LOGISTICS & SUPPLY CHAIN MANAGEMENT

Size: px
Start display at page:

Download "LOGISTICS & SUPPLY CHAIN MANAGEMENT"

Transcription

1 LOGISTICS & SUPPLY CHAIN MANAGEMENT Section 1 Understanding the Supply Chain and its logistics activities C O R R A D O C E R R U T I

2 What is Logistics? Logistics takes care of the activities and the decisions releted to: Physical flows Information flow from the raw materials suppliers till the customers. Logistics activities are splitted among: inbound logistics plant logistics outbound logistics 2

3 What is a Supply Chain? Supply Chain includes all the activities involved, directly or indirectly, in fulfilling a customer request (there including also logistics) Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers Within each company, the supply chain interacts with all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service) 3

4 The Supply Chain 4

5 What is a Supply Chain? Detergent supply chain at Wal-Mart P&G or other manufacturer Wal-Mart or third party DC Wal-Mart Supermarket Customer wants detergent and goes to Wal-Mart Plastic Producer Tenneco Packaging Chemical manufacturer (e.g. Oil Company) Tier 1 Chemical manufacturer (e.g. Oil Company) Paper Manufacturer Timber Industry Tier 3 Tier 2 5

6 Metaphors of the Supply Chain The Chain The Network or the Web The Stream The Pipeline 6

7 The objective of a Supply Chain Maximize overall value created Supply chain value (or supply chain surplus): difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer s request Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain) 7

8 The objective of a Supply Chain Example: Dell receives 2000 from a customer for a computer (revenue) Supply chain incurs costs (information, storage, transportation, components, assembly, etc.) Difference between 2000 and the sum of all of these costs is the supply chain profit Supply chain profitability is total profit to be shared across all stages of the supply chain Supply chain success should be measured by total supply chain profitability, not profits at an individual stage 8

9 The objective of a Supply Chain Sources of supply chain revenue: the customer Sources of supply chain cost: flows of information, products, or funds between stages of the supply chain Supply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitability 9

10 The objective of Logistics Maximize overall value created by this function/department by: Minimizing logistics costs Maximizing revenues through an outstanding logistics service Managing the trade-offs between logistics costs and revenues Logistics performance might be a key target for the company or a nice-to-have 10

11 Decision Phases of a Supply Chain There are three major decision phases in a supply chain, with different time horizons: Supply chain strategy or design (long-term) Supply chain planning (medium-term) Supply chain operation (short-term) 11

12 Supply Chain Strategy or Design Decisions about the structure of the supply chain and what processes each stage will perform Strategic supply chain decisions Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systems Supply chain design must support strategic objectives Supply chain design decisions are long-term and expensive to reverse must take into account market uncertainty 12

13 Supply Chain Planning (1) Definition of a set of policies that govern medium and short-term operations (time frame: 12 months down to 3 months) Fixed by the supply configuration from previous phase. Supply chain configuration establishes constraints! Starts with a forecast of demand in the coming year and is deployed over different time horizons from a rough check on the overall capacity and requirements down to specific plans. 13

14 Supply Chain Planning (2) Planning decisions: Which markets will be supplied from which locations Subcontracting of manufacturing Inventory policies Timing and size of market promotions Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon As a result, companies define a set of operating policies that govern short-term operations. 14

15 Supply Chain Operation Time horizon is weekly or daily Decisions regarding individual customer orders Supply chain configuration is fixed and operating policies are determined Goal is to implement the operating policies as effectively as possible Allocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment orders Much less uncertainty (short time horizon) 15

16 Process View of a Supply Chain Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages Push/pull view: processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push) 16

17 Cycle View of Supply Chains Customer Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier 17

18 Cycle View of a Supply Chain Each cycle occurs at the interface between two successive stages Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor) Manufacturing cycle (distributor-manufacturer) Procurement cycle (manufacturer-supplier) Cycle view clearly specifies the roles and responsibilities of each member and the desired outcome of each process. 18

19 Push/Pull View of Supply Chains Procurement, Manufacturing and Replenishment cycles Customer Order Cycle PUSH PROCESSES PULL PROCESSES Customer Order Arrives 19

20 Push/Pull Capitolo I. Il concetto View di strategia of Supply Chain Processes Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand Pull: execution is initiated in response to a customer order (reactive processes). It operates in an uncertain environment (customer demand is not yet known) Push: execution is initiated in anticipation of customer orders (speculative or forecasted processes). Here customer demand is known Push/pull boundary separates push processes from pull processes. It is a firm s choice to select the position of the push/pull boundary The relative proportion of push and pull processes can have an impact on supply chain performance 20

21 Push/Pull processes for Dell (customized PCs) Customer Order and Manufacturing Cycle Procurement Cycle PULL PROCESSES Customer Order Arrives PUSH PROCESSES Customer Order and Manufacturing Cycle Procurement Cycle 21

22 The traditional view: Push-oriented Strategies Classical manufacturing supply chain strategy Manufacturing forecasts are long-range Orders from retailers warehouses Longer response time to react to marketplace changes Unable to meet changing demand patterns Supply chain inventory becomes obsolete as demand for certain products disappears Increased variability (Bullwhip effect) leading to: Large inventory safety stocks Larger and more variably sized production batches Unacceptable service levels Inventory obsolescence Inefficient use of production facilities (factories) How is demand determined? Peak? Average? How is transportation capacity determined? Examples: Auto industry, large appliances, others? 22

23 The modern view: Pull-oriented Strategies Production and distribution are demand-driven Coordinated with true customer demand None or little inventory held Only in response to specific orders Fast information flow mechanisms Point-of-Sale (POS) data Decreased lead times Decreased retailer inventory Decreased variability in the supply chain and especially at manufacturers Decreased manufacturer inventory More efficient use of resources More difficult to take advantage of scale opportunities Examples: Dell, Amazon 23

24 The Hybrid Solution: Push/Pull Strategies Grant, L'analisi strategica per le decisioni aziendali, Il Mulino, 2011 Hybrid of push and pull strategies to overcome disadvantages of each Early stages of product assembly are done in a push manner Partial assembly of product based on aggregate demand forecasts (which are more accurate than individual product demand forecasts) Uncertainty is reduced so safety stock inventory is lower Final product assembly is done based on customer demand for specific product configurations Supply chain timeline determines push-pull boundary Generic Product Push- Pull Boundary Customized Product Raw Materials Push Strategy Pull Strategy Supply Chain Timeline 24 End Consumer

25 Achieving an Integrated Supply Chain Stage One: Baseline Material flow Customer service Material Purchasing Production Sales Distribution Control Time Stage Two: Functional Integration Material flow Materials Management Manufacturing Management 25% Customer service Distribution Stage Three: Internal Integration Material flow Materials Management Manufacturing Management MRP Distribution Customer service ERP Stage Four: External Integration Material flow Suppliers Internal Supply Chain Customers Customer service Strategic buffer (Source: Stevens 1989)

26 Supply Chain Capitolo I. Il concetto Macro di strategia Processes in a Firm Supply chain processes discussed can be classified into three macro categories. Supplier Firm Customer Supplier Relationship Management (SRM) Source Negotiate Buy Design Collaboration Supply Collaboration Internal Supply Chain Management (ISCM) Strategic Planning Demand Planning Supply Planning Fulfillment Field Service Customer Relationship Management (CRM) Market Price Sell Call Center Order Management 26

LOGISTICS & SUPPLY CHAIN MANAGEMENT

LOGISTICS & SUPPLY CHAIN MANAGEMENT LOGISTICS & SUPPLY CHAIN MANAGEMENT Part 3 Designing Distribution Networks C O R R A D O C E R R U T I The Role Capitolo I. of Il concetto Distribution di strategia in the Supply Chain Distribution: the

More information

Strategic Framework to Analyze Supply Chains

Strategic Framework to Analyze Supply Chains Strategic Framework to Analyze Supply Chains 1 Andy Guo A Strategic Framework for Supply Chain Design, Planning, and Operation Part I: Understand the supply chain Part II: Supply chain performance Part

More information

Understanding the Supply Chain

Understanding the Supply Chain CHAPTER ONE ------------------------------- ~ ------------------------------- Understanding the Supply Chain 1.1 What Is a Supply Chain? 1.2 Decision Phases in a Supply Chain 1.3 Process View of a Supply

More information

Supply Chain Management Introduction Outline What is supply chain management? Significance of supply chain management. Push vs.

Supply Chain Management Introduction Outline What is supply chain management? Significance of supply chain management. Push vs. Supply Chain Management Introduction Outline What is supply chain management? Significance of supply chain management. Push vs. Pull processes 1 A Generic Supply Chain Sources: plants vendors ports Regional

More information

Lecture Organization. Lecturing Group exercises Quizzes/Assignments/Tutorials Case discussion Case study presentations

Lecture Organization. Lecturing Group exercises Quizzes/Assignments/Tutorials Case discussion Case study presentations Lecture Organization Lecturing Group exercises Quizzes/Assignments/Tutorials Case discussion Case study presentations Grading Policy Grading Assignment and Quiz 10% Mini-project 10% Test 1 15% Test 2 15%

More information

Logistics Management SC Performance, SC Drivers and Metrics. Özgür Kabak, Ph.D.

