Supply chain management
Rust99
SUPPLYCHAIN_LESSON5.pptxSUPPLY CHAIN MANAGEMENT Session 5 Procurement and Manufacturing
Barcelona, Fall 2018
Luis J. Díaz. Industrial Engineer. M.B.A.
Historical: Obtain the desired resource to the lowest possible purchase price from the supplier
Modern: Development of relationships between buyers and sellers.
PURCHASED GOODS AND SERVICES ARE THE LARGEST COSTS ELEMENTS FOR MOST FIRMS!!
SUPPLY CHAIN MANAGEMENT
PROCUREMENT AND MANUFACTURING. PROCUREMENT
SWITCH FROM ADVERSARIAL TO SUPPORT!!!
Continuous Supply
Minimize inventory investment (JIT)
Quality improvement
Supplier Development
SUPPLY CHAIN MANAGEMENT
PROCUREMENT AND MANUFACTURING. PROCUREMENT PERSPECTIVES
VOLUME CONSOLIDATION: Reduction the number of suppliers
Negotiation strength
Economies of scale
Supplier investments
Certification programs!!!
SUPPLY CHAIN MANAGEMENT
PROCUREMENT AND MANUFACTURING. PROCUREMENT STRATEGIES
SUPPLIER OPERATIONAL INTEGRATION
Buyers and sellers integrate their processes and activities to achieve substantial performance improvement.
Agreed quality programs
Vendor-managed inventory
VALUE MANAGEMENT:
Value engineering
Reduced complexity
Supplier involvement in new product “The earlier a supplier is involved in the design process the more likely an organization is to capitalize on that supplier´s knowlege and capabilities”
SUPPLY CHAIN MANAGEMENT
PROCUREMENT AND MANUFACTURING. PROCUREMENT STRATEGIES
PARETO EFFECT!!!!!!!!!!! (80/20)
ABC ANALYSIS
SUPPLY CHAIN MANAGEMENT
PROCUREMENT AND MANUFACTURING. PROCUREMENT SEGMENTATION
The most common manufacturing strategies are make to plan (MTP), make to order (MTO) and assemble to order (ATO) (see file)
MTP strategies ara characteristics of industries exploiting economy of scale from long production runs. The logistical requirement to support MTP is warehousing capacity to store finished prducts.
MTO strategies seek to manufacture to customer specifications. Logistical capacity is required for temporary storage and transportation consolidation. Most product is shipped direct to customers.
In ATO situations products are manufactured in nticipations of future customer orders. ATO combines econonmy of scales of MTP with the flexibility of MTO
SUPPLY CHAIN MANAGEMENT
MANUFACTURING STRATEGIES
THANK YOU!
