Case 5 :
Brunswick Corporation:
Improving Supply-Chain Results
951702 彭靜萱
►What is the business value of SCM
systems for Brunswick?
The business value of SCM
systems for Brunswick
1.
2.
3.
4.
5.
6.
7.
Get the product right
Get the distribution right
Shrink the period of order to delivery
Be the best cost in the industries
Raise sales volume
Be global
Increase the competitive advantage
Get the product right
• Introduce the highest quality product with
the most innovative technology and design
at the best price, faster than the
competition.
Get the distribution right
• Distribute products through a model that
benefits their partners – dealers and
distributors – and provides world-class
service to customers.
Get the distribution right (cont.)
Some of the efforts include:
• By the different distribution channels to extensive
marine parts and accessories to customers.
• By the ability of developing manufacture and
distribution, let the product dispersion right.
Shrink the period of order to
delivery
• By exactly deal with the needs, supply and the
use of product in the right place to decrease the
period from order to delivery.
Be the best cost in our industries
• Be the best cost manufacturer of products,
develop and maintain low-cost
manufacturing and continually improve
productivity and efficiency.
Raise sales volume
• Because decreasing the cost of
manufacture and forecast and so on, the
price of product will be lower and raise the
sales volume.
Be global
• To become the best price manufacturer in
the product market, they use the abilities
which produces from SCM to develops and
maintains the process that improves the
productivity and raise the efficiency
unceasingly.
Increase the competitive
advantage
• By decreasing the cost and shrink the
process of manufacturing product and so
on, that can help business increase the
competitive advantage.
951623 江小琪
►Does the business value of SCM depend
upon what type of business a company is
in? Explain.
Answer
• YES!
1.Implementing SCM matches the operational
focus of the organization.
2.For manufacturing environments with welldefined final products and parts stand to gain
the most profits.
• NO!
- The services sector would be unlikely to adopt
SCM since they lack a manufacturing process
at all.
The key to a successful SCM
implementation is that it matches the
operational focus of the organization.
• Use IT integrate Individual
enterprises and operating process.
– Reduce waste and redundant
• Has a data warehouse that holds
information such as inventory
– SCM can use the information to arrange the
operating schedule.
• Standard business process
For manufacturing environments
with well-defined final products and
parts stand to gain the most profits
• If there are no well-defined final
products and parts stand , it will have
(1) uncertainty of demand (such as amount)
• Inaccurate demand forecasts cause the
accumulation of stock or out of stock
(2) the uncertainty of manufacturing (such as
yield, machine crashes, transport reliability)
• Delivery delay
(3)uncertainly of supply
• Delivery delay
Example
[ Wal-Mart ]
• Wal-Mart exclusively used SCM to
increase its projected growth rate.
– Manage their demand and supply in accurate
manner
Example
[ Wal-Mart ] (cont.)
• RFID
– Can reduce the global retail’s labor costs 40 ~
50%, and reduced the inventory volume of 10
~ 30%.
– Wal-Mart's profit will increase by 38 percent,
and its productivity higher than the industry
more than 40 percent.
Example
[ Wal-Mart ] (cont.)
• Advanced satellite communications
network
– Get the sales information immediately.
– A short number of hours to complete "fill
orders - a summary of all branch orders - send
orders”.
– Benefit
• Improve the capacity of inventory replenishment.
• Speed up the checking out time and recording of
transaction.
Organizations in the services sector
would be unlikely to adopt SCM
• Because they lack a manufacturing
process.
• To the service industry ,services
cannot be inventoried.
– So they cannot to forecast the inventory.
Organizations in the services sector
would be unlikely to adopt SCM (cont.)
• uncertainty of service quality :
– services are created and delivered at the same
time.
• Service rate and service quality cannot
measure and store with digital.
For example
• Drivers
– Drivers cannot forecast when customers need
their service.
– Divers cannot use SCM to forecast the revenue
at next month.
For example (cont.)
• Barbers
– They don’t know when customers want to
have the haircut.
– They cannot measure the service quality with
digital , so that they cannot use SCM to
forecast.
951620 陳盈志
►How does Brunswick’s approach to SCM
differ from that of the other companies
explored in this chapter?
Is one approach superior to all others?
Why or why not?
Brunswick
• Getting a better grip on the data
they generate to control its supply
chain.
Brunswick (cont.)
•
How to use?
- Used informatica corporation’s data
integration and business - intelligence
tools.
- Has a data warehouse that holds
information pulled from a wide range
of
enterprise systems.
Brunswick (cont.)
•
Benefit
- Can better manage sourcing and
procurement across its supply chain.
IBM
•
IBM created Configure-to-order
system for its personal systems
division.
IBM (cont.)
•
How to use?
- A customer in Europe can configure a
personal computer on IBM’s website
and
get real-time availability and order
confirmation.