Logistics Management SC Performance, SC Drivers and Metrics. Özgür Kabak, Ph.D. Logistics Management SC Performance, SC Drivers and Metrics Özgür Kabak, Ph.D. Outline Supply Chain Performance: Achieving Strategic Fit and Scope Competitive and supply chain strategies Achieving strategic

More information

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras

Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras Lecture - 36 Location Problems In this lecture, we continue the discussion

More information

This paper describes a framework for designing the distribution network in a supply chain. Various

This paper describes a framework for designing the distribution network in a supply chain. Various Designing the Distribution Network in a Supply Chain Sunil Chopra Kellogg School of Management, Northwestern University 2001 Sheridan Road, Evanston, IL 60208, U.S.A Tel: 1-847-491-8169; Fax: 1-847-467-1220;

More information

The Customer Relationship Management Process

The Customer Relationship Management Process The Customer Relationship Management Process E d u c a t i n g t h e W o r l d s B e s t A i r F o r c e Slide 1 The Supply Chain Management Processes Information Flow Supply Chain Management Processes

More information

Supply Chain Management

Supply Chain Management Supply Chain Management อาจารย ดร.อ ศว ณ ปส ธรรม Email: win@riped.utcc.ac.th 11-1 Supply Chain the sequence of organizations (their facilities, functions, and activities) that are involved in producing

More information

Business Challenges. Customer retention and new customer acquisition (customer relationship management)

Business Challenges. Customer retention and new customer acquisition (customer relationship management) Align and Optimize Workflows with Lean Dan Marino Marino Associates, LLC Strategic and tactical planning Information systems integration Customer retention and new customer acquisition (customer relationship

More information

BUILDING THE SMART SUPPLY CHAIN

BUILDING THE SMART SUPPLY CHAIN BUILDING THE SMART SUPPLY CHAIN James Cooke +1-617-720-2000 jcooke@nucleusresearch.com About Nucleus Research A technology research firm specializing in valuebased research. >Founded in 2000, based in

More information

Enterprise Systems: From Supply Chains to ERP to CRM

Enterprise Systems: From Supply Chains to ERP to CRM Enterprise Systems: From Supply Chains to ERP to CRM Management Information Code: 164292-02 Course: Management Information Period: Autumn 2013 Professor: Sync Sangwon Lee, Ph. D D. of Information & Electronic

More information

Lecture Series: Consumer Electronics Supply Chain Management

Lecture Series: Consumer Electronics Supply Chain Management Lecture Series: Consumer Electronics Supply Chain Management Mohit Juneja i2 Technologies Divakar Rajamani, Ph.D. University of Texas at Dallas Center for Intelligent Supply Networks () 2003 UTD Lecture

More information

Making Strategic Decisions with Oracle Advanced Planning. An Oracle White Paper September 2006

Making Strategic Decisions with Oracle Advanced Planning. An Oracle White Paper September 2006 Making Strategic Decisions with Oracle Advanced Planning An Oracle White Paper September 2006 Making Strategic Decisions with Oracle Advanced Planning SUMMARY Strategic decision making is more important

More information

Supply Chain Management (3rd Edition)

Supply Chain Management (3rd Edition) Supply Chain Management (3rd Edition) Chapter 9 Planning Supply and Demand in a Supply Chain: Managing Predictable Variability 9-1 Outline Responding to predictable variability in a supply chain Managing

More information

Value chains, value networks and supply chain management

Value chains, value networks and supply chain management RELEVANT TO ACCA QUALIFICATION PAPER P3 Value chains, value networks and supply chain management Sections A4, E2 and E3 of the Syllabus and Study Guide relate to value chains and value networks, and Sections

More information

SCM. Logistics, Service, and Operations Management daeki@korea.ac.kr

SCM. Logistics, Service, and Operations Management daeki@korea.ac.kr SCM Logistics, Service, and Operations Management daeki@korea.ac.kr Key concerns Demand/supply/lead time variability Inventory & Transportation Information technology Technological advances Level of service

More information

Innovations in Manufacturing Supply Chain. Alex Yap Senior Director, Manufacturing Strategy, APAC

Innovations in Manufacturing Supply Chain. Alex Yap Senior Director, Manufacturing Strategy, APAC Innovations in Manufacturing Supply Chain Alex Yap Senior Director, Manufacturing Strategy, APAC New Customer Expectations RESPONSIVNESS VISIBILITY CUSTOMIZATIONS SELECTION VALUE ADDED SERVICES SOCIALIZE

More information

2 TACTICAL PLANNING FOR REINVENTING THE SUPPLY CHAIN

2 TACTICAL PLANNING FOR REINVENTING THE SUPPLY CHAIN 2 TACTICAL PLANNING FOR REINVENTING THE SUPPLY CHAIN David Simchi-Levi Massachusetts Institute of Technology Cannbridge MA Edith Simchi-Levi LogicTools Inc. Chicago IL Michael Watson LogicTools Inc. Chicago

