Académique Documents
Professionnel Documents
Culture Documents
Definitions
Material Costs
Transportation Costs
Transportation Costs
Manufacturing Costs
Plan Plan
Source Source
Make Make
Deliver Deliver
Buy Buy
Suppliers
Manufacturers
Customers
Material Costs
Transportation Transportation Costs Costs Transportation Manufacturing Costs Inventory Costs Costs
System-wide costs are minimized and Service level requirements are satisfied
U.S. firms spent $898 billion (10% of GDP) on supply-chain related activities in 1998
The growth of technologies such as the Internet enable greater collaboration between supply chain trading partners
If you dont do it, your competitor will Major buyers such as Wal-Mart demand a level of supply chain maturity of its suppliers Firms have access to multiple products (e.g., SAP, Baan, Oracle, JD Edwards) with which to integrate internal processes
10
Sales
Sales
Time
Sales
Time
Time
Sales Time
Bullwhip Effect
11
Lead time
Batch ordering
Price fluctuations
14
SOURCE
MAKE
DELIVER
SELL 15
What are our core supply chain capabilities and which are not? Does our product design mandate different outsourcing approaches? Risk management How are inventory holding and transportation costs affected by product design? How does product design enable mass customization?
16 Source: Simchi-Levi
standardized products, Low manufacturing costs; relatively predictable demand meet customer demands quickly customized products, many variations Customization; reduced inventory; improved service levels
many variations on finished Low inventory levels; wide product; infrequent demand range of product offerings; simplified planning
Engineer to Order
Source: Simchi-Levi
17
Create unique supply chain configurations that align with your companys strategic objectives
Operations strategy Outsourcing strategy Channel strategy Customer service strategy Asset network Forecasting Collaboration Integration
19
Reduce uncertainty
20
Its estimated that the typical pharmaceutical company supply chain carries over 100 days of product to accommodate uncertainty
21
Four critical methods for Reduce uncertainty in the supply chain reducing the Bullwhip effect:
Centralize demand information Keep each stage of the supply chain provided with up-to-date customer demand information More frequent planning (continuous real-time planning the goal) Every-day-low-price strategies for stable demand patterns Use cross-docking to reduce order lead times Use EDI techniques to reduce information lead times Vendor-managed inventory (VMI) Collaborative planning, forecasting and replenishment (CPFR)
22
Panels of Experts Internal experts External experts Domain experts Delphi technique Accurate Forecasts Causal Analysis
Time-Series Methods
Relies on data other than that being predicted Economic data, commodity 23 data, etc.
24
None or little inventory held Fast information flow mechanisms Decreased lead times Decreased retailer inventory Decreased variability in the supply chain and especially at manufacturers Decreased manufacturer inventory More efficient use of resources More difficult to take advantage of scale opportunities Examples: Dell, Amazon
26
Final product assembly is done based on customer demand for specific product configurations Supply chain timeline determines push-pull boundary
PushPull Boundary
Furniture
Industries where:
Standard processes are the norm Demand is stable Scale economies are High
Economies of Scale
PULL
Maximize Service Level
High
Low
Resource Allocation
Responsiveness
Long
Short
Order Fulfillment
Source: Simchi-Levi
29
Why collaborate?
Manufacturer
Distributors/ Wholesalers
Logistics Providers
31
CUSTOMERS
Reduced inventory Increased revenue Lower order management costs Higher Gross Margin Better forecast accuracy Better allocation of promotional budgets
MATERIAL SUPPLIERS
Reduced inventory Lower warehousing costs Lower material acquisition costs Fewer stockout conditions
SERVICE SUPPLIERS
Lower freight costs Faster and more reliable delivery Lower capital costs Reduced depreciation Lower fixed costs
32
Higher levels of collaboration imply Coordinated for both trading partners to have the need Collaboration equivalent (or close) levels of supply chain maturity Synchronized collaboration demands joint planning, R&D and sharing of information and processing models Cooperative
Movement to real-time customer demand information throughout the supply chain Collaboration
Extent of Collaboration
Limited
Transactional Collaboration
Low Return
Few 33
35
36
SCC sponsors and supports educational programs including conferences, retreats, benchmarking studies, and development of the Supply-Chain Operations Reference-model (SCOR), the process reference model designed to improve users' efficiency and productivity Promotes research and thought leadership in the supply chain management area Adoption of common standards for reference to process, information and material goods flows is essential to enable trading partner collaboration
37
Characterize the Characterize the management management practices and practices and software solutions software solutions that result in bestthat result in bestin-class in-class performance performance
SCOR Structure
Plan
Deliver Return
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source Return
Make
Deliver Return
Source Return
Suppliers Supplier
Supplier
Internal or External
Your Company
Customer
Internal or External
Customers Customer
SCOR Model
Building Block Approach Processes Best Practice Metrics Technology
39
Suppliers
Source
S1 Source Stocked Products S2 Source MTO Products
Make
M1 Make-to-Stock M2 Make-to-Order
Deliver
D1 Deliver Stocked Products D2 Deliver MTO Products
M3 Engineer-to-Order
Return Source
Return Deliver
Enable
40
Customers
SCOR Level 1
Material Flow
AS IS Geographic Map AS IS Thread Diagram Design Specifications TO BE Thread Diagram TO BE Geographic Map
SCOR Level 2
SCOR Level 3
Implement Implement supply chain supply chain Processes and Processes and Systems Systems
41
Marketing Planning
Patients
Source Return
Make
Deliver
Source
Make
Deliver
Source
Return
Return
Return
Return
Suppliers Supplier
Supplier
Your Company
Customer
Customers Customer
Internal or External
Internal or External
Doctors, Hospitals
43
Sales
Deliver Return
Source Return
Make
Deliver Return
Source
Make
Deliver
Source Make Deliver Return Source Return
Return
Return
Return
Suppliers Supplier
Supplier
Your Company
Customer Plan
Customers Customer
Internal or External
Internal or External
Deliver Return
Source Return
Make
Deliver Return
Source
Make
Deliver
Source Make Deliver Return Source Return
Return
Return
Return
Suppliers Supplier
Supplier
Your Company
Customer
Customers Customer
44
Internal or External
Internal or External