collaborative supply chain, scor model, and beer game · supply chain management: key concepts...
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Collaborative Supply Chain, SCOR
Model, and Beer Game
By PhD. Samia Chehbi Gamoura
2019
Associate Professor – EM Strasbourg
Strasbourg University
France
Part 1 : Supply Chain Management
Part 2 : Supply Chain Modelling
Part 3 : Collaborative Supply Chain
Part 4 : Supply Chain and Simulation
Part 5 : Supply Chain : Future Opportunities and challenges
Agenda
Part 1 : Supply Chain ManagementSupply Chain: ConceptSupply Chain Management: DefinitionSupply Chain Management : key concepts
Material ManagementChallenge of procurementReal-world Case study: IKEA®
Physical DistributionChallenge of salesReal-world Case study: CARREFOUR®
Supply Chain Management: Decision levelsOperational decisions
Challenge of transshipmentReal-world Case study: LAAP®
Tactical decisionsChallenge of jobshop managementReal-world Case study: RENAULT TRUCKS®
Strategic decisionsChallenge of resizingReal-world Case study: FERRIGNO®
Part 2 : Supply Chain Modelling
Part 3 : Collaborative Supply Chain
Part 4 : Supply Chain and Simulation
Part 5 : Supply Chain : Future Opportunities and challenges
Agenda
- What is a Supply Chain ?
- Time : 5 min
Supply Chain
Part 1: Supply Chain Management
Supply Chain
Part 1: Supply Chain Management
Supply Chain: Concept
Conjoining these activities, a supply chain does not simply represent a linear one-on-one chain, but a grid of multiple business relationships around the world. Usually, there are several stakeholders comprised of various suppliers.
Part 1: Supply Chain Management
Part 1: Supply Chain Management
Supply Chain Management: Definition
An integrated system which :-Obtains raw materials and parts;-Changes, transform, alter; these raw materials and parts into marketable products. -Adds business value to these marketable products-Distributes these marketable products to retailers and/or customers,-Promotes these marketable products-Eases information exchanges among business entities (suppliers, distributors, …)
Part 1: Supply Chain Management
Supply Chain Management: Definition
The main objectives in SCM are:-Synchronizing the series of above processes, -Enhancing the operational efficiency, -Increasing profitability,-Improving competitive position of stakeholders..
Objectives of SCMObjectives of SCM
Synchronizingprocesses
Synchronizingprocesses
EnhancingoperationsEnhancingoperations
IncreasingprofitabilityIncreasing
profitabilityImproving
competitivenessImproving
competitiveness
Supply Chain Management : Key concepts
A Supply Chain Management is characterized by two main concepts:-Forwarding the flow of goods-Backwarding the flow of information
and comprised in two main business processes:-material management (inbound logistics)-physical distribution (outbound logistics)
Suppliers Distributors Retailers Customers
Outbound logisticsInbound logistics
Manufacturers
Physical distributionMaterial management
Flow of information
Flow of goods
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Material Management
Material management supports the whole cycle of material and parts movement in:-Acquisition,-Purchase and internal control of production,-Control of work-in-process, -Planning -Warehousing and storage,-Shipping, -…
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Material Management
What is the
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Material management doesn’t only comprise: acquisition, planning, and storage. It includes many further operations: • Purchase and procurement• Decision making• Information technology integration
Part 1: Supply Chain Management
Purchasing: refers to a business or organization attempting to acquire goods or services to accomplish its goals. .
Real-world Case StudyIKEA®
Part 1: Supply Chain Management
http://www.ikea.com/fr/fr/
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Ikea®, a giant worldwide distribution group, founded in 1943 by the Swedish Ingvar Kamprad. Key figures:
- 140 000 employees- 45 countries- > 29 billion Turnover
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Global supplyinginternational supplyingDomestic supplying
Real-world Case Study : IKEA®
Purchasing is part of sourcing strategy and three stages of supplying exist. - Domestic supplying- International supplying- Global supplying
Part 1: Supply Chain Management
Stage 2
Stage 1
Stage 3
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Purchasing of PAX wardrobes in Ikea® supply chain. A critical aspects in the product/components:- Sliding doors- Tempered glass (heavy and fragile, all sourced)- Main supplier of doors is the swedish Sapa Profiler.
Part 1: Supply Chain Management
Ikea final product
sliding doors component
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
tempered glasssliding profilepackaging material
Pu
rch
ase
cha
in1
rubber componentssteel components
Pu
rch
ase
cha
in2
Pu
rch
ase
cha
in3
Pu
rch
ase
cha
in4
Pu
rch
ase
cha
in5
assembly fittings
Pu
rch
ase
cha
in6
aluminium frames
Pu
rch
ase
cha
in7
Bristol seals
Pu
rch
ase
cha
in7
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Purchasing chain
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
tempered glass
Sw
ed
ishm
ark
et
China
swedish backup
China
chinese backup
Slo
va
km
ark
et
chin
ese
ma
rke
t
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
sliding profile
Purchasing chain
Sw
ed
ishm
ark
et
GermanyS
lov
ak
ma
rke
tch
ine
sem
ark
et
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasing chain
Sw
ed
ishm
ark
et
Sweden
- Local -
Slo
va
km
ark
et
chin
ese
ma
rke
t
packaging material
Slovakia
- Local -
China
- Local -
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasing chain
Sw
ed
ishm
ark
et
SwedenS
lov
ak
ma
rke
tch
ine
sem
ark
et
rubber components
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasing chain
Sw
ed
ishm
ark
et
SwedenS
lov
ak
ma
rke
tch
ine
sem
ark
et
Steel components
Sweden
chinese
- local -
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasing chain
Sw
ed
ishm
ark
et
Slovakia
Slo
va
km
ark
et
chin
ese
ma
rke
t
assembly fittings
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasingchain
Sw
ed
ishm
ark
et
Slo
va
km
ark
et
chin
ese
ma
rke
t
Aluminium frames
Sweden
- in-house
production-
Slovakia
- in-house
production-
China
- in-house
production-
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Real-world Case Study : IKEA®
Part 1: Supply Chain Management
sliding doors component
Purchasing chain
Sw
ed
ishm
ark
et
Slo
va
km
ark
et
chin
ese
ma
rke
t
Bristol seals
China
Supply Chain Management: Key concepts Material Management Challenge of purchasing
Pros and Cons
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Material Management Challenge of purchasing
World-wide integration of information systems and operations
Managing supplyers Reducing costs
Challenge of internationalization Challenge of synchronization of sourcing
operations between suppliers Constraints of different localizations (patents
costs, laws, etc.)
