up lecture jan 30
TRANSCRIPT
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More than seven years experiencein Supply Chain in FMCGcompanies (Kraft, Perfetti VanMelle, Timex)
Certified Supply ChainProfessional from APICS US 2011
Master in TechnologyManagement from UP Diliman -
2006
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Give a definition and present themajor themes of supply chainmanagement
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The global networkused to deliverproducts andservices from raw
materials to endcustomers throughan engineered flowof information,
physical distributionand cash
Definition from APICS Dictionary 13th
Edition
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The challenge for thesupply chain manageris designingprocesses that will
effectively link theinternal activities ofthe firm with thecomplementaryactivities within itssuppliers andcustomers.
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SupplierCollaboration
Internal FirmActivities
CustomerCollaboration
III. Supply Matrix
I. Inventory and Materials Management
II. Network Planning
Distribution and Logistics
IV. Collaborative Arrangements
Sourcing and Supplier Selection
Supply ContractsCustomer Relationship
Management
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Service Level X XCycle Time
Determining appropriate inventory level based to meet customer expectations
X Average Demand
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Furniture
Make to order
and consolidate
deliveries
Computers
Assemble to
order with and
stock in few
locations
Grocery
Make to stock
and store in
multiple locations
Books/CD
Make to stock
and may expeditetransport
Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed
Involves positioning inventory and designing the physical supply chain
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Bottleneck
Ensure Supply
Strategic
Form
partnerships
Non-critical
Simplify and
automate
Leverage
Exploit buyer
power
Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed
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Shipping
Cartons
Flavours and
Ingredients
Office
Supplies
Consultancy
Services
Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed
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Focus on orderfulfilment
No informationsharing
Sales data is sharedbetween partners
Inventory owned bybuyer
Agreed inventorylevels
Inventory owned byeither buyer or
supplier
Inventory is ownedand managed by
supplier
Increasing Trust and Collaboration between Parties
How does a firm respond to customer demand?
Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed
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SupplierCollaboration
Internal FirmActivities
CustomerCollaboration
III. Supply Matrix
I. Inventory and Materials Management
II. Network Planning
Distribution and Logistics
IV. Collaborative Arrangements
Sourcing and Supplier Selection
Supply ContractsCustomer Relationship
Management
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Internal Activities Service Level or Fill Rate
Inventory Weeks of Supply
Demand Forecasts Accuracy
Customer-Facing Activities Joint KPIs
Demand Forecasts Accuracy (atper customer level)
R
Supplier-Facing Activities Joint Planning KPIs
Supplier Performance (lead timeand quality)
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