A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers . Meanwhile, supply chain management deals with the flow of goods in distribution channels within the supply chain in the most efficient manner.
114-409: In sophisticated supply chain systems , used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains . Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to the first tier, and so on. The phrase "supply chain" may have been first published in
228-421: A "supply chain". At the end of the supply chain, materials and finished products only flow there because of the customer behaviour at the end of the chain; academics Alan Harrison and Janet Godsell argue that "supply chain processes should be coordinated in order to focus on end customer buying behaviour", and look for "customer responsiveness" as an indicator confirming that materials are able to flow "through
342-742: A 1905 article in The Independent which briefly mentions the difficulty of "keeping a supply chain with India unbroken" during the British expedition to Tibet . A typical supply chain can be divided into two stages namely, production and distribution stages. In the production stage, components and semi-finished parts are produced in manufacturing centres. The components are then put together in an assembly plant. The distribution stage consists of central and regional distribution centres that transport products to end-consumers. Mentzer et al. suggest that at least three entities are required for there to be
456-587: A bank, for example, may play a supporting role in certain supply chains, but acts as either the customer or the nearest supplier to the customer in the supply chain for security printing . Brown et al. refer to supply chains as either "loosely coupled" or "tightly coupled": Cutting-edge companies are swapping their tightly coupled processes for loosely coupled ones, making themselves not only more flexible but also more profitable . These ideas refer to two polar models of collaboration: tightly coupled, or "hard-wired", also known as "linked", collaboration represents
570-479: A basically transparent substrate easily provide clear areas by sparing the white coating . This window may be overprinted by patterns. Initially this was the main human security feature for polymer banknotes which cannot use watermark or security threads. It attracted counterfeiting of large volumes when printing technology for polymer substrate became commonly available. Therefore new designs additionally laminate this window with an ultra-thin security foil, e.g., on
684-486: A body of water vapor) in steam engines , in regard to the system's ability to do work when heat is applied to it. The working substance could be put in contact with either a boiler, a cold reservoir (a stream of cold water), or a piston (on which the working body could do work by pushing on it). In 1850, the German physicist Rudolf Clausius generalized this picture to include the concept of the surroundings and began to use
798-606: A car, a coffeemaker , or Earth . A closed system exchanges energy, but not matter, with its environment; like a computer or the project Biosphere 2 . An isolated system exchanges neither matter nor energy with its environment. A theoretical example of such a system is the Universe . An open system can also be viewed as a bounded transformation process, that is, a black box that is a process or collection of processes that transform inputs into outputs. Inputs are consumed; outputs are produced. The concept of input and output here
912-438: A close relationship between a buyer and supplier within the chain, whereas a loosely-coupled link relates to low interdependency between buyer and seller and therefore greater flexibility. The Chartered Institute of Procurement & Supply 's professional guidance suggests that the aim of a tightly coupled relationship is to reduce inventory and avoid stock-outs . There are a variety of supply-chain models, which address both
1026-408: A company's decision-making on the number of suppliers it will engage with for each product or service as an important aspect of the design of a supply chain. Determining the number of suppliers logically precedes an RFP process for determining which suppliers will form part of the supply chain. Morgan refers to an "n + 1 rule" example in the business practice of IT component supplier Intel , whereby
1140-562: A company. Starting in the 1990s, several companies chose to outsource the logistics aspect of supply-chain management by partnering with a third-party logistics provider (3PL). Companies also outsource production to contract manufacturers. Technology companies have risen to meet the demand to help manage these complex systems. Cloud-based SCM technologies are at the forefront of next-generation supply chains due to their impact on optimization of time, resources, and inventory visibility. Cloud technologies facilitate work being processed offline from
1254-516: A dotted metallic line running across it, but when viewed through transmitted light, the metal strip is dark and solid. Duplicating this was thought to be difficult, but a criminal gang was able to reproduce it quickly. They used a cheap hot-stamping process to lay down a metal strip on the surface of the paper, then printed a pattern of solid bars over it using white ink to leave the expected metal pattern visible. At their trial, they were found to have forged tens of millions of pounds’ worth of notes over
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#17327755239291368-403: A fundamentally new system. This leads to a panarchical interpretation of a supply chain, embedding it into a system of systems , allowing to analyze the interactions of the supply chain with systems that operate at other levels (e.g. society, political economy, planet Earth). For example, these three components of resilience can be identified in relation to the 2021 Suez Canal obstruction , when
1482-436: A global map of the organization's supply network. In the 1980s, the term supply-chain management (SCM) was developed to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers are those that provide products, services, and information that add value for customers and other stakeholders. The basic idea behind SCM is that companies and corporations involve themselves in
1596-491: A light from behind the paper, due to paper density variations. A watermark is made by impressing a water coated metal stamp or dandy roll onto the paper during manufacturing. Watermarks were first introduced in Bologna, Italy in 1282; as well as their use in security printing, they have also been used by paper makers to identify their product. For proofing the authenticity, the thinner part of the watermark will shine brighter with
