Supply chain management
Rust99
SUPPLYCHAIN_LESSON3.pptxSUPPLY CHAIN MANAGEMENT Session 3 One step forward The Supply Chain Introduction to Working Capital
Barcelona, Fall 2018
Luis J. Díaz. Industrial Engineer. M.B.A.
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Last Decade of 20th century
Consumers want a wide range of products and source options
Growing strategic posture of contemporary firms!!!!!!!!
SCM: Firms collaborating to leverage strategic positioning and to improve operating efficiency.
Supply chain strategy is a channel arrangement based on acknowledged dependency and collaboration.
Logistics “only” move and position inventory throughout a supply chain.
Firms developed business relationships with other product and service companies.
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Business Operations are integrated from initial material purchase to delivery of products and services to customers.
Supply network (connections with suppliers)
Integrated interprise (internal connections)
Market distribution network (connections with customers)
Firms enter and exit without any apparent loss of essential connectivity.
SUPPLY CHAIN MANAGEMENT
THE SUPPLY CHAIN MODEL
Forces driving the of Supply chain
Integrative Management
Outsourcing
Responsiveness
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Integrative management
Collaboration (internally)
Enterprise extension (towards suppliers and customers)
Information sharing (also confidential)
Process specialization (Outsourcing)
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
RESPONSIVENESS
Classical: Anticipatory business model. Driven by forecasts: Forecast/Buy/Manufacture/Inventory/Order/ Delivery
Supply chain: Responsive business model: Order/Buy/Manufacture/Delivery
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
POSTPONEMENT
Manufacturing: To maintain products in a neutral status as long as possible
Geographic: To build and stock a full-line inventory at or few strategical locations.
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
The eight important processes (drivers) of supply chain management are:
Planning.
Information.
Source.
Inventory.
Production.
Location.
Transportation.
Return of good
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
WORKING CAPITAL COMPONENTS
Purchasing inventories
Final products
Stocks from customers (in our warehouses)
Consigments stocks from customers (customer´s warehouse)
Standard products for sale
Orders to deliver
Intermediate products
Invoices to cash
SUPPLY CHAIN MANAGEMENT
THE WORKING CAPITAL
CURRENT ASSETS MINUS CURRENT LIABILITIES
CURRENT ASSETS/CURRENT LIABILITIES
WORKING CAPITAL/NET SALES
SUPPLY CHAIN MANAGEMENT
HOW CAND WE MEASURE AND
MONITOR THE WORKING CAPITAL?
THANK YOU!