More information

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support

More information

Operations Management. 3.3 Justify the need for Operational Planning and Control in a selected Production Process

Operations Management. 3.3 Justify the need for Operational Planning and Control in a selected Production Process Operations Management 3.3 Justify the need for Operational Planning and Control in a selected Production Process Key Topics LO3 Understand how to organise a typical production process 3.3 justify the need

More information

Capacity Planning The Antidote to Supply Chain Constraints

Capacity Planning The Antidote to Supply Chain Constraints Capacity Planning The Antidote to Supply Chain Constraints We live in headless & disconnected supply chains Supplier Factory Mfg DC Whol DC Retail DC Store Point of Sale The retail store is both the beginning

More information

Chapter 7. 7.1 Introduction. Distribution Strategies. Traditional Warehousing. 7.3. Intermediate Inventory Storage Point Strategies

Chapter 7. 7.1 Introduction. Distribution Strategies. Traditional Warehousing. 7.3. Intermediate Inventory Storage Point Strategies 7.1 Introduction McGraw-Hill/Irwin Chapter 7 Distribution Strategies Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Focus on the distribution function. Various possible distribution

More information

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling TU-E2020 ADVANCED OPERATIONS MANAGEMENT Demand management Sales & Operations Planning Master Production Scheduling 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

More information

Supply Chain Management

Supply Chain Management Overview of Logistics and Supply Chain Management Dr.T.A.S.Vijayaraghavan, XLRI Jamshedpur Supply Chain Management Supply Chain Management is now part of the business vocabulary. Impact of global marketplace

More information

Logistics Management Inventory Cycle Inventory. Özgür Kabak, Ph.D.

Logistics Management Inventory Cycle Inventory. Özgür Kabak, Ph.D. Logistics Management Inventory Cycle Inventory Özgür Kabak, Ph.D. Role of Inventory in the Supply Chain Improve Matching of Supply and Demand Improved Forecasting Reduce Material Flow Time Reduce Waiting

More information

Module 1: Supply Chain Design

Module 1: Supply Chain Design Module 1: Supply Chain Design Module 1 Introduction Section A: Develop the Supply Chain Strategy Chapter 1: Inputs to Supply Chain Strategy o Topic 1: Business Model o Topic 2: External Inputs to Supply

More information

SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES

SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES Drivers of SC performance Facilities Inventory Transportation Information Sourcing Pricing The discussion here is mainly concerned with how these drivers are used

More information

Definition, Nature and Objectives of Supply Chain Management

Definition, Nature and Objectives of Supply Chain Management Definition, Nature and Objectives of Supply Chain Management Session Speaker Prof. P.S.Satish 1 Session Objectives To understand the role of Supply Chain Management in Manufacturing and Service Organisations

More information

SUPPLY CHAIN AND LOGISTICS MANAGEMENT

SUPPLY CHAIN AND LOGISTICS MANAGEMENT C H A P T E R S E V E N T E E N SUPPLY CHAIN AND LOGISTICS MANAGEMENT 17-1 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: Explain what supply chain and logistics management are and how they relate to

More information

ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPLICATIONS

ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPLICATIONS ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPLICATIONS Content How do enterprise systems help businesses achieve operational excellence? How do supply chain management systems

More information

Ud Understanding di inventory issues

Ud Understanding di inventory issues Lecture 10: Inventory Management Ud Understanding di inventory issues Definition of inventory Types of inventory Functions of inventory Costs of holding inventory Introduction to inventory management Economic

More information

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 8.1 2007 by Prentice Hall STUDENT OBJECTIVES How enterprise systems achieve operational excellence by integrating

More information

Manufacturing Flow Management

Manufacturing Flow Management Manufacturing Flow Management Distribution D Distribution Authorized to Department of Defense and U.S. DoD Contractors Only Aim High Fly - Fight - Win Supply Chain Management Processes Information Flow

More information

Improve the Agility of Demand-Driven Supply Networks

Improve the Agility of Demand-Driven Supply Networks GE Intelligent Platforms Improve the Agility of Demand-Driven Supply Networks Leverage real-time production data to optimize the supply chain for a sustainable competitive advantage Improve the Agility

More information

EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY

EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY Introduction Inventory is considered the necessary evil of the supply chain. In fact, there has been a whole movement; lean manufacturing that has tried to reduce

More information

Achieving World-class Fabless Planning

Achieving World-class Fabless Planning Whitepaper Series Achieving World-class Fabless Planning Reduce lengthy cycle times and respond to change quickly Introduction The Fabless Semiconductor industry achieves high growth rates and superior