1710-534: A light source in the background and darker with a dark background. The watermark is a proven anti-counterfeit technology because most counterfeits only simulate its appearance by using a printing pattern. Simulated watermark Printed with white ink, simulated watermarks have a different reflectance than the base paper and can be seen at an angle. Because the ink is white, it cannot be photocopied or scanned. A similar effect can be achieved by iriodin varnish which creates reflections under certain viewing angles only and
1824-444: A major defect: they must be premised on one or more fundamental assumptions upon which additional knowledge is built. This is in strict alignment with Gödel's incompleteness theorems . The Artificial system can be defined as a "consistent formalized system which contains elementary arithmetic". These fundamental assumptions are not inherently deleterious, but they must by definition be assumed as true, and if they are actually false then
1938-403: A mobile app which solves the common issue of inventory residing in areas with no online coverage or connectivity. Supply chain managers are under constant scrutiny to secure the best pricing for their resources, which becomes a difficult task when faced with the inherent lack of transparency. Cost benchmarking helps to identify competitive pricing within the industry but benchmarking across
2052-433: A period of years. The use of colour can greatly assist the prevention of forgeries. By including a colour on a document a colour photocopier must be used in the attempt to make a copy however the use of these machines also tends to enhance the effectiveness of other technologies such as Void Pantographs and Verification Grids (see Copy-evident below). By using two or more colours in the background and blending them together
2166-439: A prismatic effect can be created. This can be done on either a traditional or a digital press. When a document using this technique is attempted to be photocopied the scanning and re-creation by a colour copier is inexact usually resulting in banding or blotching and thereby immediate recognition of the document as being a copy. A frequent example of prismatic colouring is on checks where it is combined with other techniques such as
2280-422: A product design is completed, it drives the structure of the supply chain, limiting the flexibility of engineers to generate and evaluate different (and potentially more cost-effective) supply-chain alternatives. Design for Supply Chain is described as a process that aims to drastically reduce the product life cycle costs ... improve product quality, improve efficiency and improve profitability for all partners in
2394-438: A range of supply chain performance factors has been recommended as best practice. The SCOR model contains more than 150 key indicators which measure the performance of supply chain operations: see also Supply chain operations reference#Performance measurements . Debra Hofman has noted that "measuring supply chain performance is not a new practice. Most companies today measure at least some aspect of their supply chain and understand
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#17327755239292508-421: A security feature because duplicates of an existing serial number are not easily detectable, except for a series of identical counterfeits. To support correct identification serial numbers normally have a check digit to verify the correct reading of the serial number. In banknote printing the unique serial number provides effective means for the monitoring and verification of the production volume. In some cases
2622-557: A security foil with holographic elements. All of this makes it difficult to reproduce using common counterfeiting techniques. Some countries, including Canada , Nigeria , Romania , Mexico , Hong Kong , New Zealand , Israel , Singapore , Malaysia , United Kingdom , and Australia , produce polymer (plastic) banknotes , to improve longevity and to make counterfeiting more difficult. Polymer can include transparent windows, diffraction grating, and raised printing. Most currencies use different dimensions of length, width, or both for
2736-486: A sequence of supply chain processes in order to meet end customer buying behaviour". Many of the exchanges encountered in the supply chain take place between varied companies that seek to maximize their revenue within their sphere of interest but may have little or no knowledge or interest in the remaining players in the supply chain. More recently, the loosely coupled, self-organizing network of businesses who cooperate in providing product and service offerings has been called
2850-487: A ship blocked the canal for several days. Persistence means to "bounce back"; in our example it is about removing the ship as quickly as possible to allow "normal" operations. Adaptation means to accept that the system has reached a "new normal" state and to act accordingly; here, this can be implemented by redirecting ships around the African cape or use alternative modes of transport. Finally, transformation means to question
2964-510: A supply chain by exchanging information about market demand , distribution capacity and production capabilities. Keith Oliver , a consultant at Booz Allen Hamilton , is credited with the term's invention after using it in an interview for the Financial Times in 1982. The term was used earlier by Alizamir et al. in 1981, and Burns and Sivazlian in 1978. If all relevant information is accessible to any relevant company, every company in
3078-585: A supply chain seeks to match demand with supply and do so with minimal inventory . Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation , implementing just-in-time techniques to optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets; and using location allocation, vehicle routing analysis, dynamic programming , and traditional logistics optimization to maximize
3192-505: A supply chain, such as wholesale and retail determine their break-even point by considering transaction costs , relative to market price. Additionally, there are financial costs associated with all the stages of a supply chain model. The Global Supply Chain Forum has introduced an alternative supply chain model. This framework is built on eight key business processes that are both cross-functional and cross-firm in nature. Each process
