Chinese-English Bilingual Teaching For Logistics & Supply Chain Management

1. Chinese-English Bilingual Teaching ForLogistics & Supply Chain Management Chapter 12. Selecting Supply Chain Solution 姜 阵 剑 jzj@sdjzu.edu.cn Business School, SDJU

2. Ch.12 Selecting Supply Chain Solution 选择供应链解决方案 • 1. The Selection Process • 2. Product Characteristics • 3. Strategic and Business Objectives • 4. Infrastructure Review • 5. Assessing Impact on Business Processes The main points Business School, SDJU

3. Business School, SDJU

4. The focus is on SCM solutions that are needed to source, make, and deliver a firm's products and services to its customers. What is the primary driver for the push or pull model? • ROI 投资回报率 ROI=net income/net investment The difference between the pull and the push models ? Business School, SDJU

5. CHANGES IN BUSINESS PROCESS Chain reversal consumer producer trade retail trade retail Present • marketpull • long term • chain oriented Past • product push • short term • linkage oriented consumer producer Business School, SDJU

6. The difference between the pull and the push models • There are three areas that traditionally comprise SCM: SCP , SCE ,and SCT systems---Ch.10. • The way that SCM technologies approach SCP in support of the push model is different from the approach for pull models. Business School, SDJU

7. The difference between the pull and the push models • Planning in the pull model is a top-down exercise. • Feedback from the actual outcomes • Forecasters across the supply chain tend to be corporate strategists (战略家) and senior management. Business School, SDJU

8. Notice: • As discussed in the previous chapters, no firm exclusively follows the pull or push model. Most firms incorporate varying elements of both models . • In selecting SCM technologies, managers must be clear about the degree to which their firm is committed to either model. Business School, SDJU

9. 1. The Selection Process • Functionality provided by push SCM technologies covers a broad range of SCP, SCT, and SCE execution areas. • Pull SCM technologies • Push SCM technologies • Functionality 功能性,功能 Business School, SDJU

10. 1. The Selection Process An overview of the roll-out process is shown in Figure 12.1. Note that the steps shown in the figure are necessarily sequential. Steps 1, 2, 3, and 4 can overlap or even occur in parallel. Business School, SDJU

11. 2. Product Characteristics • Where is the product in the life cycle? • If the products are at different stages in the product life cycle, are they currently supported by the same SCM technologies? • Does the product share PPE and common components with other product lines (产品线) that the firm manufactures? A preliminary step in selecting the appropriate SCM technology (push or pull) is to answer the following questions about each of the products：

12. Product Life Cycles Sales Development Introduction Growth Maturity Saturation Decline Time Business School, SDJU

13. 2. Product Characteristics What happens if the research and development (R & D) department transforms the commodity product to an innovative one with few substitutes? • Due to this innovation, the product would move from maturity to the growth stage in the product life cycle. • a firm with multiple products all over the product lifecycle map will need more than one set of SCM technologies. Business School, SDJU

14. 2. Product Characteristics • 产品组合(product mix)（也称品种配置）指销售者出售给购买者的所有产品线和产品品目的组合。 Business School, SDJU

15. 3. Strategic and Business Objectives A sample of some clearly articulated business objectives follows: • Enable market share growth • Reduce distribution costs • Increase inventory turnover • Reduce inventory-holding costs • Reduce logistics costs Business School, SDJU

16. 3. Strategic and Business Objectives • Achieving some of the pull objectives may require a radical redesign of the production processes. • If the existing production process and supply chain cannot meet this requirement, the process must be changed accordingly • These decisions need to be made by high-level managers well Business School, SDJU

17. 4. Infrastructure Review • There must be alignment between SCM goals and organizational realities • The firm is organized along functional lines with multiple customer touch points across many departments (not centralized). • Without some form of organizational alignment along product lines aggregating the customer touch points, it would be impossible to realize the benefits of an SCM technology solution. Business School, SDJU

18. 5. Assessing Impact on Business Processes • In step 4 the feasible SCM functionalities are rank-ordered (按排序法排列) according to their impact on business processes. • To perform this assessment, a firm must further refine the high-level business process analysis developed in step 3, identifying what detailed changes will be necessary within the firm and across the supply chain to support the technology implementation. Business School, SDJU

19. 5. Assessing Impact on Business Processes • 关于Portal 　　无论是客户还是员工，系统提供单点登录，根据用户的权限，进入相应的WEB界面： • 客户登录后的主界面为外部门户（outside Portal）：CRM • 员工登录后的主界面为内部门户（inside Portal）：ERP • 这是企业应用集成需要考虑的问题，即建立统一（独立）的用户管理与权限控制系统，对所有的应用系统进行角色和权限的分配与管理。 Business School, SDJU

20. 5. Assessing Impact on Business Processes • The firm may also require causal forecasting (因果分析预测法,因果关系的预测方法) for which the impact on internal and external processes will be minimal. • Identify the right executives—those from the specific functional areas affected—from whom to seek sponsorship. • Step 5, the technology selection process, further refines the detail of the listed SCM functionalities. Business School, SDJU

21. 5. Assessing Impact on Business Processes • causal forecasting (因果分析预测法,因果关系的预测方法) • 预测与决策---经济预测,定量预测的方法有两种： • 趋势外推预测法（projective forecasting） • 因果分析预测法（causal forecasting） • 一种方法就是采用定性的方法，这种方法一般都称为判断预测法（judgemental forecasting），它依赖于主观的观点或意见。 Business School, SDJU

22. Q & A !

23. Exercises 教材 P173 Business School, SDJU