unit 1 lectures 12 supply chain management overview.pptx

8/18/2019 Unit 1 lectures 12 Supply Chain Management Overview.pptx

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Supply ChainManagement

OverviewUNIT 1 LECTURE 1 &2


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Coure !pproa"h

Le"ture "over #i$th o% the u'e"t matter

!ppli"ation o% the u'e"t matter

Re%er Te(too)*Internet Sour"e +or ,epth o% the u'e"t matter

E(am

-./ wi$th 0./ appli"ation 2./ $epth


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Le"ture Overview


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#hat I ! Supply Chain

The ytem o% upplier manu%a"turer tranpo$itriutor an$ ven$or that e(it to tran%ormmaterial to nal pro$u"t an$ upply thoe proto "utomer3

That portion o% the upply "hain whi"h "ome a%

manu%a"turing pro"e i ometime )nown a t$itriution networ)3


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Supply

Sources:plants vendorsports

RegionalWarehouses:stockingpoints

FieldWarehouses:stockingpoints

Customers,demandcenterssinks

Production/purchasecosts

Inventory &arehousingcosts

!ransportationcosts

Inventory &arehousing

costs

!ransportationcosts

Snaphot


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E(ampleCustomer

detergent ato Jew

JewelSupermarket

Jewel or thirdparty DC

P&G or othermanufacturer

Plastic

Producer

Chemical

manufacturer

(e.g. Oil Company

!enneco

Packaging

Paper

"anufacturer

!im#er

$ndustry

Chemical

manufacturer

(e.g. Oil Company


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Evolution o% Supply ChainManagement

14-. 145. 146. 147. 144. 2... 8eyon$

Traditional Mass Manufacturing

Inventory Management/CostOptimization

JIT, TQM, BP,!lliances

"CM#ormation/$%tensions

#urt&ere'nement of

"CMCapa(ilities


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Changing "enario o% Supply CManagement

9loal "ompetition Shorter pro$u"t li%e "y"le

New low:"ot $itriution"hannel

More power%ul well:in%orme$ "utomer

Internet an$ E:8uinetrategie

;uh:;ull trategie ,ire"t:to:Conume

Strategi" allian"e

Manu%a"turing

potponement ,ynami" ;ri"ing

E:;ro"urement


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#hat I the 9oal o% Supply Chain Management

Supply "hain management i "on"erne$ with thee="ient integration o% upplier %a"torie warean$ tore o that mer"han$ie i pro$u"e$ an$$itriute$>? In the right @uantitie

? To the right lo"ation

? !t the right time

In or$er to? MinimiAe total ytem "ot

? Sati%y "utomer ervi"e re@uirement


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,e"iion ;hae in Supply Ch

Supply Chain Strategy &,eign

Supply Chain ;lanning

Supply Chain Operation

St

ra

te

gy&

D

es

ig

nPlanning

Operations


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,e"iion ;hae in Supply Ch

Lo"ation & "apa"ity o%pro$u"tion an$ warehoue

;ro$u"t to manu%a"ture$an$ in whi"h lo"ation

Mo$e o% tranportation

Type o% in%ormationytem to e ue$

Strategi" our"ing $e"iion

Mar)et to e upplie$ & %romwhi"h lo"ation

;lanne$ uil$:up o% inventory

Su"ontra"ting o%manu%a"turing

Timing an$ iAe o% mar)etpromotion

Ban$ling un"ertainty in$eman$ %oreign e("hangeu"tuation

Etalihing pro$u"tion planun$er (e$ trategi"parameter

,e"iion"utomewee)ly

Le un"$eman$

E(ploit reun"ertainper%orma

Etalih

Etalih

Supply Cain Strategy &,eign Supply Cain ;lanning Supply C


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Strategie %or SCM

!ll o% the a$van"e$ trategie te"hni@uean$ approa"he %or Supply Chain

Management %o"u on>

?9loal OptimiAation

?Managing Un"ertainty


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Procurement

Planning

Manufacturing

Planning

Distribution

Planning Demand

Planning

Se@uential OptimiAation

"upply Contracts/Colla(oration/Information "ystems and)""

Procurement

Planning

Manufacturing

Planning

Distribution

Planning Demand

Planning

9loal OptimiAation

v39loal OptimiAation


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Coni"ting O'e"tive in theSupply Chain

Purc&asing

•Stale volume re@uirement

•+le(ile $elivery time

•Little variation in mi(

•Large @uantitie

Manufacturing

•Long run pro$u"tion

•Bigh @uality

•Bigh pro$u"tivity

•Low pro$u"tion "ot

*are&ousing• Low inventory

• Re$u"e$ tranportation "ot

• Fui") replenihment "apaility

Customers• Short or$er lea$ time

• Bigh in to")