Physical distribution covers all outbound logistics activities related to:-Transportation,-Transshipment, -Stock management,-Planning,-Product life-cycle management,-Returned products handling,-…
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution
Supply Chain Management: Key concepts Physical distribution
What is the
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Physical distribution doesn’t only comprise: transportation, and planning. It includes many further imbricated operations such as: - consolidation, - pricing, - promotional support, - returned product handling, - Marketing,- Prospecting,
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Real-world Case StudyCARREFOUR®
Part 1: Supply Chain Management
https://www.carrefour.fr/
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Carrefour® is the 1st largest hypermarket in Europe and the 3rd biggest one in the world . Key figures:
- 85,7 billions Turnover (2016),- 384 000 employees- > 94 countries (France, China, Romania, Italy, etc.)
Part 1: Supply Chain Management
Real-world Case Study: CARREFOUR®
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Regional supplyers of vegtables in Rhone-Alpes-Auvergne region in France:- Volatility of vegetable suppliers depending on seasonality and irregular sales of vegetables- No contractual supplyers (wholesalers) (farmers and winegrowers), - Seasonality and heterogeanous products cycles - The marketing service is insured by local wholesalers, as they know well the locality (tracts,
emails, displays in town halls, etc.).
Part 1: Supply Chain Management
Real-world Case Study: CARREFOUR®
Carrefour regional stores
(Rhone-Alpes Auvergne – France)
Vegetables
farmer
winegrower
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Part 1: Supply Chain Management
Real-world Case Study: CARREFOUR®
Vegetables
Farmer’s CRM
winegrower’s CRM
Carrefour ERP Caroline
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Part 1: Supply Chain Management
Real-world Case Study: CARREFOUR®
Wholesaler CRMCustomer Caroline ERP
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Part 1: Supply Chain Management
Real-world Case Study: CARREFOUR®
Wholesaler CRMCustomer Caroline ERP
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Challenge of marketing
Pros and Cons
Proximity provides satisfied customers Good marketing service of wholesalers have
direct impact on retailer sales
Need for coordination between stakeholdersto provide an efficient marketing service
Waisted time in returning products Unexpected delay in delivering Customer unsatisfaction
A Supply Chain Management operates at three main levels :-Operational level-Tactical level-Strategic level
• But, these distinctions (operational, tactical, strategic) are not always easy to separate, because some concerns may involve hierarchical, and/or multi-echelon planning that join different decision levels.
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational decisions are: • Operational routines,• Vehicle routing/scheduling,• Workforce scheduling,• Record keeping,• Packaging
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational
What is the
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational
The transhipment is the using of an intermediate site to the deliver temporarily products (or component, materials, etc.) before achieving the final delivery endpoint.
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment
Real-world Case StudyLAAP ®
Part 1: Supply Chain Management
http://toutelasante.com/laap/
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment
LAAP®, created in 1997 by the group Bionatura. Located in Algeria (Oran), is specialized in the import and distribution of pharmaceutical products, para-pharmaceuticals, dietetics, accessories and medical equipment, and infant feeding.
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment Real-world Case Study : LAAP®
The arrivals of the products of the company LAAP (software JULIA 1.0 ©) correspond to the orders issued
- Stable market (monthly orders),- Known lifetime of products (drugs, on average one year).
Part 1: Supply Chain Management
Drugs PHYTO-NUTRITION PARA-
PHARMACEUTICAL
INFANT FEEDING
MEDICAL
ACCESSORIES
MEDICAL
EQUIPMENTSECOBI(Italy) ARKOPHARMA
FUMOUZE(France) FORTEPHARMA
ANTIBIOTICOS 3 CHENES NUTRICIA SOKEI
FRILAB BIOFAR CELIA BAYER DIAGNOSTIC
YAMANOUCHI PHARMALIFE GILBERT ETHICONPHARMASCIENCE TRAIDING FUMOUZELAMPUGNANI WALMARKABBOT
SARL LAAP IMPORT
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment Real-world Case Study : LAAP®
Part 1: Supply Chain Management
ECOBI
EXPANSCIENCE
FUMOUZE
TRADINGNUTRICIALes 3 Chênes
Novidis
GILBERT
FRILAB
TRISA
JULIA V1.0 (Copyright © 2000)
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment Real-world Case Study : LAAP®
To avoid losing orders and exceeding delays, LAAP® decides to transit the goods bought in the 3 countries (Fance, Switzerland and Italy), in rented warehouse in the seaport of the city of Marseille (France).
Part 1: Supply Chain Management
ECOBI
EXPANSCIENCE
FUMOUZE
TRADINGNUTRICIALes 3 Chênes
Novidis
GILBERT
FRILAB
TRISA
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment Real-world Case Study : LAAP®
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Operational Challenge of transshipment Pros and Cons
Transshipment helps in avoiding ordersloosing
Tanshipment helps in respecting delays
Additional costs constraintes are added Additional delays for perishable products
(drugs) has to be managed Conditionning of specific products has to be
added
Tactical issues are: • - inventory control• - production/distribution coordination• - order/freight consolidation• - material handling• - equipment selection• - layout design
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical
What is the
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical
Set of procedures, methods, structure, and resources necessary to modernize engineering operations to manage quality issues.
