A Strategic Framework for Supply Chain Design, Planning, and Operation

1
A Strategic Framework for Supply Chain
Design, Planning, and Operation

• ???? ?????
• ??? ?? ???
• ??? ??? ???
• ??? ??? ???

2
Outline

• What is supply chain management?Understanding
  the Supply Chain A supply chain strategy
  framework Achieving Strategic Fit and Scope
  Supply Chain Drivers and Obstacles
  Trade-off Efficiency and Responsiveness

3
Traditional View Logistics in the Economy
(1990, 1996)
Freight Transportation352, 455
Billion Inventory Expense221, 311
Billion Administrative Expense27, 31
Billion Logistics related activity 11, 10.5 of
GNP. Source Cass Logistics
4
Traditional View Logistics in the Manufacturing
Firm
5
Supply Chain Management The Magnitude in the
Traditional View

• Estimated that the grocery industry could save
  30 billion (10 of operating cost) by using
  effective logistics and supply chain strategies
• A typical box of cereal spends 104 days from
  factory to sale
• A typical car spends 15 days from factory to
  dealership
• Laura Ashley turns its inventory 10 times a
  year, five times faster than 3 years ago

6
Supply Chain Management The True Magnitude

• Compaq estimates it lost 0.5 billion to 1
  billion in sales in 1995 because laptops were not
  available when and where needed
• When the 1 gig processor was introduced by AMD,
  the price of the 800 meg processor dropped by 30
• PG estimates it saved retail customers 65
  million by collaboration resulting in a better
  match of supply and demand

7
??????????????????
???????????
SourceWilliam C. Copacino,Logistics
Management,April, 1997?
www.ctwL.com.tw
8
Overview of Supply Chain Management

• Factors require companies to use supply chain
  management as part of their competitive strategy.
• -Globalization
• -Increased competition
• -Information technology
• -Shorter product life cycles

9
????

• ??????
• ???? ??????????????????
• 1955 ?????????
• ???????? ???? ?????????????
• 1963 ????????NCPDM ??
• National Council of
  PhysicalDistribution Management
• 1970s ?????? ILSIntegrated
  Logistics Support
• 1980 ??????????
• ?????????
• 1990 ???????????
• Supply Chain Management ?????
• Global Logistics ????

10
What is a supply chain?
11
(No Transcript)
12
(No Transcript)
13
Flows in a Supply Chain
14
Information Sharing in the Supply Chain

• Traditionally, information has been shared only
  between adjacent supply chain pairs, and that
  information has been very limited.
• This limited approach to information sharing
  leads to bullwhip effect.
• ????????????????????????????????,????????????,????
  ???????????10???????????????????200?????????????
  ?????????????????????????????????????????????c
  hains use a hub and spoke approach to sharing
  information.

15
(No Transcript)
16
Process View of A Supply Chain

• 1.Cycle View
• -Divide into (order) four cycles
• -Order Cycle (in general)
• order transmission
• order processing
• order preparation
• order shipping

17
Cycle View of Supply Chains
18
Supply Chain Cycle
19
2. Push/Pull View
Sharman (1984) introduced the term order
penetration point in alogistics context. He
defines the OPP as the point where product
specificationstypically get frozen, and as the
last point at which inventory is held. He argues
...

• Divide by OP (Order Penetration) point Sharman
  OP Points
• Push Process (Speculation)
• Before OP point
• Process in anticipation of customer orders
• Pull Process (Postponement)
• After OP point
• Process in response of customer orders
• Push/Pull View is good for strategic planning

20
OPP and Product Delivery Strategies
21
The Importance of Supply Chain
Dells Success Quaker OatsLesson 1.7B
bought Snapple in 1994.12. Two distinct supply
chains Cant create synergy and SC value Sold
to Triarc about 300M 1997.4.
22
Examples of Supply Chains
Micro Electronics Direct Sales
Manufacturing 7-Eleven Convenience Store W.W.
Grainger / McMaster-Carr MRO Toyota Global
Auto Manufacturer Amazon / Borders / Barnes and
Noble
Micro Electronics Corporation or MEC is an
electronic-components manufacturer and
distributor serving various industries. products
mainly include LCD LED transistors and
other micro-electronic related components. WW
Grainger and McMaster-Carr selling maintenance,
repair, and operations (MRO)supplies to other
companies over the Internet.
23
What is Supply Chain Management?
Managing supply chain flows and assets, to
maximize supply chain surplus (profitability). W
hat is supply chain surplus?
24
? ?,? ? ? ? ? ? ? ?

• ????????,??-
• ?????????,???????????????????????
• - Eliyahu M , Goldratt
• ???? ( TOC ) ????
• ????????????????
• ????????,???????,??????????????
• ????????????,
• ???????????????

25
???????????

