Download
1 / 12
120 likes | 225 Vues
This overview explores the critical role of Supply Chain Management (SCM) in maximizing overall Return on Investment (ROI). It highlights key interfaces in the supply chain, such as sourcing, manufacturing, and distribution, emphasizing the importance of effective management strategies. Key principles include minimizing costs, enhancing customer service, and improving inventory management. As the marketplace evolves, organizations must foster collaboration across functions to implement Just-In-Time (JIT) policies, ensuring a responsive and efficient supply chain that aligns with customer demands.
E N D
Holistic SCM Context The “bottom line” in SCM is the degree of contribution to the overall ROI. Effective SCM can contribute to: • reduced costs in material flows • improved revenue - through better & more responsive customer service Thus the challenge is how best to manage the SCM system to maximise ROI
Supply Chain Interfaces Supply Chain Sourcing/ Purchasing Manufacturing Physical Distribution How many suppliers/product Lead time concept Channels Strategic location of suppliers Stock out performance Segments Business agreement with suppliers Price/product concept Production utilisation levels Process planning & Control “mini company”
Supply Chain Interfaces continued • in 50s, 60s and 70s logistics part of marketing • emphasise on product promotion and development • warehousing, transport, inventory control & customer service neglected • in 1970s and 80s separate logistics function with responsibility for warehousing, inventory, transportation (inbound/outbound), communications, materials management • in the 1990s interface management problems, to remain competitive • 2000+ important to manage potential conflicts at interfaces
SC Interactions with Marketing These include: • Product design • Pricing • Market and Sales forecast • Customer service policies • Number and location of warehouses • Inventory policies • Order processing • Channels of distribution • Customer service
Four Management Stages To 1960s Stage 1 1970s-80s Stage 2 1980s-90s Stage 3 1990s-2000+ Stage 4 Total Cost Management Supply Chain Management Integrated Logistics Management Warehousing & Transportation Management Focus Management Focus Management Focus Management Focus Optimising Operations Cost & Customer Service Tactics/ Strategies Logistics Planning Supply Chain Visions, Objectives & Goals Operations Performance Organisation design Organisation design Organisation design Organisation design Partnering,Virtual Organisation Market Co-evolution Integration of Logistics Functions Decentralised Functions Centralised Functions
Customer Focus Logistics often responsible for sourcing & management of raw materials. Thus by developing effective functional interfaces and utilising technology strategically, organisations can adopt JIT policies that: • see manufacturing costs incurred closer to the point of sale • substantially reduce raw materials inventories • result in finished goods inventory profiles more closely aligned to customer demands • help reduce buffers of prohibitively costly finished goods inventory
Principles of Manufacturing • the key to manufacturing is to keep the distance between the goods coming in and goods going out to a minimum and you will make a profit • the day you let it lengthen you start increasing costs
Interfaces with Manufacturing Two primary questions: • How to maintain or enhance its responsibilities to the changing needs of the marketplace • How to maintain or enhance profitability
Strategic issues • the key success factors for the industry • its basis for competing in its chosen markets • the relevant elements of customer service The organisations must consider the following strategic issues:
Three aspects to consider • The competitive stance of the business and how it impacts the manufacturing and logistics functions • The manufacturing-logistics network within the SC context • Customer Service issues at functional interface level (i.e. purchasing-manufacturing-distribution)
Holistic View • treating the purchasing-manufacturing-logistics network in a holistic manner • developing sustainable improvement programmes to co-ordinate activities across various functions (e.g.. delivery service, production priority control, purchasing and so on) & capitalise on synergies To maintain competitive position in a dynamic environment, the manufacturing and logistics functions must respond positively to the strategic issues by:
