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  • Plan and manage customer demand Improve customer service through increased flexibility and on time delivery Dramatically lower inventory levels and reduce working capital Lower the cost of the acquisition of finished goods and raw materials Optimize decisions in an increasingly complex business environment

SCM: 供應鏈子管理 Introduction and Its Technology SCM: 供應鏈子管理 Introduction and Its Technology Presentation Transcript

  • SCM: 供應 鏈 子管理 Introduction and Its Technology Research Trends Heung-Suk Hwang ( 黃 興 錫 ) Department of Business and Administration, Kainan University, Taiwan 2005. 11. 22.
  • Characteristics of Consumer Product Goods Industry
    • Global Supply Chain / Complex Distribution Networks
    • High Volume - Low Margins
    • Competitive Environment / Promotions
    • High Customer Service / Make to Stock
    • Demand exceeds Supply / Product Mix Optimization
    • Seasonal Demands / Inventory Build Ups
    • Value Added Service for Customers (Retailers)
  • 5 Steps of e-Business Progress Model Contents Managing policy Step 1 Internet Application, only for com. PR Homepage Dev. Step 2 Start to develop new product and services according to internet level e-mail, Marketing Co-invest with venture co. Step 3 Implementing the internet technology into industry works Development of Intra-net Step 4 Using internet suppliers, co-relate customers and business partners Cooperation, networking Step 5 Customer’s information delivered in real time Data marketing 物流管理 發展的 段階
  • Change patterns of e-Business: Sales and circulation 分 配 小 買 業 消 備 者 Conventional Business e- Business ▶ For the customers, needs several steps between suppliers and customers ▶ The cost of several steps distributed to the customers ▶ Generally the sales model is based on sales commission 製 造 業 供 給 者 ▶ Direct sales between producers and customers ▶ Cost down portion by on-line trade is returned to customers ▶ Producers transfer the sales cost into marketing cost 製造業者 消費者
  • ERP MRPII MRP Materials Requirement Planning Manufacturing Resource Planning Enterprise Resource Planning Integrate by Value Chain Management Evolution to Logistics/SCM 1960’s 1970’s 2000’s 1980’s Within Company Between Company SCM Supply Chain Management 1990’s e-Logistics
  • • By predetermined business rule, the logistics process system is completed within a few seconds • Tracing and controls/confirms by order unit • Shorter leadtime, fewer errors, inventory reduction • Some obstacles, but inevitable move Order Inv. Checking Production Schedule Check Suppliers Check Customer service Distribution New Wave of Net-centric Logistics
  • Supply Chain : from Original Supply to Final Consumption Increase Customer Responsiveness at Least Cost Manufacturing Distribution Supplier INFORMATION FLOW Retail Outlet Consumer Supply Chain Optimization CASH FLOW Transfer Transfer Transfer Transfer
  • SCM (Supply Chain Management)
    • Integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders
    • global optimum
    • - The Global Supply Chain Forum(GSCF)
  • Logistics( 物流 )
    • Part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers’ requirements local optimum
    • (Council of Logistics Management )
  • Key Objectives of Supply Chain
    • Maximize responsiveness to customer
      • Flexibility
      • On time delivery
    • Minimize total supply chain costs
      • Procurement
      • Manufacturing
      • Transportation
      • Administrative
    • Optimize asset utilization
      • Raw material, WIP and finished goods
  • Strategic Objectives of SCM
    • Important drivers are customer satisfaction and profits .
    Costs Market Share Sales Volume Growth Rate Customer Satisfaction Product Quality Time to Market Profits
  • Perceived Benefit of SCM-related Investments Demand Forecasting Marketing Sales Product Development Warehousing Transportation Inventory Management Purchasing Manufacturing 2 4 6
    • Survey of Fortune 1000 companies
    • (by Lockheed Martin and Penn State’s Center for Logistics Research)
    • Approximately 33% of the respondents indicated they were engaging in SCM improvements in 1995 .
    • 64% were making improvements in 1997 .
    • 45% of respondents believe they will be making SCM improvements in the each of the next three years
    • “ Leading ” companies showed a pattern of continued investment in SCM Improvements
    Investment for SCM
  • Supply Chain Business Processes Supply Chain Management Components Supply Chain Network Structure SCM Framework What process should be linked with each of these key supply chain members ? What level of integration and management should be applied for each process link ? Who are the key supply chain members with whom to link processes ?
