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Low cost supply chain
- 1. Low cost supply chain Kenny Koay Technical Lead/founder of anyPiece Global Connect Resources Connecting business affordable & efficient Connecting business through through affordable & efficient framework framework
- 2. What is supply chain? A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources,customer… …moving a product or service from supplier to raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. - Source: Wikipedia Connecting business through affordable & efficient framework
- 3. Problem statement How can I cut down my cost Competitor instead? Profit margin drop Selling Purchase Goods Goods RM 4.00 RM 3.00 RM 3.80 RM 3.50 Connecting business through affordable & efficient framework
- 4. Low cost supply chain How it work? Streamline Supplier Internal Customer Collaboration Manage …moving a product or service from supplier to customer… Connecting business through affordable & efficient framework
- 5. Low cost supply chain Streamline Streamline Simplify the process flow and make it measureable Activities Tools The product portfolio Rationalization & Product Internal Portfolio Planning The product design Design for Manufacturability Part and raw material Standardization variety Manufacturing processes Lean, continuous flow mfg *Excerpts from the Book: Build-to-Order & Mass Customization Connecting business through affordable & efficient framework
- 6. Low cost supply chain Collaboration Know your vendor and collaborate with them closely Collaboration Activities Tools The vendor base Vendor/Partnerships WIP inventory Just-in-time Supplier *Excerpts from the Book: Build-to-Order & Mass Customization Connecting business through affordable & efficient framework
- 7. Low cost supply chain Collaboration Manage your customer and understand their needs Manage Activities Tools Finished goods inventory Build-to-Order The distribution network BTO & ship direct Customer Order entry Configurators & data links *Excerpts from the Book: Build-to-Order & Mass Customization Connecting business through affordable & efficient framework
- 8. Connecting business through affordable & efficient framework
- 9. Connecting business through affordable & efficient framework
- 10. JP KL 100,000 tons of metal expected to arrive to JP on 1-Mar-2015 Connecting business through affordable & efficient framework
- 11. Japan inventory Suggested selling price 5 Lowest suggested price 3 Quantity availability 100,500 tons Max quantity sellable 400,000 tons Connecting business through affordable & efficient framework
- 12. Simulation #1 Japan inventory Sell Quantity 100,500 Suggested selling price 5 Selling Price RM5.00 Lowest suggested price 3 Net profit estimate 60% Quantity availability 100,500 tons Max quantity sellable 400,000 tons Simulation #2 Sell Quantity 300,000 tons - WarehouseSelling Price+ Extra RM5.00 cost in KL Net profit estimate cost shipment 55% Simulation #3 Sell Quantity Japan + 50,000 + ShipmentSelling Price RM5.00 warehouse back to KL Net profit estimate 30% Connecting business through affordable & cost efficient framework
- 13. …forecast and reduce their cost and maximize their profit margin while making customer happy with cheaper than competitor price… With all the right tools in place, our customer able to forecast and reduce their cost and maximize their profit margin while making customer happy with cheaper than competitor price Connecting business through affordable & efficient framework
- 14. Can any company do it? • As long as your company have supplier or customer, the answer would be YES Connecting business through affordable & efficient framework
- 15. Low cost supply chain How it work? Streamline Supplier Internal Customer Collaboration Manage …moving a product or service from supplier to customer… Connecting business through affordable & efficient framework
- 16. THANK YOU! Connecting business through affordable & efficient framework