Contenido log
- 2. Outline What is a Supply Chain? Decision Phases in a Supply Chain Process View of a Supply Chain The Importance of Supply Chain Flows Examples of Supply Chains
- 3. What is a Supply Chain? Introduction The objective of a supply chain
- 4. What is a Supply Chain? All stages involved, directly or indirectly, in fulfilling a customer request Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service) Examples: Fig. 1.1 Detergent supply chain (Wal-Mart), Dell
- 5. What is a Supply Chain? Customer is an integral part of the supply chain Includes movement of products from suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directions Probably more accurate to use the term “supply network” or “supply web” Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers (Fig. 1.2) All stages may not be present in all supply chains (e.g., no retailer or distributor for Dell)
- 6. What is a Supply Chain? Customer wants detergent and goes to Jewel Jewel Supermarket Jewel or third party DC P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical manufacturer (e.g. Oil Company)
- 7. Flows in a Supply Chain Customer Information Product Funds
- 8. The Objective of a Supply Chain Maximize overall value created Supply chain value: difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)
- 9. The Objective of a Supply Chain Example: Dell receives $2000 from a customer for a computer (revenue) Supply chain incurs costs (information, storage, transportation, components, assembly, etc.) Difference between $2000 and the sum of all of these costs is the supply chain profit Supply chain profitability is total profit to be shared across all stages of the supply chain Supply chain success should be measured by total supply chain profitability, not profits at an individual stage
- 10. The Objective of a Supply Chain Sources of supply chain revenue: the customer Sources of supply chain cost: flows of information, products, or funds between stages of the supply chain Supply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitability
- 11. Decision Phases of a Supply Chain Supply chain strategy or design Supply chain planning Supply chain operation
- 12. Supply Chain Strategy or Design Decisions about the structure of the supply chain and what processes each stage will perform Strategic supply chain decisions Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systems Supply chain design must support strategic objectives Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty
- 13. Supply Chain Planning Definition of a set of policies that govern short-term operations Fixed by the supply configuration from previous phase Starts with a forecast of demand in the coming year
- 14. Supply Chain Planning Planning decisions: Which markets will be supplied from which locations Planned buildup of inventories Subcontracting, backup locations Inventory policies Timing and size of market promotions Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon
- 15. Supply Chain Operation Time horizon is weekly or daily Decisions regarding individual customer orders Supply chain configuration is fixed and operating policies are determined Goal is to implement the operating policies as effectively as possible Allocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment orders Much less uncertainty (short time horizon)
- 16. Process View of a Supply Chain Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages Push/pull view: processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push)
- 17. Cycle View of Supply Chains Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle Customer Retailer Distributor Manufacturer Supplier
- 18. Cycle View of a Supply Chain Each cycle occurs at the interface between two successive stages Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor) Manufacturing cycle (distributor-manufacturer) Procurement cycle (manufacturer-supplier) Figure 1.3 Cycle view clearly defines processes involved and the owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process.
- 19. Push/Pull View of Supply Chains Procurement, Manufacturing and Replenishment cycles Customer Order Cycle Customer Order Arrives PUSH PROCESSES PULL PROCESSES
- 20. Push/Pull View of Supply Chain Processes Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand Pull: execution is initiated in response to a customer order (reactive) Push: execution is initiated in anticipation of customer orders (speculative) Push/pull boundary separates push processes from pull processes
- 21. Push/Pull View of Supply Chain Processes Useful in considering strategic decisions relating to supply chain design – more global view of how supply chain processes relate to customer orders Can combine the push/pull and cycle views L.L. Bean (Figure 1.6) Dell (Figure 1.7) The relative proportion of push and pull processes can have an impact on supply chain performance
- 22. Supply Chain Macro Processes in a Firm Supply chain processes discussed in the two views can be classified into (Figure 1.8): Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM) Integration among the above three macro processes is critical for effective and successful supply chain management
- 23. Examples of Supply Chains Gateway Zara McMaster Carr / W.W. Grainger Toyota Amazon / Borders / Barnes and Noble Webvan / Peapod / Jewel What are some key issues in these supply chains?
- 24. Gateway: A Direct Sales Manufacturer Why did Gateway have multiple production facilities in the US? What advantages or disadvantages does this strategy offer relative to Dell, which has one facility? What factors did Gateway consider when deciding which plants to close? Why does Gateway not carry any finished goods inventory at its retail stores? Should a firm with an investment in retail stores carry any finished goods inventory? Is the Dell model of selling directly without any retail stores always less expensive than a supply chain with retail stores? What are the supply chain implications of Gateway’s decision to offer fewer configurations?
- 25. Macro Processes in a Supply Chain Supplier Relationship Management (SRM) Internal Supply Chain Management (ISCM) Customer Relationship Management (CRM) Transaction Management Foundation (TFM)
- 26. Customer Relationship Management The processes that take place between an enterprise and its customers downstream in the supply chain Key processes: Marketing Selling Order management Call/Service center
- 27. Supplier Relationship Management Those processes focused on the interaction between the enterprise and suppliers that are upstream in the supply chain Key processes: Design Collaboration Source Negotiate Buy Supply Collaboration There is a natural fit between ISCM and SRM processes
- 28. Internal Supply Chain Management Includes all processes involved in planning for and fulfilling a customer order ISCM processes: Strategic Planning Demand Planning Supply Planning Fulfillment Field Service There must be strong integration between the ISCM and CRM macro processes
- 29. The Transaction Management Foundation Enterprise software systems (ERP) Earlier systems focused on automation of simple transactions and the creation of an integrated method of storing and viewing data across the enterprise Real value of the TMF exists only if decision making is improved The extent to which the TMF enables integration across the three macro processes determines its value
- 30. Bullwhip Effect Fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers (shown in next Figure ) Distorts demand information within the supply chain, where different stages have very different estimates of what demand looks like Results in a loss of supply chain coordination
- 31. Improving Information Accuracy Sharing point of sale data Collaborative forecasting and planning Single stage control of replenishment Continuous replenishment programs (CRP) Vendor managed inventory (VMI)
- 32. C R P (Continuous Replenishment Programs Wholesaler replenishes to the retailer often based on the P.O.S C R P can be managed by a supplier or third party. Most of the cases CPR is trigered when the inventory is taken out from the warehouse The POS are not as used as the system mentioned above
- 33. CPFR: Collaborativve planning , forecasting and replenishment Sellers and buyers must be collaborative through a supply chain they have in common. They should take into consideration the following steps: Strategy Offer and Request management Execution Analysis
- 34. Vendor-Managed Inventories (VMI) Manufacturer or supplier is responsible for all decisions regarding inventory at the retailer Control of replenishment decisions moves to the manufacturer Requires that the retailer share demand information with the manufacturer Manufacturer can increase its profits and total supply chain profits by reducing effects of double marginalization Having final customer demand data also helps manufacturer plan production more effectively Campbell’s Soup, Proctor & Gamble Potential drawback – when retailers sell products that are substitutes in customers’ minds
- 35. The Transaction Management Foundation Enterprise software systems (ERP) Earlier systems focused on automation of simple transactions and the creation of an integrated method of storing and viewing data across the enterprise Real value of the TMF exists only if decision making is improved The extent to which the TMF enables integration across the three macro processes determines its value