scm seminar1

8/8/2019 scm seminar1

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H OW COULD AUTO MANUFACTURER USE

TRANSPORTATION TO INCREASETHE EFFICIENCY OF SUPPLY

CHAIN ?

By,

Anusha Shetty

Anupama Honamore

Arun Kumar


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W HAT IS A SUPPLY CHAIN ?

Supply Chain is dynamic and involvesconstant flows of products, information,and funds.

The task of supply chain is to design,plan, and execute the activities at thedifferent stages so as to provide thedesired levels of service to supply chaincustomers profitably


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O BJECTIVE OF A SUPPLY CHAIN :

Maximize the overall value generated .y Value is the difference between what the final

product is worth to the customer and the effort

of SC expends in filling customers request

Supply Chain Profitability is the total profitto be shared across all supply chain stages.

Supply Chain Management involves themanagement flow between and among stages in aSC to maximize total SC profitability .


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DECISION P HASES

Strategy (Design)Locations, Capacity channel design, Warehouses,Manufacturing, Outsourcing

PlanningS upply scheme, Inventory policy, S ubcontracting

OperationsA llocation of individual orders to inventory or

production, deciding to transportation routes, etc.


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S TRATEGIC F IT :

Competitive Strategy:D efine ways to satisfy customer requirementsthrough products and services

Product D evelopment StrategyMarketing and Sales Strategy

Supply Chain Strategy:D esign strategy to achieve the right mix of efficiency and responsiveness

Supply chains serving multiple products andmultiple customer segments require the rightbalance between effectiveness andresponsiveness.


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A CHIEVING STRATEGIC FIT :

Strategic fit means that both competitive andSC strategies have same goal.

Basic steps to achieve strategic fit :U nderstanding the customer and supplychain uncertainty.

U nderstanding the SC capabilities. Achieving strategic fit.


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U NDERSTANDING THE SUPPLY CHAIN :

ResponsivenessR esponse to wide range of quantities (excess capacity)Meet short lead timeHandle a large variety of productsMeet a high level service

EfficiencyE conomies of scaleLow capacity (excess costs)Low cost transport


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E FFECTIVE SUPPLY CHAIN MANAGEMENT :

Effective supply chain management requiressimultaneous improvements in both customerservice levels and the internal operatingefficiencies of the companies in the supply chain.

Customer service at its most basic level meansconsistently high order fill rates, high on-timedelivery rates, and a very low rate of productsreturned by customers for whatever reason.Internal efficiency for organizations in a supply

chain means that these organizations get anattractive rate of return on their investments ininventory and other assets and those they find waysto lower their operating and sales expenses.


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S UPPLY C HAIN D RIVERS

Drivers determine supply chainperformance. For each driver,managers must make tradeoffsbetween efficiency (cost) andresponsiveness


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D RIVERS OF S UPPLY C HAIN

P ERFORMANCE :

InventoryTransportationFacilitiesInformation


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Inventory All of the raw materials work in process (WIP),and finished goods within the supply chain.Inventory policies can dramatically alter a supplychains efficiency and responsiveness.

FacilitiesPlaces within the supply chain where inventoryis stored, assembled, or fabricated. D ecisions on

location, capacity, and flexibility of facilities havea significant impact on performance.


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InformationD ata and analysis regarding inventory,transportation, facilities, and customersthroughout the supply chain. It is potentially thebiggest driver since it. Affects all the otherdrivers.

TransportationModes and routes for moving inventorythroughout the supply chain.

Transportation refers to the movement of productfrom one location to another as it makes its wayfrom the beginning of a supply chain to thecustomers handle.


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T RANSPORTATION S I MPACT :

F aster transportation allows a supplychain to be more responsive but generallyless efficient. Less than full truckloadsallow a supply chain to be moreresponsive but generally less efficient.Transportation can be used to support afirms competitive strategy. Customersmay demand and be willing to pay for ahigh level of responsiveness


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T RANSPORTATION D ECISIONS :

Mode of transportations the manner inwhich a product is moved (air, truck, rail,ship, pipeline, electronic). E ach modediffers with respect to speed, size of shipments, cost, and flexibility. R outes arepaths along which a product can beshipped. In house or outsource thetransportation function. Many companiesuse third-party logistics providers (3PL) toperform some or all of their transportationactivities.


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T RANSPORTATION :


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T OYOTA (A G LOBAL A UTOM ANUFACTURER )Global production and distribution network


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HOW COULD AUTOMANUFACTURER USETRANSPORTATION TOINCREASE THEEFFICIENCY OF SUPPLYCHAIN

BY A RUN K UMAR5 TH SEM MCA


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TRANSPORTATION IN SUPPLY

CHAIN

Transportation refers to themovement of product from one

location to another as it makes its

way from the beginning of a supplychain to the customers handle.

DEFINITION


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SUCCESS OF TRANSPORTATION

Any supply Chains success is closely linked tothe appropriate use of transportation.

Wal- Mart has effectively used a responsivetransportation system to lower its overall costs.

At D Cs, Wal- Mart uses cross-docking, a

process in which product is exchanged betweentrucks so that each truck going to a retail storehas products form different suppliers.


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KEY PLAYERSTRANSPORTATION:

Here are two keys players in any transportationthat takes place within a supply chain.The shipper is that party that requires the

movement of the product between two points inthe supply chain.The carrier is the party that moves or transports

the product. F or e.g., when D ell uses U PS to theship its computers from the factory to thecustomer, D ell is the shipper & U PS is thecarrier .


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M AKING T RANSPORTATIOND ECISIONS IN PRACTICE :

Managers should ensure that a firmstransportation strategy supports its competitivestrategy.F

irms should evaluate the transportationfunction based on a combination of transportation costs, other costs such asinventory affected by transportation decisions, &the level of responsiveness achieved withcustomers.Managers should consider an appropriatecombination of company-owned & outsourcedtransportation to meet their needs.


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T RANSPORTATION P LANNING HELPSCOMPANIES LIKE YOURS :

Lower transportation costs

Enhance service levels

Decrease cycle time

Increase profits from bidding and backhaul


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ANY QUESTION FROM THE AUDIENCE ???

scm seminar1

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