Professional Documents
Culture Documents
Course Outline
1. Introduction to SCM
2. Procurement & Purchasing
3. Building Deep Supplier Relationship HBR Article
4. Logistics Management
5. Inventory Management
6. Warehousing Management
7. Manufacturing
8. Production Planning Systems
9. Master Production Schedule
10. Material Requirement Planning
11. Vendor Managed Inventory
Recommended Books:
Principles of Supply chain management: A balanced approach by Joel D. Wisner
Essentials of Supply Chain Management by Michael Hugos
Designing and Managing the Supply Chain by Simchi-Levi, D and E and
Kaminsky, P.
Modern SC View
An effective SC ensures high level of Customer Service at
optimum level!
So simple yet extremly demanding......
Operational view
an efficient supply chain that ensures products are on the
shelf, available for sale, when Shoppers come to buy
them ... all the time!
Material Flow
Information Flow
Finance Flow
Return Product Flow
Tom McGuffog
DELIVER
Order Management
Delivery Scheduling
SOURCE
Procurement
Credit & Collection
MAKE
Product Design
Production Scheduling
Facility Management
2.
INVENTORY
How much to make
and how much to
store
5.
INFORMATION
The basis for
making these
decisions
4.
TRANSPORTATION
3.
LOCATION
Where best to do
what activity
Cycle Time
A key aspect of supply chain management is cycle time. Cycle
time refers to the total time required to complete a process.
Much of this can be wasted time or time that is not used
efficiently.
A number of factors can slow down cycle time: unnecessary steps;
Activities that may have been in place for a long time but no longer add
value;
Ineffective or poorly utilized technology;
Excessive bureaucracy (procedures, controls, and forms that stagnate the
process);
Poor communication, coordination, and cooperation.
Cycle Time
1. Supply Chain Cycle time - time spent by the supply chain to convert the
raw materials into final products plus the time needed to reach the products to
the customer
2. Order to delivery cycle time - the time elapsed between the placement of
an order by a customer and the delivery of products to the customer
Function:
It looks at what is stocked locally, what is stocked
elsewhere, how long it takes to repair or procure items not
in stock, how long it takes to ship material, how long it
takes to receive shipments, and other factors.
Velocity Management
Velocity management improves the speed and
accuracy with which materials and information
flow from providers to users. This in turn
reduces the need for massive stockpiles of
resources. The result has been impressive.
Accelerated deliveries of spare parts have
accelerated the repairs of cars.
Three Ts
Velocity
Timeliness
Acceleration
Collaboration
Empow erment
The 3 Ts
Key Ingredients
For Improving
Supply Chain
Efficiencies
Trust
Sharing
Raw Materials
Company
Raw Materials
Transportation
Company
Transportation
Manufacturing
Distribution
Manufacturing
Company
Independent
Distributor
Retail Show
Room
Independent
Retailer
Slow Moving,
Industrial Mass
Markets
Fragmented, Fast
Moving Markets
Delivering
the right product
to the right place
at the right time and
at the right price
To all customers
For all the orders
At all the time
HOW?