3306-588: A system understanding its kind is crucial, and defined natural and designed , i. e. artificial, systems. For example, natural systems include subatomic systems, living systems , the Solar System , galaxies , and the Universe , while artificial systems include man-made physical structures, hybrids of natural and artificial systems, and conceptual knowledge. The human elements of organization and functions are emphasized with their relevant abstract systems and representations. Artificial systems inherently have
3420-543: A year (often seasonally). The supply chain for clothing often requires constant analysis of new fashion trends to manage the quantity needed for various markets. Supply chain security has become particularly important in recent years. As a result, supply chains are often subject to global and local regulations. In the United States, several major regulations emerged in 2010 that have had a lasting impact on how global supply chains operate. These new regulations include
3534-456: Is George Boole 's Boolean operators. Other examples relate specifically to philosophy, biology, or cognitive science. Maslow's hierarchy of needs applies psychology to biology by using pure logic. Numerous psychologists, including Carl Jung and Sigmund Freud developed systems that logically organize psychological domains, such as personalities, motivations, or intellect and desire. In 1988, military strategist, John A. Warden III introduced
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3648-507: Is a group of interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment , is described by its boundaries, structure and purpose and is expressed in its functioning. Systems are the subjects of study of systems theory and other systems sciences . Systems have several common properties and characteristics, including structure, function(s), behavior and interconnectivity. The term system comes from
3762-546: Is a hardware system, software system , or combination, which has components as its structure and observable inter-process communications as its behavior. There are systems of counting, as with Roman numerals , and various systems for filing papers, or catalogs, and various library systems, of which the Dewey Decimal Classification is an example. This still fits with the definition of components that are connected together (in this case to facilitate
3876-516: Is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint. The PCF was developed by APQC and its member organizations as an open standard to facilitate improvement through process management and benchmarking, regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups, and over 1,000 processes and associated activities. In
3990-418: Is a technique in which the image is incised into a surface. Normally, copper or zinc plates are used, and the incisions are created by etching or engraving the image, but one may also use mezzotint . In printing, the surface is covered in ink, and then rubbed vigorously with tarlatan cloth or newspaper to remove the ink from the surface, leaving it in the incisions. A damp piece of paper is placed on top, and
4104-433: Is applied even in thin offset coats. Some magnetic pigment are best suited for coloured magnetizable inks due to their lower blackness. Homogeneous magnetization (no preferred orientation) is easily obtained on pigment made of spherical particles. Best results are achieved when remanence and coercive field strength are very low and the saturating magnetization is high. When pearlescent pigments are viewed at different angles
4218-401: Is embedded in the security paper as banknote or passport paper. The other kind of security thread is the single or multicolour sewing thread made from cotton or synthetic fibers, mostly UV fluorescent, for the bookbinding of passport booklets. In recent designs the security thread was enhanced with other security features such as holograms or three-dimensional effects when tilted. On occasion,
4332-526: Is in terms of creating demand. In other words, it is the ability of a product's design to generate demand by satisfying customer expectations. But product design affects not only demand generation but also manufacturing processes, cost, quality, and lead time. The product design affects the associated supply chain and its requirements directly, including manufacturing, transportation, quality, quantity, production schedule, material selection, production technologies, production policies, regulations, and laws. Broadly,
4446-460: Is increasingly being utilized in supply chain management, especially in the strategic purchasing and supply management sector. Effective application of big data can improve the performance of supply chain activities through improved decision-making capabilities. Moore et al. note a trend towards strategic supply-base reduction as a mechanism for leading businesses to reduce costs and improve supplier-related performance, and similarly Ogden identifies
4560-421: Is lost. A known implementation is Scrambled Indicia . Halo can be printed on traditional or digital presses. The advantage of traditional presses is that multiple images can be overlaid in the same location and become visible in turn as the lens is rotated. Halo is used as a technique to authenticate the originality of the document and may be used to verify critical information within the document. For example,
4674-448: Is managed by a cross-functional team including representatives from logistics, production, purchasing, finance, marketing, and research and development. While each process interfaces with key customers and suppliers, the processes of customer relationship management and supplier relationship management form the critical linkages in the supply chain. The American Productivity and Quality Center (APQC) Process Classification Framework (PCF) SM
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4788-402: Is more significant than ever. In addition, as supply, and therefore competition, among companies for the limited market demand increases and as pricing and other marketing elements become less distinguishing factors, product design likewise plays a different role by providing attractive features to generate demand. In this context, demand generation is used to define how attractive a product design
4902-401: Is most often done on security paper , but it can also occur on plastic materials. Secured documents, such as banknotes, use visible and tactile features to allow humans to verify their authenticity without tools. The European Central Bank (ECB) recommends feel, look, and tilt: First check the tactility of the banknote (including the substrate), then look at the optical design and finally
