BIS sessie 6

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BIS sessie 6
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what is a supply chain?
Customer
the supply chain
3 PL
3 PL
Value chains
Carrier
Carrier
Carrier
Carrier
Trailer service
ICT host
Hardware provider
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In how many value/supply chains are you?
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In how many value/supply chains are you?
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Who is in charge in your value chain?

• The one who interacts with the CUSTOMER!
• Walmart
• Proctor Gamble
• Nike
• The one who has the unique feature in the PRODUCT
  or SERVICE!
• Intel
• Fedex

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Trends

• Shorter product life cycles
• Customization
• Globalization
• Outsourcing

More product introductions and products for
unfaithful customers Tougher competition
Longer chains, lower costs Tougher supply chain
management
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Solutions

• Appropriate use of Information Communication
  Technology
• New supply chain management concepts
• Mastering these skills provides
• sustainable competitive advantage

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Customer order decoupling point Make to Stock
Make to Stock
Push
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Customer order decoupling point Assemble to Order
Make to Stock
Assemble to order
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Customer order decoupling point Engineer to Order
Engineer to Order
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Competition takes places at the end customer
market!

• Choose a market Target your strategy on end user
  markets and make it measurable in Key Performance
  Indicators regarding the customer market.
• Competitive strategies according to Porter
• Cost leadership Price bases competition, low
  production and logistics costs
• Differentiation Quality bases competition,
  productporfolio, time to market.
• Focus Target a niche market

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From market strategy to corporate strategy
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Markt performance indicators

• Cost leadership
• Price
• Total cost of ownership for customer
• Differentiation oriented
• Product quality,
• Service level,
• After sales services
• Delivery time,
• Product image.

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Supply chain performance

• Cost leadership
• cost of goods sold
• overhead costs per unit, consolidated
• Obsolescence costs (apparel),
• inventory cost (COPD, High Tech)
• manufacturing costs (consumer electronics),
• cash to cash cycle times (retail).
• Differentiation
• Time to market (Personal computers),
• Supply chain leadtime (Mobile phones),
• customization (Cars),
• Flexibility, productportfolio

Inventory is bad! Inventory hides problems
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Corporate performance

• Same as supply chain performance indicators,
  however
• Beware of the COPD, the upstream KPIs may differ
  from the downstream KPIs (and then the COPD is a
  tough position) !
• Beware of local optimization pie sharing versus
  pie growing!
• Unfortunatelyyou are in more than one chain, and
  different chains have different priorities!

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Fishers supply chain fit matrix
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Solutions 1 ICT as an enabler

• Share (market) information through the supply
  chain trade inventory for information
• Organize visibility monitor alert on KPIs.
• Plan and schedule according to supply chain
  KPIs Collaborative Planning Forecasting and
  Replenishment.
• Performance measurement and continuous
  improvement management by exception

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Solution 2 New supply chain management methods

• Postponement Move the CODP upstream (reduces
  inventory)!
• Cross Docking reduces inventory and lead times
• Vendor Managed Inventory reduces inventory and
  replenishment costs
• Use the internet sales channel
• Strategic alliances fair shares!!!

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Winning innovator in SCM Toyotas Just In Time
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Toyotas score

• Market
• Lower cost of ownership for customer
• Lower price
• Shorter time to market
• Better product quality
• Market share
• Supply chain
• Zero inventory costs (cost of good solds,
  obsolescence cost, cash to cash cycle time)
• Extreem process control (cost of goods sold)
• Stable demand (delivery time)
• Supplier involvement (strategic cooperation, pie
  growing)

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Benettons innovation postponement
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Benettons innovation postponement
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Benettons score

• Market
• Better collection in store (customization)
• Lower price
• Better response
• Supply chain
• Lower inventory costs
• Lower obsolescence costs
• Higher production costs
• Integration with Logistic Service Provider

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Dells innovation assemble to internet order
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Dells score

• Market
• Low price
• Extreem fast delivery
• Customization
• Market share
• Supply chain
• Negative cash to cash cycle time!
• Less pie eaters, more pie!
• Higher fulfillment cost
• Zero inventory
• Full supplier and LSP integration, on planning,
  scheduling and execution level

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ICT Visibility
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Belang ICT voor SCM

