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Strategic Planning

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  1. Strategic Planning

  2. Strategic Planning • Mission Statement • Vision Statement • Strategies • Long-Term Action Plan • Commits Organizational Resources • Creates Competitive Advantage • Performance Measures

  3. Strategic Planning Steps • Developing the Vision • Translating the Vision into Goals • Developing the Strategies to Achieve the Goals • Selling the Strategies • Executing the Strategies • Tracking Progress

  4. Strategic Planning Steps: Developing the Vision • Determining the Time Horizon • The Macro View • Global Economy • National Economy • Industry Development • The Micro View • What is Desired State for the Organization

  5. Strategic Planning Steps: From Vision to Goals • Vision Drivers • Activities • Materials • People • Technologies • Stretch Targets

  6. Strategic Planning Steps: Strategies to Achieve Goals • Strategies Should: • Mold Decisions to Produce a Consistent Pattern • Focus Resources • Ease Trade-off Decisions

  7. Strategic Planning Steps: Strategies to Achieve Goals • Corporate Goal Congruency • Internal Customer Impacts • External Supplier Impacts • Defining Resources to Implement • Defining Resources to Sustain • Defining Structure

  8. Strategic Planning Steps: Strategies to Achieve Goals • Supply System Strategies May Involve • Staff • Technology • Resources • Time • Supply Base

  9. Strategic Planning Steps: Selling the Strategies • What are the Benefits • WHO Benefits • Making the Business Case • Finding the Right Avenue • Finding the Right Pitch • How to Get your Point Across in 30 Seconds or Less Milo Frank

  10. Strategic Planning Steps: Executing the Strategy • Operationalizing the Strategy • Organizational Structure • Staff • Training

  11. Strategic Planning Steps: Tracking Progress • Establishing Metrics • What to Measure • Setting Milestones • Goal: • A Strategy for Each Commodity • A Strategy for Each Supplier

  12. Development of Commodity and Supplier Strategies • Identify Critical Elements • Cost Drivers • Critical Materials • Key Technologies • Determine How to Manage • The Commodity • Each Supplier Within the Commodity

  13. Commodity Strategy • Industry Standard or Custom • Criticality • Market Study / Commodity Study • Global • Domestic

  14. Commodity Strategy • Sourcing Strategy • Single or Multiple Sources • Price/Cost Analysis • Contract Type • Automation • Logistics • Inventory • Transportation • Supplier Evaluations

  15. Supplier Strategy • Formal Analysis • Capability, Capacity, etc. • Present Status, Desired Status, Methodology • Performance Improvements • Additional Services • Administrative Improvements • Consignments, etc. • What Must WE Do?

  16. Strategy Development Example: Nuts and Bolts • Critical Elements • Quality (Counterfeit) • Availability • Minimize Administrative Cost • Strategy • Single Source • Local Supplier • Or Consigned Inventory • Known Manufacturer • VMI

  17. Strategy Development Example • Decide How to Manage Specific Supplier • Goals / Objectives for That Supplier • Develop Specific Performance Measures to Track Supplier Improvement • Invoice Accuracy • Prompt Backorder Clearance • On Time Delivery • Supplier Forecasting

  18. Forecasting as a Strategy Foundation • Volume Requirements • Timing • Locations • Future Requirements • Technology Impacts

  19. Technology

  20. Alphabet Soup • ERP • MRP • MIS • CRM • SRM • WMS • TMS • RFID • GPS • EDI • CAD • CPFR • ASRS

  21. RFID http://www.youtube.com/watch?v=4Zj7txoDxbE

  22. Ladar Forklift • http://www.jervisbwebb.com/Products/automatic_trailer_loading.aspx?pid=190&qs=1_6_