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactica Challenge of Manufacturing Quality
Real-world Case StudyRENAULT TRUCKS®
Part 1: Supply Chain Management
http://www.renault-trucks.fr/
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical Challenge of Manufacturing Quality
RENAULT TRUCKS®, is a French company that develops, assembles and sells industrial and utility vehicles. It belongs to the Swedish group AB Volvo since 2001.
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactica Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks
Manufacturing Quality Management (MQM) are the set of procedures, techniques, methods, structures, and resources that are required to rationalize the manufacturing operations with reduced costs and quality issues.
Part 1: Supply Chain Management
Quality and Failure
management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks
Part 1: Supply Chain Management
manufacturing quality management:
- In the assembly line (semi-authomated), there is a
control point at the end of the line and before
expedition.
- The quality control should follow and check the
following point:
* lacking vice
* oxidation of a component
* bad painting
* presence of water
- The control duration is around 15 minutes. If not
conforming, blocking the workpiece.
- If blocking , the labeling is generated and bonded to
the defective piece
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Tactical Challenge of Manufacturing Quality Pros and Cons
Quality controls helps in insuring an integrated product
Quality control helps in avoiding accidents (recalls for example) and retruned products
Quality management helps in improving the product
Additional tasks should be involved in the planning
Some control points cannot be automated Additional costs
Strategical decisions are high-level decisions that are relevant to whole organizations in long term. Issues at this level are:
- Global competition- Internal influences- Ensuring surviving- Long-term profitability- Global planning
Part 1: Supply Chain Management
Supply Chain Management: Key concepts Physical distribution Decision levels
Strategic
What is the
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
Resizing an organization is the long-term decision that deals with the restructuring, the reorganization, and the reallocation of ressources and facilities.
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
Real-world Case StudyFERRIGNO®
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
http://www.ferrignosa.com/
FERRIGNO®, is a family enterprise that has been created in 1920 by the Italian fisherman Dominique Ferrigno in Algeria (at the time of the French colony). It is the first company to offer canneries in sardine boxes. Today, located in the south of France, and specialized in the manufacture, assembly, conservation and packaging of seafood (tinned cans, fish soups, cooked dishes).
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO®
Changing the structure of the chain: closing a factory, reopening another, setting up a new market, etc. The change in structure affects relations between actors and the management of the chain.
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO®
configuration 1configuration 2
Global Cost 1Global Cost 2
Changing the structure of the chain: closing a factory, reopening another, setting up a new market, etc. The change in structure affects relations between actors and the management of the chain.
Part 1: Supply Chain Management
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO®
SARL LAAPSARL LAAP
Entrepôt 1Warehouse 1
Entrepôt 2Warehouse 2
South regionWholesale
Half wholesale-
Grossistes répartiteursWholesalers
PharmaciensSupermarketsCliniquesPublic markets
médecinsCanteens
Centres de santéRestaurants
Délégués commerciauxTrade commissioners
720 Customers (retailers)
100 Customers
620 Customers (retailers)
North east
North west
Italiy
France
10 Suppliers
1 Supplier
7 Suppliers
Morocco
2 Supplliers
Sardine Box – Les belles de Marseille
Part 1: Supply Chain Management
Chaîne Logistique
Usine Sud US
Usine Nord UN
Clients
Fournisseurs
Clients
Fournisseurs
Entrepôt Sud ES
Supermarché Sud M3S
Sardine sud SS
Fer F
Clients
Supermarché Sud M2S
Supermarché Sud M1S
Sardine Nord SN
Entrepôt Nord EN
Clients
Entrepôt Italie EI
Supermarché Nord M2N
Supermarché Nord M1N
Clients
Supermarché Italie M3I
Supermarché Italie M2I
Supermarché Italie M1I
Sardine Box Supply Chain
Factory south France
Factory North France
Customers
Suppliers in France
Customers
Suppliers in Italy
Half wholesalers
Wholesalers
Sardine caught South France
Iron
Customers
Public markets and canteens in South France
Super markets in South France
Sardine caught South Italy
Warehouses
Customers
Wholesaler in North
Supermarket in North west
Supermarket in North east
Customers
Restaurants North France
Public Markets North France
Supermarket North France
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO®
Part 1: Supply Chain Management
Chaîne Logistique
Usine Sud US
Usine Nord UN
Clients
Fournisseurs
Clients
Fournisseurs
Entrepôt Sud ES
Supermarché Sud M3S
Sardine sud SS
Fer F
Clients
Supermarché Sud M2S
Supermarché Sud M1S
Sardine Nord SN
Entrepôt Nord EN
Clients
Entrepôt Italie EI
Supermarché Nord M2N
Supermarché Nord M1N
Clients
Supermarché Italie M3I
Supermarché Italie M2I
Supermarché Italie M1I
Sardine Box Supply Chain
Factory south France
Factory North France
Customers
Suppliers in France
Customers
Suppliers in Italy
Half wholesalers
Wholesalers
Sardine caught South France
Iron
Customers
Public markets and canteens in South France
Super markets in South France
Sardine caught South Italy
Warehouses
Customers
Wholesaler in North
Supermarket in North west
Supermarket in North east
Customers
Restaurants North France
Public Markets North France
Supermarket North France
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO®
Factory
in Italy
Part 1: Supply Chain Management
Helps in understanding whose decisions the models should aid,
World-wide integration of information systems and operations
Managing supplyers
Reducing costs
More than one assembly unit Challenge of internationalization Challenge of synchronization of sourcing
operations between suppliers Constraints of different localizations (patent
costs, laws, etc.)
