collaborative supply chain, scor model, and beer game · supply chain management: key concepts...

Collaborative Supply Chain, SCOR

Model, and Beer Game

By PhD. Samia Chehbi Gamoura

2019

Associate Professor – EM Strasbourg

Strasbourg University

France

Part 1 : Supply Chain Management

Part 2 : Supply Chain Modelling

Part 3 : Collaborative Supply Chain

Part 4 : Supply Chain and Simulation

Part 5 : Supply Chain : Future Opportunities and challenges

Agenda

Part 1 : Supply Chain ManagementSupply Chain: ConceptSupply Chain Management: DefinitionSupply Chain Management : key concepts

Material ManagementChallenge of procurementReal-world Case study: IKEA®

Physical DistributionChallenge of salesReal-world Case study: CARREFOUR®

Supply Chain Management: Decision levelsOperational decisions

Challenge of transshipmentReal-world Case study: LAAP®

Tactical decisionsChallenge of jobshop managementReal-world Case study: RENAULT TRUCKS®

Strategic decisionsChallenge of resizingReal-world Case study: FERRIGNO®





Agenda

- What is a Supply Chain ?

- Time : 5 min

Supply Chain

Part 1: Supply Chain Management

Supply Chain


Supply Chain: Concept

Conjoining these activities, a supply chain does not simply represent a linear one-on-one chain, but a grid of multiple business relationships around the world. Usually, there are several stakeholders comprised of various suppliers.



Supply Chain Management: Definition

An integrated system which :-Obtains raw materials and parts;-Changes, transform, alter; these raw materials and parts into marketable products. -Adds business value to these marketable products-Distributes these marketable products to retailers and/or customers,-Promotes these marketable products-Eases information exchanges among business entities (suppliers, distributors, …)


Supply Chain Management: Definition

The main objectives in SCM are:-Synchronizing the series of above processes, -Enhancing the operational efficiency, -Increasing profitability,-Improving competitive position of stakeholders..

Objectives of SCMObjectives of SCM

Synchronizingprocesses

Synchronizingprocesses

EnhancingoperationsEnhancingoperations

IncreasingprofitabilityIncreasing

profitabilityImproving

competitivenessImproving

competitiveness

Supply Chain Management : Key concepts

A Supply Chain Management is characterized by two main concepts:-Forwarding the flow of goods-Backwarding the flow of information

and comprised in two main business processes:-material management (inbound logistics)-physical distribution (outbound logistics)

Suppliers Distributors Retailers Customers

Outbound logisticsInbound logistics

Manufacturers

Physical distributionMaterial management

Flow of information

Flow of goods


Supply Chain Management: Key concepts Material Management

Material management supports the whole cycle of material and parts movement in:-Acquisition,-Purchase and internal control of production,-Control of work-in-process, -Planning -Warehousing and storage,-Shipping, -…


Supply Chain Management: Key concepts Material Management

What is the


Supply Chain Management: Key concepts Material Management Challenge of purchasing

Material management doesn’t only comprise: acquisition, planning, and storage. It includes many further operations: • Purchase and procurement• Decision making• Information technology integration


Purchasing: refers to a business or organization attempting to acquire goods or services to accomplish its goals. .

Real-world Case StudyIKEA®


http://www.ikea.com/fr/fr/


Real-world Case Study : IKEA®

Ikea®, a giant worldwide distribution group, founded in 1943 by the Swedish Ingvar Kamprad. Key figures:

- 140 000 employees- 45 countries- > 29 billion Turnover



Global supplyinginternational supplyingDomestic supplying


Purchasing is part of sourcing strategy and three stages of supplying exist. - Domestic supplying- International supplying- Global supplying


Stage 2

Stage 1

Stage 3



Purchasing of PAX wardrobes in Ikea® supply chain. A critical aspects in the product/components:- Sliding doors- Tempered glass (heavy and fragile, all sourced)- Main supplier of doors is the swedish Sapa Profiler.