5016-464: Is no color change on newsprint – is often used in the retail trade for reasons of cost and time. Carefully created images can be hidden in the background or in a picture on a document. These images cannot be seen without the help of an inexpensive lens of a specific line screening. When placed over the location of the image and rotated the image becomes visible. If the document is photocopied the Halo image
5130-501: Is the field of the printing industry that deals with the printing of items such as banknotes , cheques , passports , tamper-evident labels , security tapes , product authentication , stock certificates , postage stamps , and identity cards . The main goal of security printing is to prevent forgery , tampering, or counterfeiting . More recently many of the techniques used to protect these high-value documents have become more available to commercial printers, whether they are using
5244-525: Is transparent otherwise. Watermarks are sometimes simulated on polymer currency by printing an according pattern, but with little anti-counterfeiting effect. For example, the Australian dollar has its coat of arms watermarked on all its plastic bills. A Diffractive Optical Element (DOE) within the transparent window can create a comparable effect but requires a laser beam for its verification. See-through registers are based on complementary patterns on
5358-448: Is very broad. For example, an output of a passenger ship is the movement of people from departure to destination. A system comprises multiple views . Human-made systems may have such views as concept, analysis , design , implementation , deployment, structure, behavior, input data, and output data views. A system model is required to describe and represent all these views. A systems architecture, using one single integrated model for
5472-699: The extended enterprise , and the use of the term "chain" and the linear structure it appears to represent have been criticized as "harder to relate to the way supply networks really operate. A chain is actually a complex and dynamic supply and demand network. As part of their efforts to demonstrate ethical practices , many large companies and global brands are integrating codes of conduct and guidelines into their corporate cultures and management systems . Through these, corporations are making demands on their suppliers (facilities, farms, subcontracted services such as cleaning, canteen, security etc.) and verifying, through social audits , that they are complying with
5586-458: The 2013 Savar building collapse with more than 1,100 victims have led to widespread discussions about corporate social responsibility across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers (those who supply the main customer directly). They also demonstrate that visibility needs to be improved if
5700-657: The European Commission issued a Communication concerning "a better functioning food supply chain in Europe", addressing the three sectors of the European economy which comprise the food supply chain: agriculture, food processing industries, and the distribution sectors. An earlier interim report on food prices (published in December 2008) had already raised concerns about the food supply chain. Arising out of
5814-613: The Five Ring System model in his book, The Air Campaign , contending that any complex system could be broken down into five concentric rings. Each ring—leadership, processes, infrastructure, population and action units—could be used to isolate key elements of any system that needed change. The model was used effectively by Air Force planners in the Iran–Iraq War . In the late 1990s, Warden applied his model to business strategy. Security printing Security printing
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#17327755239295928-683: The Frontier series of the Canadian dollar which was issued from 2011, and the Australian dollar (2nd series) issued from 2016. A very similar security feature is achieved with banknotes on paper substrate. For this an area of up to 300 mm² is punched out and sealed with a partially transparent security foil. The ES2 series of euro banknotes is using this feature for the higher denominations (EUR 20 and above) and calls it portrait window . The European Central Bank (ECB) recommends to look at
6042-568: The Importer Security Filing (ISF) and additional provisions of the Certified Cargo Screening Program. EU's draft supply chain law are due diligence requirements to protect human rights and the environment in the supply chain. With the increasing globalization and easier access to different kinds of alternative products in today's markets, the contribution of product design to generating demand
6156-527: The Latin word systēma , in turn from Greek σύστημα systēma : "whole concept made of several parts or members, system", literary "composition". In the 19th century, the French physicist Nicolas Léonard Sadi Carnot , who studied thermodynamics , pioneered the development of the concept of a system in the natural sciences . In 1824, he studied the system which he called the working substance (typically
6270-548: The required standard . A lack of transparency in the supply chain can bar consumers from knowledge of where their purchases originated and facilitate socially irresponsible practices. In 2018, the Loyola University Chicago 's Supply and Value Chain Center found in a survey that 53% of supply chain professionals considered ethics to be "extremely" important to their organization. Marshall L. Fisher (1997) asks
6384-418: The void pantograph to increase the difficulty of successful counterfeiting. Sometimes only the original document has value. An original, signed cheque for example has value but a photocopy of it does not. An original prescription script can be filled but a photocopy of it should not be. Copy-evident technologies provide security to hard copy documents by helping distinguish between the original document and
6498-661: The ability to interact with local and remote operators. A subsystem description is a system object that contains information defining the characteristics of an operating environment controlled by the system. The data tests are performed to verify the correctness of the individual subsystem configuration data (e.g. MA Length, Static Speed Profile, …) and they are related to a single subsystem in order to test its Specific Application (SA). There are many kinds of systems that can be analyzed both quantitatively and qualitatively . For example, in an analysis of urban systems dynamics , A . W. Steiss defined five intersecting systems, including
