Supply Chain Management
* What is it?
* All parties and functions involved, directly or indirectly in fulfilling a customer request. * Manufacturers, suppliers, forwarders, warehouse operators, wholesalers and retailers. * Movement of information and funds.
* Maximize the value of the product.
* Reduce time
* Make more profit.
* The difference between the turnover (price) and the cost of the product. * Its called supply chain efficiency.
* Types of decision
* Supply chain strategy or design (several years)
* About the structure as well as about the processes and functions. * Long term and high costs.
* Location and capacities (near to customer, supplier or competitor). * Modes of transportation.
* Strategic goals.
* Supply chain planning (1/4 to 1 year)
* Which markets are supplied by which site.
* Planning of the inventory structure.
* Outsourcing and backup sites.
* Frequency and dimension of product promotions.
* Consider demand uncertainties, exchange rate, and competitions. * Supply chain operation (weekly to daily)
* Regarding individual customer order.
* Goal is to fulfill an incoming customer order.
* Allocation of orders to stocks and sites, assigning orders to replenish the warehouse. * Reduction of uncertainties and increase the efficiency. * Cycle view
* Clear process visualization.
* Visualize inputs and outputs.
* Push and Pull
* Competitive strategies
* Defines the set of customer needs that the company seeks to satisfy. * Could be costs, delivery time, variance and quality. * Value chain
* Product development: specification of product that the company will produce. * Marketing: positioning the product in the market, pricing and promotion. * Operations: material purchase and handling.
* Supply chain strategy
* Determines the internal processes, performance in quality and quantity. * Decisions regarding design and structure of stock, transport productions and warehouse locations. * The competitive and the supply chain strategies must be fitted. * Customer needs
* Response time
* Rate of innovation
* Service level
* Uncertainty spectrum
* Well predictable.
* Well predictable demand and uncertain supply chain or vice versa. * Highly uncertain.
* The more the supply chain have this abilities the more responsive it is: * Additional capacity
* Higher stock level
* The more responsive, the less efficient.
* Supply chain drivers
* Facilities (physical location where the product is produced or stored) * Role
* Degree of flexibility
* Design (full-range processing, only components) * Location
* Central or decentralized units
* Quality of workers, costs, taxes, political, customers * Capacity
* Excess capacity
* Tact time
* Cycle time of production line
* Degree of utilization
* Cost efficiency
* Inventory (raw materials, components, work in progress) * Role
* Counterbalancing between demand and supply/ production. * Increase in efficiency.
* Cycle inventory.
* Safety inventory.
* Level of product availability.
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