Lecture 1
Recent challenges & trends in the supply chain
- Increasing number of strikes in China
- e-Commerce and omni-channel
- Big data/internet of things (IoT)
- Global warming and green
- Onshoring and reshoring
Supply chain collaboratonn the integraton of key business processes from end user through original suppliers, that provides
products, services, informaton that add value for customers and other stakeholders. It involves exchange of informaton, joint
responsibility, joint planning, alignment of objectves and relaton management.
A supply chain can be described in terms of: stages, fows and processes.
Objectien to maximize overall value created, customer the only source of value, sources of cost include fow of informaton,
products or funds between stages of the supply chain. Customer value/Supply chain cost = Supply chain proft
Triple A Supply Chainn
- Agility: Respond to short-term changes in demand or supply quickly; handle external disruptons smoothly
Methods:
Promote fow of informaton with suppliers and customers
Develop collaboratve relatonships with suppliers
Design of postponement
Build inventory bufers by maintaining a stockpile of inexpensive but key components
Have a dependable logistcs system or partner
Draw up contngency plans and develop crisis management
- Adaptabilityn Adjust supply chain’s design to meet structural shifs in markets, modify supply network to strategies,
product and technologies
Monitor economies all over the world to spot new supply bases and markets
Use intermediaries to develop fresh suppliers and logistcs infrastructure
Evaluate needs of ultmate consumers – not just immediate customers
Create fexible product design
Determine where companies“’ products stand in terms of technology cycles and product life cycles
- Alignment: Create incentves for beter performance
Exchange informaton and knowledge freely with vendors and customers
Lay down roles, tasks, responsibilites clearly for suppliers and customers
Equitably share risks, costs, and gains of improvement initatves
Conclusion Collaboraton:
- Difcult to manage
- Eases trade-ofs by relaxing constraints and expanding decision sets
- No miracle cures (degree maters)
Lecture 2 – Supply Chain Collaboration
Successful SCM requires a change from managing individual functinn to integratng actvitin into key nupply chain pricinnin.
- Functonal integraton
- Pricinn integraton
Supply chain collaboraton actvites:
- Informaton sharing
- Joint planning
- Joint problem solving
- Joint performance measurement
- Leveraging resources and skills
Supply chain processes:
- Customer relatonship management
- Demand management
- Order fulflment
- Manufacturing fow management
- Procurement
, - Product development and commercializaton
Informaton sharing & eendor managed inientory (eMIIe
VMI = the sharing of responsibility for inventory management by:
- Sharing forecast informaton
- Reducing lead-tme of deliveries (joint planning)
- Identfying stock reducton opportunites
- Using EDI as enabling technology
Benefits of eMIIn
- Increased sales
- Higher inventory turns
- Improved demand forecastng
- Shorter delivery tme
- Lowered inventory costs
- Economies of scale in delivery
Adiantages of eMIIn
- More informaton exchanges in the chain, shorter lead tmes
- Integral management of inventory
- More informaton about out of stocks in the chain
- Integraton of planning cycles
- Less administratve work
- Beter use of resources
Who is managing inventory / forecast exchange No Yes
Buyer Classic Collaboratie forecastng
Supplier eMII basic eMII adianced
Supply chain collaboraton hard approach
- Transactonal
- Top-down & botom-up
- 3 loops
Supply chain collaboraton soft approach
- Relatonal
- Two relatonal dimensions:
Trust
Commitment
Diferences in supplier’s and buyer’s view
Inter-Organizatonal collaboraton (external) – between frms, on operatonal tactcal & strategic level
Intra-Organizatonal collaboraton (internal) – in the frm, on operatonal tactcal & strategic level
, Inter-Organizatonal Collaboraton:
- Vendor Managed Inventory (VMI)
Suppliers
Customers
- Supplier development
- Collaboratve forecastng
- Promoton horizon
- On shelf availability
Supplier relatonship goiernance Relatonship goiernance
Leiels of supplier integratonn
- Whiti bix: discussions are held with suppliers about specifcatons/requirements but the buying company makes all
design and specifcatons decisions
- Griy bix: the buyer and supplier enter into an informal, or sometmes a formal joint development efort, which may
include informaton and technology sharing and joint decision making regarding design specifcatons
- Black bix: the supplier is informed of customer requirements and then is given almost complete responsibility for the
purchased item, with only review and concurrence on the purchased item’s specifcaton by the buying company
Task complexityn difculty of designing and
developing a component
Component integratonn is easy when
component interdependence is low (components
can be designed and developed in isolaton
Recent challenges & trends in the supply chain
- Increasing number of strikes in China
- e-Commerce and omni-channel
- Big data/internet of things (IoT)
- Global warming and green
- Onshoring and reshoring
Supply chain collaboratonn the integraton of key business processes from end user through original suppliers, that provides
products, services, informaton that add value for customers and other stakeholders. It involves exchange of informaton, joint
responsibility, joint planning, alignment of objectves and relaton management.
