Week One Discussion 1
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
Department of Management and Marketing
SCM 610 – Supply Chain Collaboration
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Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 11 Mapping for Supply Chain Management
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
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Supply Chain Mapping
Firms need to start with relationship-based maps to get a visual representation of the complexities of its supply chain.
A variety of activity-based maps can also be used to identify improvement opportunities across the supply chain
Time-based process mapping
Pipeline inventory mapping
Extended value stream mapping
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
Relationship-based Maps
Supply chain management is about managing relationships.
Maps will look different depending on a company’s position in the supply chain.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
Supply Chain Network for a Manufacturer
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3
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2
1
1
n
2
1
3
n
2
1
3
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n
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n
1
2
n
1
End Customers
n
Tier 3 to n suppliers
Initial Suppliers
Tier 1
Customers
Tier 2
Customers
Tier 3 to
End Customers
Tier 2
Suppliers
Tier 1
Suppliers
Tier 3 to
Initial
suppliers
n
1
n
Tier 3 to n customers
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 201.
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Members of the Focal Company’s Supply Chain
Focal Company
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Supply Chain Network for a Retailer
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2
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1
n
2
1
3
n
End Customers
Tier 3 to n suppliers
Initial Suppliers
End Customers
Tier 2
Suppliers
Tier 1
Suppliers
Tier 3 to
Initial
suppliers
n
1
n
Members of the Focal Company’s Supply Chain
Focal Company
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 203.
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End Customers
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Supply Chain Network for a Supplier of Original Materials
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End Customers
n
Tier 1
Customers
Tier 2
Customers
Tier 3 to
End Customers
Tier 3 to n customers
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL; Supply Chain Management Institute, 2014, p. 203.
Members of the Focal Company’s Supply Chain
Focal Company
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Why Map the Supply Chain?
To determine how to better serve customers.
To improve competitive positioning.
To evaluate the potential for outsourcing.
To meet the requirements of a customer segment.
To improve up-stream performance.
To improve down stream inventory replenishment.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
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Who Does the Mapping?
Senior managers from marketing, sales, logistics, operations, purchasing and finance
Managers with detailed knowledge of customers and suppliers
Managers from key customer organizations
Managers from key supplier organizations
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
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Supply Chains Are Complex
The term “chain” suggests that supply chains are linear, when in fact, they are networks.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
n
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End Customers
n
Tier 3 to n Suppliers
Initial Suppliers
Tier 1
Customers
Tier 2
Customers
Tier 3 to End Customers
Tier 2
Suppliers
Tier 1
Suppliers
Tier 3 to Initial Suppliers
n
1
n
1
n
P&G
Colgate
Unilever
Managed Process Links
Not-Managed Process Links
Non-Member Process Links
Monitored Process Links
Tier 3 to n Customers
Typically Competitors Buy from the Same Suppliers and Sell to the Same Customers
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 7.
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| VCT | 4 hours | 1 hour | 8 hours | 18 hours | 2 hours | 33 hrs. | ||
| WT | 9.83 days | 23 hours | 4.67 days | 8.25 days | 1.44 days | 25.1 days | ||
| TT | 1 day | 2 days | 3 days | |||||
| Total | 10 days | 1 day | 1 day | 5 days | 9 days | 1.5 days | 2 days | 29.5 days |
Performance
Late: 15%
Damaged: 3%
Wrong: 7%
Perfect: 75%
VCT = 4 hrs.
Assembly Shop
Customer
Service
Demand =
70 boards/ month;
seasonal
Fiberglass
and Polyester
Supplier
Stringer and
Fin Supplier
Consumer Order
Plant
Warehouse
Polyurethane
Supplier
Big Kahuna
Surf Shop
Monthly Sales
Forecast
Assembly 1
Assembly 2
Blanks
Produced and
Shaped
Boards
Customized
and Finished
L/T = 8 days
FTQ = 85%
VCT = 2 hrs.
L/T = 5 days
FTQ = 88%
VCT = 1.5 hrs
L/T = 10 days
FTQ = 94%
MRP
Weekly Orders
VCT = 8 hrs.
L/T = 5 days
FTQ = 89%
VCT=18 hrs.
L/T = 9 days
FTQ = 87%
Receiving
Collection &
Storage of
Materials
VCT= 1 hr.
L/T = 1 day
FTQ = 96%
Shipping
Packaging
and Staging
VCT=2 hrs.
L/T = 1.5 days
FTQ = 92%
Plant
Warehouse
Totals
I
Weekly Schedule
I
I
RM
Inv: 45
days
FG
Inv: 30
days
I
RM
Inv: 60
days
FG
Inv: 20
days
I
RM
Inv: 25
days
FG
Inv: 10
days
RM
Inv: 10
days
I
WIP
Inv: 7
days
I
FG
Inv: 15
days
FG
Inv: 20
days
2 days
15%
1 day
85%
100%
1 day
Production
Control
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 226.
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End of Week One
Next Time – Customer Service Management
Demand Management
Order Fulfillment
Manufacturing Flow Management
SCM 610 – Supply Chain Collaboration