HTM 302 Supply Chain Management

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HTM 302Supply Chain Management
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Class Demographics Getting ready in the AM

• Most number of steps 21
• Longest snooze time 120 minutes
• Longest shower 45 mins
• Longest time getting ready 3 hrs 30 mins
• Latest alarm 1130 AM
• sets or ties previous record

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Tuesday mornings ready in 13 minutes
30 secs
1
2
shut off alarm / get up
4
Tuesday mornings ready in 13 minutes
3
Brush teeth
60 secs
30 secs
90 secs
4
1
2
start shower
shut off alarm / get up
start coffee
5
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
30 secs
90 secs
4
1
2
start shower
shut off alarm / get up
start coffee
6
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shower
30 secs
90 secs
6
4
1
2
180 secs
start shower
shut off alarm / get up
start coffee
7
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
start coffee
8 mins
8
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
9
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
9
10
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
dress
10
9
90 secs
11
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
make breakfast
dress
10
9
5
90 secs
60 secs
12
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
make breakfast
eat breakfast
dress
10
11
9
5
90 secs
60 secs
180 secs
gather stuff
30 secs
13
13
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
make breakfast
eat breakfast
dress
10
11
9
5
90 secs
60 secs
180 secs
gather stuff
30 secs
drive 30 mi
14
13
30 mins
14
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
make breakfast
eat breakfast
dress
10
11
9
5
90 secs
60 secs
180 secs
gather stuff
30 secs
Park n Ride
drive 30 mi
14
15
13
3 mins
30 mins
15
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
make breakfast
eat breakfast
dress
10
11
9
5
90 secs
60 secs
180 secs
gather stuff
30 secs
Park n Ride
shuttle/check-in
drive 30 mi
14
15
16
13
3 mins
30 mins
8 mins
16
Tuesday mornings ready in 13 minutes
3
Select clothes 30 secs
Brush teeth
60 secs
shave
shower
30 secs
90 secs
6
7
4
1
2
180 secs
120 secs
start shower
shut off alarm / get up
30 secs
towel dry
start coffee
8
8 mins
apply makeupcomb hair
0 secs
13 minutes
make breakfast
eat breakfast
dress
10
11
9
5
90 secs
60 secs
180 secs
gather stuff
30 secs
54 1/2 minutes
Park n Ride
shuttle/check-in
drive 30 mi
14
15
16
13
3 mins
30 mins
8 mins
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Supply Chain Management
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Wal Mart Supercenter

• 187,000 square feet
• 116,000 items
• Average wage is 10 bonuses profit sharing
  401K

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Supply Chain

• All activities associated with the flow and
  transformation of goods and services from raw
  materials to the end user, the customer
• A sequence of business activities from suppliers
  through customers that provide the products,
  services, and information to achieve customer
  satisfaction

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The Supply Chain
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The Supply Chain
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The Supply Chain
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Example 1 Simple Supply Chain HTM302
You!
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The Supply Chain HTM 302
net access
Dell
CSUSM Purchasing
IT Technicians
Information?
You!
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Supply Chain Management

• Synchronization of activities required to achieve
  maximum competitive benefits
• Coordination, cooperation, and communication
• Rapid flow of information

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Trends in Supply Chain Management

• Increase in competition
• Shorter product life cycles
• Reduced number of suppliers
• Increase is Supplier-Managed Inventories
• Shared or reduced risk (uncertainty)

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Supply Chain Uncertainty

• Variability stems from uncertainty in forecasts,
  lead times, price fluctuations, etc.
• Inventory is a form of insurance
• Distorted or erroneous information is one of the
  main causes of uncertainty

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Supply Chain Uncertainty
What is an example of possibly distorted
information that may affect whether you register
for this course?
?
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Supply Chain Uncertainty

• Distorted information examples
• In registering for a class
• Is it required? Worthwhile?
• How good is the prof?
• How often given? When?
• How many seats?
• Is crashing permitted?
• Scheduling classes is a real supply
• chain management problem

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Information in the Supply Chain (1)

• Centralized coordination or decentralization of
  information flows
• Integration of transportation, distribution,
  ordering, and production
• Direct access to domestic and global
  transportation and distribution channels
• Locating and tracking the movement of every item
  in the supply chain

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Information in the Supply Chain (2)

• Consolidation of purchasing from all suppliers
• Intercompany and intracompany information access
• Data acquisition at the point of origin and point
  of sale
• Instantaneous updating of inventory levels

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Example Wal Mart
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Wal Marts Supply Chain Management

• Satellite network installed in 1987 to supply
  data, voice, and video as well as real-time sales
  and inventory information
• EDI (Electronic Data Interchange) installed in
  1990 to issue purchase orders and receive
  electronic invoices from all of its suppliers
• Retail-Link installed in 1991 enable vendors to
  directly access point-of-sale data in real-time
• These enable Supplier-Managed inventories

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McBusted!

• McDonald's planned to spend 1 billion over five
  years to tie all its operations into a real-time
  digital network. Executives wanted to see how
  soda dispensers and frying machines in every
  store were performing, at any moment. After just
  two years, though, the fast food giant threw in
  the towel, largely because the digital
  infrastructure was not sufficient in foreign
  countries.

