Evolving Trends in Supply Chain Management

1. 供应链管理（英文版）

2. Supply Chain Management • The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and customers. • Today, the talk is of "supply networks", "parallel chains", "enhanced concurrent activities", and “customer centric” with new information platformsand technology set to cut both inventory and lead-times throughout the delivery pipelinefurther.

3. Top Issues Facing SCM Professionals In a recent quantitative survey, SCM professionals were asked a open-ended subjective question, “What are the three biggest issues facing you personally in developing your logistics strategy?” Source: AMR Research 2000 The top three responses were; Cost (21%), Systems Applications (20%) and Integration (19%)

4. SCM Benefits Materials Flows Information Flows Cash Flows Distributors/ Wholesalers Suppliers Manufacturer Retailers Customers US companies expect to reap $3-400B of savings through a variety of benefits (3 – 5% of revenues) Source: PRTM

5. Distributors/ Wholesalers Distributors/ Wholesalers Customer Customer Suppliers Suppliers Manufacturers Manufacturers Retailers Retailers Move From Push To Pull Make what we sell, not sell what we make!

6. Move to Cross-Functional Business Processes Install/ Maintenance Purchasing Manufacturing Distribution Sales Order Fulfillment Available-to-Promise Department Performance Sales & Operations Planning Source Make Deliver Sell Install

7. Supply Chain Optimization Synchronized, Sequential Planning Procurement Planning Manufacturing Planning Distribution Planning Forecasting Synchronized, Concurrent Planning Supply Chain Optimization Procurement Planning Manufacturing Planning Distribution Planning Demand Planning

8. LSL LSL LSL LSL LSL USL USL USL USL USL Cross-Functional Supply Chain Metrics Install/ Maintenance Purchasing Manufacturing Distribution Sales Perfect Order Process Process Performance Source Make Deliver Sell Install

9. Sharing and Collaboration Retailers Synchronized Production Scheduling Collaborative Product Development Suppliers Manufacturer Collaborative Demand Planning Distributors/ Wholesalers • Collaborative Logistics Planning • Transportation services • Distribution center services

10. Price is often just the tip of the iceberg! Full Value Procurement Objective • Lowest total cost of ownership • Quality meeting customer needs • On-time delivery • Acceptable supply risk • Process efficiency • Demand reduction Purchase Price Acquisition Installation Maintenance Disposal Underpinned by procurement infrastructure excellence

11. Strategic Souring Evolving Model of Procurement Traditional Progressive Strategic Strategic Tactical Tactical • Tactical Emphasis • Acquisition Cost Focus • Staff Function • Cost Center • Reactive • Strategic Emphasis • Total Cost Focus • Profit Center • Proactive

12. Logistic and Transportation • Logistics accounts for 8-12% of sales. In 1998, it accounted for over 10% of the US GDP • Logistic is one of the glues that holds the supply chain together. The techniques that most manufacturers employ to increase speed and reducing cost is outsourcing • Average cost reductions from outsourcing is 32% • The 3PL market has enjoyed explosive growth over the past 5 years. Most 3PLs have reported annual growth rate of 25-50% Source: industry week

13. PRT Customer order Material Routing BOM . . . . . etc. Document Work center Manufacturing • Manufacturing managers view efficiency and flexibility as two objectives which must be balanced in order to arrive the lowest total cost • World-class companies adopt strategies and tactics such as pull system, JIT replenishment, and cycle time reductions that enables a company to have lower levels of inventory while still driving reductions in production unit cost • Companies frequently underestimate the commitment required to achieve an effective quality improvement which result in operation cost increases.

14. Transportation Forecasting and Planning Scheduling Operational Tactical Strategic Strategic Business Planning Manufacturing Planning Source Make Move Store Sell Rolling Forecast Scheduling Distribution Planning Order Promise Demand Planning months weeks year + hours days

15. Top Issues Facing SCM Professionals e-Business is a relatively low priority, coming in sixth of the top issues facing SCM professionals. However, this does not reflect the impact that e-Business will have on Supply Chain Management Source: AMR Research 2000 e-Business will fundamentally change SCM

16. e-Business Is Driving a Fundamental Transformation in SCM ENTERPRISE OPTIMIZATION NETWORK OPTIMIZATION Company Company D A Forecast Demand Produce Products Manage Logistics Company Company Procure Company E B G C Company F Company Optimize • The larger the network of companies the greater the power of the network to reduce cost for its members • Increased leverage with suppliers • Broader market access for suppliers • Expanded community and collaboration opportunities • Greater integration across market supply chains NetworkEffect • The larger the Meta-Market the faster it can form and launch facilitate the operational excellent • Broader communities to allocate R&D cost • Operational efficiencies via back office shared services • Depth of industry and procurement knowledge and resources available to develop supplier contracts Economies of Scale

17. The Impact of e-Business on SCM e-Business affects four broad categories that determine the production and transaction costs of a firm: • The cost of executing a sale • The costs associated with procuring production inputs • The costs associated with making and delivering a product or service • The cost associated with logistics

18. The Cost of e-Business SalesAccessibility Ane-Business web site is open 24 hours per day, 7 days per week.A business no longer has to build separate physical establishments to attract a larger customer base. A virtual storefront also allows an e-business to manage one store instead of multiple stores, thus eliminating duplicate inventory costs.

