Introduction (Cont’d..) Slide Customer wants detergent Albertson’s Supermarket Third party distributor P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry
Elements of SCM Slide Deciding how to best move and store materials Logistics Determining location of facilities Location Suppliers Evaluating suppliers and supporting operations Purchasing Meeting demand while managing inventory costs Inventory Controlling quality, scheduling work Processing Incorporating customer wants, time etc. Design Predicting quantity and timing of demand Forecasting Determining what customers want Customers Typical Issues Element Monitoring supplier quality, delivery and relations
Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.
- Council of Supply Chain Management http://www.cscmp.org
Movement Within a Facility Slide RECEIVING Storage Work center Work center Work center Storage Work center Storage Shipping
Retailer determines order sizes and timing but in addition passes POS (point of sales) data to the supplier. POS improves supplier ’ s forecasts.
Wal-Mart, K-Mart (Vendor Managed Inventory)
Supplier maintain the inventory levels at the customer site and continuously replenish as and when required. This has resulted in 30% inventory turnover improvement.
Milliken and Company
The lead time from order receipt at Milliken ’ s textile plants to final clothing receipt at the department stores was reduced from 18 weeks to 3 weeks. The POS data was used by the supplier to improve forecasting and scheduling .
The projects at Praxair have helped me see the implementation of academic knowledge as well as the importance of “people skills” in an organization. Overall, it continues to been a great learning experience
Slide Asia 4 Quality Engineers in Asia region South America 2 Quality Engineers in South America North America 5 Quality Engineers in North American region Europe 2 Quality Engineers in Europe