Optimize your supply chain

Optimize Your Supply Chain
Presented by
Daniel Feiman, MBA, CMC©, Visiting
Professor

dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 1 All international rights reserved

Agenda
 Optimizing Your Supply Chain
 Primary SCM disruptions
 How to reduce disruptions
 Develop a win/win SCM system
 Use of proven tools for immediate results
 Training Methodology
• Participant discussions
• Best practices approach
 What have we learned?


Defining the Supply Chain (SC)
SUPPLY CHAIN MANAGEMENT
 APICS - The design, planning, execution, control & monitoring of
SC activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand & measuring performance
globally.

 ISM - The design and management of seamless, value-added
processes across organizational boundaries to meet the real
needs of the end customer. The development and integration of
people and technological resources are critical to successful
supply chain integration.

 Produce
 Sale
 Deliver

A graphic representation of the Supply
Chain


From the supplier’s supplier to the customer’s
Supplier
customer (external or macro focus) Customer
Supplier Customer

Supplier Customer

Supplier Customer
Supplier Customer

Company

Supplier Customer
Supplier Customer

Supplier Customer

Supplier Customer
Supplier Customer
Downstream Upstream

From the supplier’s supplier to the customer’s
Supplier
customer (internal or micro focus) Customer
Supplier Customer

Supplier Customer

Supplier Customer
Supplier Customer

Value stream / Process

Supplier Customer
Supplier Customer

Supplier Customer

Supplier Customer
Supplier Customer


Primary SCM disruptions:
 Natural
 Earthquake
 Fire
 Flood
 Storm
 Hurricane
 Tornado
 Man-made
 Terrorism, piracy
 Labor strife
 Business decisions
 Country risk
 Exchange rate risk
 Liquidity risk
 Political instability
 Operational risk


Dealing with risks
There are four ways of dealing with, or managing, each
individual risk that you identified. You can:
 Accept it
 Transfer it
 Mitigate it
 Eliminate it


How to reduce disruptions
 Think strategically.
 Contingency planning
 Balance
 Broaden cooperation.
 Consider the tradeoffs
 Certified (a) suppliers
 Alternative (b) suppliers
 Glocal (see my SlideShare presentation at http://goo.gl/eDSai)

Don't ignore a risk just because you can't quantify it.


Develop a win/win SCM system
 Communication
 Lead time – both
 Automated portals
 Certified supplier program
 Multiple levels
 Alternatives
 Data
 Accurate
 Timely
 Complete
 1st vs. 2nd generation
 Objective
 Forecasting
 Expected
 Alternative scenarios
 Partnership –
 Upstream
 Downstream


Use of proven tools for immediate & continuous
results
1. Review your current supply chain (SC)
2. Draw an “as-is” SC flow chart
3. Identify “critical” suppliers
4. Contact each “critical” supplier
5. Obtain a copy of their contingency plan
1. If they have one, review
2. If not, have them create one
3. If they won’t they do not qualify as a critical supplier
6. Add this to the Critical Supplier Program
7. Review the SC
8. Draw a “future-state” flowchart
9. Annually audit the SC


Training Methodology
 Communication
 Preparation
 Demonstration
 Participation
 Collaboration


Participant discussions
 In your experience what have you seen:
 Work
• -
• -
• -
• -
 Not work
• -
• -
• -
• -
 Suggestions
• -
• -
• -
• -


Real world templates-takeaway
ABC, Inc.
Supplier Comparison Chart

Rate the Quality Critical Features of the suppliers
( 1 ‐ worst, 5 ‐ best )

Quality Critical Features Weights Supplier X Supplier Y Supplier Z Supplier T Supplier Q
Product Quality 25% 4 6 4 1 6
Service Quality 13% 5 5 7 1 4
Lead Time 12% 7 6 3 2 2
Reputation 10% 8 9 8 4 5
Responsiveness 5% 2 8 10 4 2
Price 35% 3 10 2 9 1

Total Scores:   29 44 34 21 20
Total Weighted Scores:   4.44 7.67 4.27 4.37 3.21
Rank:   2 1 4 3 5

General

Supplier X ████
Best Supplier Y ████████
Supplier Z ████
Supplier T ████
Supplier Q ███


Best practices options
External Internal
 Certified Supplier program  PICMA model
 A suppliers  Value stream mapping
 B suppliers  Continuous Process Improvement
 Communications
 Accountability
 Verbal
 Written  Transparency
 Published  Consistency
 Expectations  Champion
 Objective
 Added-value only focus
 Consistent
 Documented  6S
 Accountability  Leverage TOC
 Transparency
 Audits
 Self
 Annual
 “Real” scorecards


