H.L. Faber, April 16th 2013 | 1

Faculty of Economics and Business Drs.Ing. H.L. Faber

Intro Supply Chain Management

Polen-reis 2013

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Henk Faber› Background: Mechanical Engineering

University of Applied Sciences GroningenTechnology ManagementUniversity of Groningen

› Positions at: Essent, Tebodin, Johnson & Johnson, Philips, Agrifirm, Imperial Tobacco

› Roles: Business Unit Manager / Interim Manager

› Since 2003:Part time Lecturer RuG, cluster OperationsSupply Chain Management, Consultancy, Change Management, Logistics, Purchasing

H.L. Faber, April 16th 2013

Agenda:1. Intro Supply Chain . . . . . Management2. Traditioneel product denken3. Micro, Meso en Macro niveau4. Weergave van Supply Chains5. Producten versus Diensten6. Consider the total Supply Chain !! 7. CSR + TBL8. Outsourcing and Reverse Outsourcing (1800)9. Ketenintegratie en distributieketen

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1. Supply Chain . . . . . Management› Supply Chain:

• Waardeketen (Porter)• Distributie proces• Toegevoegde waarde netwerk (VSM)• Chain = China

› Management:• Overzien en Coördineren• Wat : €, Efficiency, Effectiviteit, Q, Risks,

Prod.Safety, Snelheid/DLT, Pusch Pull, TBL• Supply Chain manager (= functie geworden)

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2. Traditioneel; product beweegt door keten (1)

“5 forces of Porter 1985“

CustomerClient(operat.)BuyerPurchaserContract man.. . . .

VendorSupplierContractorPartner. . . . .

Supply / Value chain

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WvB

Purchasing Sales

Mag. Voorbew. Prod. Exp.

SCManager

Scope / Systeemgrens

2. Traditioneel; product beweegt door keten (2)

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Discussie: value added – non value added activities

WVB ?

VSM

2. Traditioneel; product beweegt door keten (3)

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WvB

Purchasing Sales

Mag. Voorbew. Prod. Exp.

SCManager

Productieproces Intern

3. MICRO niveau:H.L. Faber, April 16th 2013

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3. MESO niveau:

Boer Klant

Tran

spor

t

Mel

kfab

riek

Gro

otha

ndel

Dis

trib

utie

Supe

rmar

ktVan GRAS tot GLAS Nationaal

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Kunststofonderdele

n productie

China

ElectroMotoren

India

Scheer-Koppen

Drachten NL

Assemblage

Scheerapp.

DrachtenNL

Verpakken

Scheerapp.

+ Snoer+

Handleid.Hongarije

SALES @Saturn

NL

SALES @Walmart

USA

SALES @Carrefour

France

SALES @. . . . .

SALES @. . . . .

KLA

NTE

N

GR

ON

DST

OFF

EN

Dozen230 V

snoer

Handleidingen

NL, Dk, Fr, Du, Eng, USA, China, etc.

3. MACRO-niveau:

Philips Scheerapparaat Internationaal

H.L. Faber, April 16th 2013

24/04/23 11“Second tier” Suppliers

“First tier” Suppliers

“Second tier” Customers

“First tier” Customers

The Operation

Supply side of the network

Demand side of the network

The Immediate Supply Network

The Total Supply Network

Internal Supply Networks

4. Weergave methoden van een Supply Chain (1)

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Grafischeweergavenaar eigeninzicht

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Porter Value Chain

Precendence diagramincl. Critical Path and Bottlenecks

4. Weergave methoden van een Supply Chain (2)

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Activity Network incl. Critical Path and Bottlenecks

4. Weergave methoden van een Supply Chain (3)

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Supplier Customers

Sheet stock2 months

Sawing CT= 10 minutes

Forming CT=20 minutesC/O = 2 hours

Semi-finished goods1 week

Adding materials CT = 1 hour

Finished goods2 weeks

Planning departmentMonthlyEvery six

weeks

Production Manager?

