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Chapter 12

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  • FDX to begin coordinating all of Cisco's shipping and will gradually eliminate all of Cisco's warehousing factories in the U.S., Mexico, Scotland, Taiwan and Malaysia company needs more flexibility to be able to drop or add manufacturers at a moment's notice ambitious plan: Merge orders in transit. management of all shipping shifts to an FDX "command and control center" different boxes destined for single customer shipped independently when manufactured FDX selects most logical, economical type of transport and coordinates customs clearances all arrive at customer's door, parts assembled right there, never stored in central warehouse real-time status of massive synchronization is constantly available on the Internet
  • Transcript

    • 1. Integrating Backward extending the supply chain through inter-enterprise integration
    • 2. Objectives
      • introduce and define supply chain management
      • provide examples of extended supply chain management
    • 3. What is a supply chain?
      • the complex network of relationships that organizations maintain with trading partners to source, manufacture, and deliver products
      • coordination of flows:
        • material, informational, financial
    • 4. Traditional supply chain SUPPLIER MANUFACTURER RETAILER DISTRIBUTOR CONSUMER
    • 5. Supply chain planning PAYMENT FLOWS INFORMATION FLOWS
    • 6. Supply chain planning demand forecasting inventory simulation distribution planning transportation planning manufacturing planning order commitment improve forecast accuracy optimize production scheduling reduce inventory costs decrease cycle times reduce transportation costs improve customer service
    • 7. Supply chain execution PRODUCT FLOWS
    • 8. supply chain execution PRODUCTION DISTRIBUTION REPLENISHMENT ORDER PLANNING DISTRIBUTION SCHEDULING INVENTORY AVAILABILITY PRODUCTION SCHEDULING CUSTOMER SERVICE SCHEDULE DELIVERY PICK & LOAD ORDER ENTRY & PROCESSING ORDER CONFIRMATION FULFILLMENT PLANNING CAPACITY PLANNING FORECASTING MPS/SOURCING
    • 9. Vendor managed inventory Manufacturer demand trigger order trigger demand Customer ERP order ERP/SCM ERP/SCM Supplier
    • 10. Hammer’s observations
      • You have to integrate internally
      • in order to integrate externally
      • The walls between enterprises dwarf the walls within enterprises
    • 11.  
    • 12. CASE #1: integrated make-to-stock
      • 85 million pounds
      • multiple channels
      • complex sourcing network
      • one SCM system
      • nightly sales & inventory updates
      • high performance planning and integrated procurement
    • 13. CASE #2: continuous replenishment
      • WL monitors CVS store-level consumption
      • replenishes inventory to meet agreed upon service levels
      • seamless inter-enterprise integration
      • ultimate objective:
        • scan-one, make-one
      Thymol, Eucalyptol, Methyl Salicylate, Menthol, Alcohol, Sorbitol, Poloxamer 407, Benzoic Acid, Sodium Saccharin, Sodium Benzoate and FD&C Green # 3. C V S pharmacy /
    • 14. CASE #3: build-to-order
      • customer demand is unpredictable
      • machines ship within 48 hours of order
      • match supply with demand in real time
      • ultimate objective:
        • frictionless flow of information
    • 15. CASE #4: channel assembly Distributor parts warehouse Distributor assembly, configuration, and order filling Customer desktop Parts suppliers orders orders and inventory levels Manufacturer electronic warehouse order
    • 16. Summary
      • introduced and define supply chain management
      • provided examples of extended supply chain management