More information

Introduction to. David Simchi-Levi. Professor of Engineering Systems Massachusetts Institute of Technology. Regional warehouses: Stocking points

Introduction to. David Simchi-Levi. Professor of Engineering Systems Massachusetts Institute of Technology. Regional warehouses: Stocking points Introduction to Supply Chain Management David Simchi-Levi Professor of Engineering Systems Massachusetts Institute of Technology Sources: Plants vendors ports Regional warehouses: Stocking points Field

More information

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store 35A00210 Operations Management Lecture 12 Inventory management Lecture 12 Inventory management Inventory basics Inventory basics Pros and cons of inventory Inventory numbers Inventory management in practice

More information

Supply Chain Management

Supply Chain Management Supply Chain Management Contents A. Definition and Terminologies B. Evolution of SCM C. Supply Chain Management D. Integrated Logistics E. Fulfillment Process F. Specialized Supply Chains G. Supply Chain

More information

How to Overcome 3 Common Inventory Replenishmemt Challenges

How to Overcome 3 Common Inventory Replenishmemt Challenges How to Overcome 3 Common Inventory Replenishmemt Challenges This white paper explains the 4 different types of replenishment models used by wholesalers and distributors to avoid making costly inventory

More information

School of Management and Languages Capacity Planning

School of Management and Languages Capacity Planning School of Management and Languages Capacity Planning Dr Neil Towers 1 Learning Objectives a. To understand Capacity Planning and Control b. To manage the supply chain capabilities effectively Dr Neil Towers

More information

ESSENTIAL GUIDE TO THE SUPPLY CHAIN

ESSENTIAL GUIDE TO THE SUPPLY CHAIN ESSENTIAL GUIDE TO THE SUPPLY CHAIN Copyright Statement All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including

More information

Operations Research in Supply Chain Optimization

Operations Research in Supply Chain Optimization Operations Research in Supply Chain Optimization M.G. Speranza University of Brescia, Italy Department of Management Science & Technology Athens University of Economics and Business November 12, 20 The

More information

Transportation. Transportation decisions. The role of transportation in the SC. A key decision area within the logistics mix

Transportation. Transportation decisions. The role of transportation in the SC. A key decision area within the logistics mix Transportation A key decision area within the logistics mix Chapter 14 Transportation in the Supply Chain Inventory Strategy Forecasting Storage decisions Inventory decisions Purchasing & supply planning

More information

Glossary of Inventory Management Terms

Glossary of Inventory Management Terms Glossary of Inventory Management Terms ABC analysis also called Pareto analysis or the rule of 80/20, is a way of categorizing inventory items into different types depending on value and use Aggregate

More information

Oracle Value Chain Planning Inventory Optimization

Oracle Value Chain Planning Inventory Optimization Oracle Value Chain Planning Inventory Optimization Do you know what the most profitable balance is among customer service levels, budgets, and inventory cost? Do you know how much inventory to hold where

More information

Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope (24)

Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope (24) Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope (24) 2004 Prentice-Hall, Inc. 2-1 Outline Competitive and supply chain strategies Achieving strategic fit Expanding strategic scope

More information

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications

Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 8.1 Copyright 2011 Pearson Education, Inc STUDENT LEARNING OBJECTIVES How do enterprise systems help businesses

More information

Manufacturing Efficiency Guide

Manufacturing Efficiency Guide Note: To change the product logo for your ow n print manual or PDF, click "Tools > Manual Designer" and modify the print manual template. Contents 3 Table of Contents 1 Introduction 5 2 What Is Manufacturing

More information

Collaborative Planning, Forecasting, and Replenishment CPFR

Collaborative Planning, Forecasting, and Replenishment CPFR Collaborative Manufacturing Whitepaper Series Forecasting, and Replenishment CPFR Michael McClellan President Vancouver, WA 360 256 6250 Introduction This paper will provide an in-depth explanation of

More information

Introduction to Information Management IIM, NCKU. Enterprise Systems

Introduction to Information Management IIM, NCKU. Enterprise Systems Introduction to Information Management IIM, NCKU Enterprise Systems Aka enterprise resource planning (ERP) systems Suite of integrated software modules and a common central database Collects data from

More information

Management Information Systems MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL EDITION

Management Information Systems MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL EDITION MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL EDITION Chapter 9 ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPLICATIONS VIDEO CASES Case 1: Sinosteel Strengthens Business Management

More information

Supply Chain Design and the effects on shipping

Supply Chain Design and the effects on shipping Supply Chain Design and the effects on shipping Agenda Introductions Supply Chain Evolution LLamasoft - Company Supply Chain Guru - Product Shipping Demonstration Q & A Introductions Tom Davies Director

