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Supply Chain Management

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herne
0 diapositives · 486 Views · Jul 05, 2014

Supply Chain Management. Cody Hodge. Introduction. Historically forgone sponsoring SCM initiatives Now flourishing as a competitive strategy Degrees in Supply Chain Management are in high demand. What is a supply chain?. Three key terms that define a supply chain Raw materials

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Supply Chain Management
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  1. Supply Chain Management Cody Hodge
  2. Introduction Historically forgone sponsoring SCM initiatives Now flourishing as a competitive strategy Degrees in Supply Chain Management are in high demand
  3. What is a supply chain? Three key terms that define a supply chain Raw materials Finished good Consumer/customer
  4. What is a supply chain? A structured manufacturing process wherein raw materials are transformed into finished goods, then delivered to end customers (Beamon 1998) The linked set of resources and processes that begins with the sourcing of raw material and extends through the delivery of end items to the final customer (Bridgefield Group glossary)
  5. What is a supply chain? The supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user. This includes sourcing and procurement, production scheduling, order processing, inventory management, transportation, warehousing, and customer service. Importantly, it also embodies the information systems so necessary to monitor all of these activities (Quinn 1997)
  6. Supply Chain Leaders
  7. Supply Chain Management Strategic and efficient coordination of the conventional business functions and the strategies across these business functions within a specific corporate and across business within a supply chain, for the aims of developing the long-term performance of the corporate and supply chain as an entire (Janvier-James 2012) For the right cost, at the right time, and to the right place
  8. Supply Chain Management Responsible supply chain management relies on: Integration Optimization Timely delivery
  9. Components of Supply Chain Management Integration Systems Standardize applications Flexibility Be able to respond quickly and efficiently Speed Reliability All business components contribute
  10. Three Vs of Supply Chains Variability Often external factors Velocity Communication Visibility Stronger relationships
  11. Measurement Janvier-James (2012) identifies two distinct measurements companies should consider: Performance (evaluates output) Efficiency (evaluates how output is achieved) Used for decision making, analyzing alternatives, and a motivational tool Efficiency measured at component and supply chain level
  12. Measurement Ellinger, et al. (2012) argue for empirical testing Customer satisfaction Shareholder value (using economic value added) Results indicated that over a ten year term: A potential relationship exists between supply chain management competency and customer satisfaction Top supply chain management performers are able to create higher levels of shareholder value
  13. Risk Management Risk is an unavoidable part of doing business Compounded significantly with globalization Should be considered when developing strategic initiatives Manage the risk
  14. Risk Management MIT and PwC surveyed 209 companies As much as 60% of the companies pay only marginal attention to risk reduction processes Remaining 40% achieved better operational and financial performance Classified companies as either immature or mature based on their risk reduction efforts
  15. Risk Management Survey says… SC disruptions are detrimental to business and financial performance Mature SC and risk management companies are more resilient Mature companies investing in SC flexibility are able to sustain and recover quicker Mature companies investing in risk segmentation are more resilient than those that are not Mature companies outperform immature companies
  16. Risk Management Deloitte Consulting surveyed 600 executives 48% reported increase in negative outcomes over last three years Most costly events Margin erosion and sudden demand change Executives far more concerned about extended value chain
  17. Summary Supply chain management is a growing function Responsible SCM offers a competitive advantage SCM members have to be integrated, flexible, and optimizing all resources Measurement is subjective Resiliency is key Risk is a fact of business Risk management leaders reap better operational and financial results
  18. Questions?