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Supplementary on SCM. Supply Chain. A network model Product supply chain Service supply chain Product/Service supply chain Industrial structure Potential suppliers and customers Competitors and collaborators Visualize the current environment Identify the role of a company in the industry
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Supply Chain • A network model • Product supply chain • Service supply chain • Product/Service supply chain • Industrial structure • Potential suppliers and customers • Competitors and collaborators • Visualize the current environment • Identify the role of a company in the industry • Informal model for analysis
Suppliers Manufacturers Warehouses & Distribution Centers Customers Transportation Costs Transportation Costs Transportation Costs Material Costs Manufacturing Costs Inventory Costs
R1 S1 Rd1 D1 Sd1 M1 Dd1 Rd2 R2 S2 Manufacturing Sd2 Dd2 Di Rdr-2 R3 Sds-2 Ss-2 Rdr-1 Sds-1 Rr-1 Ss-1 Sds Ddd Dd Mm Rdr Waste Rr Oversea Ss Supplier Recycle Suppliers Manufacturers Distributors Retailers
Germany Trading company 1 Packaging Company Italy Chewren Trading company 2 France Plastic Company India Oversea Cutter Company NewYork Waste Wal-Mart Metal Company Supplier Germany Recycle Manufacturers Suppliers Distributors Retailers
Simchi-Levi viewpoints on forces putting on executives • Global supply chains with long lead time suggests that supply chain pipelines are full of inventory. • Customer demand is shifting, and there is a lot of pressure to increase service levels. • Labor costs in developing countries are increasing - annually, the costs in China have raised 20%, in Mexico 5%, and U.S.3% over the last five year. • Higher energy prices which affect their transportation costs. As transportation increases, companies try to bulk up their shipping amounts - which is great for transportation but bad for inventory. • Volatility in commodity prices begs the questions of what contracts companies should sign. • Executives need to manage their supply chain in an environment that is uncertain so as to make the company more sustainable.
利豐供應鏈管理哲學 • 以顧客為中心,以市場需求的拉動為原動力 • 強調企業以核心業務在供應鏈上定位,將非核心業務外包 • 各企業緊密合作,共擔風險,共享利益 • 工作流程、實物流程、信息流程和資金流程的設計、執行、檢討和不斷改進 • 利用信息系統優化供應鏈的運作 • 縮短產品完成時間,使生產盡量貼近即時需求 • 降低在採購、庫存、運輸和環節之間的成本
Evolution of SC • Single factory • Production plan, floor plan, cost reduction (by managing material cost) • Customer satisfaction is not a big concern • Multiple factories • Production plan, floor plan, cost reduction (by cutting headcounts and outsourcing) • Logistics control & managing information • Customer satisfaction is a concern (thus CRM) • Multiple factories (global network) • Production plan, floor plan, cost reduction, production outsourcing, logistic control • Channel outsourcing • Customer satisfaction is a big concern • Workers satisfaction is a concern
Sales Channels Production Customer Services Who are the suppliers?
CMM 5. Optimizing Level 4. Managed Level 3. Defined Level 2. Repeatable Level 1. Initial Level
Difficulties in Supply Chain Management • Mapping strategy decision to operational design • Multiple perspectives and hence multiple models • Multiple enterprises are involved • Business environment change • SC integration is complicated
Enterprise Core Process -Repeated every months -Repeated every week -Repeated every day Customer perception: New product design & production process R&D Customer Service Technologies needed Services from suppliers Services/Products Support Processes -Quality Control -Schedule Tracking Management Processes People Tools Process Bank Finance/Acct. (Process) HR (Process) Administration IT management Buss. Development Marketing/Sales
Organization as a Composition of Service Units Service Unit Organization Service Unit Organization can be defined as a PS System. Each department can then be defined as a Service Unit. Working Teams (color blocks) can also be viewed as service units. 24
Organization as a Composition of Service Units Input Resources Products/ Services People Tools Processes Tools include (i) hardware like plastic molding machine, rice cookers, computers, scanners; and (ii) information systems. 25
Business Environment 2010 FALL 26 EC Websites Development
Business Environment (70’s – 90’s) 2010 FALL 27 EC Websites Development
Business Environment (00’s – Present) 2010 FALL 28 EC Websites Development
Business Environment (Beyond) What would it be? 2010 FALL 29 EC Websites Development
Organization as a Service Unit Industry is a network of organizations. An organization can be defined as a service unit which serves other organizations in the network. 30 30
Business Environment (Beyond) 2010 FALL 31 EC Websites Development
Complex Business Environment 2010 FALL 32 EC Websites Development
IS Analysis Modeling SS Analysis SS Design IS Design IS Coding Tools I.S. Team IS Testing SS Testing Software Engineering Maintain & Review Service Engineering Service Science Business Process Process Model Model Analysis Theoretical Analysis Simulation SS Implementation Service Engineering
SS Analysis GAP Analysis SS Design Process Control Customer Service Tools I.S. Team SS Testing Reporting Maintain & Review Service Engineering SS Implementation Service Management Service Engineering