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Supply Chain Management

Supply Chain Management . Adi Djoko Guritno. PROGRAM STUDI MAGISTER MANAJEMEN UNIVERSITAS GADJAH MADA . Schedule (Regular Class). References. References. Prolog. Indonesia Logistics Facts. Logistics cost = 14.08% production cost (Japan 4.08%)

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Supply Chain Management

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  1. Supply Chain Management Adi Djoko Guritno PROGRAM STUDI MAGISTER MANAJEMEN UNIVERSITAS GADJAH MADA

  2. Schedule (Regular Class)

  3. References

  4. References

  5. Prolog.....

  6. Indonesia Logistics Facts......... • Logistics cost = 14.08% production cost (Japan 4.08%) • Land transportation = US$ 0.34 (Average Asia US$ 0.22) • Country Competitiveness Index = Rank 54 - World Economy Forum • Logistics Performance Index = Rank 43 - World Bank • Corruption Perception Index = Rank 126 - Transparency International • Challenges : • Infrastructure • Regulatory Impact Assessment • Security and Safety

  7. LPI Dimensions • Efficiency and effectiveness of the clearance process • Quality of Transport and IT infrastructure for logistics • Ease and affordability of arranging shipments • Competence in the local logistics industry • Ability to track and trace shipments • Domestic logistics costs • Timeliness of shipments in reaching destination.

  8. Fig. Logistics Performance Index

  9. Logistics Performance Index = 3,01 (Rank = 43)

  10. Corruption Perception Index = 2,6 (Rank = 126)

  11. Score Rank Overall LPI 3.01 43 Customs 2.73 44 Infrastructure 2.83 45 International Shipments 3.05 44 Logistics Competence 2.90 50 Tracking 3.30 33 Domestic Logistics Costs 2.84 92 Timeliness 3.28 58 Table. LPI Indonesia

  12. Pinpoint....the academic curriculum and supporting

  13. Master of Management GMU 2004 e-Business Marketing Finance Managing e-Business Operations SCM Supply Chain Mngt Etc. e - Marketing Core Courses Concentration Courses

  14. Undergraduate GMU Product Dev. Just In Time Industrial Mngt Plant Lay Out Operations SCM Supply Chain Mngt Etc. Etc. Primary Courses Election Courses

  15. Supply Chain Management Course is a special course designed to improve students’ understanding of strategic aspect of logistics mechanism to support the successful implementation of an integrated e-Business systems. The focus of this course basically is linking-up strategic importance of information technology and operations function, such managing flow of goods and services in business within an integrated enterprise settings.

  16. Concentration Courses of E-Business e-Business: Managing e-Business, Analysis and Design e-Business, e-Marketing, Supply Chain Management, Strategic Information Systems, Knowledge Management, Business Project Management

  17. Definition of Supply Chain:“The sequence of business processes and information that provides a product or service from suppliers through manufacturing and distribution to the ultimate consumer.”

  18. Supply Chain Management defined as :“Efficient Management of the Supply Chain (source, make and deliver) in order to maximize the value for money to the customer”. 19

  19. TUJUAN Memperkuat Kolaborasi Demi Pertumbuhan Bisnis Yang SEHAT SUPPLY CHAIN Customer Care Corporate Pabrik Distribusi

  20. Fig. Supply Chain Cycle

  21. Recent Supply Chain Studies Suggest…. • “Only 7% of companies today are effectively managing their supply chain. However, these companies are 73% more profitable than other manufacturers. …”

  22. Market driven • Tomorrow’s model • Virtual network • Information based • Customer value oriented Mass Production Mass Customization • Yesterday model • Independent entities • Inventory based • Low cost production Supplier driven

  23. Competitive Strategy Supply Chain Strategy Efficiency Responsiveness Supply Chain Structure Facilities Inventory Transportation Information Drivers Supply Chain Decision Making Framework

  24. THE 6 MYTHS OF CREATIVITY • 1. Creativity comes from creative types • 2. Money is a creativity motivator • 3. Time pressure fuels creativity • 4. Fear forces breakthrough • 5. Competition beats collaboration • 6. A streamlined organization is a creative organization • (HBR, March 2008) 25