Decision levels Strategic decisions Challenge of resizing
Real-world case study: FERRIGNO® Pros and Cons
Part 1: Supply Chain Management
Practice and understanding
Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-
and-beer-game.html (Practice Part 1)
Part 2 : Supply Chain Modelling
A model of Supply ChainChallenge of complexityReal-world Case study: AMAZON MARKETPLACE®
Modelling by partnership levelsDistrinctive categories
Primary partnersSecondary partnersValue Offering Point (VOP)
Challenge of distinctionReal-world Case study: CASINO®
Pros and ConsModelling by structural dimensions
Challenge of flexibilityReal-world Case study: ????????®
Part 3 : Collaborative Supply Chain
Part 4 : Supply Chain and Simulation
Part 5 : Supply Chain : Future Opportunities and challenges
Agenda
Part 1 : Supply Chain Management
- What does mean the word ‘Model’ for you ?
- Time : 5 min
Part 2: Supply Chain Modelling
A model of Supply Chain
Part 2: Supply Chain Modelling
A model of Supply Chain
Part 2: Supply Chain Modelling
• A model of a context is a representation of the context• Many models may exist for the same context • A model of Supply Chain is the image that the term ‘supply chain’ conjure in our mind
map ?
trucks ?
network ?
products ?
factory?
A model of Supply Chain
Part 2: Supply Chain Modelling
What is the
A model of Supply Chain
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
• Considering the expansive range of a supply chain, NO model can capture ALL features of supply chain processes.
• To conciliate the dilemma between COMPLEXITY and VERACITY of the model, the designer should delineate the scope of the model,
• But not too complicated to elucidate !
Real-world Case StudyAMAZON MARKETPLACE®
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
Is the biggest worldwide online B2C vendor in the World
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
Largeness needs a huge number of human resources and multiplicity of goods needs a multiple transportation means around 7/7 and 24/24, in addition to transportation sub-contractors: UPS, FedEx:- This engenders less-control and fragility in Amazon supply chain,- The sub-contractors (UPS and FedEx) have other customers and not only Amazon to serve- Big problems of Amazon delivery are recorded due to sub-contractors coordination
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
Networks
of other
customers
Part 2: Supply Chain Modelling
- Try to list Pros and Cons from this case study.
Time : 10min
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
Part 2: Supply Chain Modelling
A model of Supply Chain Challenge of complexity
Real-world Case Study : AMAZON MARKETPLACE®
More profit, less cost with a wide distribution network
Outbond sub-contractors for transportation ismore convenient in case of worldwide supplybut with drawbacks as less control and fragility in delivery
Largeness needs a huge number of human resources
Multiplicity of goods needs a huge number of transportation means
Part 2: Supply Chain Modelling
Key idea: Supply Chain Management focuses on services and products and information that add value to customer. Thus, these are steps to conceive a Supply Chain model:- 1st : identifying customers is necessary, - 2nd : identifying products, services, and information to provide to these customers,- 3rd : identifying value-added aspects in products, services, and information,- 4th : identifying partners who are critical to the value-added with a manageable number of levels
Step 1 : Identifycustomers
Step 2 : Identify the product, service, information to sell
Step 3: Identify value-added in products, service, and information of step 2
Step 4 : Identifypartners who are stakeholders in the value-added of step 3 (with their levels)
Customers
Product
Value-added
Partners
Modelling by partnership levels
Part 2: Supply Chain Modelling
Distinction between levels allows the firm to define who the furthest upstream and downstreamstakeholders of the chain are, and recognize where customer demand really starts.The furthest downstream typically characterizes the end of the chain where no value is added, andthe product and/or service is consumed.
Modelling by partnership levels
downstream
Firm
upstream
Part 2: Supply Chain Modelling
Modelling by Partnership levels Distinctive categories
Two main categories are distinguished :- Primary partners- Secondary partners
Pri
ma
ryP
art
ne
rs
Se
con
da
ryP
art
ne
rs
Part 2: Supply Chain Modelling
Modelling by Partnership levels Distinctive categories Primary partners
Autonomous and strategic business units which perform activities designed to create a specific product or service for customers (or markets). these primary partners can be :
• Suppliers: steel mines, producers, etc.• Customers: consumers, institutions, administrations, etc.• Manufacturers : ex. HP for printers, Renault for cars, … • Mass-stores : Leclerc, LDLC, Carrefour, …
Part 2: Supply Chain Modelling
Modelling by Partnership levels Distinctive categories Secondary partners
Secondary partners are companies that simply provide resources (real-estate, facilities, software…). They can be: - consulting companies, - transportation carriers, - logistics providers, - IT services companies, - online brokers, - training institutions,- …
Part 2: Supply Chain Modelling
Modelling by Partnership levels Distinctive categories Value Offering Point (VOP)
The furthest downstream should correspond to the point of consumption, called the Value OfferingPoint (VOP). It is the point where customer allocates demand to his/her upstream supply chainpartner (store, distributor, manufacturer).VOP defines how and when demand is triggered to upstream partners.It is the point which states the economics of the customer where the transaction between valuecreation and costs.
partnerslevel 1
partnerslevel 2
partnerslevel 3
VOP
Furthestpartner
(Customer)
Upstream Customer
Part 2: Supply Chain Modelling
What is the
Modelling by Partnership levels Distinctive categories
Modelling by Partnership levels Distinctive categories Challenge of traceability
Part 2: Supply Chain Modelling
Traceability is today required from authorities (GS1 in Europe for example) in order to provide :
- Statistics, benchmarking, and forecasting- Ease retrieve of recalls (example the case of Volkswagen® cars recall in 2017)
Real-world Case StudyCasino®
Part 2: Supply Chain Modelling
Modelling by Partnership levels Distinctive categories Challenge of traceability
Modelling by Partnership levels Distinctive categories Challenge of distinction
Real-world Case Study: CASINO®
Part 2: Supply Chain Modelling
French retailer group with more than 8 000 stores in France and 1500 stores in South America and South East Asia (Thailand, Vietnam).
