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Supply Management Integration for Competitive Advantage - Coggle Diagram
Supply Management Integration for Competitive Advantage
Supply chain
supplier
manufacturer
distributor
retailer
customer
Integration
baseline
functional integration
internal integration
external integration
Benefits of SCI
more visibility
increased revenues
better collaboration
satisfied customer
more frexibility
reduced waste
improved overall performance
Elements of Supply Integration
People coming together work together on
a strategy or solve a problem
Relationship Management Skills
▪ Listen effectively
Communicate
Act ethically
Use creative problem-solving
Drive relationships
Relationship Inputs
Knowledge and expertise
Business advantages
Information
Different perspectives
How to Achieve Integration
Co-location of suppliers and customers
Buyer or supplier councils
Process-focused organizations
Steering committee
Communication Flows and Linkages
Quality Assurance
Operations
Purchasing
Accounting and Finance
Suppliers
Marketing
Legal and Environmental Safety
Engineering
Environmental Management,
Health, and Safety
Health issues
Safety issues
OSHA
Environmental Management,
Health, and Safety
ISO 14000
Hazardous waste handling and
transportation
▪ Supplier sustainability
External Integration
Acts as liaison on multiple fronts
Suppliers, government, and local
communities
Supply management is face of
organization to its supply base
SRM Skills
Monitor internal and external shifts
Schedule regular site-level meetings
with suppliers and stakeholders
Recruit from the business
Drive people to insight and commitment
Different stages of SRM require …
Suppliers
Primary external linkage
Non-supply management personnel should not deal with suppliers without
knowledge of supply management
Local Communitie
s
Sourcing from local suppliers
Environmental sustainability
Control of substantial budget which
could affect local economies
Advantages of Closer Relations
Trust
Share sensitive data
Not take advantage of each other
Early supplier involvement
Long-term contracts
Obstacles to Closer Relationships
Limited interest by suppliers
Legal barriers
Confidentiality
Resistance to change
CFT Planning Issues
Selecting team members and leaders
Training requirements
Selecting a task
Resource support
Critical Role of Cross-Functional Sourcing Teams
Specific tasks
General tasks
Benefits of CFTs
▪ Increased innovation
Joint ownership of decisions
Reduced time
Enhanced communication among
functions or organizations
Resource Support
Materials and supplies
Team member task preparation
Budgetary support
Work environment
Time availability
Executive management commitment
Required services and help from others
Job-related information
Supplier participation
Tools and equipment
Recognition and Rewards
Types
Monetary bonuses and other one-time
cash awards
Non-monetary rewards
▪ Executive recognition
Merit raises
Supplier Involvement on CFT
s
Supplier becomes resource
Fewer coordinating problems
Higher quality of information exchange
Greater supplier contribution
Put forth greater effort
May need to also consider key
customer involvement
Are rated more effective
Elements for Consideration
Ramp-up
Innovation and technical
Timing
Training
Targets
Resource commitment
Supplier Involvement in Design
Gray box design
Black box design
White box design
Buyer-Supplier Improvement Teams
Material delivery improvement
Process technology upgrades
Quality improvement
Reduction of material ordering cycle
times
Cost reduction
Buyer’s Use of On-Site Supplier
Representatives
Sales
Engineering
Supply management
Transportation
Potential Benefits of On-Site Supplier
Representatives to Supplier
Reduced transaction costs
Reduced inventory
Fewer schedule changes and surprises
On-site material plan development in
real-time