Ikea final product

sliding doors component





tempered glasssliding profilepackaging material

Pu

rch

ase

cha

in1

rubber componentssteel components

Pu

rch

ase

cha

in2

Pu

rch

ase

cha

in3

Pu

rch

ase

cha

in4

Pu

rch

ase

cha

in5

assembly fittings

Pu

rch

ase

cha

in6

aluminium frames

Pu

rch

ase

cha

in7

Bristol seals

Pu

rch

ase

cha

in7


Purchasing chain




tempered glass

Sw

ed

ishm

ark

et

China

swedish backup

China

chinese backup

Slo

va

km

ark

et

chin

ese

ma

rke

t





sliding profile

Purchasing chain

Sw

ed

ishm

ark

et

GermanyS

lov

ak

ma

rke

tch

ine

sem

ark

et





Purchasing chain

Sw

ed

ishm

ark

et

Sweden

- Local -

Slo

va

km

ark

et

chin

ese

ma

rke

t

packaging material

Slovakia

- Local -

China

- Local -





Purchasing chain

Sw

ed

ishm

ark

et

SwedenS

lov

ak

ma

rke

tch

ine

sem

ark

et

rubber components





Purchasing chain

Sw

ed

ishm

ark

et

SwedenS

lov

ak

ma

rke

tch

ine

sem

ark

et

Steel components

Sweden

chinese

- local -





Purchasing chain

Sw

ed

ishm

ark

et

Slovakia

Slo

va

km

ark

et

chin

ese

ma

rke

t

assembly fittings





Purchasingchain

Sw

ed

ishm

ark

et

Slo

va

km

ark

et

chin

ese

ma

rke

t

Aluminium frames

Sweden

- in-house

production-

Slovakia

- in-house

production-

China

- in-house

production-





Purchasing chain

Sw

ed

ishm

ark

et

Slo

va

km

ark

et

chin

ese

ma

rke

t

Bristol seals

China


Pros and Cons



World-wide integration of information systems and operations

Managing supplyers Reducing costs

Challenge of internationalization Challenge of synchronization of sourcing

operations between suppliers Constraints of different localizations (patents

costs, laws, etc.)

Physical distribution covers all outbound logistics activities related to:-Transportation,-Transshipment, -Stock management,-Planning,-Product life-cycle management,-Returned products handling,-…


Supply Chain Management: Key concepts Physical distribution

Supply Chain Management: Key concepts Physical distribution

What is the


Supply Chain Management: Key concepts Physical distribution Challenge of marketing

Physical distribution doesn’t only comprise: transportation, and planning. It includes many further imbricated operations such as: - consolidation, - pricing, - promotional support, - returned product handling, - Marketing,- Prospecting,



Real-world Case StudyCARREFOUR®


https://www.carrefour.fr/


Carrefour® is the 1st largest hypermarket in Europe and the 3rd biggest one in the world . Key figures:

- 85,7 billions Turnover (2016),- 384 000 employees- > 94 countries (France, China, Romania, Italy, etc.)


Real-world Case Study: CARREFOUR®


Regional supplyers of vegtables in Rhone-Alpes-Auvergne region in France:- Volatility of vegetable suppliers depending on seasonality and irregular sales of vegetables- No contractual supplyers (wholesalers) (farmers and winegrowers), - Seasonality and heterogeanous products cycles - The marketing service is insured by local wholesalers, as they know well the locality (tracts,

emails, displays in town halls, etc.).



Carrefour regional stores

(Rhone-Alpes Auvergne – France)

Vegetables

farmer

winegrower




Vegetables

Farmer’s CRM

winegrower’s CRM

Carrefour ERP Caroline




Wholesaler CRMCustomer Caroline ERP



Pros and Cons

Proximity provides satisfied customers Good marketing service of wholesalers have

direct impact on retailer sales

Need for coordination between stakeholdersto provide an efficient marketing service

Waisted time in returning products Unexpected delay in delivering Customer unsatisfaction

A Supply Chain Management operates at three main levels :-Operational level-Tactical level-Strategic level

• But, these distinctions (operational, tactical, strategic) are not always easy to separate, because some concerns may involve hierarchical, and/or multi-echelon planning that join different decision levels.


Supply Chain Management: Key concepts Physical distribution Decision levels

Operational decisions are: • Operational routines,• Vehicle routing/scheduling,• Workforce scheduling,• Record keeping,• Packaging



Operational

What is the



Operational

The transhipment is the using of an intermediate site to the deliver temporarily products (or component, materials, etc.) before achieving the final delivery endpoint.



Operational Challenge of transshipment

Real-world Case StudyLAAP ®


http://toutelasante.com/laap/


Operational Challenge of transshipment

LAAP®, created in 1997 by the group Bionatura. Located in Algeria (Oran), is specialized in the import and distribution of pharmaceutical products, para-pharmaceuticals, dietetics, accessories and medical equipment, and infant feeding.



Operational Challenge of transshipment Real-world Case Study : LAAP®

The arrivals of the products of the company LAAP (software JULIA 1.0 ©) correspond to the orders issued

- Stable market (monthly orders),- Known lifetime of products (drugs, on average one year).


Drugs PHYTO-NUTRITION PARA-

PHARMACEUTICAL

INFANT FEEDING

MEDICAL

ACCESSORIES

MEDICAL

EQUIPMENTSECOBI(Italy) ARKOPHARMA

FUMOUZE(France) FORTEPHARMA

ANTIBIOTICOS 3 CHENES NUTRICIA SOKEI

FRILAB BIOFAR CELIA BAYER DIAGNOSTIC

YAMANOUCHI PHARMALIFE GILBERT ETHICONPHARMASCIENCE TRAIDING FUMOUZELAMPUGNANI WALMARKABBOT

SARL LAAP IMPORT




ECOBI

EXPANSCIENCE

FUMOUZE

TRADINGNUTRICIALes 3 Chênes

Novidis

GILBERT

FRILAB

TRISA

JULIA V1.0 (Copyright © 2000)



To avoid losing orders and exceeding delays, LAAP® decides to transit the goods bought in the 3 countries (Fance, Switzerland and Italy), in rented warehouse in the seaport of the city of Marseille (France).