  • Tier 3 to initial suppliers Tier 2 suppliers Tier 1 suppliers Tier 1 Customers Tier 2 Customers Tier 3 to Consumers/ End-Customers Focal Company Members of the Focal company’s Supply Chain Supply chain network structure Initial Suppliers Tier 3 to n suppliers 2 1 n 1 n 2 1 1 n 3 n 1 2 3 n 1 2 n 2 1 n 1 n 2 1 n Tier 3 to n customers Consumers / End-customers
  • Primary Aspects of Supply Chain Network Structure
    • Members of the supply chain
    • structural Dimension of the Network
    • different types of Process links across the supply chain
  • Members of supply chain
    • Primary members of a supply chain:
    • autonomous companies or strategic business units who carry out Value-adding activities in the business processes designed to produce a specific output for a particular customer or market.
    • Supporting members:
    • companies that Simply provide resources, knowledge, utilities, or assets for the primary members of the supply chain.
    • Ex) companies leasing trucks, banks, owner of warehouse space etc.
  • Structural dimension of network
    • horizontal structur e : number of tiers across the supply chain.
    • Ex) the network structure for bulk cement is relatively short. Raw materials are taken from the ground, combined with other materials, moved a short distance, and used to construct buildings
    • vertical structur e : number of suppliers/customers represented within each tier . A company can have a narrow vertical structure, with few companies at each tier level, or a wide vertical structure with many suppliers and/or customers at each tier level.
    • horizontal position within the supply chain :
    • position of focal company at near the initial source of supply, or near to the ultimate customer.
  • Key supply chain processes
    • Customer relationship management
    • Customer service management
    • Demand management
    • Order fulfillment
    • Manufacturing flow management
    • Procurement
    • Product development and commercialization
    • Returns
  • Supply Chain Business Processes
    • Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes .
    • Traditionally, both upstream and downstream portions of the supply chain have interacted as disconnected entities receiving sporadic flows of information over time
    • Operating an integrated supply chain requires continuous information flows , which in turn help to create the best product flows.
  • Supply Chain Business Processes SCM: Integrating and managing business processes across the supply chain Information Flow Logistics Purchasing Marketing & Sales R&D Production Finance PRODUCT FLOW CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMER SERVICE MANAGEMENT DEMAND MANAGEMENT ORDER FILFILLMENT MANUFACTURING FLOW MANAGEMENT PROCUREMENT PRODUCT DEVELOPMENT AND COMMERCIALIZATION RETURNS Manufacturer Tier 1 Supplier Tier 2 Supplier Customer Customer End-Customer
  • Tier 3 to initial suppliers Tier 2 suppliers Tier 1 suppliers Tier 1 Customers Tier 2 Customers Tier 3 to Consumers/ End-Customers Focal Company Non-Members of the Focal company’s Supply Chain Initial Suppliers Tier 3 to n suppliers 2 1 n 1 n 2 1 1 n 3 n 1 2 3 n 1 2 n 2 1 n 1 n 2 1 n Tier 3 to n customers Consumers / End-customers Types of intercompany business process links Members of the Focal company’s Supply Chain 1 n 1 n Managed process link Not-Managed process link Monitor process link Not-member process link
  • Supply Chain Business Processes SCM: disconnects Information Flow Logistics Purchasing Marketing & Sales R&D Production Finance PRODUCT FLOW CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMER SERVICE MANAGEMENT DEMAND MANAGEMENT ORDER FILFILLMENT MANUFACTURING FLOW MANAGEMENT PROCUREMENT PRODUCT DEVELOPMENT AND COMMERCIALIZATION RETURNS Manufacturer Tier 1 Supplier Tier 2 Supplier Customer Customer End-Customer
  • Management Components for Successful SCM ( physical and technical components)
    • planning and control of operations ;
    • moving supply chain in a desired direction
    • work flow/activity structure ;
    • how the firm performs its tasks and activities.
    • organization structure ;
    • individual firm and the supply chain, the use of cross-functional teams
    • product flow facility structure ;
    • network structure for sourcing, manufacturing, and distributing across the supply chain.
    • Communication & information flow facility structure ;
    • kind of information passed among channel members and the frequency of information updating
  • Management Components for Successful SCM (cont.) ( managerial and behavioral components)
    • management methods ;
    • corporate philosophy and management techniques, a top-down organization structure with a bottom-up structure
    • power and leadership structure ;
    • risk and reward structure ;
    • culture and attitude
  • SCM Decision Areas through Internet
    • Purchasing/procurement
    • Inventory management
    • Transportation
    • Order processing
    • Customer service
    • Production scheduling
    • Relations with vendors
  • Purchase/Procurement Decision Areas
    • EDI programs with vendors
    • On-line purchasing from vendor catalogs
    • Communicating with vendors
    • Negotiation with vendors
    • Checking price quotations of vendors
    • Arranging for returned/damaged products to vendors
    • Dealing with warranty issues of vendors
  • Inventory Management Decision Areas
    • EDI programs with vendors
    • Coordination of JIT delivery programs
    • Communication with customers on out-of-stocks, etc.
