Chapter 7 Supply Chain Management BA 320 Operations Management
Supply Chain ü All activities associated with the flow and transformation of goods and services from raw materials to the end user, the customer ü A sequence of business activities from suppliers through customers that provide the products, services, and information to achieve customer satisfaction BA 320 Operations Management
The Supply Chain BA 320 Operations Management
The Supply Chain Suppliers Producers Distributors Customers Materials, parts, subassemblies, and services Finished goods, end products and services Package and delivery Total satisfaction with quality, price, delivery, and service Inventory Products and Services Inventory Figure 7. 1 BA 320 Operations Management
The Supply Chain Information Suppliers Producers Distributors Customers Materials, parts, subassemblies, and services Finished goods, end products and services Package and delivery Total satisfaction with quality, price, delivery, and service Inventory Products and Services Inventory Figure 7. 1 BA 320 Operations Management
The Supply Chain Information Suppliers Producers Distributors Customers Materials, parts, subassemblies, and services Finished goods, end products and services Package and delivery Total satisfaction with quality, price, delivery, and service Inventory Products and Services Inventory Cash Figure 7. 1 BA 320 Operations Management
Supply Chain Management ü Synchronization of activities required to achieve maximum competitive benefits ü Coordination, cooperation, and communication ü Rapid flow of information ü Vertical integration BA 320 Operations Management
Supply Chain Uncertainty ü Forecasting, lead times, batch ordering, price fluctuations, and inflated orders contribute to variability ü Inventory is a form of insurance ü Distorted information is one of the main causes of uncertainty BA 320 Operations Management
Information in the Supply Chain ü Centralized coordination of information flows ü Integration of transportation, distribution, ordering, and production ü Direct access to domestic and global transportation and distribution channels ü Locating and tracking the movement of every item in the supply chain BA 320 Operations Management
Information in the Supply Chain ü Consolidation of purchasing from all suppliers ü Intercompany and intracompany information access ü Data interchange ü Data acquisition at the point of origin and point of sale ü Instantaneous updating of inventory levels BA 320 Operations Management
Electronic Business ü Replacement of physical processes with electronic ones ü Cost and price reductions ü Reduction or elimination of intermediaries ü Shortening transaction times for ordering and delivery ü Wider presence and increased visibility BA 320 Operations Management
Electronic Business ü Greater choices and more information for customers ü Improved service ü Collection and analysis of customer data and preferences ü Virtual companies with lower prices ü Leveling the playing field for smaller companies ü Gain global access to markets & customers BA 320 Operations Management
Table 7. 1 Supply Chain Evolution at Nabisco BA 320 Operations Management
Electronic Data Interchange ü Computer-to-computer exchange of business documents in a standard format ü Quick access, better customer service, less paperwork, better communication, increased productivity, improved tracing and expediting, improves billing and cost efficiency BA 320 Operations Management
Bar Codes ü Computer readable codes attached to items flowing through the supply chain ü Generates point-of-sale data which is useful for determining sales trends, ordering, production scheduling, and deliver plans 1234 5678 BA 320 Operations Management
The Internet ü Instant global access to organizations, individuals, and information sources ü Fundamentally changes the way organizations do business ü Removed geographic barriers ü Adds speed and accessibility to the supply chain BA 320 Operations Management
Figure 7. 2 Build-to-Order Cars over the Internet BA 320 Operations Management
The E-Automotive Supply Chain BA 320 Operations Management