ECOBI

EXPANSCIENCE

FUMOUZE

TRADINGNUTRICIALes 3 Chênes

Novidis

GILBERT

FRILAB

TRISA





Operational Challenge of transshipment Pros and Cons

Transshipment helps in avoiding ordersloosing

Tanshipment helps in respecting delays

Additional costs constraintes are added Additional delays for perishable products

(drugs) has to be managed Conditionning of specific products has to be

added

Tactical issues are: • - inventory control• - production/distribution coordination• - order/freight consolidation• - material handling• - equipment selection• - layout design



Tactical

What is the



Tactical

Set of procedures, methods, structure, and resources necessary to modernize engineering operations to manage quality issues.



Tactica Challenge of Manufacturing Quality

Real-world Case StudyRENAULT TRUCKS®


http://www.renault-trucks.fr/


Tactical Challenge of Manufacturing Quality

RENAULT TRUCKS®, is a French company that develops, assembles and sells industrial and utility vehicles. It belongs to the Swedish group AB Volvo since 2001.



Tactica Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks

Manufacturing Quality Management (MQM) are the set of procedures, techniques, methods, structures, and resources that are required to rationalize the manufacturing operations with reduced costs and quality issues.


Quality and Failure

management


Tactical Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks


manufacturing quality management:

- In the assembly line (semi-authomated), there is a

control point at the end of the line and before

expedition.

- The quality control should follow and check the

following point:

* lacking vice

* oxidation of a component

* bad painting

* presence of water

- The control duration is around 15 minutes. If not

conforming, blocking the workpiece.

- If blocking , the labeling is generated and bonded to

the defective piece


Tactical Challenge of Manufacturing Quality Real-world Case Study :Renault Traucks



Tactical Challenge of Manufacturing Quality Pros and Cons

Quality controls helps in insuring an integrated product

Quality control helps in avoiding accidents (recalls for example) and retruned products

Quality management helps in improving the product

Additional tasks should be involved in the planning

Some control points cannot be automated Additional costs

Strategical decisions are high-level decisions that are relevant to whole organizations in long term. Issues at this level are:

- Global competition- Internal influences- Ensuring surviving- Long-term profitability- Global planning



Strategic

What is the


Decision levels Strategic decisions Challenge of resizing

Resizing an organization is the long-term decision that deals with the restructuring, the reorganization, and the reallocation of ressources and facilities.



Real-world Case StudyFERRIGNO®



http://www.ferrignosa.com/

FERRIGNO®, is a family enterprise that has been created in 1920 by the Italian fisherman Dominique Ferrigno in Algeria (at the time of the French colony). It is the first company to offer canneries in sardine boxes. Today, located in the south of France, and specialized in the manufacture, assembly, conservation and packaging of seafood (tinned cans, fish soups, cooked dishes).



Real-world case study: FERRIGNO®

Changing the structure of the chain: closing a factory, reopening another, setting up a new market, etc. The change in structure affects relations between actors and the management of the chain.




configuration 1configuration 2

Global Cost 1Global Cost 2

Changing the structure of the chain: closing a factory, reopening another, setting up a new market, etc. The change in structure affects relations between actors and the management of the chain.