More information

Inventory Management and Risk Pooling. Xiaohong Pang Automation Department Shanghai Jiaotong University

Inventory Management and Risk Pooling. Xiaohong Pang Automation Department Shanghai Jiaotong University Inventory Management and Risk Pooling Xiaohong Pang Automation Department Shanghai Jiaotong University Key Insights from this Model The optimal order quantity is not necessarily equal to average forecast

More information

Outline. Logistics and Supply Chain Management. Competitive and Supply Chain Strategies. What is Supply Chain Management? Supply Chain Performance

Outline. Logistics and Supply Chain Management. Competitive and Supply Chain Strategies. What is Supply Chain Management? Supply Chain Performance Logistics and Supply Chain Management Supply Chain Performance 1 Outline Competitive and supply chain strategies Ahi Achieving i strategic t fit Expanding strategic scope Chopra and Meindl (2006) Supply

More information

Chapter 9. Video Cases. 6.1 Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall

Chapter 9. Video Cases. 6.1 Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Video Cases Video Case 1a: What Is Workday: Enterprise Software as a Service (Saas) Video Case 1b: Workday: Mobile

More information

Redesigning the supply chain for Internet shopping Bringing ECR to the households

Redesigning the supply chain for Internet shopping Bringing ECR to the households Redesigning the supply chain for Internet shopping Bringing ECR to the households Jan Holmström Kari Tanskanen Vesa Kämäräinen Department of Industrial Management Helsinki University of Technology Abstract

More information

Four distribution strategies for extending ERP to boost business performance

Four distribution strategies for extending ERP to boost business performance Infor ERP Four distribution strategies for extending ERP to boost business performance How to evaluate your best options to fit today s market pressures Table of contents Executive summary... 3 Distribution

More information

Electronics Components Manufacturing: The Path to Excellence

Electronics Components Manufacturing: The Path to Excellence Electronics Components Manufacturing: case study The Path to Excellence Successful electronics manufacturers design their supply chains around their key stakeholders specifically, customers, suppliers

More information

The Supply Chain Management Processes

The Supply Chain Management Processes The Supply Chain Processes Keely L. Croxton, Sebastián J. García-Dastugue and Douglas M. Lambert The Ohio State University Dale S. Rogers University of Nevada, Reno Increasingly, supply chain management

More information

Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage

Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage From long-term, strategic decision-making to tactical production planning, supply chain modeling technology

More information

Supply Chain Technology Foundations

Supply Chain Technology Foundations Supply Chain Technology Foundations The implementation of information technology has become an absolute requirement for success in today s business environment. The application of integrative information

More information

26/10/2015. Enterprise Information Systems. Learning Objectives. System Category Enterprise Systems. ACS-1803 Introduction to Information Systems

26/10/2015. Enterprise Information Systems. Learning Objectives. System Category Enterprise Systems. ACS-1803 Introduction to Information Systems ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Enterprise Information Systems Lecture Outline 6 ACS-1803 Introduction to Information Systems Learning Objectives 1. Explain how

More information

Value Creation Through Supply Chain Network Optimization To Address Dynamic Supply Chain

Value Creation Through Supply Chain Network Optimization To Address Dynamic Supply Chain Value Creation Through Supply Chain Network Optimization To Address Dynamic Supply Chain A Thought Paper on Supply Chain Network Design & Optimization Services from the Business Consulting Group Introduction

More information

Content. Chapter 1 Supply Chain Management An Overview 3. Chapter 2 Supply Chain Integration 17. Chapter 3 Demand Forecasting in a Supply Chain 28

Content. Chapter 1 Supply Chain Management An Overview 3. Chapter 2 Supply Chain Integration 17. Chapter 3 Demand Forecasting in a Supply Chain 28 Content Part I: Principles of Supply Chain Management Chapter 1 Supply Chain Management An Overview 3 Part II: Supply Chain Planning & Design Chapter 2 Supply Chain Integration 17 Chapter 3 Demand Forecasting

More information

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in

The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in The Training Material on Supply Chain Collaboration & Logistics Solutions has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support

More information

Managing Health Supply Chains in Africa

Managing Health Supply Chains in Africa Managing Health Supply Chains in Africa Despite increased donor funding and an array of new products, weak links in the health supply chain continue to greatly restrict access to essential health products,

More information

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning Aggregate, Material Requirement, and Capacity Topic: Aggregate, Material Requirement, and Capacity Slide 1 Welcome to Workshop Eight presentation: Aggregate planning, material requirement planning, and

More information

Introduction to Logistics & Supply Chain Management

Introduction to Logistics & Supply Chain Management CTL.SC1x -Supply Chain & Logistics Fundamentals Introduction to Logistics & Supply Chain Management MIT Center for Transportation & Logistics "Bananas". Licensed under Creative Commons Attribution-Share