    • Notification of delays in order ship dates to customers
    • Communication with vendors on raw-material inventory levels
    • Communication with customers on emergency situations affecting inventory levels
    • Communication with vendors on finished-goods inventory levels
    • Communication with field warehouses and depots on
    • field inventory levels
    • Communication with field depots on out-of-stock situations, emergencies, etc.
  • Transportation Management Decision Areas
    • Scheduling pickups at regional distribution centers
    • Scheduling drop-offs at regional distribution centers
    • Monitoring on-time arrivals of carriers
    • Managing claims status and processing communication with carriers on overall performance
  • Order Processing Management Decision Areas
    • Communication with customers on order status
    • Communication with vendors on order efforts
    • Communication with customers on out-of-stocks
    • Check credit status of customers
    • Check credit status of vendors
    • Communication with customers on returned merchandise
    • Providing total order-cycle performance for customers
    • Providing credit processing status to customers
    • Obtaining price quotes from vendors
    • Providing price quotes to customers
  • Customer Service Management Decision Areas
    • Receipt of customer complaints
    • Providing technical service
    • Notifying customers of emergencies in the supply
    • chain—strikes, fires, etc.
    • Use of Internet to sell to customers
    • Manage the outsourcing of customer service functions
  • Production Scheduling Decision Areas
    • Coordination of production schedules with vendors
    • Coordination of production schedules with field depots
    • Coordination of production schedules with JIT schedules of vendors
    • Coordination of production schedules of multiple manufacturing sites in the United States
    • Coordination of production schedules of multiple manufacturing sites at international locations
  • Vendor Relations Decision Areas
    • Coordination of deliveries of vendors to field warehouses and depots
    • Communication with vendors regarding raw-material stock levels at their plant sites
    • Purchasing of items from vendor on-line catalogs–supply lists
    • Receipt of information queries from vendors
    • Provision of information regarding vendor queries
    • Providing vendors with service ratings on their overall performance
    • Processing of returned materials, damaged products to vendors
    • Providing vendors with ratings of the on-time performance of their carriers
  • Research Groups for SCM
    • Supply Chain Council
    • - Supply Chain Operations Reference (SCOR) Model
    • - www.supply-chain.org
    • - Korea chapter ( 한국능률협회컨설팅 )
  • Research Groups for SCM (cont.)
    • The Global Supply Chain Forum (GSCF)
    • - A group of non-competing firms and a team of academic researchers
    • - To improve theory and practice of SCM
    • - Director: Prof. Lambert at Ohio St. U.
  • Research Groups for SCM (cont.)
    • Council of Logistics Management
    • http://www.CLM1.org
    • Journal of Business Logistics
  • Suggestions For Future Research
    • What are the operational definitions of the key business processes and what are the relationships among these processes?
    • How do you obtain the functional areas in order to implement a process approach within the firm?
    • How can the various participants in a company be encouraged to work toward a common goal?
    • Beyond internal integration, how should inter-organizational change management be implemented?
  • suggestions for future research (cont.)
    • How should the existing supply chain be mapped?
    • Should the map include all connected firms or only the primary firms?
    • Are there other means of determining who should and should not be part of the supply chain map?
    • What are the implications for good SCM practice based upon the horizontal structure, the vertical structure, and focal company position in the supply chain?
  • suggestions for future research (cont.)
    • What is the value proposition at the consumer level or end point of the supply chain?
    • What are the methods that should be used to determine value ?
    • How should the various firms in the supply chain share the costs and the benefits ?
  • suggestions for future research (cont.)
    • What metrics should be used to evaluate the performance of the entire supply chain, individual members or subsets of members?
    • What are the potential barriers to implementation and how should they be overcome?
  • suggestions for future research (cont.)
    • What is the process to take the map of the existing supply chain and to modify it to obtain the best supply chain given the desired outputs?
  • suggestions for future research (cont.)
    • What determines with whom to link business processes?
    • What are the steps to take to determine with whom to link?
    • What are the critical factors to the firm’s success and that enable the firm to link with specific companies?
    • What are the barriers to forming these relationships?
  • suggestions for future research (cont.)
    • What determines the processes to link with these key members ?
    • How should the firm decide which internal processes to link with suppliers and customers?
    • What decision criteria determine whose internal business processes prevail across all or part of the supply chain?
  • suggestions for future research (cont.)
    • What determines the type/level of integration that should be applied to each process link?
