Professional Documents
Culture Documents
Introduction
Successful managers
Think of supply chain as a whole Pursue tangible outcomes focused on Revenue growth Asset utilization Cost
Principle 1
Segment customers
Based on service needs Adapt supply chain to serve them
Types of needs?
Segments?
Vendor Managed Inventory Activity Based Costing
Principle 2
Customize logistics network
To service requirements & profitability of customer
segments
Multi level networks
Cross docking
3rd party logistics
Principle 3
Listen to market signals & plan accordingly
Across SC Consistent forecasts Optimal resource allocation
Fill rate
Asset turns
Principle 4
Differentiate products closer to customer & speed
conversion
Cellular manufacturing Just-in-time
Mass customization
Postponement Modular design
Principle 5
Source strategically
To reduce total cost of owning materials & services Long term contracts Keiretsu SCORE: Chrysler
Principle 6
Develop SC technology strategy
Enterprise wide information systems Integrate Short term transaction & operation management Mid-term planning & decision support Long term strategic analysis
Principle 7
Adopt channel spanning measures
Gauge collective success, not functional
implementation sequence Rigorous assessment of entire supply chain Set explicit outcome targets for revenue growth, asset utilization & cost
Cross-Docking
Popularized by Wal-Mart Warehouses function as inventory coordination
points rather than as inventory storage points. Goods arriving at warehouses from the manufacturer:
are transferred to vehicles serving the retailers are delivered to the retailers as rapidly as possible.
warehouse
Often less than 12 hours Limits inventory costs and decreases lead times
very difficult to manage Supply chain partners must be linked with advanced information systems for coordination A fast and responsive transportation system is necessary Forecasts are critical, necessitating the sharing of information. Effective only for large distribution systems
Sufficient volume every day to allow shipments of fully
loaded trucks from the suppliers to the warehouses. Sufficient demand at retail outlets to receive full truckload quantities