6612-462: The allocation and scarcity of resources. The international sphere of interacting states is described and analyzed in systems terms by several international relations scholars, most notably in the neorealist school . This systems mode of international analysis has however been challenged by other schools of international relations thought, most notably the constructivist school , which argues that an over-large focus on systems and structures can obscure
6726-456: The angle of the light as it's perceived makes the colour appear to change as the magnetic fields within the particles shift direction. A hologram may be embedded either via hot-stamping foil, wherein an extremely thin layer of only a few micrometers of depth is bonded into the paper or a plastic substrate by means of a hot-melt adhesive (called a size coat) and heat from a metal die, or it may be directly embossed as holographic paper, or onto
6840-537: The assumptions of globalization, outsourcing, and linear supply chains and to envision alternatives; in this example this could lead to local and circular supply chains. Supply chain resilience has been identified as an important business issue. The United Kingdom's Confederation of British Industry reported in 2014 that a significant number of businesses had reshored parts of their supply chain to European locations, with many identifying supply chain resilience as "a key factor in their decision to do so". Incidents like
6954-515: The banknote against the light – the window in the hologram becomes transparent and reveals a portrait of Europa on both sides of the note . Micro- perforation is used as Microperf in the Swiss franc and the Romanian leu . Very small holes are punched or laser-engraved into the substrate or a foil application without generating a crater . In backlight illumination, the holes form a pattern, e.g.,
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#17327755239297068-468: The banknote designers succumb to the Titanic effect (excess belief in the latest technology), and place too much faith in some particular trick. An example is the forgery of British banknotes in the 1990s. British banknotes in the 1990s featured a "windowed" metal strip through the paper about 1 mm wide that comes to the paper surface every 8 mm. When examined in reflected light, it appears to have
7182-539: The camera of a mobile device to explain the features of a presented banknote. As they do not support the direct verification of authenticity they also work with simple printouts or screen displays. The substrate of most banknotes is made of paper , almost always from cotton fibres for strength and durability; in some cases linen or specially coloured or forensic fibres are added to give the paper added individuality and protect against counterfeiting. Paper substrate may also include windows based on laser-cut holes covered by
7296-416: The characteristics of certain optical features when tilting the banknote in relation to the incident light. In general, the introduction of a new banknote series is accompanied by information campaigns describing the design and the security features. Several central banks also provide mobile apps explaining the characteristics by interactive methods and enrich them by animated effects. In general, they use
7410-461: The copy. The most common technology to help differentiate originals from copies is the void pantograph . Void pantographs are essentially invisible to the untrained, naked eye on an original but when scanned or copied the layout of lines, dots and dashes will reveal a word (frequently VOID and hence the name) or symbol that clearly allows the copy to be identified. This technology is available on both traditional presses (offset and flexographic) and on
7524-410: The description of multiple views, is a kind of system model. A subsystem is a set of elements, which is a system itself, and a component of a larger system. The IBM Mainframe Job Entry Subsystem family ( JES1 , JES2 , JES3 , and their HASP / ASP predecessors) are examples. The main elements they have in common are the components that handle input, scheduling, spooling and output; they also have
7638-597: The developing country public health setting, John Snow, Inc. has developed the JSI Framework for Integrated Supply Chain Management in Public Health, which draws from commercial sector best practices to solve problems in public health supply chains. Similarly, supply chain mapping involves documenting information regarding all participants in an organization's supply chain and assembling the information as
7752-501: The different denominations , with smaller formats for the lower denominations and larger formats for the higher denominations, to hinder reuse of the substrate with embedded security features for counterfeiting higher denominations. Blind and visually impaired people may also rely on the format for distinguishing between the denominations. True watermark A true watermark is a recognizable image or pattern in paper that appears lighter or darker than surrounding paper when viewed with
7866-399: The distinction between them is often elusive. An economic system is a social institution which deals with the production , distribution and consumption of goods and services in a particular society . The economic system is composed of people , institutions and their relationships to resources, such as the convention of property . It addresses the problems of economics , like
7980-537: The efficiency of distribution. The term "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including suppliers, manufacturers, and retailers) working together to meet a customer need for a product or service. However, John Mills et al . note that "early research" on supply chains focused on internal supply relationships within
8094-482: The enacting of policies that can improve occupational safety and health management in organizations. In fact, international organizations with presence in other nations have a responsibility to ensure that workers are well protected by policies in an organization to avoid safety related incidents. Many agribusinesses and food processors source raw materials from smallholder farmers. This is particularly true in certain sectors, such as coffee , cocoa and sugar . Over
8208-409: The euro series ES2 has different pattern of lines at the short edges of the banknote to support blind people in distinguishing the denominations . A counterfeit banknote detection pen can be used to quickly determine the starch in wood-based paper substrate. While genuine banknotes hardly change color at all, counterfeits turn black or blue immediately. This method, which is not very reliable – there