SARL LAAPSARL LAAP

Entrepôt 1Warehouse 1

Entrepôt 2Warehouse 2

South regionWholesale

Half wholesale-

Grossistes répartiteursWholesalers

PharmaciensSupermarketsCliniquesPublic markets

médecinsCanteens

Centres de santéRestaurants

Délégués commerciauxTrade commissioners

720 Customers (retailers)

100 Customers

620 Customers (retailers)

North east

North west

Italiy

France

10 Suppliers

1 Supplier

7 Suppliers

Morocco

2 Supplliers

Sardine Box – Les belles de Marseille


Chaîne Logistique

Usine Sud US

Usine Nord UN

Clients

Fournisseurs

Clients

Fournisseurs

Entrepôt Sud ES

Supermarché Sud M3S

Sardine sud SS

Fer F

Clients



Sardine Nord SN

Entrepôt Nord EN

Clients

Entrepôt Italie EI

Supermarché Nord M2N


Clients

Supermarché Italie M3I



Sardine Box Supply Chain

Factory south France

Factory North France

Customers

Suppliers in France

Customers

Suppliers in Italy

Half wholesalers

Wholesalers

Sardine caught South France

Iron

Customers

Public markets and canteens in South France

Super markets in South France

Sardine caught South Italy

Warehouses

Customers

Wholesaler in North

Supermarket in North west

Supermarket in North east

Customers

Restaurants North France

Public Markets North France

Supermarket North France




Chaîne Logistique

Usine Sud US

Usine Nord UN

Clients

Fournisseurs

Clients

Fournisseurs

Entrepôt Sud ES


Sardine sud SS

Fer F

Clients



Sardine Nord SN

Entrepôt Nord EN

Clients

Entrepôt Italie EI



Clients




Sardine Box Supply Chain

Factory south France

Factory North France

Customers

Suppliers in France

Customers

Suppliers in Italy

Half wholesalers

Wholesalers

Sardine caught South France

Iron

Customers

Public markets and canteens in South France

Super markets in South France

Sardine caught South Italy

Warehouses

Customers

Wholesaler in North

Supermarket in North west

Supermarket in North east

Customers

Restaurants North France

Public Markets North France

Supermarket North France



Factory

in Italy


Helps in understanding whose decisions the models should aid,

World-wide integration of information systems and operations

Managing supplyers

Reducing costs

More than one assembly unit Challenge of internationalization Challenge of synchronization of sourcing

operations between suppliers Constraints of different localizations (patent

costs, laws, etc.)


Real-world case study: FERRIGNO® Pros and Cons


Practice and understanding

Downoald on http://www.samiagamoura.com/collaborative-supply-chain-modele-scor-

and-beer-game.html (Practice Part 1)


A model of Supply ChainChallenge of complexityReal-world Case study: AMAZON MARKETPLACE®

Modelling by partnership levelsDistrinctive categories

Primary partnersSecondary partnersValue Offering Point (VOP)

Challenge of distinctionReal-world Case study: CASINO®

Pros and ConsModelling by structural dimensions

Challenge of flexibilityReal-world Case study: ????????®




Agenda

Part 1 : Supply Chain Management

- What does mean the word ‘Model’ for you ?

- Time : 5 min

Part 2: Supply Chain Modelling

A model of Supply Chain


• A model of a context is a representation of the context• Many models may exist for the same context • A model of Supply Chain is the image that the term ‘supply chain’ conjure in our mind

map ?

trucks ?

network ?

products ?

factory?



What is the



A model of Supply Chain Challenge of complexity

• Considering the expansive range of a supply chain, NO model can capture ALL features of supply chain processes.

• To conciliate the dilemma between COMPLEXITY and VERACITY of the model, the designer should delineate the scope of the model,

• But not too complicated to elucidate !

Real-world Case StudyAMAZON MARKETPLACE®





Real-world Case Study : AMAZON MARKETPLACE®

Is the biggest worldwide online B2C vendor in the World




Largeness needs a huge number of human resources and multiplicity of goods needs a multiple transportation means around 7/7 and 24/24, in addition to transportation sub-contractors: UPS, FedEx:- This engenders less-control and fragility in Amazon supply chain,- The sub-contractors (UPS and FedEx) have other customers and not only Amazon to serve- Big problems of Amazon delivery are recorded due to sub-contractors coordination




Networks

of other

customers


- Try to list Pros and Cons from this case study.

Time : 10min






More profit, less cost with a wide distribution network

Outbond sub-contractors for transportation ismore convenient in case of worldwide supplybut with drawbacks as less control and fragility in delivery

Largeness needs a huge number of human resources

Multiplicity of goods needs a huge number of transportation means


Key idea: Supply Chain Management focuses on services and products and information that add value to customer. Thus, these are steps to conceive a Supply Chain model:- 1st : identifying customers is necessary, - 2nd : identifying products, services, and information to provide to these customers,- 3rd : identifying value-added aspects in products, services, and information,- 4th : identifying partners who are critical to the value-added with a manageable number of levels

Step 1 : Identifycustomers

Step 2 : Identify the product, service, information to sell

Step 3: Identify value-added in products, service, and information of step 2

Step 4 : Identifypartners who are stakeholders in the value-added of step 3 (with their levels)

Customers

Product

Value-added

Partners

Modelling by partnership levels


Distinction between levels allows the firm to define who the furthest upstream and downstreamstakeholders of the chain are, and recognize where customer demand really starts.The furthest downstream typically characterizes the end of the chain where no value is added, andthe product and/or service is consumed.