The E-Automotive Supply Chain SUPPLY CHAIN PROCESS AUTOMOTIVE PAST E-AUTOMOTIVE Customer sales Push—sell from inventory Pull—Build-to-order Production Goal of even and stable production Focus on customer demand, respond with supply chain flexibility Distribution Mass approach Fast, reliable, and customized to get cars to specific customer location Customer relationships Dealer-owned Shared by dealers and manufacturers Managing uncertainty Large car inventory at dealers Small inventories with shared information and strategically placed parts inventories Procurement Batch-oriented; dealers order based on allocations Orders made in real time based on available-to-promise information Product design Complex products don’t match customer needs Simplified products based on better information about what customers want Table 7. 2 BA 320 Operations Management
Intranets and Extranets ü Intranets are internet-like networks that operate within a single organization ü Extranets are intranets that can be connected to the global internet ü Difference is in who has access to the system BA 320 Operations Management
IT Issues ü Increased benefits and sophistication come with increased costs ü Efficient web sites do not necessarily mean the rest of the supply chain will be as efficient ü Security problems are very real ü Partnership and trust are important elements that may be new to business relationships BA 320 Operations Management
Suppliers ü Purchased materials account for about half of manufacturing costs ü Materials, parts, and service must be delivered on time, of high quality, and low cost ü Suppliers should be integrated into their customers’ supply chains ü Partnerships should be established ü On-demand delivery (JIT) is a frequent requirement BA 320 Operations Management
Sourcing ü Relationship between customers and suppliers focuses on collaboration and cooperation ü Outsourcing has become a long-term strategic decision ü Organizations focus on core competencies ü Single-sourcing is increasingly a part of supplier relations BA 320 Operations Management
E-Procurement ü Business-to-business commerce conducted on the Internet ü Benefits include lower transaction costs, lower prices, reduce clerical labor costs, and faster ordering and delivery times ü Currently used more for indirect goods ü E-Marketplaces service industry-specific companies and suppliers BA 320 Operations Management
Figure 7. 3 The Wal-Mart Supply Chain BA 320 Operations Management
Figure 7. 4 Centralized Supply at Honda America BA 320 Operations Management
Distribution ü The actual movement of products and materials between locations ü Handling of materials and products at receiving docks, storing products, packaging, and shipping ü Often called logistics ü Driving force today is speed ü Particularly important for Internet dot-coms BA 320 Operations Management
Figure 7. 5 Order Fulfillment at Amazon. com BA 320 Operations Management
Distribution Centers and Warehousing ü DCs are some of the largest business facilities in the United States ü Trend is for more frequent orders in smaller quantities ü Flow-through facilities and automated material handling ü Final assembly and product configuration may be done at the DC BA 320 Operations Management
Warehouse Management Systems ü Highly automated systems ü Controls item putaway, picking, packing, and shipping ü Transportation management, order management, yard management, labor management, warehouse optimization BA 320 Operations Management
Figure 7. 6 A WMS BA 320 Operations Management
Vendor-Managed Inventory ü Manufacturers generate orders, not distributors ü Stocking information is accessed using EDI ü A first step towards supply chain collaboration ü Increased speed, reduced errors, and improved service BA 320 Operations Management
Collaborative Distribution and Outsourcing ü Collaborative planning, forecasting, and replenishment (CPFR) ü Internet-based exchange of data and information ü Significant decrease in inventory levels and more efficient logistics ü Companies focus on core competencies BA 320 Operations Management
Transportation ü Important element, often overlooked ü Common methods are railroads, trucking, water, air, intermodal, package carriers, and pipelines BA 320 Operations Management
Railroads ü 150, 000 miles in US ü Low cost, high-volume ü Improving flexibility ü intermodal service ü double stacking BA 320 Operations Management
Trucking ü Most used mode in US ü Flexible, small loads ü Consolidation, Internet load match sites ü Part of TQM supplier-customer relationship ü Single sourcing reduces number of trucking firms serving a company BA 320 Operations Management
Air ü Rapidly growing segment of transportation industry ü Lightweight, small items ü Quick, reliable, expensive ü Major airlines and US Postal Service, UPS, Fed. Ex, DHL BA 320 Operations Management