8322-403: The face of change". For a long time, the interpretation of resilience in the sense of engineering resilience (or robustness) prevailed in supply chain management, leading to the notion of persistence . A popular implementation of this idea is given by measuring the time-to-survive and the time-to-recover of the supply chain, allowing identification of weak points in the system. More recently,
8436-544: The flow of information and finances is part of the chain as well as the product or service. Fazel Zarandi et al. add "buyer-seller relations" (at each stage), in addition to the flow of information, as the third main component of a supply chain. Mentzer et al. remind readers also that the focus of a supply chain is on the product or service in its end state: they refer to "the supply chain for candy " and "the supply chain for clothing". Individual supply chain actors may be positioned at different points in different supply chains:
8550-404: The flow of information). System can also refer to a framework, aka platform , be it software or hardware, designed to allow software programs to run. A flaw in a component or system can cause the component itself or an entire system to fail to perform its required function, e.g., an incorrect statement or data definition . In engineering and physics , a physical system is the portion of
8664-408: The intaglio printing of euro banknotes printed on paper substrate. It is available for iOS devices and takes a picture of the banknote. Within a few seconds it determines abnormality by a message "not successful" but cannot finally identify counterfeits . The substrate may be embossed to create raised designs as tactile security feature. It may be combined with intaglio printing. As an example,
8778-469: The interpretations of resilience in the sense of ecological resilience and social–ecological resilience have led to the notions of adaptation and transformation , respectively. A supply chain is thus interpreted as a social-ecological system which – similar to an ecosystem (e.g. forest) – is able to constantly adapt to external environmental conditions and – through the presence of social actors and their ability to foresight – also to transform itself into
8892-497: The inverse reaction of the void pantograph. The most common examples of this technology are on the fine lines at the edge of a cheque which will disappear when copied or on a coupon when a symbol, such as a shopping cart, disappears when an unauthorized copy is made. Verification Grid is available for either traditional or digital presses. Together the void pantograph and the Verification Grid complement each other because
9006-411: The laminate of a card itself. When incorporated with a custom design pattern or logo, hologram hot stamping foils become security foils that protect credit cards, passports, bank notes and value documents from counterfeiting. Holograms help in curtailing forging, and duplication of products hence are very essential for security purposes. Once stamped on a product, they cannot be removed or forged, enhancing
9120-477: The light that moves up and down. The number also changes colour from emerald green to deep blue. The EUR 100 and EUR 200 banknotes also show € symbols inside the number. Colouured magnetizable inks are prepared by including chromatic pigments of high colour strength. The magnetic pigments’ strong inherent colour generally reduces the spectrum of achievable shades. Generally, pigments should be used at high concentrations to ensure that sufficient magnetizable material
9234-417: The maximum number of suppliers required to maintain production levels for each component is determined, and no more than one additional supplier is engaged with for each component. With the increased complexity and b2b activity associated with economic growth , actors often seek to view supply chain collaboration as a part of the value adding activities in a value chain . System A system
9348-433: The more traditional offset and flexographic presses or the newer digital platforms. Businesses are protecting their lesser-value documents such as transcripts, coupons and prescription pads by incorporating some of the features listed below to ensure that they cannot be forged or that alteration of the data cannot occur undetected. A number of technical methods are used in the security printing industry. Security printing
9462-481: The motives for and performance efficacy of vertical integration differ by global region. Incorporating SCM successfully leads to a new kind of competition on the global market, where competition is no longer of the company-versus-company form but rather takes on a supply-chain-versus-supply-chain form. The primary objective of SCM is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory , and labor. In theory,
9576-409: The need for a more comprehensive measurement program." However, the abundance of options for potential performance metrics to use is seen as a challenge for supply chain managers. One approach is to relate multiple measures in a hierarchical structure so that interdependencies and the contribution of multiple indicators to the "key" or most significant metrics can be more easily seen. Hofman suggests that
9690-413: The newer digital platforms. The advantage of a digital press is that in a single pass through the printer a void pantograph with all the variable data can be printed on plain paper. Copy-evident paper, sometimes marketed as ‘ security paper ’, is pre-printed void pantograph paper that was usually produced on an offset or flexographic press. The quality of the void pantograph is usually quite good because it
9804-464: The notion of organizations as systems in his book The Fifth Discipline . Organizational theorists such as Margaret Wheatley have also described the workings of organizational systems in new metaphoric contexts, such as quantum physics , chaos theory , and the self-organization of systems . There is also such a thing as a logical system . An obvious example is the calculus developed simultaneously by Leibniz and Isaac Newton . Another example
9918-511: The obverse and reverse of the banknote and constitute a complete pattern under backlight conditions. Examples are the D of the Deutsche Mark (1989 series, BBk III) and the value number of the first series of euro banknotes (ES1). Counterfeiting is difficult because the printing registration requires an extremely high printing accuracy on both sides and minor deviations are easily detectable. Polymer banknotes which are printed on
