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Supplier Management

Supplier Management. Trade offs. The Fresh Connection is full of trade offs Over multiple roles and within roles Sometimes conflicting with role incentives. Capacity mgt. TCO Product characteristics. Demand mgt. Supplier mgt. Inventory mgt. Supplier selection.

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Supplier Management

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  1. Supplier Management

  2. Trade offs • The FreshConnection is full of trade offs • Over multiple roles and within roles • Sometimesconflictingwithrole incentives Capacitymgt TCO Product characteristics Demand mgt Suppliermgt Inventorymgt

  3. Supplier selection • How to select the best supplier? • What criteria did you use? • How to prioritize them?

  4. What is Total Cost of Ownership? • In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership (APICS Dictionary, 12th edition) • In other words: quantifying all procurement related costs of a supplier or a component

  5. What is Total Cost of Ownership? (cont) • Whatrelatedcostscanyoumentionfor the Fresh Connection? • Product costs • Transportationcosts • Qualitycosts • Interest • Inventory & paymentterms • Handlingcosts • Administrationcosts • Warehousecosts Explore TFC Calculate this costs for one of the components in % How to influence this costs What does this mean for your supplier policy

  6. Product characteristics • Product characteristics are important. The focus of totalcosts of ownershipwillchange. Explore TFC What is the value per pallet for the components? What is the volume and value per week per component? How will the difference in characteristisc influence the policy?

  7. Product characteristics are important for designing a supply chain configuration How does this influence inventory policy and supplier selection?

  8. Product characteristics and policy Volume/week Trasnportationhandling and warehousing 100 Price and availability 10 Transportation and availability 1 100 1000 500 Value/pallet

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