Monthly

2 months

30 mintues

1 week

6 hours 15 minutes

2 weeks

Wineco

Drying CT = 5 hours

Drilling CT = 5 minutes

Packaging CT=10 minutes

3 Months

3 Weeks

3 months 3 weeks

Weekly

WeeklyWeekly Weekly

Weekly

Weekly

Value Stream Mapping

4. Weergave methoden van een Supply Chain (4)

H.L. Faber, April 16th 2013

› Wanneer nu welke methode ?• Afhankelijk van:

Aggregatie niveau dat je wilt beschouwenComplexiteit en omvang supply chain

• Analyse versus Ontwerp fase• Waar ben je naar op zoek:

Efficiency, VSMDLT en Wachtrij analyseProcessen in kaart brengen Porter?

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Kies die methodiek

die het meest

passende is

bij je

onderzoek

4. Weergave methoden van een Supply Chain (5)

H.L. Faber, April 16th 2013

5. Producten versus Diensten› Traditioneel kijken we naar product voortbrenging› Echter > 60% v/d productkosten is service (ww)› Echter:• Een dienst is niet tastbaar (intangiable)• Moeilijker te specificeren• Moet a la minute worden afgenomen• Vraag inspanning klant en leverancier tegelijk

besef dit

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6. Consider the total Supply Chain !!Be aware of sub optimalization

• Don’t tweak your supply chain (Hau L. Lee, 2010)

• Environmental Sustainability and Corp. Social Responsibility

• ≠ only Cost

Don’ts: - Focus on small savings- Demand that suppliers replace materials with “greener ones”- Use recycling, energy-efficient equipment

Do’s: + Fundamental approach: “pursue broader structural change”+ Reinventing manufacturing processes+ Link up with competitors

Consider the whole chain; from Farmer to Shelf

H.L. Faber, April 16th 2013

7. Corporate Social Responsibility (CSR)

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Driven by SCM and global sourcing CSR has become significant:› Triple P: Planet, People and Profit› Typical CSR issues:• Child labor• Environment• Social issues• Health and Safety• etc

H.L. Faber, April 16th 2013

7. Tripple Bottom Line (1) | 20H.L. Faber, April 16th 2013

7. Tripple Bottom Line (2) | 21

› Social: pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts is business

› Economic: the firm’s obligation to compensate shareholders who provide capital via competitive returns on investment

› Environmental: the firm’s impact on the environment and society at large

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8. Outsourcing and Reverse Outsourcing (1800)Outsourcing = Sub-contracting of SERVICES / PRODUCTION

+Take over of staff, machines, etc.

#Objective: FOCUS upon CORE BUSINESS (Q, $, head count) #Two alternatives: a). Assets / Liability transaction (Activa/Pasiva transactie)

b). Take over fiscal unit (economische eenheid)

#Examples: J&J Toolshop, J&J => Mexico, Philips Toolshop, Agrifirm BU

Reverse outsourcing; recent example, Philips high end shaver production China to Holland ($ + close to R&D)

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8. Outsourcing (2)Outsourcing = additional Contract Management !!!

( coordination mechanism = buffer )

In this whole process a Purchasing department has it’s role

H.L. Faber, April 16th 2013

9. Ketenintegratie en distributieketen (1)

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Fabrikant Dealer KlantImporteurDistributeur

Fabrikant Dealer KlantImporteurDistributeur

€

info

prod.dienst

€

info

prod.dienst

€

info

prod.dienst

informatie = marktonderzoek

informatie = reclame

•Auto’s•Tractoren•Landbouww.

H.L. Faber, April 16th 2013

9. Ketenintegratie en distributieketen (2)

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Fabrikant Dealer KlantImporteurDistributeur

€

info

prod.dienst

€

info

prod.dienst

informatie = marktonderzoek / Cust.Satisv.Index

informatie = reclame

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Thank you for your attentionH.L. Faber, April 16th 2013