10032-441: The past 20 years, there has been a shift towards more traceable supply chains. Rather than purchasing crops that have passed through several layers of collectors, firms are now sourcing directly from farmers or trusted aggregators. The drivers for this change include concerns about food safety , child labor and environmental sustainability as well as a desire to increase productivity and improve crop quality. In October 2009,
10146-400: The physical subsystem and behavioral system. For sociological models influenced by systems theory, Kenneth D. Bailey defined systems in terms of conceptual , concrete , and abstract systems, either isolated , closed , or open . Walter F. Buckley defined systems in sociology in terms of mechanical , organic , and process models . Bela H. Banathy cautioned that for any inquiry into
10260-427: The plate and paper are run through a printing press that, through pressure, transfers the ink to the paper. The very sharp printing obtained from the intaglio process is hard to imitate by other means. Intaglio also allows for the creation of latent images which are only visible when the document is viewed at a very shallow angle. The mobile app ValiCash from Koenig & Bauer evaluates specific characteristics of
10374-493: The printing. Again, this is difficult to imitate accurately enough in most print shops. Several types of ink are available which change colour with temperature. Security ink with a normal "trigger" temperature of 88 °F (31 °C), which will either disappear or change colours when the ink is rubbed, usually by the fingertips. This is based on a thermochromatic effect. Serial numbers help make legitimate documents easier to track and audit. However, they are barely useful as
10488-473: The product at the same time. Also from a security perspective, if stamped, a hologram is a superior security device as it is virtually impossible to remove from its substrate. Metal threads and foils, from simple iridescent features to foil colour copying to foils with additional optically variable effects are often used. There are two kinds of security threads. One is a thin aluminum coated and partly de-metallized polyester film thread with microprinting which
10602-466: The question in a key article, "Which is the right supply chain for your product?" Fisher, and also Naylor, Naim and Berry (1999), identify two matching characteristics of supply chain strategy: a combination of "functional" and "efficient", or a combination of "responsive" and "innovative" (Harrison and Godsell). Mentzer et al. distinguish between "direct supply chains", "extended supply chains", and "ultimate supply chains"; in their usage: In each case,
10716-411: The reactions to copying are inverse, resulting in a higher degree of assurance that a hard copy document is an original. Banknotes are typically printed with fine alignment (so-called see-through registration window ) between the offset printing on each side of the note. This allows the note to be examined for this feature, and provides opportunities to unambiguously align other features of the note with
10830-402: The recording of serial numbers may help to track and identify banknotes from blackmail or robbery . In most currencies the serial number is printed on two edges of the banknotes to aggravate the making of so-called composed banknotes by combining parts of different banknotes. Even if made from genuine banknotes, most central banks consider such items as manipulated banknotes without value if
10944-405: The role of individual agency in social interactions. Systems-based models of international relations also underlie the vision of the international sphere held by the liberal institutionalist school of thought, which places more emphasis on systems generated by rules and interaction governance, particularly economic governance. In computer science and information science , an information system
11058-477: The serial numbers do not match. Security paper for banknotes is different from standard paper due to special ingredients like fibers from cotton , linen or abaca . Together with intaglio printing crisp feeling provides an excellent tactile perception (crisp feeling) to reject counterfeits which are based on standard paper with cellulose fibers . Polymer substrates and limp banknotes on paper substrate do not offer this tactile characteristic. Intaglio printing
11172-406: The success of the supply chain depends on the product design and the capabilities of the supply chain, but the reverse is also true: the success of the product depends on the supply chain that produces it. According to an industrial engineering study which looked at a process for Design for Supply Chain (DFSC), since the product design imposes multiple requirements on the supply chain, then once
11286-552: The supplier's supplier to the customer's customer". It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain. A supply chain can often be split into different segments: the earlier stages of a supply chain, such as raw material processing and manufacturing , determine their break-even point by considering production costs relative to market price. The later stages of
11400-470: The supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully manage social responsibility in supply chains. This incident also highlights the need to improve workers safety standards in organizations. Hoi and Lin (2012) note that corporate social responsibility can influence
11514-414: The supply chain has the ability to help optimize the entire supply chain rather than to sub-optimize based on local optimization. This will lead to better-planned overall production and distribution, which can cut costs and give a more attractive final product, leading to better sales and better overall results for the companies involved. This is one form of vertical integration . Yet, it has been shown that
11628-416: The supply chain. Supply chain consultant Anthony Tarantino has identified a number of best practices affecting the resilience and operation of supply chains, including the formation of multi-disciplinary centres of excellence, hybrid supply chain organizations which optimize the balance between centralization and de-centralization, and more extensive use of both structured and unstructured data . Big data
