Академический Документы
Профессиональный Документы
Культура Документы
Three entities
Supplier
Producer
Customer
Supplier
Provider of goods or services or a
seller with whom the buyer does
business as opposed to vendor which
is a generic term referring to all
sellers in market place
The supplier provides materials,
energy, services, or components for
use in producing a product or service
Producer
Receives services, materials,
supplies, energy and components to
use in creating finished products,
such as dress shirts, packaged
dinners, airplanes, electric power,
legal counsel, or guided tours
Supply Chain for services may be
more abstract than those for
manufacturing
Customer
Receives shipments of finished
products to deliver to its customers,
who wear the shirts, eat the
packaged dinners, fly the planes, or
turn on the lights
Structures
Companies require their supply chain
to guarantee a steady flow of supply
while at the same time striving to
reduce their supply chain costs
Supply Chain cost can be as high as
50% of a companys revenues
Inefficiencies in the supply chain can
total 25% of a firms operating cost
Four Flows
The flow of information back and forth
along the chain (also back and forth within
the entities and between the chain and
external entities, such as governments,
markets, and competitors)
The Primary Product Flow, including
physical materials and services from
suppliers through the intermediate entities
that transform them into consumable
items for distribution to the final customer
Horizontal/Lateral
Integration
Has replaced vertical integration as the
favored approach managing the myriad
activities in the supply chain
It is difficult for one corporation to garner the
expertise needed to excel in all elements of
the supply chain, and it increases their risk,
so corporations around the globe have
turned instead to outsourcing those aspects
of their business in which they judge
themselves to be least effective
Lateral/Horizontal
Supply Chain
Stage
Stage
Stage
Stage
1234-
Multiple Dysfunction
Semi functional Enterprise
Integrated Enterprise
Extended Enterprise
Stage 1- Multiple
Dysfunctional
Stage 3- Integrated
Enterprise
Stage 4- Extended
Enterprise
Value Chain
The functions within a company that
add value to the goods or services
that the organization sells to
customers and for which it receives
payment
The intent of the value chain is to
increase the value of a product or
service as it passes through stages of
development and distribution before
reaching the end user
Value Stream
The process of creating, producing and
delivering a good or service to the market
For a good, the value stream encompasses the
raw material supplier, the manufacturer and
assembly of the good, and distribution network
For a service, the value stream consists of
suppliers, support personnel and technology,
the service producer, and distribution channel
The value stream may be controlled by a
single business or a network of several
businesses
Improved Market
Knowledge
With supply chain management in place,
partners in the supply chain begin to share their
knowledge about the marketplace and in
particular about their customers
It may take some time for the organizations to
build trust before they share their key account
information, but with time it does often occur
Although market intelligence can be purchased
from outside sources, its most advantageous
(and less expensive) to gather it from your
partners
The three Vs
Increase Visibility
Visibility is the ability to view important
information throughout a facility or supply chain no
matter where in the facility or supply chain the
information is located
Increased visibility along the supply chain is a
benefit for supply chain partners and the end
customer
With better visibility, a supply chain manager or
employee can see the results of activities
occurring in the chain and is made aware of minor,
incremental changes via technological processes
Increase Velocity
Velocity is a term used to indicate
the relative speed of all transactions,
collectively, with in a supply chain
community.
A maximum velocity is most
desirable because it indicates a
higher asset turnover for
stakeholders and faster order-todelivery response for customers
Methods to Increase
Velocity
Relying on more rapid modes of
transportation (if there is a net benefit
after the increase in transportation costs)
Reducing the time in which inventory
is not moving by using Just-in-Time
delivery and Lean Manufacturing (The
less time inventory spends at rest, the less
likely it is to suffer damages or spoilage.
Increased velocity reduces the expenses
involved in warehousing inventory)
Reduce Variability
Variability is the natural tendency
of the results of all business activities
to fluctuate above and below an
average value, such as fluctuations
around average time to completion,
average no of defects, average daily
sales, or average production yields
Traditional off set against
variability is safety stock
Bullwhip Effect
The Bullwhip Effect is an extreme
change in the supply position
upstream that is generated by a
small change in demand downstream
in the supply chain
Two additional Vs
Variety, refers to the mix of
products and services in a portfolio
that must alter to meet changes in
customer demand
Volume is the amount of product
being produced at a given time
Integrated Operations
Enterprise resources planning
software packages enable companies
around the globe to not only manage
their operations in one plant but to
facilitate enterprise wide integration
and even cross company
functionality
Improved Management
of Risk
Supply Chain Risk is based on
decisions and activities that have
outcomes that could negatively
affect information or goods within a
supply chain
Risk Management is the process of
identifying risk, analyzing exposures
to risk, and determining how to best
handle those exposures
Increased Sustainability
Expansion of the traditional supply
chain focus of cost, quality, and
service to include environmental
performance
Sustainability and Green are
often used as synonyms in discussion
of corporate obligations that go
beyond the traditional emphasis on
bottom-line profits