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Explore the importance of every link in the supply chain with Stefan Mittmann's comprehensive insights from INTRACOM. Learn the "Handheld Calculator" model that simplifies chain efficiency calculations and discover strategies to improve performance. Gain valuable knowledge on balancing customer needs, managing critical items, and proactive supply chain management. With over 20,000 items and a global network of suppliers, INTRACOM's data sets the stage for optimizing supply chain operations. Dive into the complexity of supply chain management and enhance your understanding of driving efficiency through strategic decision-making.
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Every Supply Chain is NOT as weak as itsweakest Link –it is MUCHweaker ! Stefan Mittmann, INTRACOM -- Tinos, May 2001
SUPPLY CHAIN MANAGEMENT The simple mathematical MODEL and .. .. the complex REALITY of Intracom Stefan Mittmann, INTRACOM -- Tinos, May 2001
‘Handheld Calculator’ Model • no cost • no training • very true • everybody understands it Stefan Mittmann, INTRACOM -- Tinos, May 2001
Calculate the total efficiency of this chain .9 x .9 x .9 x .9 x .9 x .9 x .9 x .9 x .9 = 38.7% ! A simple chain with 9 elements Stefan Mittmann, INTRACOM -- Tinos, May 2001
Chain Efficiency Examples Stefan Mittmann, INTRACOM -- Tinos, May 2001
Keeping the BALANCE is important • HIGH links can be expensive & rarely increase revenues • LOW links dramatically reduce performance Revenues max Cost Service Level / Performance Stefan Mittmann, INTRACOM -- Tinos, May 2001
The role of our CUSTOMER • The Customer is the FIRST and LAST Link • The Customer sets the required efficiency level • Is the Customer balanced ? Stefan Mittmann, INTRACOM -- Tinos, May 2001
Improving Chain Efficiency • Improve efficiency of ALL links • Improve or Replace weakest link • Eliminate weakest link / Consolidate • Subcontract / Outsource (Specialist Sub-Chain) • Keep the Balance Stefan Mittmann, INTRACOM -- Tinos, May 2001
Intracom’s Supply Chain Data • 20,000+ different items • Big range of categories • Big range of quantities • 1,200+ Suppliers • Europe, USA, Far East • Subcontractors (mechanical parts) Stefan Mittmann, INTRACOM -- Tinos, May 2001
The basic Steps of the Chain Stefan Mittmann, INTRACOM -- Tinos, May 2001
Proactive Supply Chain Management • Normal Items (90 % of the parts, require 40% of the management effort • CRITICAL Items (10 % of the parts, require 60% of the management effort Stefan Mittmann, INTRACOM -- Tinos, May 2001
Proactive Supply Chain Management • Project Management Type of Activity • Identify Critical Path • Set clear Priorities • Everybody help the weakest link Stefan Mittmann, INTRACOM -- Tinos, May 2001
Proactive Supply Chain Management All Problems can be solved effectively if properly identified in due time Reliable flow of up-to-date information Go to the Source of the info ! Stefan Mittmann, INTRACOM -- Tinos, May 2001
A clearer picture … Stefan Mittmann, INTRACOM -- Tinos, May 2001