11742-1207: The system is not as structurally integral as is assumed (i.e. it is evident that if the initial expression is false, then the artificial system is not a "consistent formalized system"). For example, in geometry this is very evident in the postulation of theorems and extrapolation of proofs from them. George J. Klir maintained that no "classification is complete and perfect for all purposes", and defined systems as abstract, real, and conceptual physical systems , bounded and unbounded systems , discrete to continuous, pulse to hybrid systems , etc. The interactions between systems and their environments are categorized as relatively closed and open systems . Important distinctions have also been made between hard systems—–technical in nature and amenable to methods such as systems engineering , operations research, and quantitative systems analysis—and soft systems that involve people and organizations, commonly associated with concepts developed by Peter Checkland and Brian Wilson through soft systems methodology (SSM) involving methods such as action research and emphasis of participatory designs. Where hard systems might be identified as more scientific ,
11856-552: The system. There are natural and human-made (designed) systems. Natural systems may not have an apparent objective but their behavior can be interpreted as purposeful by an observer. Human-made systems are made with various purposes that are achieved by some action performed by or with the system. The parts of a system must be related; they must be "designed to work as a coherent entity"—otherwise they would be two or more distinct systems. Most systems are open systems , exchanging matter and energy with their respective surroundings; like
11970-462: The term working body when referring to the system. The biologist Ludwig von Bertalanffy became one of the pioneers of the general systems theory . In 1945 he introduced models, principles, and laws that apply to generalized systems or their subclasses, irrespective of their particular kind, the nature of their component elements, and the relation or 'forces' between them. In the late 1940s and mid-50s, Norbert Wiener and Ross Ashby pioneered
12084-445: The three key indicators of a well-functioning supply chain are: A Cranfield University boardroom survey in 2010 found evidence that many organizations recognized the importance of the supply chain contribution to their business success, with a focus on cost, customer lead-time and customer quality being the primary performance indicators. Supply chain resilience is "the capacity of a supply chain to persist, adapt, or transform in
12198-495: The two reports, the Commission established a "European Food Prices Monitoring Tool", an initiative developed by Eurostat and intended to "increase transparency in the food supply chain". In March 2022 the Commission noted "the need for EU agriculture and food supply chains to become more resilient and sustainable". The supply chain in the fashion industries has some unique properties, as clothing fashion changes several times
12312-1003: The universe that is being studied (of which a thermodynamic system is one major example). Engineering also has the concept of a system referring to all of the parts and interactions between parts of a complex project. Systems engineering is the branch of engineering that studies how this type of system should be planned, designed, implemented, built, and maintained. Social and cognitive sciences recognize systems in models of individual humans and in human societies. They include human brain functions and mental processes as well as normative ethics systems and social and cultural behavioral patterns. In management science , operations research and organizational development , human organizations are viewed as management systems of interacting components such as subsystems or system aggregates, which are carriers of numerous complex business processes ( organizational behaviors ) and organizational structures. Organizational development theorist Peter Senge developed
12426-569: The upstream and downstream elements of supply-chain management (SCM). The SCOR ( Supply-Chain Operations Reference ) model, developed by a consortium of industry and the non-profit Supply Chain Council (now part of APICS ) became the cross-industry de facto standard defining the scope of supply-chain management. SCOR measures total supply-chain performance. It is a process reference model for supply-chain management, extending "from
12540-476: The use of a magnifying glass. Cheques, for example, use microprint as the signature line. Optically Variable Ink (OVI) displays different colours depending on the angle at which it is viewed. It uses mica -based glitter. As an example, the euro banknotes use this feature as emerald number on the ES2 series. The ECB recommends to "tilt the banknote". The shiny number in the bottom left corner displays an effect of
12654-463: The use of mathematics to study systems of control and communication , calling it cybernetics . In the 1960s, Marshall McLuhan applied general systems theory in an approach that he called a field approach and figure/ground analysis , to the study of media theory . In the 1980s, John Henry Holland , Murray Gell-Mann and others coined the term complex adaptive system at the interdisciplinary Santa Fe Institute . Systems theory views
12768-470: The value numeral like in the SFR 20 (eighth series). A guilloché is an ornamental pattern formed of two or more curved bands that interlace to repeat a circular design. They are made with a geometric lathe . This involves the use of extremely small text, and is most often used on currency and bank checks. The text is generally small enough to be indiscernible to the naked eye without either close inspection or
12882-401: The world as a complex system of interconnected parts. One scopes a system by defining its boundary ; this means choosing which entities are inside the system and which are outside—part of the environment . One can make simplified representations ( models ) of the system in order to understand it and to predict or impact its future behavior. These models may define the structure and behavior of
12996-479: Was produced on a press with a very high resolution, and, when only a small number of originals are to be printed, it can be a cost-effective solution; however, the advent of the digital printer has rapidly eroded this benefit. A second technology which complements and enhances the effectiveness of the void pantograph is the Verification Grid. This technology is visible on the original, usually as fine lines or symbols but when photocopied these lines and images disappear;
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