19. Critical Customer Requirement B A Defects: Service unacceptable to customer Produce or Service Output The Cost of e-Business SalesOrder Rework Another aspect of e-Business is that it enables more efficient order configuration. For example, both General Electric (GE) and Cisco Systems reported nearly one-quarter of their pre-Web-site orders had to be reworked because of errors--a total of more than 1 million orders, in the case of GE. Since adopting a Web-enabled customer interface, Cisco reports an error rate of only 2 percent.

20. The Cost of e-Business SalesFundamental Shift Customised Clearly, e-Business represents a fundamental shift in how the sales process is executed by a company. As a result, e-Business compels existing businesses to re-examine how they interact with customers, even as new entrants exploit e-Businesses to reach customer bases previously thought unreachable. Direct Sales • Face-to-face sales • $500/sales contact • Distributors/VARs • $2-300/sales contact Resellers Value- Added of Sale Tele- channel • Telephone sales and service • $25 per sales contact • No human contact • $1 per sales contact Electronic Channels “Off-the-Rack” Low High Cost of Sale Source: Dr. Rowland Moriarty, Cubex Corp.

21. B2B MarketPlace Buyers Suppliers Suppliers Connected to MarketPlace via Web or ERP Buyers connected to marketplace via E-Procurement App The Costs Associated With Procuring Production Inputs Web-based procurement of maintenance, repair, and operations (MRO) supplies is expected to reach more than $100 billion worldwide by the year 2000. MRO comprises those goods required to run a company that are not raw materials used in the direct manufacture of a product or the provision of a service. 100 100 5 Profit +50% 7.5 OtherCosts 45 45 A 5% reduction in purchase cost can result in a 50% increase in profit margin. 50 Purchases 47.5 -5%

22. The Costs Associated With Procuring Production Inputs CURRENT COST PER PO Lower transaction costs coupled with the ability to enforce purchasing policy across the enterprise have been instrumental in driving Web-based MRO procurement. Two additional factors have accelerated the trend. The first factor is a defensive reaction by firms that note the cost savings being enjoyed by rivals switching to an e-business procurement mode. The second, and possibly more important factor is the insistence by large firms such as Ford, that their suppliers link into their Web-based procurement systems as a condition of doing business with them. COST PER PO POTENTIAL COST PER PO Source: RB Weber

23. The Cost of e-Business Supply Chain Management Even the scope of MRO procurement pales beside the possibilities for reorganizing supply chains around e-business. Rather than increasing production and inventory in advance of actual customer demand, e-businesses are looking to make both their own supply chains and those of their customers and suppliers respond in real time to actual sales. Supplier Manufacturer Distribution Retailer Consumer Information

24. The Cost of e-Business Supply Chain Management Visibility of the entire supply chain is necessary so a business can analyse the interplay between interactions such as procuring materials, components, and subassemblies from various suppliers; shifting production between installations or business partners; and moving goods to the final consumer. Understanding relationships between all players in a particular value chain allows an e-business to adjust to new contingencies in real time.

25. The Transformation of Logistics e-Business transforms logistics from simply packaging and moving goods and turns it into an information business. Introducing online parcel order and tracking via a proprietary network in 1983, Federal Express took nearly 12 years to sign up 50,000 customers. In 3 years, between 1995-1998, after FedEx offered essentially the same service via the Web, the number of customers rose to 1 million. FedEx estimates nearly 70 percent of the 3 million packages it processes each day now are initiated via interactive networks.

26. Supplier Collaboration e-BusinessDriving Transparency When building visibility of the entire supply chain, this also includes customers. e-Business gives the customer access to the suppliers product data, ordering and delivery information. This drives transparency within the organization and forces the supplier to develop better delivery and support systems. Supply Chain Management Enterprise Connectivity Customer Management Product Lifecycle Management Consumers and Channels Design Partners

27. Recommendations • Include e-business as part of your top three supply chain agenda items. • Put in effort to articulate a value propositionfor e-business within your company, and the impact it will have on yoursupply chain. Seek and gain cross-functional and key trading partner alignmenton your strategy. • Look for additional learning opportunities. • Look at the earlyadopter or e-business-oriented companies, e-business consultants, system integrators,and colleagues in supply chain management. Lessons can be learnedin both the Business-to-Consumer (B2C), as well as Business-to-Business(B2B) domains. • Broaden your perspectives on e-business beyond customer interaction andsupply chain cost savings. • Consider the broader implications of supplier andtrading partner visibility, Business Community Integration (BCI), and partnercollaboration. A broadened perspective can yield greater opportunities forleveraging e-business processes within the supply chain. • Consider some form of electronic marketplace adoption as part of your supplychain strategy. • Evaluate the long-term presence of trading exchanges accordingto the value-added services they can provide that are over and above procurementtransactional cost savings. Evaluate your strategies to impact both thesell-side and the buy-side processes.