Case 5 :

1. Case 5 : Brunswick Corporation: Improving Supply-Chain Results

2. 951702彭靜萱 • What is the business value of SCM systems for Brunswick?

3. The business value of SCM systems for Brunswick • Get the product right • Get the distribution right • Shrink the period of order to delivery • Be the best cost in the industries • Raise sales volume • Be global • Increase the competitive advantage

4. Get the product right • Introduce the highest quality product with the most innovative technology and design at the best price, faster than the competition.

5. Get the distribution right • Distribute products through a model that benefits their partners – dealers and distributors – and provides world-class service to customers.

6. Get the distribution right (cont.) • Some of the efforts include: • By the different distribution channels to extensive marine parts and accessories to customers. • By the ability of developing manufacture and distribution, let the product dispersion right.

7. Shrink the period of order to delivery • By exactly deal with the needs, supply and the use of product in the right place to decrease the period from order to delivery.

8. Be the best cost in our industries • Be the best cost manufacturer of products, develop and maintain low-cost manufacturing and continually improve productivity and efficiency.

9. Raise sales volume • Because decreasing the cost of manufacture and forecast and so on, the price of product will be lower and raise the sales volume.

10. Be global • To become the best price manufacturer in the product market, they use the abilities which produces from SCM to develops and maintains the process that improves the productivity and raise the efficiency unceasingly.

11. Increase the competitive advantage • By decreasing the cost and shrink the process of manufacturing product and so on, that can help business increase the competitive advantage.

12. 951623江小琪 • Does the business value of SCM depend upon what type of business a company is in? Explain.

13. Answer • YES! 1.Implementing SCM matches the operational focus of the organization. 2.For manufacturing environments with well-defined final products and parts stand to gain the most profits. • NO! - The services sector would be unlikely to adopt SCM since they lack a manufacturing process at all.

14. The key to a successful SCM implementation is that it matches the operational focus of the organization. • Use IT integrate Individual enterprises and operating process. • Reduce waste and redundant • Has a data warehouse that holds information such as inventory • SCM can use the information to arrange the operating schedule. • Standard business process

15. For manufacturing environments with well-defined final products and parts stand to gain the most profits • If there are no well-defined final products and parts stand , it will have (1) uncertainty of demand (such as amount) • Inaccurate demand forecasts cause the accumulation of stock or out of stock (2) the uncertainty of manufacturing (such as yield, machine crashes, transport reliability) • Delivery delay (3)uncertainly of supply • Delivery delay

16. Example [ Wal-Mart ] • Wal-Mart exclusively used SCM to increase its projected growth rate. • Manage their demand and supply in accurate manner

17. Example [ Wal-Mart ] (cont.) • RFID • Can reduce the global retail’s labor costs 40 ~ 50%, and reduced the inventory volume of 10 ~ 30%. • Wal-Mart's profit will increase by 38 percent, and its productivity higher than the industry more than 40 percent.

18. Example [ Wal-Mart ] (cont.) • Advanced satellite communications network • Get the sales information immediately. • A short number of hours to complete "fill orders - a summary of all branch orders - send orders”. • Benefit • Improve the capacity of inventory replenishment. • Speed up the checking out time and recording of transaction.

19. Organizations in the services sector would be unlikely to adopt SCM • Because they lack a manufacturing process. • To the service industry ,services cannot be inventoried. • So they cannot to forecast the inventory.

20. Organizations in the services sector would be unlikely to adopt SCM (cont.) • uncertainty of service quality : • services are created and delivered at the same time. • Service rate and service quality cannot measure and store with digital.

21. For example • Drivers • Drivers cannot forecast when customers need their service. • Divers cannot use SCM to forecast the revenue at next month.

22. For example (cont.) • Barbers • They don’t know when customers want to have the haircut. • They cannot measure the service quality with digital , so that they cannot use SCM to forecast.

23. 951620陳盈志 • How does Brunswick’s approach to SCM differ from that of the other companies explored in this chapter? Is one approach superior to all others? Why or why not?

