Supply Chain Management 供应链管理 Chapter 14 1 SUPPLY CHAIN MANAGEMENT “There is a great deal of confusion regarding exactly what supply chain management involves. In fact, most people using the name supply chain management treat it as a synonym for logistics or as logistics that includes customers and suppliers. However, successful supply chain management requires cross-functional integration of key business processes within the firm and across the network of firms that comprise the supply chain. The challenge is to determine how to successfully accomplish this integration.” -Douglas Lambert 2002 2 SUPPLY CHAIN MANAGEMENT Definition Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. Council of Supply Chain Management Professionals (2004) 3 SUPPLY CHAIN MANAGEMENT Boundaries & Relationships Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the Logistics Management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology. Council of Supply Chain Management Professionals (2004) 4 Supply Chain Management …is the integration of key business processes from end user through original suppliers, that provides products, services, and information that add value for customers and other stakeholders. 供应链管理就是从终端用户到能为客户和 股东提供附加价值的产品、服务和信息的初始 供应商的关键业务流程的整合。 [The International Center for Competitive Excellence, 1994] 5 [As modified by the The Global Supply Chain Forum, 1998] SUPPLY CHAIN MANAGEMENT 6 Source: Adapted from Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities”, The International Journal of Logistics Management, Vol. 9, No. 2 (1998), p. 2. FUNCTIONAL INVOLVEMENT IN THE SUPPLY CHAIN MANAGEMENT PROCESSES Note: Process sponsorship and ownership must be established to drive the attainment of the supply chain vision and eliminate the functional barriers that artificially separate the process flows. 7 Source: Adapted from Douglas M. Lambert, Larry C. Guinipero and Gary J. Ridenhower, “Supply Chain Management: A Key to Achieving Business Excellence in the 21st Century”, unpublished manuscript as reported in Keely L. Croxton, Sebastián J. García-Dastugue and Douglas M. Lambert, “The Supply Chain Management Processes”, The International Journal of Logistics Management, Vol. 12, No.2 (2001), p. 31. CHANNELS OF DISTRIBUTION 分销渠道 A channel of distribution is a collection of organized units, institutions, or agencies within or external to the manufacturer, which perform the functions that support product marketing. 分销渠道是制造商内部和外部的组织 单元、机构、代理的集合,它执行产品营 销支持功能。 8 BUCKLIN’S THEORY OF CHANNEL STRUCTURE 巴克林的渠道结构理论 The purpose of the channel is to provide consumers with the desired combination of its outputs at minimal cost • Lot size • Delivery time • Market Decentralization (availability) Louis P. Bucklin 1966 渠道的目的是以最低的成本为消费者提供他们 所期望的产品组合(如批量、递送时间、市场 9 分散度 )。 WHY CHANNELS DEVELOP 分销渠道发展的原因 • They evolve and are rarely planned • They increase utility (3 of the 4) – Time – Place – Possession • 交易常规化 To help make transactions routine • 搜寻 To facilitate searches by consumers • 理货与配货 To Sort and Assort 10 The Discrepancy of Assortment 配货差异 • 制造商的配货与客户的配货通常有差异 The assortment of goods held by a producer and the assortment of goods demanded by their customer often differ. • 渠道中间商的首要功能是以下列“分类过程”调整 配货差异 The primary function of channel intermediaries is to adjust this “discrepancy of assortment” with one or more of the following “sorting processes”: – – – – 理货 集货 分配 配货 Sorting out Accumulating Allocation Assorting 11 The Sorting Processes 分类过程 • 理货 SORTING OUT - Grading product or pulling rejects (eggs: large, ex-large, jumbo) • 集货 ACCUMULATING - Bringing similar stock together (grain elevator) • 分配 ALLOCATION - “Breaking bulk” into smaller lots (buy a railcar load, sell in cases to dealers who then sell in individual units) • 配货 ASSORTING - Bring together different products (wholesalers assort for retailers, retailers assort for their customers) 12 SUPPLY CHAIN NETWORK STRUCTURE 13 Source: Adapted from Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 3. Types of Inter-Company Business Process Links 14 Source: Adapted from Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 7. HOW INTERMEDIARIES REDUCE THE COST OF MARKET CONTACT BETWEEN SUPPLIER AND CUSTOMER 中间商如何减少供应商与客户之间的市场接触成本 15 DISTRIBUTION CHANNELS GROCERY PRODUCTS MANUFACTURER 日用品生产商的分销渠道 16 INVENTORY POSITIONS AND MAJOR FLOWS IN A CHANNEL OF DISTRIBUTION Source: Adapted from Douglas M. Lambert and Mark L. Bennion, “New Channel Strategies for the 1980s,” in Marketing Channels: Domestics and International Perspectives, ed. Michael G. Harvey and Robert F. Lusch (Norman: Center for Economic Management Research, School of Business Administration, University of Oklahoma, 1982), p. 127. 