Modelling by partnership levels

downstream

Firm

upstream


Modelling by Partnership levels Distinctive categories

Two main categories are distinguished :- Primary partners- Secondary partners

Pri

ma

ryP

art

ne

rs

Se

con

da

ryP

art

ne

rs


Modelling by Partnership levels Distinctive categories Primary partners

Autonomous and strategic business units which perform activities designed to create a specific product or service for customers (or markets). these primary partners can be :

• Suppliers: steel mines, producers, etc.• Customers: consumers, institutions, administrations, etc.• Manufacturers : ex. HP for printers, Renault for cars, … • Mass-stores : Leclerc, LDLC, Carrefour, …


Modelling by Partnership levels Distinctive categories Secondary partners

Secondary partners are companies that simply provide resources (real-estate, facilities, software…). They can be: - consulting companies, - transportation carriers, - logistics providers, - IT services companies, - online brokers, - training institutions,- …


Modelling by Partnership levels Distinctive categories Value Offering Point (VOP)

The furthest downstream should correspond to the point of consumption, called the Value OfferingPoint (VOP). It is the point where customer allocates demand to his/her upstream supply chainpartner (store, distributor, manufacturer).VOP defines how and when demand is triggered to upstream partners.It is the point which states the economics of the customer where the transaction between valuecreation and costs.

partnerslevel 1

partnerslevel 2

partnerslevel 3

VOP

Furthestpartner

(Customer)

Upstream Customer


What is the

Modelling by Partnership levels Distinctive categories

Modelling by Partnership levels Distinctive categories Challenge of traceability


Traceability is today required from authorities (GS1 in Europe for example) in order to provide :

- Statistics, benchmarking, and forecasting- Ease retrieve of recalls (example the case of Volkswagen® cars recall in 2017)

Real-world Case StudyCasino®


Modelling by Partnership levels Distinctive categories Challenge of traceability

Modelling by Partnership levels Distinctive categories Challenge of distinction

Real-world Case Study: CASINO®


French retailer group with more than 8 000 stores in France and 1500 stores in South America and South East Asia (Thailand, Vietnam).




Global Traceability Standard Provider (Europe)

China

Europe

Delivery point

France

Casino DC

Casino store

Casino store

Casino store

transporter

Customers

Customers

Customers




Global Traceability Standard Provider (Europe)

China

Europe

Delivery point

Supplier of tomotoes: Primary partner

Whesaler: Secondary partner

Traceability authority Provider: Secondary partner

France

Sea transport: Secondary partner

Casino DC

Casino store

Casino store

Casino store

transporterland transport: Secondary partner

Customers

Customers

Customers

Consumers: Primary partner


Helps in understanding whose decisions the models should aid,

Clarifies what scope should be addressed,

Challenges of levels distinctions,

Challenges of identifying VOP,


Pros and Cons


Modelling by structural dimensions

Key idea: A model should comprehend the structure of the network as a pre-requisite. Thus these are the steps to conceive the Supply Chain model:• 1st : distinct between the horizontal and vertical structures,• 2nd : for horizontal, refers to tiers across the supply chain,- 3rd : for vertical, refers to suppliers and customers within each tier identified in step 2,

Step 1 : distinct betweenhorizontal and vertical structures

Step 2 : for horizontal, refers to tiers across the supply chain

Step 3 : for vertical, refers to the number of suppliers and customers within each tier

Horizontal / Vertical

Horizontal tiers

Vertical suppliers/customers


Some firms make strategic changes to either supply base decreasing or customer selectivity, thesupply chain becomes contracted. Outsourcing or functional offshoots will unavoidably change thesupply chain dimension by enlargement (vertical structure) and spreading (horizontal structure) thesupply chain.

Modelling by structural dimensions


The characterization may be built on business and operational relationships

Modelling by linkages


Modelling by linkage characteristics Distinctive characteristics

Four charactristics of linkages are identifyed :- Managed Business Processes Links (BP Management)- Monitored Business Process Links (BP Monitoring)

BP Manageme

nt

BP Monitoring

Not Managed in the BP

Not member in

the BP


What is the

Modelling by linkage characteristics Distinctive characteristics BP Management


Links are the ones where the company participates in a Supply Chain activity (process) withone or more tier partners (customers/suppliers) as the firm still involved in the management ofan activity. In such case, the company may play a role in :- Resources allocation: ex.. Manpower, equipment, …- Information sharing : ex. know-how, expertise, surveys, …




Challenge of unstructured BP

In a structured business process, all the tasks of an activity are automated and all the cases are expected and studied previsouly. But when an unexpected case or unexpected path between taskshappens the business process becomes unstructured.

Real-world Case StudyGROUPAMA®


Modelling by linkages Distinctive characteristics BP Management Challenge of

unstructured BPs



unstructured BPs Real-world case study : Groupama®

Insurance claims management (ICM) is the set of services provided to customers for reimbursement and repayment of damages, with a set of checking rules of contracts.

- Try to list Pros and Cons from this case study.

Time : 10min




Adaptability to new situations Quick solutions in situations of crisis

Need for human resources to support non-automated tasks

When a problem occures investigations become too complex





Activities in SC stakeholders are performed following sets of tasks. The execution of

these tasks in flows (or workflows) is represented by a process.

