How to Improve Our Supply Chain Ch. E. Victor Jiménez Sánchez November 2019 What is Supply Chain Managment? The SCM process covers planning, purchasing, manufacturing, logistics, purchasing, supplier integration systems. Their design, preparation, administration, and tracking of all activities. “Progress cannot be generated when we are satisfied with existing situations.” -Taiichi Ohno* *Toyota’s production system designer Table of contents Agenda 01 02 03 04 Supply chain Risks Title of your second step Title of your third step Title of your fourth step 1. Supply Chain Risks …and how to control it! Why we must to reduce and control the risk in SC? Inefficiencies in SC processes could cause issues within the supply chain network that have a ripple effect throughout the entire organization, with the potential to affect profits, company image, reliability at a number of key points across supply chain operations. Our task is to reduce the chances of any uncertain situation and feat an appropriate set of solution(s) to manage the situation(s) efficiently and effectively. Survey participants’ view on the greatest risk to which their supply chain is exposed Raw material Price Fluctuation 1. 2. Be Lean with Your Raw Materials. Adapt to Cheaper Materials and Supply Sources. Quick Actions to Reduce Risk Raw material Scarcity 1. 2. Prioritize Critical Shortages by Supplier and Buyer and Identify the Root Causes Collaborate With Your Suppliers and Diversify. Supplier /Partner Banckruptcy 1. Collecting financial information on suppliers. 2. Diversify your suppliers. (Developing new suppliers and sharing volumen to mitigate risk) Evaluating Suppliers IATF / ISO 9001 Requirements and obligations IATF 16949-2016 Cl. 8.4.1 (8.4.2, 8.4.3, 8.5.6.) remarks that company must to have documented a suppliers performance report and supplier selection procedure.This inquiry applies for all direct raw materials and services including calibration. ISO 9001-2015 8.4.1 Remarks that the organization should assure that all process, products and services supplied by an external entity accordingly to the requirements. 01 Other vendor selection criteria to consider are 02 03 04 05 01. INDUSTRIAL SECURITY AND ENVIRONMENT 02. MANAGMENT SYSTEM 03. 04. PRODUCT AND SERVICES MEASUREMENT, ANALYSIS AND IMPROVEMENT 05. GOOD MANUFACTURING PRACTICES 01 04 Evaluate your suppliers to reach goals as partners Develop new suppliers to reduce risk and monitoring existing vendors 03 Conclusion Recognize risk as a improvement opportunity Take measure action to dicrese risk Quick actions to improve supply chain 02 Thank you! ありがとうございます Does anyone have any questions? victor_jimenezz@Outlook.com +52 5530154220 Bibliography ● ● ● ● ● https://www.leandna.com/blog/5-ways-reduce-shortages/ https://www.pwc.com/gx/en/operations-consulting-services/pdf/pwcsupply-chain-and-risk-management.pdf Supply Chain Strategy, Unleash the Power of Business Integration to Maximize Financial, Service, and Operations Performance by Edward Frazelle IATF 16949 -2016 ISO 9001- 2015 Revised: November 2019