Supply Chain Management.ppt

1、,Supply Chain Management,McGraw-Hill/Irwin,Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.,CHAPTER 11,Supply Chain Management,Supply Chain: the sequence of organizations - their facilities, functions, and activitie

2、s - that are involved in producing and delivering a product or service.,Sometimes referred to as value chains,Warehouses Factories Processing centers Distribution centers Retail outlets Offices,Facilities,Functions and Activities,Forecasting Purchasing Inventory management Information management Qua

3、lity assurance Scheduling Production and delivery Customer service,Typical Supply Chains,Typical Supply Chain for a Manufacturer,Typical Supply Chain for a Service,Improve operations Increasing levels of outsourcing Increasing transportation costs Competitive pressures Increasing globalization Incre

4、asing importance of e-commerce Complexity of supply chains Manage inventories,Need for Supply Chain Management,Bullwhip Effect,Tier 2 Suppliers,Tier 1 Suppliers,Producer,Distributor,Retailer,Final Customer,Benefits of Supply Chain Management,Benefits of Supply Chain Management,Lower inventories High

5、er productivity Greater agility Shorter lead times Higher profits Greater customer loyalty,Elements of Supply Chain Management,Logistics Refers to the movement of materials and information within a facility and to incoming and outgoing shipments of goods and materials in a supply chain,Logistics,Log

6、istics,Movement within the facility Incoming and outgoing shipments Bar coding EDI Distribution JIT Deliveries,Materials Movement,Distribution requirements planning (DRP) is a system for inventory management and distribution planning Extends the concepts of MRPII,Distribution Requirements Planning,M

7、anagement uses DRP to plan and coordinate: Transportation Warehousing Workers Equipment Financial flows,Uses of DRP,Electronic Data Interchange,EDI the direct transmission of inter-organizational transactions, computer-to-computer, including purchase orders, shipping notices, and debit or credit mem

8、os.,Increased productivity Reduction of paperwork Lead time and inventory reduction Facilitation of just-in-time systems Electronic transfer of funds Improved control of operations Reduction in clerical labor Increased accuracy,Electronic Data Interchange,Efficient consumer response (ECR) is a suppl

9、y chain management initiative specific to the food industry Reflects companies efforts to achieve quick response using EDI and bar codes,Efficient Consumer Response,E-Commerce: the use of electronic technology to facilitate business transactions Applications include Internet buying and selling E-mai

10、l Order and shipment tracking Electronic data interchange,E-Commerce,Companies can: Have a global presence Improve competitiveness and quality Analyze customer interests Collect detailed information Shorten supply chain response times Realize substantial cost savings Create virtual companies Level t

11、he playing field for small companies,Advantages E-Commerce,Customer expectations Order quickly - fast delivery Order fulfillment Order rate often exceeds ability to fulfill it Inventory holding Outsourcing loss of control Internal holding costs,Disadvantages of E-Commerce,Successful Supply Chain,Tru

12、st among trading partners Effective communications Supply chain visibility Event-management capability The ability to detect and respond to unplanned events Performance metrics,SCOR Metrics,CPFR,Collaborative Planning, Forecasting, and Replenishment Focuses on information sharing among trading partn

13、ers Forecasts can be frozen and then converted into a shipping plan Eliminates typical order processing,CPFR Process,Step 1 Front-end agreement Step 2 Joint business plan Steps 3-5 Sales forecast Steps 6-8 Order forecast collaboration Step 9 Order generation/delivery execution,CPFR Results,Nabisco a

14、nd Wegmans 50% increase in category sales Wal-mart and Sara Lee 14% reduction in store-level inventory 32% increase in sales Kimberly-Clark and Kmart Increased category sales that exceeded market growth,Develop strategic objectives and tactics Integrate and coordinate activities in the internal supp

15、ly chain Coordinate activities with suppliers with customers Coordinate planning and execution across the supply chain Form strategic partnerships,Creating an Effective Supply Chain,Supply Chain Performance Drivers,Quality Cost Flexibility Velocity Customer service,Velocity,Inventory velocity The ra

16、te at which inventory(material) goes through the supply chain Information velocity The rate at which information is communicated in a supply chain,Barriers to integration of organizations Getting top management on board Dealing with trade-offs Small businesses Variability and uncertainty Long lead t

17、imes,Challenges,Lot-size-inventory Bullwhip effect Inventory-transportation costs Cross-docking Lead time-transportation costs Product variety-inventory Delayed differentiation Cost-customer service Disintermediation,Trade-offs,Trade-offs,Bullwhip effect Inventories are progressively larger moving b

18、ackward through the supply chain Cross-docking Goods arriving at a warehouse from a supplier are unloaded from the suppliers truck and loaded onto outbound trucks Avoids warehouse storage,Trade-offs,Delayed differentiation Production of standard components and subassemblies, which are held until lat

19、e in the process to add differentiating features Disintermediation Reducing one or more steps in a supply chain by cutting out one or more intermediaries,Supply Chain Issues,Supply Chain Benefits and Drawbacks,Purchasing is responsible for obtaining the materials, parts, and supplies and services ne

20、eded to produce a product or provide a service.,Purchasing,Develop and implement purchasing plans for products and services that support operations strategies,Goal of Purchasing,Identifying sources of supply Negotiating contracts Maintaining a database of suppliers Obtaining goods and services Manag

21、ing supplies,Duties of Purchasing,Purchasing Interfaces,Purchasing Cycle,Requisition received Supplier selected Order is placed Monitor orders Receive orders,Value analysis Examination of the function of purchased parts and materials in an effort to reduce cost and/or improve performance,Value Analy

22、sis vs. Outsourcing,Centralized purchasingPurchasing is handled by one special department Decentralized purchasing Individual departments or separate locations handle their own purchasing requirements,Centralized vs Decentralized Purchasing,Choosing suppliers Evaluating sources of supply Supplier au

23、dits Supplier certification Supplier relationships Supplier partnerships,Suppliers,Quality and quality assurance Flexibility Location Price,Factors in Choosing a Supplier,Product or service changes Reputation and financial stability Lead times and on-time delivery Other accounts,Factors in Choosing

24、a Supplier (contd),Evaluating Sources of Supply,Vendor analysis: Evaluating the sources of supply in terms of price, quality, reputation, and service,Vendor analysis - evaluating the sources of supply in terms of Price Quality Services Location Inventory policy Flexibility,Evaluating Sources of Supp

25、ly,Ideas from suppliers could lead to improved competitiveness Reduce cost of making the purchase Reduce transportation costs Reduce production costs Improve product quality Improve product design Reduce time to market Improve customer satisfaction Reduce inventory costs Introduce new products or services,Supplier Partnerships,Critical Issues,Strategic importance Cost Quality Agility Customer service Competitive advantage Technology management Benefits Risks,Critical Issues,Purchasing function Increased outsourcing Increased conversion to lean production Just-in-time deliveries Globalization,