Modelling by Partnership levels Distinctive categories Challenge of distinction
Real-world Case Study: CASINO®
Part 2: Supply Chain Modelling
Global Traceability Standard Provider (Europe)
China
Europe
Delivery point
France
Casino DC
Casino store
Casino store
Casino store
transporter
Customers
Customers
Customers
Modelling by Partnership levels Distinctive categories Challenge of distinction
Real-world Case Study: CASINO®
Part 2: Supply Chain Modelling
Global Traceability Standard Provider (Europe)
China
Europe
Delivery point
Supplier of tomotoes: Primary partner
Whesaler: Secondary partner
Traceability authority Provider: Secondary partner
France
Sea transport: Secondary partner
Casino DC
Casino store
Casino store
Casino store
transporterland transport: Secondary partner
Customers
Customers
Customers
Consumers: Primary partner
Part 2: Supply Chain Modelling
Helps in understanding whose decisions the models should aid,
Clarifies what scope should be addressed,
Challenges of levels distinctions,
Challenges of identifying VOP,
Modelling by Partnership levels Distinctive categories Challenge of distinction
Pros and Cons
Part 2: Supply Chain Modelling
Modelling by structural dimensions
Key idea: A model should comprehend the structure of the network as a pre-requisite. Thus these are the steps to conceive the Supply Chain model:• 1st : distinct between the horizontal and vertical structures,• 2nd : for horizontal, refers to tiers across the supply chain,- 3rd : for vertical, refers to suppliers and customers within each tier identified in step 2,
Step 1 : distinct betweenhorizontal and vertical structures
Step 2 : for horizontal, refers to tiers across the supply chain
Step 3 : for vertical, refers to the number of suppliers and customers within each tier
Horizontal / Vertical
Horizontal tiers
Vertical suppliers/customers
Part 2: Supply Chain Modelling
Some firms make strategic changes to either supply base decreasing or customer selectivity, thesupply chain becomes contracted. Outsourcing or functional offshoots will unavoidably change thesupply chain dimension by enlargement (vertical structure) and spreading (horizontal structure) thesupply chain.
Modelling by structural dimensions
Part 2: Supply Chain Modelling
The characterization may be built on business and operational relationships
Modelling by linkages
Part 2: Supply Chain Modelling
Modelling by linkage characteristics Distinctive characteristics
Four charactristics of linkages are identifyed :- Managed Business Processes Links (BP Management)- Monitored Business Process Links (BP Monitoring)
BP Manageme
nt
BP Monitoring
Not Managed in the BP
Not member in
the BP
Part 2: Supply Chain Modelling
What is the
Modelling by linkage characteristics Distinctive characteristics BP Management
Part 2: Supply Chain Modelling
Links are the ones where the company participates in a Supply Chain activity (process) withone or more tier partners (customers/suppliers) as the firm still involved in the management ofan activity. In such case, the company may play a role in :- Resources allocation: ex.. Manpower, equipment, …- Information sharing : ex. know-how, expertise, surveys, …
Modelling by linkage characteristics Distinctive characteristics BP Management
Part 2: Supply Chain Modelling
Modelling by linkage characteristics Distinctive characteristics BP Management
Challenge of unstructured BP
In a structured business process, all the tasks of an activity are automated and all the cases are expected and studied previsouly. But when an unexpected case or unexpected path between taskshappens the business process becomes unstructured.
Real-world Case StudyGROUPAMA®
Part 2: Supply Chain Modelling
Modelling by linkages Distinctive characteristics BP Management Challenge of
unstructured BPs
Part 2: Supply Chain Modelling
Modelling by linkages Distinctive characteristics BP Management Challenge of
unstructured BPs Real-world case study : Groupama®
Insurance claims management (ICM) is the set of services provided to customers for reimbursement and repayment of damages, with a set of checking rules of contracts.
Part 2: Supply Chain Modelling
Modelling by linkages Distinctive characteristics BP Management Challenge of
unstructured BPs Real-world case study : Groupama®
- Try to list Pros and Cons from this case study.
Time : 10min
Part 2: Supply Chain Modelling
Modelling by linkages Distinctive characteristics BP Management Challenge of
unstructured BPs Real-world case study : Groupama®
Adaptability to new situations Quick solutions in situations of crisis
Need for human resources to support non-automated tasks
When a problem occures investigations become too complex
Part 2: Supply Chain Modelling
Modelling by linkages Distinctive characteristics BP Management Challenge of
unstructured BPs Real-world case study : Groupama®
Part 2: Supply Chain Modelling
Activities in SC stakeholders are performed following sets of tasks. The execution of
these tasks in flows (or workflows) is represented by a process.
It is known as the process-oriented modelling
Modelling by processes
Part 2: Supply Chain Modelling
SCOR (Supply-chain operations reference) is a reference model that belongs to process modelling methodology.It was developed and regularly maintained by the Supply Chain Council.It is a reference model is illustrated by a set of parts, concepts clearly defined with definitions of the relationships between these parts and concepts. It is somehow a clear framework that can be used as a common standard that allow members to talk the same language.SCOR is a reference model that aims to create a common communication support for all partners in supply chain.SCOR has the particularity of including some activities that are not part of Supply Chain Management but somehow involved in supply activities such as:- Learning/training, - IT (Information Technology),- Administrative and executive activities
Modelling by processes SCOR
Part 2: Supply Chain Modelling
A company that adopt SCOR has to follow the following steps:1. Analyze the current state of its processes (with regard to the achievement of the goals),2. Quantifying performances of these processes by a set of metrics (with regard to its businessactivities),3. Comparing these quantified performances to benchmark data
Step 1 : Analyze the current state of its processes (with regard to the achievement of the goals),
Step 2 : Quantifying performances of these processes by a set of metrics (with regard to its business
activities),
Step 3 : Comparing these quantified performances to benchmark data
Modelling by processes SCOR model
Part 2: Supply Chain Modelling
The SCOR model focused on customer's demand and organize management activities in to 5 main distinct processes (recently 6) :• Plan,• Source,• Make,• Deliver,• Return,• Enable (added in 2013)
Modelling by processes SCOR model Processes
Plan process
Source process
Make process
Deliver Process
Return process
Enable process
Planning
Procuring
Manufacturing
Distributing
backing
Part 2: Supply Chain Modelling
Processes have in turn their sub-processes :
Modelling by processes SCOR model Processes
Part 2: Supply Chain Modelling
set of processes that organize demand/supply requests to develop the planning of actions which meets the available and expected main activities of :- Sourcing/procurement, - Fabrication/production, - Transport/delivery.
