DEFINING THE RIGHT SUPPLY CHAIN
PRODUCT CLASSES according to
NATURE OF THE DEMAND
DEMAND PREDICTABILITY
PRODUCT VARIETY
MARKET STANDARDS
LEAD TIMES
SERVICES
1- %OUT OF STOCK
DEMAND PATTERNS
FUNCTIONAL
INNOVATIVE
PRODUCT LIFE CYCLE
STABLE/PREDICTABLE DEMAND
LONG LIFE CYCLES
COMPETITION
LOW MARGINS
HIGHER MARGINS
DEMAND IMPREDICTIBLE
SHORT LIFE CYCLE
SC TYPES
PHYSICALLY EFFICIENT
MARKET-RESPONSIVE
OFFER / DEMAND MATCHING
MANUFACTURING+DISTRIBUTION+STORAGE
COSTs
EXCESS SUPPLIES
SHORTAGES
DECISIONS TO TAKE
FUNCTIONNAL PRODUCTS
INNOVATIVE PRODUCTS
MINIMIZE PRODUCTION COST
PLAN & SCHEDULE PRODUCTION
WHERE IN THE SC POSITION
COORDINATE ACTIVITIES WITHIN SC
INVENTORY
PRODUCTION CAPACITY
CHOOSE SUPPLIERS BY
SPEED
FLEXIBILITY
IMPLEMENTATION STEPS
1- DETERMINE TYPE OF PRODUCT
2- DETERMINE THE COMPANY SC TYPE
3- FORMULATE THE IDEAL SC STRATEGY
STRATEGIES for COST OPTIMIZATION
INCREASE VISIBILITY IN THE SC
REDUCE LEAD TIMES
STRATEGIES for UNCERTAINTY
REDUCE STOCKS
IGNORE
REDUCE
AVOID
HEDGE AGAINST
INVENTORY BUFFER
EXCESS CAPACITY
NEW SOURCES OF DATA
SHARE PRODUCT COMPONENTs
CUTTING LEAD TIMES
INCREASE SC FLEXIBILITY
PRODUCE-TO-ORDER
POSTPONE FINAL PRODUCT ASSEMBLY