More information

Supply Chain development - a cornerstone for business success

Supply Chain development - a cornerstone for business success Supply Chain development - a cornerstone for business success Agenda 1. Supply chain considerations 2. Benefits of a developed SCM strategy 3. Competitive advantage by using a LSP 4. CRM/SCM key to business

More information

Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models ABSTRACT

Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models ABSTRACT Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models Don N. Pope Abilene Christian University, ACU Box 29309, Abilene, Texas 79699-9309 Phone: 325-674-2786 Fax: 325-674-2507

More information

Supply & Demand Management

Supply & Demand Management Supply & Demand Management Planning and Executing Across the Entire Supply Chain Strategic Planning Demand Management Replenishment/Order Optimization Collaboration/ Reporting & Analytics Network Optimization

More information

CHAPTER 11. Customer Relationship Management and Supply Chain Management

CHAPTER 11. Customer Relationship Management and Supply Chain Management CHAPTER 11 Customer Relationship Management and Supply Chain Management CHAPTER OUTLINE 11.1 Defining Customer Relationship Management 11.2 Operational Customer Relationship Management Systems 11.3 Analytical

More information

After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2.

After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2. After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2. Lead time 3. Reserve stock and safety stock 4. Reorder level

More information

The Future Perfect Supply Chain

The Future Perfect Supply Chain 53 Perimeter Center Suite 201 Atlanta, GA 30346 (877)237-4291 www.competitivelogistics.com The Future Perfect Supply Chain Achieving Responsiveness and Efficiency By Art Brown VP Professional Services

More information

Finished Goods Inventory Management

Finished Goods Inventory Management Hot Topic Report Finished Goods Inventory Management Presenting Growth & Adaptation Through Metrics Supply Chain Consortium Benchmarking & Best Practices February 27, 2012 www.supplychainconsortium.com

More information

Chapter 6. Supply Chain Integration. Dell Desktop PC Supply Chain: Case Study. Optimizing the Flexibility of the Desktop PC Supply Chain

Chapter 6. Supply Chain Integration. Dell Desktop PC Supply Chain: Case Study. Optimizing the Flexibility of the Desktop PC Supply Chain Chapter 6 Supply Chain Integration Dell Desktop PC Supply Chain: Case Study Optimizing the Flexibility of the Desktop PC Supply Chain McGraw-Hill/Irwin Copyright 2008 by The McGraw-Hill Companies, Inc.

More information

Delivering a Competitive Edge Across the Supply Chain

Delivering a Competitive Edge Across the Supply Chain Delivering a Competitive Edge Across the Supply Chain An Industry White Paper By Laura Rokohl, Supply Chain Manager, AspenTech Supply chain leaders face significant challenges today amidst market volatility

More information

Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham

Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham Summary: Several ERP vendors offer rudimentary Kanban modules to compliment their MRP systems. However, these Kanban modules

More information

Management of Uncertainty In Supply Chain

Management of Uncertainty In Supply Chain Management of Uncertainty In Supply Chain Prof.D.P.Patil 1, Prof.A.P.Shrotri 2, Prof.A.R.Dandekar 3 1,2,3 Associate Professor, PVPIT (BUDHGAON), Dist. Sangli(M.S.) sdattatrayap_patil@yahoo.co.in amod_shrotri@rediffmail.com

More information

Energy Supply Chain Development Seminar

Energy Supply Chain Development Seminar Energy Supply Chain Development Seminar Alberta Supply Chain Overview Government of Alberta Holiday Inn Express November 29 th, 2012 1 What is a Supply Chain? Supply chain consists of the flow of products

More information

Contracts. David Simchi-Levi. Professor of Engineering Systems

Contracts. David Simchi-Levi. Professor of Engineering Systems Introduction to Stochastic Inventory Models and Supply Contracts David Simchi-Levi Professor of Engineering Systems Massachusetts Institute of Technology Introduction Outline of the Presentation The Effect

More information

Supply Chain Management & ERP

Supply Chain Management & ERP 1 Case: How Dell Reengineered its Supply Chain Supply Chain Management & ERP Problem: Dell pioneered the mail order approach to selling PCs In 1993, Compaq cuts prices to drive Dell out of the market.

