturing, its adoption is still suitable to the pharmaceutical industry. In fact, its applicability is seen in the number of pharmaceutical companies that continue to adopt Lean manufacturing techniques. Although many of these techniques cannot be taken on to the more complex pharmaceutical manufacturing plants, their adoption mirrors the pursuit of increased optimisation (Shanley 200). Boyer and Verma (2010) surmise that whilst the original focus of developing Lean thinking is the manufacture of automobiles, it can still be applied to other industries. This is because Lean approach is more than a set of techniques but is a mindset for all personnel and managers who are focused on waste elimination and reduction of variability in the entirety of the business process. The advantage of Lean’s adoption in the pharmaceutical industry is the ability of pharmaceutical companies to experience logical rhythm through the supply chain. With the Lean enterprise, adaptive supply chain is carried out, causing the whole organisation to possess real-time process visualisation (Hafeli 2006). Argument for agility in the pharmaceutical supply chain Pharmaceutical companies are inclined to be bureaucratic, which results in several wastes in internal processes. With the application of Lean principles, pharmaceutical companies are able to strengthen their relative agility (Radeka 2013). This would mean that despite the relative limitation of the application of Lean principles in the pharmaceutical supply chain as pointed by WCI Consulting Limited (2011), the result is still improved agility in the supply chain. Apparently, the need for agility in supply chain management is founded on decreasing product life cycles and demand patterns of increasingly volatile markets. Sweeney (2009) points out that Lean is not enough, that agility in supply chain is required because of emphasis on speed, with time being a major competitive weapon. This argument is reasonable given the rapidly changing market in which pharmaceutical companies operate. However, as emphasised above, Lean thinking is also applicable to the pharmaceutical industry. An argument arising about the adoption of Lean thinking in the pharmaceutical industry is the risk that goes with it. Such adoption is said to put the supply chain to increased vulnerability to disruptions and unpredictable events due to lack of slack on which to withdraw. With Lean techniques making the supply chain vulnerable, a question that may come up is whether this would mean Lean is not suitable at all. The answer is pharmaceutical companies can apply Lean techniques to cut costs and adopt agility in order to obtain supply chain resilience, as pointed out by WCI Consulting Limited (2011). Conclusion This paper provides a critical analysis of the relevance and utility of Lean techniques in the pharmaceutical supply chain. Lean thinking allows the elimination of wastes and cost reduction in pharmaceutical companies. Lean supply chain considers the entirety of the business relationship amongst firms. Reduced costs of goods and reduced inventories are the potential advantages of Lean approach in the pharmaceutical industry. Novartis and Lundbeck case studies provide an example where Lean techniques and supply chain management become integrated. Despite the effectiveness of agility in supply chain management, Lean cannot be set aside as a valuable tool. References Abreau, P. E. M. (2013) An ANP Model to Support Decision-Making in a Portuguese Pharmaceutical Supply Chain. Reterived on March 22, 2014 from http://run.unl.pt/bitstream/10362/10724/1/Abreu_2013.pdf AMR Research (2006) Supply Chain Saves the World. US: AMR Research, Inc. AMR Research (2007) Risk!: Navigating an Uncertain World. US: AMR Research Inc. Boyer, K. and Verma, R. (2010) Operations and Supply Chain Management for the 21st Century. First Edition. Mason, OH: South-Western, Cengage Learning. Ende, D. J. (2011) Chemical Engineering in the Pharmaceutical Industry: R&D to Manufacturing. New Jersey: John Wiley & Sons. Hafeli, R. (2006) Enabling Lean and Compliant Manufacturing at Novartis with SAP. Denver: SAP Adaptive Manufacturing Summit, September 28. Lambert, D. M. (2008) Supply Chain Management: Processes, Partnerships, Performance. Sarasota, FL: Supply Chain Management Institute. Miller, G. (2012) Lean Earns Lundbeck Big Prize, Cost Cuts. Retrieved on March 22, 2014 from http://www.fiercepharmamanufacturing.com/story/lean-earns-lundbeck-big-prize-cost-cuts/2012-01-18 Radeka, K. (2013) The Mastery of Innovation: A Field Guide to Lean Product Development. NW: CRC Press. Schneider, O. (2010) Adding Enterprise Value: Mitigating Investment Decision Risks by Assessing the Economic Value of Supply Chain Initiatives. Zurich: vdf Hochshulverlag AG Shanley, A. (2004) Novartis Goes Lean. Retrieved on March 22, 2014 from http://www.pharmamanufacturing.com/articles/2004/111/ Simpler Consulting (2010) Lean Management of the Pharmaceutical Sector Brings Increased Efficiency and Improved Quality While Increasing Profits. Retrieved on March 22, 2014 from http://www.simpler.com/success-stories/Lundbeck_Case-Study.pdf Sople, V. V. (2012) Supply Chain Management: Text and Cases. New Delhi: Dorling Kindersley Pvt. Ltd. Sweeney, E. (2009) Lean, Agile and Resilient Pharmaceutical Supply Chains: Jargon or ActionIrish Pharmachem Buyers Guide (September), 38-39. WCI Consulting Limited (2011) Keeping the Supply Chain Agile. Retrieved on March 22, 2014 from http://www.wcigroup.com/Nostrapharmus/Keeping%20the%20supply%20chain%20agile.pdf Wigglesworth, M. and Wood, T. (2012) Management of Chemical and Biological Samples for Screening Applications. Germany: Wiley-VCH Verlag & Co.

Hospitality Management and Beverage Operation Essay

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