    • Some guidelines regarding what level of management components to apply to achieve the desired relationship and management of a link.
    • Do changes in the physical and technical components automatically require changes in the managerial and behavioral components?
  • Directions for future research & developing S/W
    • e-business and SCM
    • ERP and SCM
    • The mapping bet. the existing logistics system and the ideal SCM
    • SCP (SCM Planning)
    • SCS ( supply chain simulator)
      • In-stock availability
      • Lead time
      • Ability to tailor to specific customer needs
      • Fixed
      • Purchase Cost
      • Variable Manufacturing
      • Trans/Distribution
      • Obsolescence/Markdown
      • Administrative/Transaction
      • Manufacturing
      • Distribution Centers
      • Inventory
    Costs Assets Customer Service Strategic and Financial Impact SCP is a major component of supply chain improvements.
  • Supply Chain Requirements
    • New product introductions/innovations
    • Cycle time/response time reduction
    • Strategic relationships
    • Cost effective replenishment and fulfillment
    • Customer specific and channel specific service and value delivery
    • Dynamic end-to-end decision support
  • Advantages of SCM Planning
    • Simultaneous material and capacity planning
    • Decision support with what-if
    • Consider real-world constraints
    • Optimizes plan in concert with business goals
  • Expected Benefits of SCM Planning
    • Improved delivery performance
    • Decrease in order cycle times
    • Increase in order fill rates
    • Reduced planning times
    • Reduced response times
    • Improved asset utilization
    • Inventory reduction
    • Dynamic profitability determination
  • Key Processes - Sales and Demand Planning
    • Statistical Forecasting
    • Collaborative Forecasting
    • Sales Planning
    • Life Cycle Planning
    • Promotion Planning
    Retail Distribution Center Manufacturing Units Suppliers
  • Key Processes - Operations Planning
    • Long range Planning
    • Simultaneous material and capacity planning
    • Constrained master production scheduling
    • Product cost planning
    $ $ $ Manufacturing Units
  • Key Processes - Distribution Planning
    • Supply and Distribution Network Planning
    • Supply Network Planning and Optimization
    • Supply/Demand balancing
    • Vendor Managed Inventory (VMI)
    S u p p l i e r s C u s t o m e r s D i s t r i b u t i o n C e n t e r s M a n u f a c t u r I n g U n i t s
  • Key Processes - Production Scheduling
    • Interactive shop floor scheduling
    • Rate-based scheduling
    • Flow sequencing and scheduling
    • Line balancing
    Customer
  • Key Processes - Order Fulfillment
    • Available to promise (ATP)
      • Global
      • Local
      • Rules-based
    • Product Allocation
    • Material Substitution
    • Vendor Managed Inventory
    • Supply Chain Simulator
    • Supply Chain Simulation Experiments
    Financial Impact Opportunity Assessment Model Generic Model For Specific Industry Current Performance and Capabilities Model Opportunity Estimating Model Supply Chain Analysis Logic Source: Joint Industry Project on ECR. 1994. Performance Measures Performance Baseline Performance Impact
    • Output 1
    • Output 2
    • Output N
    Simulation Paradigm
    • Input 1
    • Input 2
    • Input M
    • Cycle times
    • Serviceability
    • Shipments and revenue
    • Turns
    • Costs
      • Inventory
      • Material handling
      • Transportation
      • Manufacturing
    Supply Chain Simulation
    • Number and location of suppliers, manufacturers, DC's
    • Inventory levels at each site
    • Manufacturing and replenishment policies: BTP, BTO, Partial BTO, Continuous, Periodic
    • Transportation policies
    • Supply planning policies
    • Lead times
    • Supplier reliability
    • Demand variability
    • Benefits of Supply Chain Simulation
    • Quantification of supply chain issues before solution implementation
    • Nonlinear analysis of supply chain issues
    • Stochastic problems can be addressed
    • General-purpose across supply chain domains
    • End-to-end analysis
    • Supply Chain Simulation Is ...
    • End-To-End
    • Strategic
    • High Level differs from typical business process modeling
    • Simulation Engine
    • Model Data
    • User Interface
    • Report Generator
    Inventory Optimizer Supply Chain Simulator Simulation and Optimization Working Together Supply Planning Optimizer Financial Reports Relational data files Bridge
  • 結 論
    • A Goal Setting for SCM Suitable to a Scale / Circumstances, Approach and Level of the Company in Advance.
    • Not to Disappear while Speaking Prosperous for SCM as the other Different Solutions.
    • Rather then Indiscreet Import Foreign S/W, Research and Develop S/W Suitable to Korea Actual Circumstances.