24. Brunswick • Getting a better grip on the data they generate to control its supply chain.

25. Brunswick (cont.) • How to use? • - Used informatica corporation’s data • integration and business - intelligence • tools. • - Has a data warehouse that holds • information pulled from a wide range of • enterprise systems.

26. Brunswick (cont.) • Benefit • - Can better manage sourcing and • procurement across its supply chain.

27. IBM • IBM created Configure-to-order • system for its personal systems • division.

28. IBM (cont.) • How to use? • - A customer in Europe can configure a • personal computer on IBM’s website and • get real-time availability and order • confirmation.

29. IBM (cont.) • Places an order in Europe • Order travels to IBM’s systems • located in world • ‧Fulfillment engine • ‧E-commerce engine • ‧ERP & production management systems • ‧Sales reporting system • ‧Product database

30. IBM (cont.) • 3. back to the customer’s browser • Benefit • - Can integrate with the data in • everywhere. • - Customer can get information • immediately.

31. Dell inc. • Installed a industrial–strength B2B integration software to integrate 18 different software.

32. Dell inc. (cont.) • How to use? • - A business customer pulls product • information from Dell’s server into the • customer’s purchasing system, which • creates an electronic requesting.

33. Dell inc. (cont.) • Benefit • Reduce order time • Reduce procurement process errors • Reduce the cost of processing each order • Build links to 40 its bigger customers, allowing a customer purchase easily.

34. Syntellect’s Online Transaction processing • Provide service between customers • and cable companies.

35. Syntellect’s Online Transaction processing (cont.) • How to use? • - Cable TV viewers can select • pay-per-view events offered by their • cable companies using the phone or the • World Wide Web.

36. Syntellect’s Online Transaction processing (cont.) • The order is captured by syntellect’s interactive voice response system or web server. • Transported to syntellect database application server.

37. Syntellect’s Online Transaction processing (cont.) • Updated sales database, and the approved order is relayed back to the cable companies video server. • Cable companies transmits the video to the customers.

38. Syntellect’s Online Transaction processing (cont.) • Benefit • Instead of paying for a year and so many views that will not to watch, customer can choose the view he want and pay for it. • Can reduce customer costs. • Can profit Synellect and cable companies.

39. Baker Tanks • Used salesfore.com solution • Moved from a paper-based system to a Web-based system. • Eliminating the step of transferring information from paper documents to the database.

40. Baker Tanks (cont.) • How to use? • Sales all have each PDA. • Every PDA can link to salesforce.com for customer contact information, sales history and anecdotal notes. • Sales can e-mail responses to customers more promptly.

41. Baker Tanks (cont.) • Benefit • Communicating better with customers. • Our salespeople have become more productive.

42. Is one approach superior to all others? why or why not? • Yes • Can better manage sourcing and procurement across its supply chain. • No • Because Brunswick didn’t have a perfect customer-oriented service like other companies.

43. 951736陳啟天 • Describe what the “IS/IT” in the real case is all about? • “supply-chain management system”

44. What is SCMS? Supply Chain Management aims to manage the entire supply chain in the premise of meet customer, for example, from the procurement, materials management, production, distribution, marketing to consumers.

45. Goal • Reducing overall system operating costs.  • The cost of shared information.  • To improve their overall competitive advantage, developed into a large-scale virtual enterprise. 

46. Goal (cont.) • By information technology, make information format standardization, operational efficiency, and eliminate unnecessary complexity of operations, supply operations and timely delivery response to consumer demand.

47. While functionality in such systems can often be broad – it commonly includes: • Customer requirement processing • Purchase order processing • Inventory management • Goods receipt and Warehouse management • Supplier Management/Sourcing

48. What does supply chain management software development now? • Supply chain management software is possibly the most fractured group of software applications on the planet. • No vendor has a complete package that is right for every company • Many companies decide to go with targeted best of breed products instead

49. 951602王詔弘 • What are the advantages and disadvantages of the “supply-chain management system” ?

50. Advantage(1) 1.Reduce the amount of inventory. This is the practice known as just-in-time manufacturing, and it allows companies to reduce the amount of inventory that they keep. 2.Can cut costs substantially. You no longer need to pay to produce and store excess goods.