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Agenda
3 Qualities of Top Supply Chains 6 Key Supply Chain Activities Pull versus Push Supply-Chains 3 Components of Supply-Chain Management Supply-Chain Network Structure Supply-Chain Business Processes Managing Supply-Chain Activities Supply-Chain Agility and Resiliency Making Supply-Chain Adaptable Supply-Chain Alignment
Sameer Mathur
BuddingMarkets.com
Indian Institute of Management, Lucknow Marketing Professor 2013
Align the interests of all members of the supplychain network in order to optimize performance.
Distribution
Customer service Sales forecasting
*These processes are critical to the success of manufacturers, wholesalers, or service providers alike.
Retailer
Consumer
Manufacturer
Distributor
Balance between flexibility and cost: fashion items made by company-owned factories in Spain Concentrated activities in 11,000-square-foot hall where tightly synchronized teams work Managed to release one of hottest trends in just 4 weeks in 2006!
Mini-case: Zara
ex. companies that supply production equipment, print marketing brochures, provide administrative assistance
Distributor Company E
Retailer Company F
Demand Managemen t
Procurement
Order Fulfillment
Manufacturin g Flow Management
The number of business processes that is critical or beneficial to integrate and manage between companies will likely vary.
Key to increasing agility and resilience is building flexibility into the supply-chain structure, processes, and management.
Operational excellence
Companies
MANUFACTURING CENTRES
South Korea Japan
RETAILERS
North America
Indonesia
Caribbean Products are shipped from manufacturing Latin centres to UPS America HQ in Louisville, They are then Kentucky kitted and distributed to retailers
The Result
Digital cameras are Nikons fastest-growing product category Improved supply chain performance & customer service From manufacturing facility to retailer in as little as 2
days
Supply-Chain Alignment
Goal: Interests of all supply
chain members should be aligned.
Otherwise supply chain performance will be affected. Roles & responsibilities must be carefully defined.
Finally: align incentives so that when companies try to maximize returns, they also maximize the supply chains performance.
Nestl
Worlds largest food company $70 billion in annual sales Operations in 200+ countries; 511 factories; 247,000 employees
A truly global firm: the first company to operate in hundreds of countries in the same manner as if it operated in one.
Summary
Today, companies compete as Supply-Chain Networks instead of autonomous entities The switch from push to pull models Top-performing supply chains possess: agility, adaptability, alignment. Supply chain Management (SCM) has 3 principle components: Supply-chain network structure
Summary
The best companies create supply chains that can respond to sudden and unexpected changes in markets = agility and flexibility are helpful qualities. Companies competing on the basis of operational effectiveness, customer intimacy, or product leadership have different focuses in order to adapt their supply networks. Leading companies aim to align the interests of all the firms in their supply chain with their own to maximize the chains performance.
Summary
3 Qualities of Top Supply Chains 6 Key Supply Chain Activities Pull versus Push Supply-Chains 3 Components of Supply-Chain Management Supply-Chain Network Structure Supply-Chain Business Processes Managing Supply-Chain Activities Supply-Chain Agility and Resiliency Making Supply-Chain Adaptable Supply-Chain Alignment
Recommended Reading
Sameer Mathur
BuddingMarkets .com
http://www.facebook.com/BuddingMarkets/