It is known as the process-oriented modelling

Modelling by processes


SCOR (Supply-chain operations reference) is a reference model that belongs to process modelling methodology.It was developed and regularly maintained by the Supply Chain Council.It is a reference model is illustrated by a set of parts, concepts clearly defined with definitions of the relationships between these parts and concepts. It is somehow a clear framework that can be used as a common standard that allow members to talk the same language.SCOR is a reference model that aims to create a common communication support for all partners in supply chain.SCOR has the particularity of including some activities that are not part of Supply Chain Management but somehow involved in supply activities such as:- Learning/training, - IT (Information Technology),- Administrative and executive activities

Modelling by processes SCOR


A company that adopt SCOR has to follow the following steps:1. Analyze the current state of its processes (with regard to the achievement of the goals),2. Quantifying performances of these processes by a set of metrics (with regard to its businessactivities),3. Comparing these quantified performances to benchmark data

Step 1 : Analyze the current state of its processes (with regard to the achievement of the goals),

Step 2 : Quantifying performances of these processes by a set of metrics (with regard to its business

activities),

Step 3 : Comparing these quantified performances to benchmark data

Modelling by processes SCOR model


The SCOR model focused on customer's demand and organize management activities in to 5 main distinct processes (recently 6) :• Plan,• Source,• Make,• Deliver,• Return,• Enable (added in 2013)

Modelling by processes SCOR model Processes

Plan process

Source process

Make process

Deliver Process

Return process

Enable process

Planning

Procuring

Manufacturing

Distributing

backing


Processes have in turn their sub-processes :

Modelling by processes SCOR model Processes


set of processes that organize demand/supply requests to develop the planning of actions which meets the available and expected main activities of :- Sourcing/procurement, - Fabrication/production, - Transport/delivery.

Plan

Modelling by processes SCOR model Processes Plan


Set of processes that allow acquiring products (goods and/or services) to ensure the planning (output of Plan Process)

Source

Plan

Modelling by processes SCOR model Processes Source


Set of processes that alter components (parts) to a final product (goods and/or services) in order to ensure the planned demand

MakeSource

Source

Plan

Modelling by processes SCOR model Processes Make


Set of processes that make available finished products (goods and/or services) respecting the planned demand. This involves:- Demand management, - Carrying management, - Delivery management.

MakeSource

Source Deliver

Plan

Modelling by processes SCOR model Processes Deliver


Set of processes of handling returned products (goods and/or services) for any reason (defective item, products recall, exceeded expiry date, lack of spare parts, etc.).

Plan

MakeSource

Source Deliver

Return

Modelling by processes SCOR model Processes Return

M0: M

ain

Pro

cess

(Level1)

P1: Sub-Process(Level 2)

P1.01: xxx (Sub-Process)

(Level 3)


(Level 3)


(Level 3)

…


Regarding the granularity (steps) of analysis, each process is divided into a set of sub-processes through a set of levels

Modelling by processes SCOR model Processes Granularity in levels (sub-processes)

Plan

Source Make Deliver

Return


Level 1 represents the main processes of the added-value in the chain (source, make, deliver, return)At this level, it is mondatory to set the context with a description of the location, the product(good and/or service) and customers segmentations. In SCOR specification, these main processes are designed by the syntax :A capital letter (letter): ex. S, M, D, R

Plan

S M D

R

Location

Product

Customers segments

Location

Location


Level 1


Level 2 represents sub-processes derived from the main processes of Level 1, in a child-parent relationship. At this level, it is mondatory to define the main configurations (scenarios) of the context alreadydefined in Level 1 (location, products and segments)In SCOR specification, these sub-processes are designed by the syntax : The capital letter of the parent succeded by a number (letter-number): ex. S1, S2, S3,…, M1, M2,…, D1, D2, …, R1, R2, R3, R4, …

Plan

S M D

R

Configurations (scenarios)

stock management in production

M1 M2 M3

ordering management in manufacturing

manufacturing engineering


Level 2


Level 3 represents sub-processes derived from the sub-processes of Level 2 (configurations), in a child-parent relationship. At this level, it is mondatory to define the best practices for each business activity related to the configuration already defined in Level 2.In SCOR specification, these sub-processes are designed by the syntax : The syntax of the parent succeded by a serial (number letter-number-dot-serial number): ex. S1.01, S1.02, S1.03,…, S2.01,… M1.01, M1..02, …,M2.01,…

Plan

S M D

R

Business activities

transfert componentsM1 M2 M3

test prototype

packageM2.01 M2.02 M2.03 M2.04


Level 3

SCOR is commonly used to benchmark firm performance in its supply chain.Supply Chain Council regularly use cases of members to collect best practices that are be costumed models evaluation.Firms should use SCOR to adapt their business activities in order to achieve competitive advantages.


Modelling by processes SCOR model Benchmarking




and-beer-game.html (Practice part 2)

Part 1 Supply Chain Management

Part 2 Supply Chain Modelling

Part 3 Collaborative Supply Chain

Collaboration

Context

Decision strategy

Types

Collaborative decision

Extended supply chain

Partnerships of stakeholders

Collaborative approaches

Case study 1 : Intel® supply chain

Case study 2: Starbucks® supply chain

Part 4 Supply Chain Simulation

Part 5 Supply Chain : Future Opportunities and challenges

Agenda

- What is ‘Collaboration’ ?