• Beter gebruik van ICT voor SCM kan Supply Chain
  een competitief voordeel leveren
• Beter gebruik van ICT voor SCM kan partij in
  keten een meer waardetoevoegende rol geven
• ICT brengt dus strategische vragen met zich mee
  als, welke rol wil/kan/moet ik spelen en in welke
  keten(s)?
• ICT gebruiken op operationeel brengt allerlei
  nieuwe uitdagingen met zich mee
• ICT heeft zijn eigen-aardigheden

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Invalshoek van de cursus SCMT
ICT
Management
Operations
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Supply Chain Visibility
ICT
Management
Operations
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Visibility according to IBM

• Knowing whats happening in the supply chain.

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Visibility according to Provia

• Provia s ViaWare suite of fulfillment solutions
  includes warehousing, transportation, order and
  yard management products seamlessly integrated
  together with Web-based visibility tools to
  create a real-time order-to-delivery fulfillment
  solution. The heightened level of visibility
  turns data into information, information into
  knowledge, and knowledge into a competitive
  advantage.

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World Wide Retail Exchange

• Supply Chain Visibility (Coming Soon)The Supply
  Chain Visibility tool provides users automated
  visibility and monitoring for purchase orders and
  their associated line items, loads and shipments
  real-time (user-defined) alerts for
  out-of-tolerance conditions, exception reporting
  and performance evaluation on supply chain
  partners.
• Tracking and Tracing
• Exception Alerts
• Trading Partner Analysis

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Hoe kom ik aan Supply Chain Visibility?

• Supply Chain Visibility wordt gecreeerd door het
  ter beschikking stellen van informatie uit
  zogenaamde Supply Chain Execution Systemen
• Warehouse Management Systemen
• Transportation Management Systemen
• Manufacturing Execution Systemen
• (Order Management Systemen)

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Hoe kom ik aan Supply Chain Visibility?

• Supply chain visibility wordt gecreeerd met
  behulp van communicatie technologie
• Post, Telefoon, Fax, Email
• EDI, EDIFACT etc.
• SMS, WAP, GSM, GPRS
• GPS, Global Positioning System
• Bar Code Scanners (RF), Point Of Sale Systemen,
  RFID
• Internet, XML, Browser

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Wat heb ik aan Supply Chain Visibility?

• Supply Chain Visibility kan helpen bij het
  reduceren van onzekerheid, waardoor allerlei
  kosten waarmee een keten zich wapent tegen
  onzekerheid niet meer gemaakt hoeven worden en/of
  de performance verbetert.
• -Betere leverperformance naar end user
• -Lagere voorraden, minder obsolence
• -Kortere Leadtimes, kortere order-to-cash cycles
• -Rust, minder fire fighting
• -Uiteindelijk andere inrichting van processen

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Voorbeeld bestellen onder onzekerheid

• Wat is de ideale inkoophoeveelheid bij onzekere
  vraag bestel elke periode de verwachte vraag.
• Wat is de ideale inkoophoeveelheid bij onzekere
  vraag, en gegeven periodic review bestel elke
  periode bij tot order-up-to-level
• Wat is de ideale inkoophoeveelheid bij onzekere
  vraag, en gegeven continuous review bestel bij
  tot order-up-to-level zodra voorraad minder is
  dan veiligheidsvoorraad.

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Aandachtspunten voor Visibility

• Visibility over de supply chain vraagt software
  integratie (EAI)
• Alle outsourcing maakt visibility dus
  ingewikkelder, en visibility and seamless
  integration een competitie-wapen voor
  dienstverleners en toeleveranciers
• Visibility is extra noodzakelijk voor supply
  chains waarin responsiveness belangrijk is (high
  tech, FMCG) maar ook in sterk competitieve
  omgevingen als Automotive.

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Covisint

• DaimlerChrysler AG,
• Ford Motor Company,
• General Motors,
• Nissan,
• Renault,
• Peugeot-Citroen

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Covisint

• Covisint's supply chain applications will improve
  operations in the production process. An improved
  inventory management capability delivers
  significant Return On Investment (ROI) by
  enabling inventory visibility and information
  flow between trading partners. Covisint helps
  save time and money by reducing excessive
  inventory and is a major step towards the
  realization of the Build-to-order vehicle.