17 18 A Framework for Supply Chain Management 19 Source: Martha Cooper, Douglas M. Lambert, and Janus D. Pagh, “Supply Chain Management: More than a New Name for Logistics,” The International Journal of Logistics Management, Volume 8, Number 1(1997), p.10. Supply Chain Management Vision The key to achieving an integrated flow of product and information throughout the supply chain is to create a focused customer interface, a focused supplier interface, and an integrated, process-oriented, supply chain which is driven by the customer. Underlying Process Vision 20 Required Behaviors Customer relationships are managed by customer focus teams which negotiate mutually beneficial product / service agreements with large, strategically significant customers. Customer Relationship Management Process 客户关系管理 • Customer focus teams develop and implement customer partnering programs. • Product/service agreements are established. • New customer interfaces are used to better predict customer demand and improve the way 3M services its customers. • Teams identify and eliminate sources of production variability. • Key performance evaluation criteria (both 3M performance and customer account profitability) are used to measure results. 21 Required Behaviors Maximizing customer service means that we must provide a focused point of contact for all customer inquiries in order to insulate them from the complexity of our large, multi-divisional corporation. Customer Service Management Process 客户服务管理 • Customer Service provides a single source of customer information, a point of contact for administration of the product / service agreement. • Instant promising/availability information is conveyed via the supply/demand manager interface. • On-line/real-time product and pricing information assists customers with order placement. • On-line/real-time access to order status information is available to support customer inquiries. • Front line technical service assists customers with product applications and recommendations. 22 Required Behaviors In demand management, customer demand is continuously gathered, compiled and renewed in order to match our supply capability with requirements in the market. Demand Management Process 需求管理 • Demand requirements and supply capabilities are continuously modeled using point of sale and “key” customer data. • Market requirements and production plans are coordinated on an enterprise-wide basis. • Multiple sourcing and routing options are considered at the time of order receipt. • Worldwide on-line/real-time inventory availability check and promising capacity is employed. • Demand and production rates are synchronized and inventories are managed globally. 23 Required Behaviors Rapid response to changing market conditions implies maximum flexibility of our production planning and manufacturing capabilities. Manufacturing Flow Management Process 制造流管理 • Production must shift from a supply/push method of operation to a demand/pull method based on customer needs. • Manufacturing processes must flexibly respond to market changes with rapid changeover capabilities for mass customization. • Minimum lot sizes are planned to move toward a make to order environment. • Production priorities are driven by required delivery dates. • Specific supply strategies are developed for each customer segment. 24 Required Behaviors Relationships with major suppliers are corporately managed in strategic alliances while purchase order transactions become simplified and integrated with the supply process. Supplier Relationship Management 供应商关系管理 • Strategic plans of suppliers/3M are aligned to focus resources on holding down costs and developing new products. • Supplier categorization and management is implemented on a corporate global basis, with purchasing in a strategic contracting role. • Purchase order transactions are integrated with the supply process to improve 3M productivity and all 25 areas of supplier performance. Required Behaviors Customer orders that are 100% on-time, accurate, and complete require an integrated supply and delivery system that is responsive, flexible and customerdriven. Fulfillment Process 订单履行 • Customer need dates and requirements drive the process. • Manufacturing, distribution, and transportation plans are integrated. • Strategic alliances with channel partners and carriers are formed to meet requirements and to reduce total-delivered-cost of the product to customers 26 OTHER SCM CONCEPTS TO KNOW 其他供应链概念 • 资源外包 Outsourcing • 延迟和投机 Postponement (Form, Shape, Location) & Speculation • 渠道分流 Channel Separation (Details in next lecture) • 洞察力 Perspective (Manufacturer, Wholesaler, & Retailer) • 密集分销、 选择性分销和独家分销 Intensive, Selective, & Exclusive Distribution • SCM vs. ILM • 速度作为竞争优势 Speed as a competitive advantage • 供应链问题的症状 Symptoms of SCM Problems… 27 SYMPTOMS of SCM PROBLEMS 供应链问题的症状 1. No or incomplete SCM strategy 2. Poor customer service definition 3. Poor delivery status data 4. Inefficient information systems 5. Impact of uncertainty ignored 6. Weak stocking policies 7. Customer discrimination 8. Poor coordination 9. Weak shipment analysis 10.Unknown or inaccurate inventory costs 11.Organizational barriers 12.Product design ignores Supply Chain needs 13.Supply chain design not in operational decisions 28