Week One Discussion 1

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Week1f-SupplyChainMapping-SCM610.pptx

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

1

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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

n

2

3

1

2

1

1

n

2

1

3

n

2

1

3

1

n

2

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

n

2

3

1

2

1

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

2

1

3

1

n

2

n

1

2

n

1

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

2

3

1

2

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1

n

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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

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

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