Plan
Modelling by processes SCOR model Processes Plan
Part 2: Supply Chain Modelling
Set of processes that allow acquiring products (goods and/or services) to ensure the planning (output of Plan Process)
Source
Plan
Modelling by processes SCOR model Processes Source
Part 2: Supply Chain Modelling
Set of processes that alter components (parts) to a final product (goods and/or services) in order to ensure the planned demand
MakeSource
Source
Plan
Modelling by processes SCOR model Processes Make
Part 2: Supply Chain Modelling
Set of processes that make available finished products (goods and/or services) respecting the planned demand. This involves:- Demand management, - Carrying management, - Delivery management.
MakeSource
Source Deliver
Plan
Modelling by processes SCOR model Processes Deliver
Part 2: Supply Chain Modelling
Set of processes of handling returned products (goods and/or services) for any reason (defective item, products recall, exceeded expiry date, lack of spare parts, etc.).
Plan
MakeSource
Source Deliver
Return
Modelling by processes SCOR model Processes Return
M0: M
ain
Pro
cess
(Level1)
P1: Sub-Process(Level 2)
P1.01: xxx (Sub-Process)
(Level 3)
P1.02: xxx (Sub-Process)
(Level 3)
P1.03: xxx (Sub-Process)
(Level 3)
…
Part 2: Supply Chain Modelling
Regarding the granularity (steps) of analysis, each process is divided into a set of sub-processes through a set of levels
Modelling by processes SCOR model Processes Granularity in levels (sub-processes)
Plan
Source Make Deliver
Return
Part 2: Supply Chain Modelling
Level 1 represents the main processes of the added-value in the chain (source, make, deliver, return)At this level, it is mondatory to set the context with a description of the location, the product(good and/or service) and customers segmentations. In SCOR specification, these main processes are designed by the syntax :A capital letter (letter): ex. S, M, D, R
Plan
S M D
R
Location
Product
Customers segments
Location
Location
Modelling by processes SCOR model Processes Granularity in levels (sub-processes)
Level 1
Part 2: Supply Chain Modelling
Level 2 represents sub-processes derived from the main processes of Level 1, in a child-parent relationship. At this level, it is mondatory to define the main configurations (scenarios) of the context alreadydefined in Level 1 (location, products and segments)In SCOR specification, these sub-processes are designed by the syntax : The capital letter of the parent succeded by a number (letter-number): ex. S1, S2, S3,…, M1, M2,…, D1, D2, …, R1, R2, R3, R4, …
Plan
S M D
R
Configurations (scenarios)
stock management in production
M1 M2 M3
ordering management in manufacturing
manufacturing engineering
Modelling by processes SCOR model Processes Granularity in levels (sub-processes)
Level 2
Part 2: Supply Chain Modelling
Level 3 represents sub-processes derived from the sub-processes of Level 2 (configurations), in a child-parent relationship. At this level, it is mondatory to define the best practices for each business activity related to the configuration already defined in Level 2.In SCOR specification, these sub-processes are designed by the syntax : The syntax of the parent succeded by a serial (number letter-number-dot-serial number): ex. S1.01, S1.02, S1.03,…, S2.01,… M1.01, M1..02, …,M2.01,…
Plan
S M D
R
Business activities
transfert componentsM1 M2 M3
test prototype
packageM2.01 M2.02 M2.03 M2.04
Modelling by processes SCOR model Processes Granularity in levels (sub-processes)
Level 3
SCOR is commonly used to benchmark firm performance in its supply chain.Supply Chain Council regularly use cases of members to collect best practices that are be costumed models evaluation.Firms should use SCOR to adapt their business activities in order to achieve competitive advantages.
Part 2: Supply Chain Modelling
Modelling by processes SCOR model Benchmarking
Part 2: Supply Chain Modelling
Practice and understanding
Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-
and-beer-game.html (Practice part 2)
Part 1 Supply Chain Management
Part 2 Supply Chain Modelling
Part 3 Collaborative Supply Chain
Collaboration
Context
Decision strategy
Types
Collaborative decision
Extended supply chain
Partnerships of stakeholders
Collaborative approaches
Case study 1 : Intel® supply chain
Case study 2: Starbucks® supply chain
Part 4 Supply Chain Simulation
Part 5 Supply Chain : Future Opportunities and challenges
Agenda
- What is ‘Collaboration’ ?
- Time : 5 min
Collaboration: Context
Part 3: Collaborative Supply Chain
Collaboration: Context
Part 3: Collaborative Supply Chain
Part 3: Collaborative Supply Chain
In a Supply Chain, different decision makers: - Independent decisions, - Contexts specific to each stakeholder,
But, common interests: - Same final product, - Same final customers (consumers)
Collaboration: Context
But for a common decision, we need to have a
global view of the chain?
Need communication between actors
Part 3: Collaborative Supply Chain
How making common decision in such networked and complex organization ?!
Collaboration: Context
The motives are : decreasing costs, enhancement in responsiveness, avoiding wasting time, good service levels, common customer satisfaction.
Part 3: Collaborative Supply Chain
Types of organization and decision strategy
Collaboration: Decision strategy
Strategic level
Tactical level
Operational level
Centralized organization Distribted organization
- Try to list Pros and Cons of each organization.
