Supplementary on SCM
Supply Chain
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A network model
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Industrial structure
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Product supply chain
Service supply chain
Product/Service supply chain
Potential suppliers and customers
Competitors and collaborators
Visualize the current environment
Identify the role of a company in the industry
Informal model for analysis
Suppliers
Manufacturers
Transportation
Costs
Material Costs
Warehouses &
Distribution Centers
Transportation
Costs
Manufacturing Costs
Customers
Transportation
Costs
Inventory Costs
R1
S1
D1
M1
R2
S2
Dd2
Manufacturing
Rdr-2
Di
R3
Ss-2
Rr-1
Mm
Ss-1
Dd
Waste
Ss
Suppliers
Supplier
Manufacturers
Oversea
Rr
Recycle
Distributors
Retailers
Germany
Trading
company 1
Packaging
Company
Italy
Trading
company 2
Plastic
Company
France
Chewren
India
Cutter
Company
Oversea
NewYork
Waste
Metal
Company
Supplier
Wal-Mart
Germany
Recycle
Suppliers
Manufacturers
Distributors
Retailers
Simchi-Levi viewpoints on forces putting
on executives
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Global supply chains with long lead time suggests that supply
chain pipelines are full of inventory.
Customer demand is shifting, and there is a lot of pressure to
increase service levels.
Labor costs in developing countries are increasing - annually, the
costs in China have raised 20%, in Mexico 5%, and U.S.3% over
the last five year.
Higher energy prices which affect their transportation costs. As
transportation increases, companies try to bulk up their shipping
amounts - which is great for transportation but bad for inventory.
Volatility in commodity prices begs the questions of what
contracts companies should sign.
Executives need to manage their supply chain in an environment
that is uncertain so as to make the company more sustainable.
利豐供應鏈管理哲學
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以顧客為中心，以市場需求的拉動為原動力
強調企業以核心業務在供應鏈上定位，將非核
心業務外包
各企業緊密合作，共擔風險，共享利益
工作流程、實物流程、信息流程和資金流程的
設計、執行、檢討和不斷改進
利用信息系統優化供應鏈的運作
縮短產品完成時間，使生產盡量貼近即時需求
降低在採購、庫存、運輸和環節之間的成本
Evolution of SC
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Single factory
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Multiple factories
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Production plan, floor plan, cost reduction (by managing material cost)
Customer satisfaction is not a big concern
Production plan, floor plan, cost reduction (by cutting headcounts and
outsourcing)
Logistics control & managing information
Customer satisfaction is a concern (thus CRM)
Multiple factories (global network)
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Production plan, floor plan, cost reduction, production outsourcing, logistic
control
Channel outsourcing
Customer satisfaction is a big concern
Workers satisfaction is a concern
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CMM
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5. Optimizing
Level
4. Managed
Level
3. Defined
Level
2. Repeatable
Level
1. Initial Level
Difficulties in Supply Chain Management
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Mapping strategy decision to operational
design
Multiple perspectives and hence multiple
models
Multiple enterprises are involved
Business environment change
SC integration is complicated
Customer perception:
New product design &
production process
R&D
Customer Service
Services from
suppliers
-Quality Control
-Schedule Tracking
Technologies needed
Services/Products
Management Processes
Bank
Finance/Acct. (Process)
Administration
HR (Process)
Buss. Development
Enterprise Core Process
-Repeated every months
-Repeated every week
-Repeated every day
Marketing/Sales
Support Processes
People
Tools
Process
IT management
Organization as a Composition of Service
Service Unit
Units Organization
Service Unit
Organization can be defined as a PS System. Each department can then be
defined as a Service Unit. Working Teams (color blocks) can also be viewed
as service units.
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Organization as a Composition of Service
Units
Tools include (i) hardware like plastic molding machine, rice
cookers, computers, scanners; and (ii) information systems.
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Business Environment
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
2010 FALL
EC Websites Development
26
Business Environment (70’s – 90’s)
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
2010 FALL
EC Websites Development
27
Business Environment (00’s – Present)
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
2010 FALL
EC Websites Development
28
Business Environment (Beyond)
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
2010 FALL
EC Websites Development
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Organization as a Service Unit
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
Industry is a network of organizations. An organization can be defined as a
service unit which serves other organizations in the network.
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Business Environment (Beyond)
2010 FALL
EC Websites Development
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Complex Business Environment
Suppliers
Manufacturers
Distributors
Retailers
Customers
Cash flow
Product flow
2010 FALL
EC Websites Development
32
Service Engineering
Service Engineering