  25. The 7 Principles of SCM (1) • Segment customer based on service needs • Supermarket needs frequent visit, monitor stock closely • Wholesaler needs big discount, drug store needs display • 2. Customize your distributor • Distributor with strong modern trade team for cosmetic/consumer products • Distributor with strong General Trade (warung) coverage for certain product • 3. Listen to signals of market demand • Increase stock level when consumers show good response • Limit distribution if product shows slow sell-out • 4. Product closer to customer • Retail is better, closer to end users. Longer SC will impact price to end consumer

  26. The 7 Principles of SCM (2) • 5. Source strategically • In house production versus toll manufacture • Local raw materials versus import • 6. Develop supporting strategy • When to expand factory? Expand warehouse? Increase no of salesman? • 7. Performance measures • Evaluation, corrective actions

  27. Production Plan Retailer Orders Order Size Customer Demand Distributor Orders Time

  28. Production Plan Order Size Customer Demand Time

  29. A Typical Supply Chain

  30. Decision Phases in A Supply Chain • Supply chain strategy or design • Supply chain planning • Supply chain operation Key Point: Supply chain decision phases may be categorized as design, planning, or operational, depending on the time frame over which the decision made in a given phase apply.

  31. Process View of A Supply Chain • Cycle View:divided into a series of cycles (customer order, replenishment, manufacturing, procurement) • Push/Pull View:divided into pull (initiated by a customer order) and push (initiated and performed in anticipation of customer order)

  32. Customer Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier Supply Chain Process Cycle

  33. SRM ISCM CRM Supplier Firm Customer Supply Chain Macro Processes • Source • Negotiate • Buy • Design Collaboration • Supply Collaboration • Strategic Planning • Demand Planning • Supply Planning • Fulfillment • Field Service • Market • Sell • Call Center • Order Management

  34. How Is Strategic Fit Achieved? • Understanding the customer and supply chain uncertainty • Understanding the supply chain capabilities • Achieving strategic

  35. Step 1: Understanding the Customer and Supply Chain Uncertainty • The quantity of the product needed in each lot • The response time that customer are willing to tolerate • The variety of product needed • The service level required • The price of the product • The desired rate of innovation in the product

  36. Step 2 : Understanding the Supply Chain • Respond to wide ranges of quantities demanded • Meet short lead times • Handle a large variety of products • Build highly innovative products • Meet a very high service level • Handle supply uncertainty

  37. Highly efficient Somewhat efficient Somewhat responsive Highly responsive Production scheduled weeks or months in advance with little variety or flexibility A traditional make-to-stock manufacturer with production lead time of several weeks Delivering a large variety of products in a couple of weeks Custom made PCs and servers in a few days The Responsiveness Spectrum

  38. Step 3 : Achieving Strategic Fit Responsive Supply Chain Responsiveness Spectrum Zone of Strategic Fit Efficient Supply Chain Certain Demand Implied Uncertainty Spectrum Uncertain Demand

  39. Comparison Efficient and Responsive Supply Chains

  40. Responsive Responsiveness Spectrum Zone of Strategic Fit Efficient Implied Uncertainty Spectrum Product Maturity Product Introduction Changes in Supply Chain Strategy Over a PLC

  41. Demand-Driven Strategies • Demand forecast: a process in which historical demand data are used to develop long-term estimates of expected demand, that is, forecast • Demand shaping: a process in which the firm determines the impact of various marketing plans such as promotion, pricing discounts, rebates. New product introduction, and product withdrawal on demand forecast

  42. Matching Supply-Chains with Products Functional Products Innovative Products Efficient Supply-Chain Match Mismatch Responsive Supply-Chain Mismatch Match

  43. Push, Pull, and Push-Pull System • Push Supply Chain : produksi dan distribusi berdasar ramalan jangka panjang (tidak merespon perubahan permintaan yg mendadak atau menyediakan inventory yg besar) • Pull Supply Chain : produksi dan distribusi dikendalikan menurut permintaan konsumen dan kurang mendasarkan pada ramalan permintaan • Push-Pull Supply Chain : kombinasi antara push dan pull SC

  44. Push-Pull Supply Chains PULL STRATEGY PUSH STRATEGY Suppliers Low Uncertainty Customers High Uncertainty Push-Pull Boundary

  45. Collaborative Planning Forecasting and Replenishment (CPFR)

  46. “Collaboration”

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