- Time : 5 min

Collaboration: Context

Part 3: Collaborative Supply Chain


In a Supply Chain, different decision makers: - Independent decisions, - Contexts specific to each stakeholder,

But, common interests: - Same final product, - Same final customers (consumers)


But for a common decision, we need to have a

global view of the chain?

Need communication between actors


How making common decision in such networked and complex organization ?!


The motives are : decreasing costs, enhancement in responsiveness, avoiding wasting time, good service levels, common customer satisfaction.


Types of organization and decision strategy

Collaboration: Decision strategy

Strategic level

Tactical level

Operational level

Centralized organization Distribted organization

- Try to list Pros and Cons of each organization.

Time : 10min


Collaboration: Context Pros and Cons


Collaboration: Context Pros and Cons

Centralized: Consistency Insuring global performance

Parallel: Fast to setup Collaboration is done in short-term

Centralized: Infrastucture too complex Who governs the central point ?

Parallel: Complexity of technical tools Complexity in investigation and audit


Collaboration: Collaborative decision

Decision-Aid

techniques that generate information to allow the decision center to evaluate the consequences of a decision made from a set of criteria.

Collaboration

Work together to execute an action to produce a final result.

Coordination

Synchronize actions over time and manage the consistency of individual actions in relation to all activities

Cooperation

Strong communication between actors. It can be 'synchronous' or 'asynchronous'

Decision

The product of thought processes.

Managers are continually faced to make: stock management decisions, production management, scheduling, contract management, negotiations, and so on.



Codecision

Collaboration of several actors in order to make a decision

Collaboration


Decision





Collaborative decision

Collaboration


Decision




Collaboration: Extended Supply Chain

An extended Supply Chain is based on :

- Information sharing at all levels: Not only in transfering data but also by automation of processes

- Real-time cooperation between multiple partners

- Reactivity: Increasing in demand, quickly and unexpectedly (cold in summer so increase in purchase of pullovers)

- Risk Management: Effective global risk management (disasters as hurricanes in (Detroit) USA, so sold-out in Ford stocks)

- Adaptability: Continuously integrating wishes and future behaviour of customers (digital marketing, recommandingsystems, etc.)

- Proactivity: Proactive management of processes (Business processes Reengineering)

Agenda




Part 4 Supply Chain and Simulation

Simulation

Known example: Beer game

Bullwhip effect

Decision strategy


- What is ‘Simulation’ ?

- Time : 5 min

Part 4: Supply Chain Simulation

Simulation


Simulation


Is the imitation of a system in the real world. It must be based on a model. Somehow like the dynamic aspect of the model (complementary to the model). The simulation is important in simplifying and showing behavior of complex phenomena.

Simulation


Known example : Beer Game

Client

DétaillantGrossisteDistributeurUsine

LégendeLégende Acteur

Commandes

Produits Livrés

Source infinie Client



Commandes

Produits Livrés

Source infinie

Classic example of a linear distribution chain (MIT, 1960). It simulates and illustrates simple exchanges between a setof 6 stakeholders, but mainly to illustrate the bullwhip effect (demand amplification).

Source Customer

Factory Distributor Wholesaler Retailer

Actor

Order

Delivered

products


Known example : Beer Game Bullwhip effect

Providing a digital indicator to measure the amplification of demand.

1σ2

σ

wholesaler retailer

TT

Q

12σσ >

Q

012

>− σσ


Known example : Beer Game

Client



Commandes

Produits Livrés

Source infinie Client



Commandes

Produits Livrés

Source infinieSource Customer

Factory Distributor Wholesaler Retailer

Reducing the cost

Storage cost = breaking penalty per unit * pending orders + stock penalty per unit * Quantity in the stock


Known example : Beer Game Decision strategy

The deal is to answer the question: what is the quantity to order?

Based on the order history received, the actor decides on the future upcoming order.

Order policy

s-S

s-Q

Order to S

Order Q

Updated S

Echelon

Random

Covering stocks

Lot for Lot

Computing virtual stocks

Estimating by mobile means



Exercice: Try to define each policy (smart search by Google for example) 30min

Order policy

s-S

s-Q

Order to S

Order Q

Updated S

Echelon

Random

Covering stocks

Lot for Lot

Computing virtual stocks

Estimating by mobile means



Updated s: Quand le stock descend au dessous de s, l e joueur la quantité calculée comme suit:

-La moyenne mobile des 10 dernières commandes reçues

- Plus, M : le nombre de périodes estimée de variation de la demande

- avec la limitation du stock à S

- tout en prenant en compte les premières semaines d’implication des acteurs.

s-S: When the stock is below s, the player orders the complement to bring it back to S.

s-Q When the stock goes below s, the player orders Q.