• 1. ???????(Total Cost)??
• ?? ????????????20??
• ?? ??????????????
• 2. ?????????(Avoid Suboptimum)
• 3. ??????(Best Trade-off)
• ?? Transportation vs. Inventory Costs

26
Supply Chain performance Achieving Strategic
Fit and Scope

• Company Strategy (mission/vision)
• Define target customers to satisfy through its
  products and services
• Supply Chain Strategy MUST support
  Company/Corporate Strategy

27
Business (Competitive) Strategy

• Examples
• Wal-Mart Everyday Low Price Product
  Variety
• McMaster Carr Next-day Delivery Product
  Variety
• Dell Customization
• Compaq Availability
• 7-Eleven Convenience (Time/Place Utility)

28
The Value Chain Linking Supply Chain and
Business Strategy
29
How to Achieve Strategic Fit

• 1.Understanding the Customer
• 2.Understanding the Supply Chain
• 3.Make Strategic Fit

30
Understanding the Customer
31
Levels of Implied Demand Uncertainty
Impact of Customer Needs on Implied Demand
Uncertainty
32
Understanding the Supply Chain
33
Supply Chain Cost-Responsiveness Efficient
Frontier
34
Types of Supply Chains

• Responsive Supply Chains respond quickly as
  new products are introduced and as demand
  changes.
• Efficient Supply Chains focus on operating
  efficiently to minimize costs.

35
Types of Supply Chains -- Continued
?????? for innovative product ?????? for functional products
???????,????,????????. ????????????. ??????. ????????????. ???????????????,????,?????,?????. ??????????. ???,??,?????????????????. ??,???????????.
36
?????
???
?????
37
Expanding Strategic Scope
38
Supply Chain Strategies

• Quick Response Programs
• Vendor Managed Inventory (VMI)/???????.
• ??????,????????????????,??????
• Efficient Consumer Response
• ???????????,??????.
• Postponement????????,????????
• ????????????????????????,
• ???????? ?????,????,.?????,?????????.
• Revenue Sharing???????,????.
• Cross Docking?????????????????(Cross-docking)????
  ??????????????????????????????????? ... ????????
  ...

39
Postponement

• Postponement????????,????????
• ????????????????????????,????????
  ?????,????,.

40
???????????

• ???????????????
• ????????
• ?? ??MIS ???????DSS ??????
• ?? ??EDI ??????
• ?? ?????
• ?? ????????????
• ??/??????? (QR, ECR)
• ????/???????
• Buy from Origin
• Sell to Destination
• ????????????
• ????????????
• ??????????????

41
Changing Distribution Patterns

• ??????? ?????????????.(Value Webs)
• Dispersed manufacturing
• ??????Merge-in-transit assembly
• ????Build-to-order
• ???/??/????????,???????????????.

42
Changing Distribution Patterns

• Trends in Logistics ????????????
• ???????????????????.
• ?????
• Requires 95 Service Reliability
• ?????????????
• Favors air and expedited ground delivery
• ????????

43
????????????????(Reference Model for a Logistics
Management System)
44
Supply Chain Drivers and Obstacles

• Supply Chain Drivers
• ??
• ??
• ??
• ??
• ??SC???????

45
INVENTORY

• ??????
• ????
• ????
• ????
• Impact
• More inventory higher costs, better
  responsiveness

46
TRANSPORTATION

• Components of Transportation Decisions
• Mode Air, Truck, Rail, Ship, Pipeline,
  Internet
• ??????????.
• ?????.
• Trade-off
• Speed vs. Cost
• Responsive (Customize) vs. Efficiency

47
FACILITIES

• Production/Storage Facilities
• Components of Facility Decisions
• Location
• Capacity (Efficiency vs. Flexibility)
• ???????????????.
• Manufacturing/Warehousing Methodology
• SKU Storage, Job Lot Storage
• Cross docking

48
INFORMATION

• Key to connect SC stages
• ??SC??????
• ?????
• ??,????SC,????,????.
• ?????
• EDI, Internet, ERP, SCM Software,

49
Components of Information Decisions

• Push vs Pull
• ???????????MRP??????,???????,??,????????,????????
  ???.
• ?????????,?????????????????,???????,????????,??,?
  ???????.

50
Drivers of Supply Chain Performance
51
(No Transcript)
52
??????

• ????????
• ??????????? ??.????????,??????,???????????.
• ????????????,????????????.
• ????????????????????.????.???.

53
Supply Chain Strategy-Edward Frazelle

• ???.?????,???????????,????????????????.
• ??????????,??????????????,????????,?????
• ????????????????????,?????????????
• ?????????????????????????????,?????????????,??????
  ????,??????????????????????

54
Supply Chain Strategy-Edward Frazelle
???????,????????????????????????????????,?????????
??????????,???????????????,??????????????????
?????,???????????????????????
55
Supply Chain ?????
???????

• ????
• ????
• ????
• ????
• ????

????
????
????
56
???????

• ??????
• ?BENCHMARK
• ?????????,?????
• ???????-?????????????,???????????.
• ????
• ?????

57
????????

• ????????????????,??????????.(??,??,??)
• ?????????.
• ????????.(?????????????????.)

58
??????
??????,?????????

• ???????

???
????VP
??VP
??VP
??????
??????
????????
????
????
????
59
??????????
(?)?????????? (?)???????,?????????? (?)???????,?
????????? (?)?????????????,????????
www.ctwL.com.tw
60
?????????????(?)????????,??????,??????
?????????,?????????????,???????,??????????,??????,
?????????(?)???????????????????,????????????????
??,???,???????????????????????????????????????????
????????????????????????
www.ctwL.com.tw
61
(?)??????????????????,????????,????
???????????????????,????????????,?????????????????
????,?????????????????(?)??????????????????????
????,???????????????????????????,??????????????,??
????,?????????????????????????????????????????,???
??????????????????????????  
www.ctwL.com.tw