More information

CISCM STUDY GUIDE. International Purchasing and Supply Chain Management Institute, 2006 1

CISCM STUDY GUIDE. International Purchasing and Supply Chain Management Institute, 2006 1 CISCM STUDY GUIDE International Purchasing and Supply Chain Management Institute, 2006 1 TABLE OF CONTENTS PART PAGE PART I Materials, Production, Inventory, Logistics, and Supply Chain Management 3 PART

More information

Supply chain intelligence: benefits, techniques and future trends

Supply chain intelligence: benefits, techniques and future trends MEB 2010 8 th International Conference on Management, Enterprise and Benchmarking June 4 5, 2010 Budapest, Hungary Supply chain intelligence: benefits, techniques and future trends Zoltán Bátori Óbuda

More information

LOGISTICS & SUPPLY CHAIN MANAGEMENT

LOGISTICS & SUPPLY CHAIN MANAGEMENT LOGISTICS & SUPPLY CHAIN MANAGEMENT 1. Concepts of Logistics management The role of Logistics information systems and technology Logistics relevance to an organization and the economy Channels of distribution

More information

ENTERPRISE MANAGEMENT AND SUPPORT IN THE AUTOMOTIVE INDUSTRY

ENTERPRISE MANAGEMENT AND SUPPORT IN THE AUTOMOTIVE INDUSTRY ENTERPRISE MANAGEMENT AND SUPPORT IN THE AUTOMOTIVE INDUSTRY The Automotive Industry Businesses in the automotive industry face increasing pressures to improve efficiency, reduce costs, and quickly identify

More information

Achieving Operational Excellence and Customer Intimacy: Enterprise. Applications

Achieving Operational Excellence and Customer Intimacy: Enterprise. Applications Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Lecturer: Richard Boateng, PhD. Applications Lecturer in Information Systems, University of Ghana Business School Executive

More information

Information Systems in the Enterprise

Information Systems in the Enterprise Chapter 2 Information Systems in the Enterprise 2.1 2006 by Prentice Hall OBJECTIVES Evaluate the role played by the major types of systems in a business and their relationship to each other Describe the

More information

1 INVENTORY PLANNING 2 PRODUCTION PLANNING 3 WAREHOUSE PLANNING. 9 Elective Module Options WHAT IS INVENTORY MANAGEMENT BASIC INVENTORY PRINCIPLES

1 INVENTORY PLANNING 2 PRODUCTION PLANNING 3 WAREHOUSE PLANNING. 9 Elective Module Options WHAT IS INVENTORY MANAGEMENT BASIC INVENTORY PRINCIPLES 9 Elective Module Options 1 INVENTORY PLANNING WHAT IS INVENTORY MANAGEMENT Inventory within the supply chain Different types of inventory and the cost of holding stock The implications of the "shrinking

More information

Supply Chain Management Seminar at Bangalore Dec. 6, 2003

Supply Chain Management Seminar at Bangalore Dec. 6, 2003 Supply Chain Management Seminar at Bangalore Dec. 6, 2003 Collaboration Synergies within the Firm Dr. P. Balasubramanian balasubp@inf.com Who is minding the Store? Demand Forecasting Production Planning.

More information

MSD Supply Chain Programme Strategy Workshop

MSD Supply Chain Programme Strategy Workshop MSD Supply Chain Programme Strategy Workshop Day 2 APPENDIX Accenture Development Partnerships Benchmarking MSD s Current Operating Supply Chain Capability 1.0 Planning 2.0 Procurement 3.0 Delivery 4.0

More information

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 -

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 - BSCM Sample TEST. 1. Which of the following demand fulfillment approaches typically provides the longest delivery time? A) Engineer-to-order. B) Make-to-order. C) Assemble-to-order. D) Make-to-stock. 2.

More information

E-Business Supply Chain Management. Michael J. Shaw

E-Business Supply Chain Management. Michael J. Shaw 1 E-Business Supply Chain Management Michael J. Shaw A Process View of the Supply Chain 2 Supply Chain Planning Information Flows Supplier Product Flows Manufacturing Product Flows Distribution Product

More information

Scope of Supply Chain Management (SCM)

Scope of Supply Chain Management (SCM) Scope of Supply Chain Management (SCM) Session Speaker Prof. P.S.satish 1 Session Objectives To understand the scope of Supply Chain Management To compare different activities of Supply Chain Management

More information

Plan forecast optimise

Plan forecast optimise Plan forecast optimise Don t Forecast the future, CONTROL IT Reflex Business Forecasting breaks new ground. This is sales forecasting software with unique features that allow you to create real value for

More information

Five Keys to Transportation Planning and Optimization Success

Five Keys to Transportation Planning and Optimization Success An Executive White Paper Five Keys to Transportation Planning and Optimization Success Delivering a tangible business advantage An Executive White Paper Table of Contents Introduction...2 Challenges Driving

More information

Best Practices for Transportation Management

Best Practices for Transportation Management Best Practices for Transportation Management www.ohl.com or 877-401-6400 Introduction The mantra for all transportation professionals is simple: reduce costs and increase customer satisfaction levels.

More information