A supply chain can be described in terms of: stages, fows and processes.
Objectien to maximize overall value created, customer the only source of value, sources of cost include fow of informaton,
products or funds between stages of the supply chain. Customer value/Supply chain cost = Supply chain proft
Triple A Supply Chainn
- Agility: Respond to short-term changes in demand or supply quickly; handle external disruptons smoothly
Methods:
Promote fow of informaton with suppliers and customers
Develop collaboratve relatonships with suppliers
Design of postponement
Build inventory bufers by maintaining a stockpile of inexpensive but key components
Have a dependable logistcs system or partner
Draw up contngency plans and develop crisis management
- Adaptabilityn Adjust supply chain’s design to meet structural shifs in markets, modify supply network to strategies,
product and technologies
Monitor economies all over the world to spot new supply bases and markets
Use intermediaries to develop fresh suppliers and logistcs infrastructure
Evaluate needs of ultmate consumers – not just immediate customers
Create fexible product design
Determine where companies“’ products stand in terms of technology cycles and product life cycles
- Alignment: Create incentves for beter performance
Exchange informaton and knowledge freely with vendors and customers
Lay down roles, tasks, responsibilites clearly for suppliers and customers
Equitably share risks, costs, and gains of improvement initatves
Conclusion Collaboraton:
- Difcult to manage
- Eases trade-ofs by relaxing constraints and expanding decision sets
- No miracle cures (degree maters)
Lecture 2 – Supply Chain Collaboration
Successful SCM requires a change from managing individual functinn to integratng actvitin into key nupply chain pricinnin.
- Functonal integraton
- Pricinn integraton
Supply chain collaboraton actvites:
- Informaton sharing
- Joint planning
- Joint problem solving
- Joint performance measurement
- Leveraging resources and skills
Supply chain processes:
- Customer relatonship management
- Demand management
- Order fulflment
- Manufacturing fow management
- Procurement
, - Product development and commercializaton
Informaton sharing & eendor managed inientory (eMIIe
VMI = the sharing of responsibility for inventory management by:
- Sharing forecast informaton
- Reducing lead-tme of deliveries (joint planning)
- Identfying stock reducton opportunites
- Using EDI as enabling technology
Benefits of eMIIn
- Increased sales
- Higher inventory turns
- Improved demand forecastng
- Shorter delivery tme
- Lowered inventory costs
- Economies of scale in delivery
Adiantages of eMIIn
- More informaton exchanges in the chain, shorter lead tmes
- Integral management of inventory
- More informaton about out of stocks in the chain
- Integraton of planning cycles
- Less administratve work
- Beter use of resources
Who is managing inventory / forecast exchange No Yes
Buyer Classic Collaboratie forecastng
Supplier eMII basic eMII adianced
Supply chain collaboraton hard approach
- Transactonal
- Top-down & botom-up
- 3 loops
Supply chain collaboraton soft approach
- Relatonal
- Two relatonal dimensions:
Trust
Commitment
Diferences in supplier’s and buyer’s view
Inter-Organizatonal collaboraton (external) – between frms, on operatonal tactcal & strategic level
Intra-Organizatonal collaboraton (internal) – in the frm, on operatonal tactcal & strategic level
, Inter-Organizatonal Collaboraton:
- Vendor Managed Inventory (VMI)
Suppliers
Customers
- Supplier development
- Collaboratve forecastng
- Promoton horizon
- On shelf availability
Supplier relatonship goiernance Relatonship goiernance
Leiels of supplier integratonn
- Whiti bix: discussions are held with suppliers about specifcatons/requirements but the buying company makes all
design and specifcatons decisions
- Griy bix: the buyer and supplier enter into an informal, or sometmes a formal joint development efort, which may
include informaton and technology sharing and joint decision making regarding design specifcatons
- Black bix: the supplier is informed of customer requirements and then is given almost complete responsibility for the
purchased item, with only review and concurrence on the purchased item’s specifcaton by the buying company
Task complexityn difculty of designing and
developing a component
Component integratonn is easy when
component interdependence is low (components
can be designed and developed in isolaton
