enabler-drivers of scm
TRANSCRIPT
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Supply Chain Enablers Organizational Infrastructure
Information Technology
Strategic Alliance
Human Resource Management
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Supply Chain Enablers
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Organizational Infrastructure Coherent business strategy that aligns
business units towards same goals 32%
!ormal "rocess#$ow methodologies toenable the SCM im"ro%ements 15%
&eo"le committed to and res"onsible forcross#functional "rocesses 14%
Right "rocess metrics identi'ed to guideo"erating units( "erformance towardstrategic organizational SCM ob)ecti%e #13%
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Information Technology O"erations* mar+eting * , logistics data
coordinated within the com"any 30%
-ata readily a%ailable to managers* notembedded in legacy system 27%
O"erations* mar+eting* , logistics data
coordinated between com"anies 18% .in+ing SCM to /R& systems 10%
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Strategic Alliance /0"ectations clearly stated* understood*
and agreed u"on u" front 48%
Collaborating on su""ly chain and"roduct ser%ice strategies 18%
To" management of "artneringcom"anies interface on a regular basis
9%To" management communicate why
strategic alliances are im"ortant andshould be "ursued 8%
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Human Resource Management
Enablers Source* hire* and select s+illed and 1uality
"eo"le at all management le%els 27%
!ind change agents to cham"ion SCMim"lementation 27% Com"ensation and incenti%es in "lace for
SCM "erformance 14% !inding the internal "rocess facilitators
+nowledgeable in SCM 13% A""ro"riate )ob descri"tion and
res"onsibilities 12%
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Driers of Supply Chain
!erformanceEfficiency Responsiveness
Inventory Transportation Facilities Information
Supply chain structure
Drivers
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Consi"erations for Supply Chain
DriersDriver Efficiency Responsiveness
Inventory Cost of holding Availability
Transportation Consolidation Speed
Facilities Consolidation /Dedicated Proximity /Flexibility
Information What information is best sited foreach ob!ective
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Functional vs. Innovative Products:
Differences in Demand
Functional2&redictable3
Innovative2un"redictable3
&roduct life cycle More than 4 years 5 months to 6 years
Contribution margin 78 to 498 498 to :98
&roduct %ariety .ow 269 to 49%ariants "ercategory3
High 2often millionsof %ariants "ercategory
!orecast accuracy2margin of error3
698 ;98 to 6998
A%erage stoc+outrate
68 to 48 698 to ;98
A%erage forced
mar+down
98 698 to 478
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!hysically Efficient s# Mar$et%Responsie
Supply ChainPhysically Efcient
Process
Maret!"es#onsive
Process&rimary "ur"ose Su""ly "redictable
demand e
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Efficiency%Responsieness &rame'or$
of Supply Chain
Match Mismatch
Mismatch Match
Functional Product Innovative Products
Efficient
SupplyChain
Re
sponsive
Su
pplyChain
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(one of strategic fit in supply chain
Certain
Demand
Implied
Uncertainty
Spectrum
Uncertain
Demand
Responsive SupplyChain
ResponsivenessSpectrum
Efficient Supply
Chain
Zone of
Strategic Fit
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Achieing Strategic &it ?nderstanding the Customer
.ot size
Res"onse time
Ser%ice le%el
&roduct %ariety
&rice
Inno%ation
Implied
Demand
Uncertainty
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The )alue Chain* +in$ing Supply
Chain an" ,usiness Strategy
New
ProductDevelopment
Maretin!
andSales "perations Distri#ution Service
Finance$ %ccountin!$ Information Technolo!y$ &uman Resources
'usiness Strate!y
New Product
Strate!yMaretin!
Strate!y Supply (hain Strate!y
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&lo's in a Supply Chain
(ustomer
Information
Product
Funds
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Procurement
Planning
Manufacturing
Planning
Distribution
PlanningDemand
Planning
Sequential Optimiation
Supply Contracts/Collaboration/Information Systems and DSS
Procurement
Planning
Manufacturing
Planning
Distribution
PlanningDemand
Planning
!lo"al Optimiation
Se-uential Optimization s#
.lobal Optimization
Source@ Duncan Mc&arlane
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The Dynamics of the Supply Chain
rderS
i!e
"ime
Source# "om Mc $uffry% Electronic Commerce and &alue Chain Management% '(()
Customer
Demand
Retailer rdersRetailer rdersDistributor rdersDistributor rders
Production PlanProduction Plan
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The Dynamics of the Supply Chain
rderS
i!e
"ime
Source# "om Mc $uffry% Electronic Commerce and &alue Chain Management% '(()
Customer
Demand
Production PlanProduction Plan