Other item of interest from Daniel Feiman
YouTube videos: Books:
Accounting http://goo.gl/XJhKf  Daniel Feiman, et al; 2011; THE Book on…Business From A to Z: The 260 Most
Branding http://goo.gl/8gFDD Important Answers You Need to Know; Build It Backwards Publishing; Los Angeles,
California, USA; Amazon http://goo.gl/jMY79 or Kindle http://goo.gl/7SxeY
Cash flow http://goo.gl/R04bC  Tony Miller & Daniel Feiman; 2009; THE Book on…Improving Productivity by Fair
Efficiency http://goo.gl/MepxX Means or Foul; Build It Backwards Publishing; Los Angeles, California, USA;
- http://goo.gl/Jp5yB
Equity http://goo.gl/Ydyp7
Press;
Forecasting http://goo.gl/NqGIJ
 Kinaxis - Supply Chain Management simulation - http://goo.gl/ii3iq
Generations http://goo.gl/0Pufe  Small Business Online Community: Accounting & Budgeting - http://goo.gl/OmYXv
Innovation http://goo.gl/NNo3t  New York Times - http://goo.gl/2eCwo
Leadership http://goo.gl/pZ1Fw  Pepperdine Alumni News - http://goo.gl/hbvHh
Marketing http://goo.gl/bYoyZ  The LA CPA - http://ping.fm/oaYAG
 Shoestring Ventures - http://goo.gl/zmgVO
Mediation http://goo.gl/Re6RZ
 Carol Roth’s blog on Top Book Marketing Tips: - http://goo.gl/RSUG8
Negotiation http://goo.gl/EGIL4
 LEAN Guide for the Business Traveler - http://goo.gl/3fKnW
Process http://goo.gl/EpTnU  Kinaxis Supply Chain Expert Community interview - http://goo.gl/RZ5hf
Quality http://goo.gl/E4dmh  BizTalk radio interview - http://goo.gl/fmytq
Quality http://goo.gl/qW3XY  Jim Blasingame’ Small Business Advocate radio show - http://goo.gl/zopgF
Whitepapers
Strategy http://goo.gl/xAeOo
 Daniel Feiman & Eric Augusta; 2009; What Everyone Needs to Know about Financial
Strategy http://goo.gl/sqLb5 Modeling; California Certified Public Accountants conference;
Turnaround http://goo.gl/9B3JC - www.BuildItBackwards.com/publishing
 Daniel Feiman & Ivan Rosenberg; 2009; Strategic Planning WORKS-If You Give It a
Underperformance http://goo.gl/2l83Z Chance; - www.BuildItBackwards.com/publishing
Valuation http://goo.gl/timfH  Daniel Feiman & Tom Drucker; 2009; Process Improvement is NOT a Dirty Word;
- www.BuildItBackwards.com/publishing
X-Ray http://goo.gl/a0Twq
 Daniel Feiman; 1995; How to Develop an Asset Based Lending Department;
Yield http://goo.gl/C6lPE American Bankers Association; (Award winning paper)
Z-Score http://goo.gl/flde2
Reasons why http://goo.gl/cnyuV

Daniel Feiman, MBA, CMC©, Visiting Professor
Consultant, Trainer, Author, Publisher, Reviewer
Daniel Feiman, MBA, CMC®, Visiting Professor is the Founder & Managing Director of
Build It Backwards, a consulting & training firm based in Redondo Beach, CA. He turns
Roadblocks into Roadmaps(SM) by teaching companies how to Assess, Achieve & Accelerate
exceptional success; with measureable results in 90 days. His core competencies include:
Strategy; Finance & Process. Mr. Feiman is an internationally recognized seminar facilitator;
working with firms such as Apple, ADNOC (United Arab Emirates), ARAMCO (Saudi Arabia),
California Institute of International Business & Economics, Credit Suisse, Hilton Hotels
International, Institute for Supply Management (ISM), Mattel, PEMEX (México), Promigas
(Colombia), Reliance (India), TRW, University of Manchester (UK) & others.
He is adjunct faculty at the University of California, Los Angeles (UCLA) Extension
Department (since 1990) has taught at the University of Manchester (UK) & is the Visiting
Professor at the Business School of the University of Huddersfield (UK).
He has consulted with firms in many industries including, manufacturing, distribution,
financial services, oil & gas, education, healthcare, consumer products, legal, & hospitality. His
diverse knowledge-base & world-wide contacts is leveraged to assist his clients in gaining
advantages not available through other resources. (Please see www.BuildItBackwards.com for
case studies and testimonials).
Mr. Feiman is a reviewer for the New York Journal of books
(http://www.nyjournalofbooks.com/) .
Build It Backwards Publishing (www.BuildItBackwards.com/Publishing) publishes
business books with recognized expert authors targeting those who have decided to learn what
they really need to know in the simplest straight forward way; without jargon. Mr. Feiman is the
author of numerous articles and whitepapers, is a contributing author to several books as well as
co-author of others. The latest book in the series, THE Book on…Business from A to Z: the 260
Most Important Answers You Need to Know, was published this fall. He has been interviewed by
television, radio & print resources.


Contacting us:
Daniel Feiman, MBA, CMC®
Managing Director
Build It Backwards(TM)
Success by Choice; Not Chance(SM)

Office: 310.540.6717 Cell: 818.522.2892
Consulting & Training in:
Strategy * Finance * Process
DanielFeiman@BuildItBackwards.com
www.BuildItBackwards.com
http://goo.gl/j6F5b
http://goo.gl/TxRuA


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