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Supply Chain Management Accelerating Cost Effectiveness Supply Chain Management The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and customers.
Today, the talk is of supply networks, parallel chains, enhanced concurrent activities, and “customer centric” with new information platforms and technology set to cut both inventory and lead-times throughout the delivery pipeline further. Top Issues Facing SCM Professionals In a recent quantitative survey, SCM professionals were asked a open-ended subjective question, “What are the three biggest issues facing you personally in developing your logistics strategy” Source: AMR Research 2000 The top three responses were;
Cost (21%), Systems Applications (20%) and Integration (19%) SCM Benefits Manufacturer Distributors/
Wholesalers Customers Suppliers Retailers Materials Flows
Information Flows
Cash Flows US companies expect to reap $3-400B of savings through a variety of benefits (3 – 5% of revenues) Source: PRTM Move From Push To Pull Make what we sell, not sell what we make! Move to Cross-Functional Business Processes Purchasing Manufacturing Distribution Install/
Maintenance Sales Source Make Deliver Install Sell Order Fulfillment Available-to-Promise Sales & Operations Planning Department Performance Supply Chain Optimization Synchronized, Sequential Planning Forecasting Distribution
Planning Manufacturing Planning Procurement
Planning Supply Chain Optimization Synchronized, Concurrent Planning Demand
Planning Distribution
Planning Manufacturing Planning Procurement
Planning Purchasing Manufacturing Distribution Install/
Maintenance Sales Cross-Functional Supply Chain Metrics Process Performance Source Make Deliver Install Sell Perfect Order Process Sharing and Collaboration Manufacturer Distributors/
Wholesalers Suppliers Retailers Synchronized Production Scheduling
Collaborative Product Development Collaborative Demand Planning
Collaborative Logistics Planning
Transportation services
Distribution center services
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