Time : 10min
Part 3: Collaborative Supply Chain
Collaboration: Context Pros and Cons
Part 3: Collaborative Supply Chain
Collaboration: Context Pros and Cons
Centralized: Consistency Insuring global performance
Parallel: Fast to setup Collaboration is done in short-term
Centralized: Infrastucture too complex Who governs the central point ?
Parallel: Complexity of technical tools Complexity in investigation and audit
Part 3: Collaborative Supply Chain
Collaboration: Collaborative decision
Decision-Aid
techniques that generate information to allow the decision center to evaluate the consequences of a decision made from a set of criteria.
Collaboration
Work together to execute an action to produce a final result.
Coordination
Synchronize actions over time and manage the consistency of individual actions in relation to all activities
Cooperation
Strong communication between actors. It can be 'synchronous' or 'asynchronous'
Decision
The product of thought processes.
Managers are continually faced to make: stock management decisions, production management, scheduling, contract management, negotiations, and so on.
Part 3: Collaborative Supply Chain
Collaboration: Collaborative decision
Codecision
Collaboration of several actors in order to make a decision
Collaboration
Work together to execute an action to produce a final result.
Decision
The product of thought processes.
Managers are continually faced to make: stock management decisions, production management, scheduling, contract management, negotiations, and so on.
Part 3: Collaborative Supply Chain
Collaboration: Collaborative decision
Collaborative decision
Collaboration
Work together to execute an action to produce a final result.
Decision
The product of thought processes.
Managers are continually faced to make: stock management decisions, production management, scheduling, contract management, negotiations, and so on.
Part 3: Collaborative Supply Chain
Collaboration: Extended Supply Chain
An extended Supply Chain is based on :
- Information sharing at all levels: Not only in transfering data but also by automation of processes
- Real-time cooperation between multiple partners
- Reactivity: Increasing in demand, quickly and unexpectedly (cold in summer so increase in purchase of pullovers)
- Risk Management: Effective global risk management (disasters as hurricanes in (Detroit) USA, so sold-out in Ford stocks)
- Adaptability: Continuously integrating wishes and future behaviour of customers (digital marketing, recommandingsystems, etc.)
- Proactivity: Proactive management of processes (Business processes Reengineering)
Practice and understanding
Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-
and-beer-game.html (Practice part 3)
Part 3: Collaborative Supply Chain
Agenda
Part 1 Supply Chain Management
Part 2 Supply Chain Modelling
Part 3 Collaborative Supply Chain
Part 4 Supply Chain and Simulation
Simulation
Known example: Beer game
Bullwhip effect
Decision strategy
Part 5 Supply Chain : Future Opportunities and challenges
- What is ‘Simulation’ ?
- Time : 5 min
Part 4: Supply Chain Simulation
Simulation
Part 4: Supply Chain Simulation
Simulation
Part 4: Supply Chain Simulation
Is the imitation of a system in the real world. It must be based on a model. Somehow like the dynamic aspect of the model (complementary to the model). The simulation is important in simplifying and showing behavior of complex phenomena.
Simulation
Part 4: Supply Chain Simulation
Known example : Beer Game
Client
DétaillantGrossisteDistributeurUsine
LégendeLégende Acteur
Commandes
Produits Livrés
Source infinie Client
DétaillantGrossisteDistributeurUsine
LégendeLégende Acteur
Commandes
Produits Livrés
Source infinie
Classic example of a linear distribution chain (MIT, 1960). It simulates and illustrates simple exchanges between a setof 6 stakeholders, but mainly to illustrate the bullwhip effect (demand amplification).
Source Customer
Factory Distributor Wholesaler Retailer
Actor
Order
Delivered
products
Part 4: Supply Chain Simulation
Known example : Beer Game Bullwhip effect
Providing a digital indicator to measure the amplification of demand.
1σ2
σ
wholesaler retailer
TT
Q
12σσ >
Q
012
>− σσ
Part 4: Supply Chain Simulation
Known example : Beer Game
Client
DétaillantGrossisteDistributeurUsine
LégendeLégende Acteur
Commandes
Produits Livrés
Source infinie Client
DétaillantGrossisteDistributeurUsine
LégendeLégende Acteur
Commandes
Produits Livrés
Source infinieSource Customer
Factory Distributor Wholesaler Retailer
Reducing the cost
Storage cost = breaking penalty per unit * pending orders + stock penalty per unit * Quantity in the stock
Part 4: Supply Chain Simulation
Known example : Beer Game Decision strategy
The deal is to answer the question: what is the quantity to order?
Based on the order history received, the actor decides on the future upcoming order.
Order policy
s-S
s-Q
Order to S
Order Q
Updated S
Echelon
Random
Covering stocks
Lot for Lot
Computing virtual stocks
Estimating by mobile means
Part 4: Supply Chain Simulation
Known example : Beer Game Decision strategy
Exercice: Try to define each policy (smart search by Google for example) 30min
Order policy
s-S
s-Q
Order to S
Order Q
Updated S
Echelon
Random
Covering stocks
Lot for Lot
Computing virtual stocks
Estimating by mobile means
Part 4: Supply Chain Simulation
Known example : Beer Game Decision strategy
Updated s: Quand le stock descend au dessous de s, l e joueur la quantité calculée comme suit:
-La moyenne mobile des 10 dernières commandes reçues
- Plus, M : le nombre de périodes estimée de variation de la demande
- avec la limitation du stock à S
- tout en prenant en compte les premières semaines d’implication des acteurs.
s-S: When the stock is below s, the player orders the complement to bring it back to S.
s-Q When the stock goes below s, the player orders Q.
Order to S, The player always controls the complement to get to S.
Order to Q: The player always order Q.