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Locating and tracking the movement ofevery item
in the supply chain

• UPC Universal Product Code
• A unique number assigned to one (and only one)
  product in most cases, same as Global Trade Item
  Number (GTIN)
• Bar codes
• Computer readable codes attached to items flowing
  through the supply chain
• Generates point-of-sale data which is useful for
  determining sales trends, ordering, production
  scheduling, and deliver plans

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Locating and tracking the movement of every item
in the supply chain

• RFIDs Radio Frequency Identity Tags
• 21st century bar codes but, unlike bar codes,
  use radio frequencies and are used to uniquely
  identify each and every instance of a product
  (i.e. this milk carton versus all other
  identical looking cartons)
• WalMarts currentstrategic initiative

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Electronic Data Interchange

• Computer-to-computer exchange of business
  documents in a standard format
• Quicker access, no paperwork, better
  communication, improved tracing and expediting,
  improves billing and cost efficiency
• EDI historically done over private, secure lines
  (expensive!), EDI-over-Internet is reducing costs
  further

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The Internet

• Instant global access to organizations,
  individuals, and information sources
• Fundamentally changes the way organizations do
  business
• Removed geographic barriers
• Adds speed and accessibility, reduces costs to
  the supply chain

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Intranets and Extranets

• Intranets are internet-like networks that operate
  within a single organization
• Extranets are intranets that are accessible
  (securely) via the internet
• Differences are in who has access to the system(s)

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Example E-Automotive Supply Chain
SUPPLY CHAIN AUTOMOTIVE PAST
E-AUTOMOTIVE
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eSuppliers

• Purchased materials account for about half (50)
  of manufacturing costs
• Materials, parts, and service must be delivered
  on time, of high quality, and low cost
• Suppliers should be integrated into their
  customers supply chains
• On-demand delivery (JIT) is a frequent requirement

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Distribution

• The actual movement of products and materials
  between locations
• Handling of materials and products at receiving
  docks, storing products, packaging, and shipping
• Often called logistics
• Driving force today is speed

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Example Amazon.com
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Distribution Centers and Warehousing

• DCs are some of the largest business facilities
  in the United States
• Trend is for more frequent orders in smaller
  quantities
• Flow-through facilities and automated material
  handling
• Final assembly and product configuration may be
  done at the DC

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WalMart Crossdock Warehouse
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Warehouse Management Systems

• Highly automated systems
• Controls item putaway, picking, packing, and
  shipping
• Transportation management, order management, yard
  management, labor management, warehouse
  optimization

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Example Dells Shipping
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Older ? Newer Methods
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Vendor-Managed Inventory

• Manufacturers generate orders, not distributors
• Stocking information is accessed using EDI or
  internet methods
• Increased speed, reduced errors, and improved
  service
• The first step towards supply chain collaboration

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Transportation

• Important element, often overlooked
• Common methods are railroads, trucking, water,
  air, intermodal, package carriers, and pipelines

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• Railroads
• 150,000 miles in US
• Low cost, high-volume
• Improving flexibility
• Adopting technology

• Railroads
• 150,000 miles in US
• Low cost, high-volume
• Improving flexibility
• Adopting technology

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• Trucking
• Most used mode in US
• Flexible, small loads
• Part of TQM supplier-
• customer relationship
• TQM Total Quality Management

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• Air
• Rapidly growing segment of transportation
  industry
• Lightweight, small items
• Quick, reliable, expensive
• Major airlines US Postal Service, UPS, FedEx,
  DHL

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Water

• One of oldest means of transport
• Low-cost, high-volume, slow
• Bulky, heavy and/or large items
• Standardized shipping containers improve service

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Intermodal

• Combination of several modes of transportation
• Most common
• truck ? rail ? truck
• truck ? water ? rail ? truck
• Enabled by the use of containers

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Intermodal
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• Package Carriers
• FedEx, UPS, US Postal Service, DHL
• Significant growth driven by e-Businesses
• Use several modes of transportation
• Expensive, fast and reliable
• Innovative use of technologies

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• Pipelines
• Primarily for oil refined oil products
• Slurry lines carry coal
• High capital investment
• Low operating costs
• Can cross difficult terrain

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Internet Transportation Exchanges

• Bring together shippers and carriers
• Initial contact, negotiations, auctions
• Typically only one form of transportation,
  intermodal exchanges difficult to develop

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Global Supply Chain

• Free trade global opportunities
• Nations form trading groups
• No tariffs or duties
• Freely transport goods across borders

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Global Supply Chain Problems

• National and regional differences
• Customs, business practices, and regulations
• Foreign markets are not homogeneous
• Quality can be a major issue

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Duties and Tariffs

• Proliferation of trade agreements
• Group members charge uniform tariffs
• Member nations have a competitive advantage
  within the group

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Duties and Tariffs
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Landed Cost and Internet-Based ITL Systems

• Knowing landed cost is critical in
  international trade
• Common components are transportation charges,
  tariffs, duties, and taxes
• ITL systems convert language and currency between
  trading partners

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Infrastructure Obstacles to Global Trade

• Some emerging markets lack suitable distribution
  systems, i.e. roads, rail systems
• Existing roads and ports may be inadequate
• Market instability, political instability

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Informal feedback

• Write a 2 minute journal to be handed in
  immediately
• The journal should briefly summarize
• Major points learned
• Areas not understood or requiring clarification