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Supply Chain Management (Best-in-class common features (Isolate high costs…
Supply Chain Management
Definition
Events & Processes from beginning to end
Source to end consumer
Planning & management of all activities
Supply Chain Council
Industry benchmarks & metrics
Concept
Plan
Source
Make
Deliver
Return
Bullwhip effect
Jay Forrester
Inventories in supply chain fluctuate further they are from end-user
Michael Porter
"Competitive Advantage"
Primary Processes
Outbound Logistics
Distribution
Sales & Marketing
Operations
Transformation Process
Service
Installation
Repair
Training
Inbound Logistics
Inventory
Warehousing
Returns
Focus on interrelationships
Opportunity for cost reduction or differentiation
Horizontal Strategy
Goals
Understand format of supply chain
Identify bottlenecks
Put right processes in place
People empowerment
Difficulties
Failed technologies
Costly projects inconsistent with business strategy
Collaboration & co-operation problems
Accenture Study
Best-in-class common features
Isolate high costs
Technology investments
Best practice focus
Aim for balance
Increase demand visibility
Forecast accuracy
Respond quickly to shifts in demand with innovative products & services
Senior management commitment
Future planning