IBM (cont.)
1. Places an order in Europe
2. Order travels to IBM’s systems
located in world
‧Fulfillment engine
‧E-commerce engine
‧ERP & production management systems
‧Sales reporting system
‧Product database
IBM (cont.)
3. back to the customer’s browser
•
Benefit
- Can integrate with the data in
everywhere.
- Customer can get information
immediately.
Dell inc.
• Installed a industrial–strength B2B
integration software to integrate 18
different software.
Dell inc. (cont.)
•
How to use?
- A business customer pulls product
information from Dell’s server into the
customer’s purchasing system, which
creates an electronic requesting.
Dell inc. (cont.)
•
Benefit
– Reduce order time
– Reduce procurement process errors
– Reduce the cost of processing each order
– Build links to 40 its bigger customers,
allowing a customer purchase easily.
Syntellect’s Online
Transaction processing
•
Provide service between customers
and cable companies.
Syntellect’s Online
Transaction processing (cont.)
•
How to use?
- Cable TV viewers can select
pay-per-view events offered by their
cable companies using the phone or
the
World Wide Web.
Syntellect’s Online
Transaction processing (cont.)
1. The order is captured by syntellect’s
interactive voice response system or web
server.
2. Transported to syntellect database
application server.
Syntellect’s Online
Transaction processing (cont.)
3. Updated sales database, and the
approved order is relayed back to the
cable companies video server.
4. Cable companies transmits the video to
the customers.
Syntellect’s Online
Transaction processing (cont.)
•
Benefit
– Instead of paying for a year and so many
views that will not to watch, customer
can choose the view he want and pay for
it.
– Can reduce customer costs.
– Can profit Synellect and cable companies.
Baker Tanks
•
•
•
Used salesfore.com solution
Moved from a paper-based system to a
Web-based system.
Eliminating the step of transferring
information from paper documents to the
database.
Baker Tanks (cont.)
• How to use?
– Sales all have each PDA.
– Every PDA can link to salesforce.com for
customer contact information, sales
history and anecdotal notes.
– Sales can e-mail responses to customers
more promptly.
Baker Tanks (cont.)
•
Benefit
– Communicating better with customers.
– Our salespeople have become more
productive.
Is one approach superior to
all others? why or why not?
• Yes
– Can better manage sourcing and
procurement across its supply chain.
• No
– Because Brunswick didn’t have a perfect
customer-oriented service like other
companies.
951736 陳啟天
►Describe what the “IS/IT” in the real case
is all about?
►“supply-chain management system”
What is SCMS?
Supply Chain Management aims to manage the
entire supply chain in the premise of meet
customer, for example, from the procurement,
materials management, production, distribution,
marketing to consumers.
Goal
1. Reducing overall system operating costs.
2. The cost of shared information.
3. To improve their overall competitive
advantage, developed into a large-scale
virtual enterprise.
Goal (cont.)
4. By information technology, make
information format standardization,
operational efficiency, and eliminate
unnecessary complexity of operations,
supply operations and timely delivery
response to consumer demand.
While functionality in such systems can
often be broad – it commonly includes:
1.
2.
3.
4.
Customer requirement processing
Purchase order processing
Inventory management
Goods receipt and Warehouse
management
5. Supplier Management/Sourcing
What does supply chain management
software development now?
•
Supply chain management software is possibly
the most fractured group of software applications
on the planet.
•
No vendor has a complete package that is right
for every company
•
Many companies decide to go with targeted best
of breed products instead
951602 王詔弘
►What are the advantages and
disadvantages of the “supply-chain
management system” ?
Advantage(1)
1.Reduce the amount of inventory.
This is the practice known as just-in-time
manufacturing, and it allows companies to
reduce the amount of inventory that they
keep.
2.Can cut costs substantially.
You no longer need to pay to produce and store
excess goods.
Advantage(2)
3.For supplier, reducing the uncertain
problem about sales and customer
demand.
4.Reducing the cost of administration and
process integrate.
Advantage(3)
5.Integrate the product and process
development
6.Increase sales amount
Squeeze out costs and use efficient and effective
supply chains to bump up sales
Disadvantage(1)
Flexibility
A long way to go for many companies
and their supply chain partners before that
level of supply chain flexibility can be
achieved.
Disadvantage(2)
Incorrect information
Inter-related companies could have the
problem of sharing incorrect information
due to lack of mutual trust or fear of
control.
Disadvantage(3)
Congestion of stock
To allow other companies take control of
their inventory, there may have some risks
about the supplier's own inventory to plug
downstream.
Disadvantage(4)
Wrong estimate
EX:
“People bought more of the SCM
applications than they should have,” says
Steve Banker, an ARC analyst.
932641 蘇芷黎
►How does the “supply-chain management
system” change the way new business
operate now?
