Strategic Design for Improving Supply Chain Performance

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Strategic Design for Improving Supply Chain
Performance
?? Ch9 Coordinated Product and Supply Chain
Design
POSTPONEMENT
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Postponement?????
Design the product and the manufacturing process
so that DIFFERENTIATION (???) can be delayed
until manufacturing is underway

• Hewlett-Packard
• Benetton

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United Colors of Benetton
Production Process
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Postponement Delay of Differentiation

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A Key to Matching Supply and Demand
???? ?? Lotto??? ??????
A
B
C
D
A ?? ???? SBS Lotto?? ?? ?? ?? B ??? ??
????? ??? ?? 1? ??? ??? ?? ?? ??? ?? ??? ???
?? ?? C ??? ?? ?? Lotto study??? ? ??? ?????
???? ??? ?? D ??? 6?? ?? ???? ??? (??? ???!)
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What Benetton Did!

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Postponement ?? ?? ??
X? ?? ??? Y? ?? ???
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?? 4-3 ???? ??? ?? ?? ???? ?? ????? ??
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POSTPONEMENT??? ??
??/???? (Product/Service Family) ?? ??? ?????
??? ??? ??? ??/????
POSTPONEMENT?? ??/????? ?? ??? ???? ???
??? ??? ?? ???? ?? ??? ??
POSTPONEMENT??? ?? ??
?? ? ?? ?? ??? ?? ? ??????
3,000?? ???? ??
3,000?? ?????? ??
?? ?? ??? ??? 13,000??? ??????, ?? ? ?? ??? ????
?????
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POSTPONEMENT??? ?? ??
Aggregate demand information is always more
accurate than that of a specific product.
POSTPONEMENT??? ??
Re-sequencing
Commonality
Modularity
Standardization
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COMMONALITY
??
???? ??
????? ??
A??? ??/?? ??? ?? ??
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???? ??? Modularity?? ??
????? ??? ?? 10 PC? ??? ?? 10 ????? ??? ??
5 PC? ??? ?? 15 ???? ? ??? ?? ????
???
Modularity?? ?? ??
????
???
Modularity?? ???
?? ??? ?? 20 ????? ??? ?? 5 PC? ??? ??
15 ???? ? ??? ?? ????
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???? ??? STANDARDIZATION ?? ??
Standardization?? ?? ??
Standardization?? ?? ??
????? 110V ??? ??? 100 ????? 220V ??? ???
100 ???? 110V ??? ?? 70 ???? 220V ??? ??
130 ? ???? ??????
?? power supply ??? ??? 200 ???? 110V ??? ??
70 ???? 220V ??? ?? 130 ? ???? ??????
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HP?? ??
Whats the Supply Chain for DeskJet printer?

• DeskJet Printer ??
• ?? ?? (4-5weeks)

Supplier
Vancouver
European DC
Customer
??? ??
???? ?? ??
Demand
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Whats the problem?
European Distribution Center ??? STOCK
UNBALANCE (?? ????? ?? DeskJet ???? Shortage
?? ?? ????? ?? DeskJet ???? ?? ??)
Mission Accurately Match Demand with Supply
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Source of Uncertainties in the Supply Chain?
?? ?? ?? (productivity, Machine downtime)

• DeskJet Printer ??
• ?? ?? (4-5weeks)

Supplier
Vancouver
European DC
Customer
??? ??
???? ?? ??
Demand
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How to resolve the problem?
What are the causes of the problem?
Significant uncertainty about the correct
inventory level
Many different localization options
Long lead (delivery) times
Forecasting from many local markets
Cooperation between various HP divisions
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Proposed solutions
Switch to AIR shipments from Vancouver
Build a European factory
Hold more inventory at European DC
Improve Forecasting practices
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Postponement HP Deskjet ??? ??
Europe
Customer
Vancouver
Transportation
Localization at Vancouver
DC 1
DC N
UNLOCALIZED ???? European DC? ????, European
DC?? ??? ? ?? ??? ??? ???? ? ? ???? LOCALIZING
??? ??
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Effect of Postponement
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SS_OLD 20,640 SS_NEW 13,802.6
?? ??? ??? 400?? ??????? ????? 30??, ?? Total
Savings??
(20640 13802.6) 400 0.3 820,488
?? Benefit
???? ??
Value of inventory in transit. Thus, insurance
cost
?? ??? ??? ? ??? ? ??
?? localization material? LOCALLY ?? ? ??
???? ??
Redesign of Product, Process, Packaging