Order to S, The player always controls the complement to get to S.

Order to Q: The player always order Q.

Echelon: le seuil de commande est déterminé comme suit:

- La moyenne mobile des 10 dernières commandes reçues

- STD(D) la déviation estimé de la commande externe

- L = 3

- alors s = L*AVG(D)+M*STD(D)*Sqrt(L), etc.

Agenda




Part 4 Supply Chain and Simulation


Innovative Supply Chain: Purpose and concept

Continuous Innovative Projects

Challenge of innovation

Real-world Case Study : MANITOWOC®

Intelligent Supply Chain: Integrating Big Data

- What is ‘Innovation’ ?

- Time : 5 min

Part 5: Supply Chain : Future Opportunities and Challenges

Innovation


Innovation


Innovative Supply Chain: Purpose and concept

Innovation is the set of new ideas that need new requirements in products, processes, and/or technologies.


Innovative Supply Chain Continuous Innovative Projects

Working in innovative project means to study deeply and in advance the implementation of a new system or a neworganization:

- higher risk than ordinary management

- need for adaptation to integrate new concepts without experience and best practices

What is the


Innovative Supply Chain Continuous Innovative Projects

Real-world Case StudyMANITOWOC®


Innovative Supply Chain Continuous Innovative Projects Challenge of innovation

International manufacturer of tower cranes and mobile cranes.

Figures :- 7 000 Employees- 24 Countries, 12 manufacturing facilities- 525 Ms $ in 2015 (France)




The objective of this innovative project is to move from traditional curative maintenance to an increasingly interaction proactive with the product and the final customer. For additional information, between Manitowoc and the final products, maybe there are one or multiple third-parties. Preventive maintenance of cranes requires continuous monitoring and control of products already released to customers (rented or sold). The customer also expects to improve its end-user services based on advanced information management.To minimize costs and retain customers, Manitowok would like to introduce IoT ships embedded in cranes which feed information directly to the managers. A digital transformation of maintenance.





Brand : PROEMION

Type : CANLink Mobile 5201 and 5301




Final Customers



- Try to list Pros and Cons of this case study

Time : 10min




Strategic competetiveness Maintain customers Proactivity

High risk in management because of lack of best practices

Need for investment




SM : Social Media

Big data is the massive accumulated data from traditional systems of storage in addition to the new connected objects (Internet of Things). They are characterized by Volume, Variety, Veracity and Velocity



POS : Points of Sales

PCR : Payment Cards Readers

GPS : Global Positioning System

RFID : Radio Frequency ID

SM : Social Media

IS : Information Systems

IoT : Internet of Things

Weather forecasting

SP: smaprtphones

PDA: plannings mobiles

CV: Connected Vehicles



Data from Internet and other

organizations

IS (ERP, Apps, etc.) Managers ManagementIntegrated data

Before BIG DATA

Data from Internet, organizations,

Interet of Things, smartphones, sensors,

etc.

ManagersPredictive Management

With BIG DATA



Source Make Move Sell

• Inventory Optimization

• Capacity Constraints

• Facility Location

• Facility Layout

• Workforce Analytics

• Supplier Risk

• Product Characteristics

• Sourcing Channel

• Options Supplier

• Integration Level

• Supplier Negotiation

• Distribution Optimization

• Transportation Alternatives

• Routing Scheduling

• Vehicle Maintenance

• Location-Based Marketing

• In-Store Behavior Analysis

• Customer Micro-Segmentation

• Multichannel Marketing

• Assortment Optimization


SCM with BIG DATA


Gathering data

Data analysis

Big Data ?

Big Data Analytics ?

Discovering new trendsPredictive management

(long term strategies)

Reactive management

(Real-time responsing)


SCM with BIG DATA and ANALYTICS


Bibliography

Schniederjans, M. J., Schniederjans, D. G., & Schniederjans, A. M. (2009). Supply Chains. World Scientific Book Chapters, 43-79.

Albert, P. J., Werhane, P., & Rolph, T. (2014). Global Corporations and Supply Chain Management. In Global Poverty Alleviation: A Case Book (pp. 321-348). Springer, Dordrecht.

Brusset, X. (2012). Supply chains: agile, robust or both?. In Colloquium on European Retail Research Book of Proceedings(pp. 65-101).

Buchmeister, B., & Palcic, I. (2013). Bullwhip effect simulation of a supply chain with level constraints. DAAAM International Scientific Book, 133-149.

Strozzi, F., Bosch, J., & Zaldivar, J. M. (2007). Beer game order policy optimization under changing customer demand. Decision Support Systems, 42(4), 2153-2163.

Macdonald, J. R., Frommer, I. D., & Karaesmen, I. Z. (2013). Decision making in the beer game and supply chain performance. Operations Management Research, 6(3-4), 119-126.

Thanks … any questions ?

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