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Meera Das
Meera Das
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Basics of Supply Chain Management
Definitions
What Is the Supply Chain? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
The Supply Chain Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
The Supply Chain – Another View Plan Source Make Deliver Buy Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
What Is Supply Chain Management (SCM)? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Plan Source Make Deliver Buy
History of Supply Chain Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
Why Is SCM Difficult? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Plan Source Make Deliver Buy
The Importance of Supply Chain Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Importance of Supply Chain Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply Chain Management and Uncertainty ,[object Object],[object Object],[object Object],Manufacturer Wholesale Distributors Consumers Multi-tier Suppliers Retailers Time Sales Sales Time Sales Time Sales Time Bullwhip Effect
Factors Contributing to the Bullwhip ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Today’s Marketplace Requires: ,[object Object],[object Object],[object Object],[object Object],[object Object],Shared visibility for trading partners
Supply Chain Management – Key Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Nevertheless, forecasts (or plans, if you prefer) are important management tools when some methods are applied to reduce uncertainty
Supply Chain Management – Key Issues ,[object Object],Purchasing Manufacturing Distribution Customer Service/ Sales Few change- overs Stable schedules Long run lengths High inventories High service levels Regional stocks SOURCE MAKE DELIVER SELL Low pur-chase price Multiple vendors Low invent-ories Low trans-portation
Supply Chain Management – Key Issues Source: Simchi-Levi ,[object Object],[object Object],Product Design ,[object Object],[object Object],[object Object],Outsourcing & Procurement Strategies ,[object Object],[object Object],[object Object],[object Object],Integration and Strategic Partnering ,[object Object],[object Object],[object Object],Distribution Strategies ,[object Object],[object Object],Supply Contracts ,[object Object],[object Object],Inventory Control ,[object Object],[object Object],[object Object],Network Planning CONSIDERATIONS ISSUE
Supply Chain Management Operations Strategies Source: Simchi-Levi complex products, unique customer specifications many variations on finished product; infrequent demand customized products, many variations standardized products, relatively predictable demand WHEN TO CHOOSE Enables response to specific customer requirements Engineer to Order Low inventory levels; wide range of product offerings; simplified planning Configure to Order Customization; reduced inventory; improved service levels Make to Order Low manufacturing costs; meet customer demands quickly Make to Stock BENEFITS STRATEGY
Supply Chain Management – Benefits ,[object Object],Source: Cohen & Roussel 20%-30% Improvement Fill Rates 10%-20% Improvement Improved Capacity Realization 25%-50% Improvement Lower Supply-Chain Costs 10%-16% Improvement Overall Productivity 25%-80% Improvement Forecast Accuracy 30%-50% Improvement Fulfillment Cycle Time 25%-60% Improvement Inventory Reduction 16%-28% Improvement Delivery Performance
Supply Chain Imperatives for Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supply chain configuration components
Value of Information and SCM
Information In The Supply Chain ,[object Object],[object Object],[object Object],Source Make Deliver Sell Suppliers Manufacturers Warehouses & Distribution Centers Retailer It’s estimated that the typical pharmaceutical company supply chain carries over 100 days of product to accommodate uncertainty Plan Order Lead Time Delivery Lead Time Production Lead Time
Taming the Bullwhip ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Four critical methods for reducing the Bullwhip effect:
Methods for Improving Forecasts Accurate Forecasts Panels of Experts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Judgment Methods Time-Series Methods Causal Analysis Market Research Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Evolving Supply Chain
Supply Chain Integration – Push Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply Chain Integration – Pull Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply Chain Integration – Push/Pull Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supply Chain Timeline Raw Materials End Consumer Push Strategy Pull Strategy Push- Pull Boundary “ Generic” Product “ Customized” Product
Choosing Between Push/Pull Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Pull Push Pull Push Economies of Scale Low High Low High Demand Uncertainty ,[object Object],[object Object],[object Object],[object Object],Computer equipment ,[object Object],[object Object],[object Object],[object Object],Grocery, Beverages ,[object Object],[object Object],[object Object],[object Object],Books, CD’s ,[object Object],[object Object],[object Object],[object Object],Furniture Source: Simchi-Levi
Characteristics of Push, Pull and Push/Pull Strategies Source: Simchi-Levi Short Long Lead Time Order Fulfillment Supply Chain Planning Processes Resource Allocation High Minimize Cost PUSH Responsiveness Focus Low Complexity Maximize Service Level Objective PULL
Supply Chain Collaboration – What Is It? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supply Chain Collaboration ,[object Object],[object Object],[object Object],Manufacturer Distributors/ Wholesalers Suppliers Retailers Collaborative Demand Planning ,[object Object],[object Object],[object Object],Synchronized Production Scheduling Collaborative Product Development Logistics Providers
Benefits of Supply Chain Collaboration Source: Cohen & Roussel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SERVICE SUPPLIERS MATERIAL SUPPLIERS CUSTOMERS
Supply Chain Collaboration Spectrum ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Cohen & Roussel Number of Relationships Extent of Collaboration Many Few Limited Extensive Transactional Collaboration Synchronized Collaboration Cooperative Collaboration Coordinated Collaboration Not Viable Low Return
Successful Supply Chain Collaboration ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Emerging Best Practices in SCM Strategy
The SCOR Model
Process Reference Models ,[object Object],Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Benchmarking Characterize the management practices and software solutions that result in “best-in-class” performance Best Practices Analysis Process Reference Model Capture the “as-is” state of a process and derive the desired “to-be” future state Business Process Reengineering Capture the “as-is” state of a process and derive the desired “to-be” future state Quantify the operational performance of similar companies and establish internal targets based on “best-in-class” results Characterize the management practices and software solutions that result in “best-in-class” performance
Customers Suppliers P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products Return Source P5 Plan Returns Return Deliver Enable D4 Deliver Retail Products SCOR 7.0 Model Structure
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examples of SCOR Adoptions

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Ibcs nov2011

  • 1. Basics of Supply Chain Management
  • 3.
  • 4. The Supply Chain Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
  • 5. The Supply Chain – Another View Plan Source Make Deliver Buy Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. Supply Chain Management Operations Strategies Source: Simchi-Levi complex products, unique customer specifications many variations on finished product; infrequent demand customized products, many variations standardized products, relatively predictable demand WHEN TO CHOOSE Enables response to specific customer requirements Engineer to Order Low inventory levels; wide range of product offerings; simplified planning Configure to Order Customization; reduced inventory; improved service levels Make to Order Low manufacturing costs; meet customer demands quickly Make to Stock BENEFITS STRATEGY
  • 18.
  • 19.
  • 21.
  • 22.
  • 23.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Characteristics of Push, Pull and Push/Pull Strategies Source: Simchi-Levi Short Long Lead Time Order Fulfillment Supply Chain Planning Processes Resource Allocation High Minimize Cost PUSH Responsiveness Focus Low Complexity Maximize Service Level Objective PULL
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35. Emerging Best Practices in SCM Strategy
  • 37.
  • 38. Customers Suppliers P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products Return Source P5 Plan Returns Return Deliver Enable D4 Deliver Retail Products SCOR 7.0 Model Structure
  • 39.

Editor's Notes

  1. Dependent on each instructor’s requirements
  2. Dependent on each instructor’s requirements
  3. Dependent on each instructor’s requirements
  4. Dependent on each instructor’s requirements
  5. Dependent on each instructor’s requirements
  6. 34