• Enormou variety o% pro$u"t

• Low pri"e


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Un"ertainty

#hat i variation< #hat i ran$omne<

#hat tool an$ approa"he he

to $eal with thee iue<


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CanGt +ore"ating Belp<

+ore"ating i alway wrong

The longer the %ore"at horiAon the w

the %ore"at

En$ item %ore"at are even more wr


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Supply Chain Hariaility

+ o l u m e s

Ti

!cCons)emetailer *are&ouse

to "&op

etailer *are&ouse

to "&opetailer Ordersetailer Orders

Production PlanProduction Plan

Manufacturer #orof "ales


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#hat Management #ant

+ o l u m e s

Ti

Cons)em



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#hat Management 9et333

+ o l u m e s

Ti

Cons)em



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,ealing with OptimiAation &Un"ertainty

,e"iion Support Sytem

Inventory Control

Networ) ,eign

,eign %or Logiti"

Cro ,o")ing

;ull Sytem

Ri) ;ooling

CentraliAation

;otponement

Strategi" !llian"e

Collaorative +ore"ating

OptimiAation Un"ertainty


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Jey Iue o% SCM an$ theirrelationhip with SCM o'e"t

,itriution Conguration

Inventory

Supply "ontra"t

,itriution trategie

Strategi" ;artnerhip

outour"ing

;ro$u"t ,eign

In%ormation Te"hnology & ,e"iionSupport Sytem

Cutomer Halue

9loal

OptimiAatio

,it3 Con%3 K

Inv3 Control

Sup3 Contra"t K

,it3

Strategie

K

St3partnerhip

K

Outour"ing

;r3 ,eign

IT & ,SS K

Cut3 Halue K


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;ro"e Hiew o% a Supply Cha

Cy"le view> pro"ee in a upply "hain are $ivi$ea erie o% "y"le ea"h per%orme$ at the inter%a"etween two u""eive upply "hain tage

;uh*pull view> pro"ee in a upply "hain are $i

into two "ategorie $epen$ing on whether they ae(e"ute$ in repone to a "utomer or$er Dpull oanti"ipation o% a "utomer or$er Dpuh


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Cy"le Hiew o% Supply Chain

Customer Order Cycle

%eplenishment Cycle

"anufacturing Cycle

Procurement Cycle

Customer-retailer

Retailer-distributo

Distributor-manuf

Manufacturer-sup

Cycle view clearlydefnes processesinvolved and theowners o each

process. Specifesthe roles andresponsibilities o

each member and thedesired outcome oeach process.


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;uh*;ull Hiew o% Supply ChaProcurement,

Manufacturing andReplenishment cycles

Customer Order

Cycle

Customer

Order Arrives

PUSH PROCESSES PULL PROCESSE

;ull> e(e"ution i repone to a "uDrea"tive

;uh> e(e"ution i initiate$ in anti"ipation o%"utomer or$er Dpe"ulative


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Un$ertan$ing the Supply Chain> Cot:Reponivene E="ient +rontier

High Lo

Lo

High

Responsiveness

Co

R i S t


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Reponivene Spe"trum

!ntegrated

steel mill

Dell

Highl"

efficient

Highl"

responsi#e

Somehat

efficient

Somehat

responsi#e

Hanes

apparel

Most

automoti#e production

C i % = i $


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Comparion o% E="ient an$Reponive Supply Chain

Efficient Responsive

Primary goal Lowest cost Quick response

Product design strategy Min product cost Modularity to allowpostponement

Pricing strategy Lower margins (highvolumes)

Higher margins

Mfg strategy High utilization apacity fle!i"ility

#nventory strategy Minimize inventory $uffer inventory

Lead time strategy %educe "ut not at e!penseof greater cost

&ggressively reduce evecosts are significant

'upplier selection strategy ost and low uality 'peed fle!i"ility uality

*ransportation strategy +reater reliance on low costmodes

+reater reliance onresponsive (fast) modes


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,river o% Supply Chain ;er%orman"e

+a"ilitie• pla"e where inventory i tore$ aemle$ or %ari"ate$• pro$u"tion ite an$ torage ite

Inventory

• raw material #I; nihe$ goo$ within a upply "hain• inventory poli"ie

Tranportation• moving inventory %rom point to point in a upply "hain• "omination o% tranportation mo$e an$ route

In%ormation

• $ata an$ analyi regar$ing inventory tranportation %a"ilitie throughothe upply "hain

• potentially the igget $river o% upply "hain per%orman"e


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Coni$eration %or Supply Chain ,

Dri#er Efficienc" Responsi#eness

Inventory Cost of holding Availability

Transportation Consolidation Speed

acilities Consolidation !"edicated

Pro#imity !le#ibility

Information $hat information is best suited for

each ob%ective


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9loal !pparel Halue Chain


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9loal !pparel Halue Chain


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Magnitu$e o% Supply Chain CotE(ample> The !pparel In$utry

"anufacturer Distri#utor %etailer Customer

Cost per

Shirt

'.)

,-.,

*.,'



Magnitu$e o% Supply Chain Cot: Cot


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Magnitu$e o% Supply Chain Cot CotElement o% a Typi"al Tra$e 8oo)

unit 1 lectures 12 supply chain management overview.pptx

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