Echelon: le seuil de commande est déterminé comme suit:
- La moyenne mobile des 10 dernières commandes reçues
- STD(D) la déviation estimé de la commande externe
- L = 3
- alors s = L*AVG(D)+M*STD(D)*Sqrt(L), etc.
Practice and understanding
Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-
and-beer-game.html (Practice part 4)
Part 4: Supply Chain Simulation
Agenda
Part 1 Supply Chain Management
Part 2 Supply Chain Modelling
Part 3 Collaborative Supply Chain
Part 4 Supply Chain and Simulation
Part 5 Supply Chain : Future Opportunities and challenges
Innovative Supply Chain: Purpose and concept
Continuous Innovative Projects
Challenge of innovation
Real-world Case Study : MANITOWOC®
Intelligent Supply Chain: Integrating Big Data
- What is ‘Innovation’ ?
- Time : 5 min
Part 5: Supply Chain : Future Opportunities and Challenges
Innovation
Part 5: Supply Chain : Future Opportunities and Challenges
Innovation
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain: Purpose and concept
Innovation is the set of new ideas that need new requirements in products, processes, and/or technologies.
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects
Working in innovative project means to study deeply and in advance the implementation of a new system or a neworganization:
- higher risk than ordinary management
- need for adaptation to integrate new concepts without experience and best practices
What is the
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects
Real-world Case StudyMANITOWOC®
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
International manufacturer of tower cranes and mobile cranes.
Figures :- 7 000 Employees- 24 Countries, 12 manufacturing facilities- 525 Ms $ in 2015 (France)
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
The objective of this innovative project is to move from traditional curative maintenance to an increasingly interaction proactive with the product and the final customer. For additional information, between Manitowoc and the final products, maybe there are one or multiple third-parties. Preventive maintenance of cranes requires continuous monitoring and control of products already released to customers (rented or sold). The customer also expects to improve its end-user services based on advanced information management.To minimize costs and retain customers, Manitowok would like to introduce IoT ships embedded in cranes which feed information directly to the managers. A digital transformation of maintenance.
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
Part 5: Supply Chain : Future Opportunities and Challenges
Brand : PROEMION
Type : CANLink Mobile 5201 and 5301
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
Part 5: Supply Chain : Future Opportunities and Challenges
Final Customers
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
- Try to list Pros and Cons of this case study
Time : 10min
Part 5: Supply Chain : Future Opportunities and Challenges
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
Strategic competetiveness Maintain customers Proactivity
High risk in management because of lack of best practices
Need for investment
Innovative Supply Chain Continuous Innovative Projects Challenge of innovation
Real-world Case Study : MANITOWOC®
Part 5: Supply Chain : Future Opportunities and Challenges
SM : Social Media
Big data is the massive accumulated data from traditional systems of storage in addition to the new connected objects (Internet of Things). They are characterized by Volume, Variety, Veracity and Velocity
Part 5: Supply Chain : Future Opportunities and Challenges
Intelligent Supply Chain: Integrating Big Data
POS : Points of Sales
PCR : Payment Cards Readers
GPS : Global Positioning System
RFID : Radio Frequency ID
SM : Social Media
IS : Information Systems
IoT : Internet of Things
Weather forecasting
SP: smaprtphones
PDA: plannings mobiles
CV: Connected Vehicles
Part 5: Supply Chain : Future Opportunities and Challenges
Intelligent Supply Chain: Integrating Big Data
Data from Internet and other
organizations
IS (ERP, Apps, etc.) Managers ManagementIntegrated data
Before BIG DATA
Data from Internet, organizations,
Interet of Things, smartphones, sensors,
etc.
ManagersPredictive Management
With BIG DATA
Part 5: Supply Chain : Future Opportunities and Challenges
Intelligent Supply Chain: Integrating Big Data
Source Make Move Sell
• Inventory Optimization
• Capacity Constraints
• Facility Location
• Facility Layout
• Workforce Analytics
• Supplier Risk
• Product Characteristics
• Sourcing Channel
• Options Supplier
• Integration Level
• Supplier Negotiation
• Distribution Optimization
• Transportation Alternatives
• Routing Scheduling
• Vehicle Maintenance
• Location-Based Marketing
• In-Store Behavior Analysis
• Customer Micro-Segmentation
• Multichannel Marketing
• Assortment Optimization
Part 5: Supply Chain : Future Opportunities and Challenges
SCM with BIG DATA
Intelligent Supply Chain: Integrating Big Data
Gathering data
Data analysis
Big Data ?
Big Data Analytics ?
Discovering new trendsPredictive management
(long term strategies)
Reactive management
(Real-time responsing)
Part 5: Supply Chain : Future Opportunities and Challenges
SCM with BIG DATA and ANALYTICS
Intelligent Supply Chain: Integrating Big Data
Practice and understanding
Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-
and-beer-game.html (Practice part 5)
Part 5: Supply Chain : Future Opportunities and Challenges
Bibliography
Schniederjans, M. J., Schniederjans, D. G., & Schniederjans, A. M. (2009). Supply Chains. World Scientific Book Chapters, 43-79.
Albert, P. J., Werhane, P., & Rolph, T. (2014). Global Corporations and Supply Chain Management. In Global Poverty Alleviation: A Case Book (pp. 321-348). Springer, Dordrecht.
Brusset, X. (2012). Supply chains: agile, robust or both?. In Colloquium on European Retail Research Book of Proceedings(pp. 65-101).
Buchmeister, B., & Palcic, I. (2013). Bullwhip effect simulation of a supply chain with level constraints. DAAAM International Scientific Book, 133-149.
Strozzi, F., Bosch, J., & Zaldivar, J. M. (2007). Beer game order policy optimization under changing customer demand. Decision Support Systems, 42(4), 2153-2163.
Macdonald, J. R., Frommer, I. D., & Karaesmen, I. Z. (2013). Decision making in the beer game and supply chain performance. Operations Management Research, 6(3-4), 119-126.
Thanks … any questions ?
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