(compare it with the traditional /
conventional method, if there is any. )
Building the system
Traditional way
Supply chains are a
kludge of systems.
Use IS/IT
Replace aging
homegrown systems
that run pieces of their
supply chains with
state-of-the-art software
that incorporates
cutting-edge features.
Controlling the system
Traditional way
People bought more of
the SCM applications
than they should have,
and folks were burned.
All supply-chain issues
aren't necessarily solved
with supply-chain
applications.
Use IS/IT
Gain control over the
various systems in its
supply chain by getting a
better grip on the data
they generate.
Use data-integration and
business-intelligence
tools to improve supplychain visibility.
Effect
Traditional way
Use IS/IT
The supply chain has
been looked at as a way
to manage bottom-line
(reduce operating costs),
not top-line growth (earn
more revenue) .
They've managed to
move supply chain from
a back-office operation to
a front-line, customeroriented service.
Conclusion
‧Relationship Integration :
Squeeze out costs and use efficient and
effective supply chains to bump up sales.
‧ Visibility :
It can better manage sourcing and
procurement across its supply chain.
Conclusion (cont.)
‧Optimizing revenue :
Controlling supply chain can affect both the
bottom and top lines .
951755 游皓雯
►Besides those mentioned in the case,
what other ways can a business realize
more business benefits from the “supplychain management system” ?
Focus on:
the back end of the supply-chain
‧Way
Design an integrated database.
This database can provide information for all system,
include SCM system, at the back end of the supplychain.
Focus on:
the back end of the supply-chain (cont.)
‧Benefits
Because all systems are use the same database, it
don’t need time to convert data from one database to
another, systems can use the data directly.
Hence, the data flowing between these systems can
be more consistent and timely.
Focus on:
the back end of the supply-chain (cont.)
‧Way
Combine SCM system with PRM (Partner
Relationship Management) system.
PRM system can help business obtain and retain the
distribution/transportation partner.
Keep good relationship and communication with
partners that can strengthen the business’s products
and service.
Focus on:
the back end of the supply-chain (cont.)
‧Benefits
Long-term cooperation with particular partner would
give the quality assurance and don’t need to spend
another convert cost.
Even more business can ask to decrease the
distribution cost.
Focus on:
the front end of the supply-chain
‧Way
Integrate the information generated from supplychain planning software and CRM system.
Supply-chain planning software can decide which
products to build based on forecast.
CRM system can analyze what the customer like
based on the customer’s profile and purchase records.
Combine these two information to make forecast and
decision more accurate and appropriate.
Focus on:
the front end of the supply-chain (cont.)
‧Benefits
More accurate the forecasts and decisions are,
the customers will like more the products that
businesses build and buy more. So the profit
increase.
Focus on:
the front end of the supply-chain (cont.)
‧Way
Use the B2B (business-to business) integration
software .
For example, E-procurement can pull product
information directly to customer, it creates electronic
order.
After the order is approved online by the customer, a
computer-generated purchase order shoots back to
business and supplier.
Focus on:
the front end of the supply-chain (cont.)
‧Benefits
It would decrease the process cost.
Electronic order can deliver over Internet, so the
whole process time can be shortened.
Focus on :
supply-chain execution software
‧Way
Add a tracking function for transportation
management.
Customers (retailers or wholesalers) can know where the
products have been.
Businesses can monitor the transportation of the
products on time and correctly.
Focus on :
supply-chain execution software (cont.)
‧Benefits
Increasing the dependency of customer
and the efficiency of transportation.
951712 朱育慧
►Do some searches from the Web and
provide some historical background about
the “supply-chain management system” ?
Supply-chain Management
Historical Background：
Six major development can be observed in the
evolution of supply chain management (SCM).
1. Creation Era
2. Integration Era
3. Globalization Era
4. Specialization Era -- Phase One – Outsourced Manufacturing and
Distribution
5. Specialization Era -- Phase Two -- Supply Chain Management as a
Service
6. Supply Chain Management 2.0 (SCM 2.0)
Supply-chain Management (cont.)
Historical Background：
1. Creation Era：
The term supply chain management was first coined by
an American industry consultant in the early 1980s.
Supply-chain Management (cont.)
Historical Background：
2. Integration Era ：
This era of supply chain management was highlighted
with the development of Electronic Data Interchange
(EDI) systems in the 1960s and developed through the
1990s by the introduction of Enterprise Resource
Planning (ERP) systems.
Supply-chain Management (cont.)
Historical Background：
3. Globalization Era：
The third movement of supply chain management
development, globalization era, can be characterized by
the attention towards global systems of supplier relations
and the expansion of supply chain over national
boundaries and into other continents.
Supply-chain Management (cont.)
Historical Background：
4. Specialization Era -- Phase One – Outsourced
Manufacturing and Distribution：
In the 1990s industries began to focus on “core
competencies” and adopted a specialization model.
