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Supply Chain Management :chains: (Processes (Inbound logistics,…
Supply Chain Management
:chains:
Benefits
Identify bottlenecks
Right processes
Right products
right place
Empowerment of people
Vertically integrated supply chain
cooperation among functions
Ownership of different parts of supply chain
Integration consideration
Direction
Upstream
Security of supply
Reliability of supply
Restriction to competitiors
Raw material cost control
Downstream
Customer control
Order control
Guarantee business
Shared market data
Customer knowledge
Extent
Narrow
Wide
Opportunity to remove link
Balance
Capacity per tier
Outsource shortages
Sell surplus
Keep core capacity and outsource variation
Potential issues
Reduces market forces
Min economic scales different
Capacity mismatch
Variety/complexity increases downstream
Competition variations
Supply locked in
Supply chain control
Outsourcing
Contractual
Advantages
Refocus on core internals
Supplier expertise
Reduced capital investment
Fewer staff
Lower unit cost
Clear supply chain costs
Expand overall
Disadvantages
Loss of control
Costs in managing
Reduced economies of scale
Closure of existing facility
Sharing of sensitive info
Dependency
Supply chain risk
Barnes outsourcin matrix
Strategic Value v Criticality
Propietary
competitive advantage
critical
In-house
Commodity
Propietary technology
Not critical
Usually outsources
Novelty
Sepcialised
Competitive advantage
Not critical
In House or Outsource
Utility
Widely available technology
Performance reliant
Outsource
Bullwhip effect
Magnified demand fluctuations
Lessen effects
Reduce stages
Share demand info
Smaller and more frequent replenishment
Reduce lead times
Limit promotions therefore surges
Factors
Demand uncertainty
Lead times
Under/over reaction
Process characterstices
Batch sizes
Limited collaboration
Stock location
Offshoring supply
Processes
Inbound logistics
Operations
Outbound logistics
Sales and marketing
Service
Shift in demand
Innovation