Package Carriers ü Fed. Ex, UPS, US Postal Service, DHL ü Significant growth driven by e-businesses ü Use several modes of transportation ü Expensive ü Fast and reliable ü Innovative use of technologies BA 320 Operations Management
Intermodal ü Combination of several modes of transportation ü Most common are truck/rail/truck and truck/water/rail/truck ü Enabled by the use of containers BA 320 Operations Management
Water ü One of oldest means of transport ü Low-cost, high-volume, slow ü Bulky, heavy and/or large items ü Standardized shipping containers improve service ü The most common form of international shipping BA 320 Operations Management
Pipelines ü Primarily for oil & refined oil products ü Slurry lines carry coal or kaolin ü High capital investment ü Low operating costs ü Can cross difficult terrain BA 320 Operations Management
Internet Transportation Exchanges ü Bring together shippers and carriers ü Initial contact, negotiations, auctions ü Typically one form of transportation, intermodal exchanges have been difficult to develop BA 320 Operations Management
The Transportation Method ü Ship items at lowest cost ü Sources have fixed supplies ü Destinations have fixed demand BA 320 Operations Management
Transportation Problem BA 320 Operations Management
Transportation Problem GRAIN ELEVATOR SUPPLY MILL DEMAND 1. 2. 3. 150 175 275 A. B. C. 200 100 300 Kansas City Omaha Des Moines Chicago St. Louis Cincinnati 600 tons Example 7. 1 BA 320 Operations Management
Transportation Problem GRAIN ELEVATOR SUPPLY MILL DEMAND 1. 2. 3. 150 175 275 A. B. C. 200 100 300 Kansas City Omaha Des Moines Chicago St. Louis Cincinnati 600 tons MILL GRAIN ELEVATOR Chicago A St. Louis B Cincinnati C Kansas City Omaha Des Moines $6 7 4 $8 11 5 $10 11 12 Example 7. 1 BA 320 Operations Management
The Transportation Tableau BA 320 Operations Management
The Transportation Tableau TO FROM Kansas City Omaha Des Moines DEMAND Chicago St. Louis Cincinnati SUPPLY 6 7 4 200 8 11 5 100 10 11 12 300 150 175 275 600 Example 7. 1 BA 320 Operations Management
The Transportation Tableau TO FROM Kansas City Omaha Des Moines DEMAND Chicago St. Louis Cincinnati SUPPLY 6 7 4 200 8 11 5 100 10 11 12 300 150 175 275 600 Supply (tons) Demand (tons) 4 Des Moines (275) Omaha (175) Chicago (200) 7 11 Kansas City (150) 12 5 6 Cincinnati (300) 10 St. Louis (100) 8 Figure 7. 7 BA 320 Operations Management
Solving Transportation Problems üManual methods üStepping-stone üModified distribution (MODI) üComputer solution üExcel üPOM/QM for Windows BA 320 Operations Management
Solution for Grain Shipment BA 320 Operations Management
Solution for Grain Shipment TO FROM GRAIN Chicago St. Louis Cincinnati SUPPLY SHIPPED Kansas City Omaha Des Moines DEMAND 25 0 175 200 0 0 100 125 175 0 300 GRAIN SHIPPED 200 100 300 COST 150 175 275 600 $4525 Based on Exhibit 7. 3 BA 320 Operations Management 150 175 275
Figure 7. 8 Linking the Supply Chain with SAP BA 320 Operations Management
Global Supply Chain ü Free trade & global opportunities ü Nations form trading groups ü No tariffs or duties ü Freely transport goods across borders BA 320 Operations Management
Global Supply Chain Problems ü National and regional differences ü Customs, business practices, and regulations ü Foreign markets are not homogeneous ü Quality can be a major issue BA 320 Operations Management
Duties and Tariffs ü Proliferation of trade agreements ü Group members charge uniform tariffs ü Member nations have a competitive advantage within the group BA 320 Operations Management
Duties and Tariffs BA 320 Operations Management
Duties and Tariffs APEC NAFTA TAFTA FTAA ASEAN CALM ATPA MERCOSUR ANZCERTA Figure 7. 9 BA 320 Operations Management
Landed Cost and Internet. Based ITL Systems ü Knowing landed cost is critical in international trade ü Common components are transportation charges, tariffs, duties, and taxes ü ITL systems convert language and currency between trading partners BA 320 Operations Management
Infrastructure Obstacles to Global Trade ü Some emerging markets lack suitable distribution systems, i. e. roads, rail systems ü Existing roads and ports may be inadequate ü Market instability, political instability ü Vertical integration is a common solution BA 320 Operations Management
Скачать презентацию Chapter 7 Supply Chain Management BA 320 Operations
88743a05d13da6ce774e962dcf999ce8.ppt