Supply-chain Management (cont.)
Historical Background：
5. Specialization Era -- Phase Two -- Supply Chain
Management as a Service：
Specialization within the supply chain began in the
1980s with the inception of transportation brokerages,
warehouse management, and non asset based carriers
and has matured beyond transportation and logistics into
aspects of supply planning, collaboration, execution and
performance management.
Supply-chain Management (cont.)
Historical Background：
6. Supply Chain Management 2.0 (SCM 2.0)：
Building off of globalization and specialization, SCM 2.0
has been coined to describe both the changes within the
supply chain itself as well as the evolution of the
processes, methods and tools that manage it in this new
era.
Supply-chain Management
Now SCM contain two parts：
1.Supply Chain Execution：
Address particular segments along the supply
chain. Like warehouse management and
transportation management.
2. Supply Chain Planning：
Helps company decide which products to build
and when, based on forecast, orders, capacity,
and resource.
951637 楊耀清
►Describe who else may find the “supplychain management system” useful.
Give at least 5 examples. And, why you
think so?
Example 1
1. A Taiwan’s OEM printer
manufacturer.
2. They cooperate with the world's
leading brands of printer
manufacturer.
Example 1
[ AVISION ]
Background:
Since 1991
World famous brand partners
(Printer Company):
1. Xerox (Fuji Xerox)
2. Lexmark
3. Fujitsu
4. Pentax
Example 1
[ AVISION ]
EFFECTS
The company uses the supply
chain management to let the
response be more rapid and
reduce the artificial cost of
operation.
WHY
It helps the company to
produce faster, higher quality,
and products meet the
customers’ need.
The company uses the supply It can reduce the error of stock
chain management to
predictions.
promote the data exchange of
materials between upstream
and downstream firms.
Example 1 (cont.)
[ AVISION ]
EFFECTS
WHY
The company uses the supply
chain management to
establish the material system
of automatic tracing.
It can confirm the movement
of materials immediately.
The Operation System imports
the notice system of shipment.
It can reduce the follow-up
operations.
Example 2
1. The company is the fourth
largest supplier of LCD panels
in the world.
Example 2
[ Chi Mei Optoelectronics ]
Background:
Since 1998
Main production :
1. LCD panel
2. Television
Example 2
[ Chi Mei Optoelectronics ]
EFFECTS
WHY
The supply chain management It can share resources between
uses the existing data to let
different departments.
the analysis be more effective.
The supply chain management It can reduce the
can bring easy-to-understand communication time during the
statements and diagrams
meeting.
between different
departments.
Example 2
[ Chi Mei Optoelectronics ]
EFFECTS
WHY
The supply chain
management can reduce
the cost of business
operation.
The supply chain
management
standardized the
communication platform.
It maximizes the benefits.
It can reduce the
communication time
between different
departments.
Example 3
1. The company is Europe’s leading
home improvement retail group.
2. They are also the third largest
group in the world.
Example 3
[ Kingfisher PLC ]
Background:
Since 1998
1. With leading market positions in the
UK, France, Poland, Turkey and China.
2. Main retail brands like B&Q.
Example 3
[ Kingfisher PLC ]
EFFECTS
The supply chain
management ensures
that critical business will
not be interrupted.
The supply chain
management provides
the support services
around the world.
WHY
It uses the value chain
efficiently.
It can integrate all of the
information from different
companies around the
world.
Example 4
1. The company is a manufacturer
of digital camera.
Example 4
[ Premier ]
Background:
Since 1974(main product camera)
Premier Technology Group is the foremost
provider of joint-design, joint-development,
manufacturing, assembly and after-sales
services to global Computer, Communication
and Consumer-electronics ("3C") leaders.
Example 4
[ Premier ]
EFFECTS
WHY
The supply chain management It will has a clearly
let the exchange of
communicate of information.
information between
companies and supplier be
more rapid.
The supply chain management It can avoid the error of
let the order process be Emanual operation.
order process.
The supply chain management It ensure the supply of
let the logistics processes be
materials be smooth.
smooth.
Example 5
1. They are one of the world’s leading
providers of semiconductor
manufacturing services.
2. And they pride themselves as a
leader in offering a comprehensive
range of advanced IC packaging.
Example 5
[ ASE GROUP ]
Background:
Since 1984
Advanced Semiconductor
Engineering Inc.
(ASE Inc.)
Example 5
[ ASE GROUP ]
EFFECTS
WHY
The supply chain management It enhances the competitive
rapid establish of links with
advantage.
suppliers.
By using the supply chain
It helps the suppliers to expand
management, the company
the scale of bargain.
can share of electronic market.
The supply chain management It reduces the cost of
provides a good competition
procurement effectively.
platform between suppliers.