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Supply Chain Overview

This overview delves into metrics and strategies crucial for a California computer manufacturer, covering cost per placement, inventory management, customer service, and information dissemination techniques. Learn how to manage variability, reduce inventory costs, minimize total costs, and enhance communication with customers and suppliers. Make informed decisions on location, product design, and cost control to optimize supply chain efficiency.

daniellemartin
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Supply Chain Overview

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  1. Supply Chain Overview • Supply Chain Metrics • California Computer manufacturer • Cost per Placement • Indiana Component plant of auto manufacturer • Inventory • Inventory Turns • Annual Sales at Inventory Cost/Value of Inventory

  2. Customer Service • Line Item Fill Rate • Order Fill Rate • On-Time delivery • Order cycle time • Invoice Accuracy • ….

  3. Information to Customers • Provide accurate information of delivery • Get it there on time • Provide up-to-date information in exceptions • Preferably in advance

  4. Information Internally • Accurate and timely information easy to retrieve • Short planning cycles • Short forecast accurate forecasts

  5. Manage Variability • Identify it • Eliminate it • Hedge against it

  6. Don’t Cover Up • Don’t hide behind unnecessary inventory • Why is it there? • Is it necessary? • Is it the right amount?

  7. Understand the Cost of Inventory • Cost of Capital • Return on Assets • Obsolescence • Damage and Shrinkage • Capital investments • Location

  8. Product Design • Postpone differentiation

  9. Communicate • Know your customers’ customers • Inform your suppliers’ suppliers

  10. Coordinate • Expediting costs money • Avoid “hurry-up and wait”

  11. Minimize Total Cost • Freight • Inventory • Order processing • Packaging • Handling • ….

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