Supply Chain

Management
DECEMBER 20, 2016
 Outline
1. What is Supply Chain?
2. What is Supply Chain Management?
3. 5 Basics Supply Chain Management Components
4. How About NMI Supply Chain?
a. General NMI Supply Chain
b. NMI Upstream Supply Chain – Import Parts
c. NMI Upstream Supply Chain – Local Parts
d. NMI Downstream Supply Chain
5. NMI Supply Chain Management
a. Plan
b. Source
c. Make
d. Deliver
e. Return
 1. What Is Supply Chain?
 Flow of products and services
from:
 Raw materials
 Intermediate products
 End product
 Wholesalers and
distributors and
 Retailers
 Connected by transportation
and storage activities
 Integrated through
information, planning, and
integration activities
 Cost and service levels
 2. What Is Supply Chain
Management?
A set of approaches utilized to efficiently integrate:
 Suppliers

 Manufacturers
 Warehouses
 and Stores
So that merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in
order to minimize system wide costs while satisfying
service level requirements.
3. 5 Basics Supply Chain
Management Components
4. How About NMI Supply Chain?
 4.a. General NMI Supply Chain

AILN’s Port 3PL Plant NMI PDI ISL

Outlets Customers
Local Suppliers

NSC’s Port

Upstream/Inbound Downstream/Outbound
4.b. NMI Upstream Supply Chain –
Import Parts

NML (JPN)
(190-260
FEU’s/month)
NCIC (CHN)
(40-50 FEU’s/month)

NMT (THI)
(20-30 FEU’s/month)

NMIPL (IND) Source FTA

(50-60 FEU’s/month)
JPN JIEPA
THI ATIGA
IND AIFTA
NMI CHN ACFTA
 4.c. NMI Upstream Supply Chain –
Local Parts
INN port
Total 6 suppliers
(±88 km)
NMI
(±108 km)
suppliers: PCC
(±79km)
140 21 suppliers
(±28 km)
companies 12 suppliers
28 suppliers
(±91 km) (±7 km)

59 suppliers
No. of Distance (±50 km)
Area
Suppliers from NMI NMI
Jabodetabek 126 ±54 km
NMI
SPC
Outside
14 ±264 km
West Java
 4.d. NMI Downstream Supply
Chain
Total dealer: 102 outlets, divided into 4
regions.

Region 4
(18 Outlets; 17% of
R/S)

Region 3
(23 Outlets; 21% of
R/S)
Region 1
(39 Outlets; 41% of
R/S) Region 2
(22 Outlets; 21% of
R/S)
5. NMI Supply Chain Management
5.a. Plan
 Plan
 The strategic portion
of SCM
 In NMI, carflow
meeting can be
regarded as one of the
tool
 Sales & operation
planning
 Parts ordering
planning
 MFG capacity
planning
 Plan

Companies need a
strategy for managing all
the resources that go
toward meeting
customer demand for
their product or service.
 Plan
 A big piece of SCM planning is
developing a set of metrics to monitor
the supply chain so that it is
efficient, costs less and delivers high
quality and value to customers.

 NMI performance management tools:

 Sales Monthly Meeting
 Production Monthly Meeting
 Cost Monthly Meeting
 Quality Monthly Meeting
 It’s all about metrics!!!
5.b. Source
 Source
 Companies must choose suppliers to deliver the goods and
services they need to create their product.

 InNMI case, it is done by

Purchasing Department to
choose suppliers based
on:
 Cost merit
 Capability
 Reputation
 Source

 Supply chain managers

must:
 Develop a set of pricing,
delivery, and payment
processes
 Create
metrics for
monitoring
 Improving the
relationships with suppliers
 Source

 SCM managers can put together processes for managing

their goods and services inventory, including:
Receivingand verifying
shipments
Transferring
them to the
manufacturing facilities
Authorizing supplier
payments.
5.c. Make
Make
The manufacturing step.

 NMImanufacturing
steps:
Body Shop
Paint Shop
Trim & Chassis Shop
 Make

 Supply chain managers

schedule the activities
necessary for production,
testing, packaging and
preparation for delivery

 NMI:
it’s Master Schedule
#2 (MS#2)
Make

This is the most metric-

intensive portion of the supply
chain—one where companies
are able to measure quality
levels, production output, and
worker productivity.

 Managed by Production &

Quality Monthly Meeting in
NMI
5.d. Deliver
 Deliver
Also may be referred to as logistics

It is started from PDI process until customer end

 Deliver

Companies coordinate
the receipt of orders
from customers

Itis done by Sales

Administration in NMI
 Deliver
Develop a network of warehouses, pick carriers to get products
to customers, and set up an invoicing system to receive
payments
 Carriers is managed by
IMG
 Warehouses/dealers Region 4
(18 Outlets; 17% of
outlet network is R/S)

developed by NMI Dealer Region 3

(23 Outlets; 21% of
Development R/S)

Department Region 1
(39 Outlets; 41% of R/S)
Region 2
 Invoicing is managed by (22 Outlets; 21% of
R/S)
FAT Department
Return
Supply chain planners have to create a responsive and flexible
network for receiving defective and excess products back from
their customers and supporting customers who have problems
with delivered products.

NMI case, it is
under TCS
Department
responsibilities.
 Thank
You
Next topic: Supply Chain Performance Trade-
offs