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Supply Chain Management Goal
• “To create a real-time, virtual marketplace where all
the people connected to SAIC are engaged in informed decision making and customer fulfillment.
to – respond quickly to “pull signals” to manage inventories – adapt quickly and economically to changes in demand/supply – operate with low inventories
Chain Management
• Customization
Companies have a choice and ability to adapt their operational environment to changing market demand
• Collaboration
All partners in the supply chain do not only optimize their operations but jointly plan, optimize, monitor and execute.
• Take orders over the web, or automatically via B2B • Offer rich product selection and/or the ability to customize • Source the order and commit to delivery, immediately, online • Service the order online, including changes and inquiries • Deliver product quickly, efficiently, profitably • Be in constant communication with customers and suppliers
E
S
R
S
Capacity, Information, Core Competencies, Capital and Human Resources
Source: Supply Chain Faculty, Michigan State University
Challenges for Supply Chains
Material/Service Supplier Integration
• Fusion • Financial Linkage • Strategic Alignment • Operational Supplier Relationship Management
High Achievers:
– Develop interlocking programs and activities – Commit to shared responsibility with suppliers – Place employees at customer/supplier business facilities – Enter into long-term agreements – Include suppliers’ suppliers in planning
monitoring of the Supply Chain Solution
• Monitors Key Performance Indicators to
optimize important business processes
• Measures Return on Investment
• Allows decision makers at all levels of an
10:00 - 11:00 - e-Procurement Overview
11:00 - 11:15 - Break
ቤተ መጻሕፍቲ ባይዱ
11:15 - 12:00 - c-Manufacturing
12:00 - 1:00 - Lunch
1:00 - 2:30
- Workshop
2:30 - 3:00 - Implementation Considerations, Case Studies
• Evidenced by: Lead time- response time is reduced,
revenue opportunities are generated, costs are cut, customer satisfaction is increased. "
The 5 major strategic concepts of Supply
Best practices and most advanced tools bring the partners in the supply chain and its total result closer to its optimum.
• Synchronization
The end result is a totally synchronized supply chain that is entirely driven by the customer’s demand.
Digital Order Fulfillment Process Example
A
ERP
T
P
A
ERP
T
P
A
ERP
T
P
WEB
Suppliers
3
Q 1st Supplier: Yes, I’ll reserve it.
Q 2nd Supplier: No.
Q 3rd Supplier: I’ll need a confirmation signal from my suppliers.
3:00
- Summary and Conclusion
Supply Chain Management
Supply Chain Management
• “Planning, implementing and controlling the
efficient and effective sourcing, production and delivery processes for a final product, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. "
E.Dashboard - Key Performance Indicators
•Increase Revenue •Decrease Cost
•Improve Asset Utilization
Maximize Economic
Value
The E-Dashboard . . .
• Is a web-based tool that allows dynamic
Collaborative Business Scenarios
• Internet Selling • Collaborative Planning, Forecasting
and Replenishment CPFR
• Internet Vendor Managed Inventory
iVMI
Information, Product, Service, Financial and Knowledge Flows
SUPPLIER
E
M
NETWORK
INTEGRATED
N
A
ENTERPRISE
DISTRIBUTIVE
D
NETWORK
T
C
E
O
R
Sourcing
Logistics
N
I
S
A
U M
L
Operations
Aggregated buying power, auction-based buying/selling
• Achieve Process Simplification
Automated steps, One-step business
THE INTEGRATED SUPPLY CHAIN
Relationship Management
A T ERP P
Drivers of High Performance Achievement (Rated by Priority)
• Customer integration • Internal integration • Technology/Planning integration • Relationship integration • Measurement integration • Supplier integration
Supply Chain Value Principles
• Provide Visibility of Information
Inventories, Forecasts, Orders, Plans, Engineering Changes, KPIs
• Synchronize Activities
organization to navigate, organize, record, and analyze strategic business information to develop insights and understand possible scenarios which would lead to improved decision making
• Collaborative Supply Planning CSUP • Collaborative Production Planning • Capable to Promise CTP • e-Procurement (auctioning, bidding) • Internet-based Tendering • Internet-based Kanban • e-Fulfillment
Customer Integration
• Segmental Focus • Relevancy • Responsiveness • Flexibility
High Achievers:
– Identify and focus on important customers – Use formal visioning process – Implement preplanned solutions – Develop responsive or pull logistical capabilities
Supply Chain Management/ e-Procurement/ cMfg Workshop
Date: April 27, 2001 Time: 9:00 A.M - 3:00 P.M
Agenda
9:00 - 9:15 - Introductions
9:15 - 10:00 - Supply Chain Management
• Visibility
All partners have real time information about status and performance of each element in the supply chain from customers to suppliers.
• Optimization
Optimized feasible sourcing/planning, pull-based triggers
• Promote Responsiveness
Reduce time to detect demand, commit, produce, fulfill
• Leverage Market Mechanisms