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Optimize your supply chain

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How to optimize you Supply Chain is critical to success

How to optimize you Supply Chain is critical to success

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  • 1. Optimize Your Supply Chain Presented by Daniel Feiman, MBA, CMC©, Visiting Professordsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 1 All international rights reserved
  • 2. Agenda Optimizing Your Supply Chain  Primary SCM disruptions  How to reduce disruptions  Develop a win/win SCM system  Use of proven tools for immediate results  Training Methodology • Participant discussions • Best practices approach What have we learned?dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 2 All international rights reserved
  • 3. Defining the Supply Chain (SC)SUPPLY CHAIN MANAGEMENT APICS - The design, planning, execution, control & monitoring of SC activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand & measuring performance globally. ISM - The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration. Produce  Sale Deliverdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 3 All international rights reserved
  • 4. A graphic representation of the Supply Chaindsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 4 All international rights reserved
  • 5. From the supplier’s supplier to the customer’s Supplier customer (external or macro focus) Customer Supplier Customer Supplier Customer Supplier Customer Supplier Customer Company Supplier Customer Supplier Customer Supplier Customer Supplier Customer Supplier Customer Downstream Upstreamdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 5 All international rights reserved
  • 6. From the supplier’s supplier to the customer’s Supplier customer (internal or micro focus) Customer Supplier Customer Supplier Customer Supplier Customer Supplier Customer Value stream / Process Supplier Customer Supplier Customer Supplier Customer Supplier Customer Supplier Customerdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 6 All international rights reserved
  • 7. Primary SCM disruptions: Natural  Earthquake  Fire  Flood  Storm  Hurricane  Tornado Man-made  Terrorism, piracy  Labor strife  Business decisions  Country risk  Exchange rate risk  Liquidity risk  Political instability  Operational riskdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 7 All international rights reserved
  • 8. Dealing with risksThere are four ways of dealing with, or managing, eachindividual risk that you identified. You can: Accept it Transfer it Mitigate it Eliminate itdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 8 All international rights reserved
  • 9. How to reduce disruptions Think strategically. Contingency planning Balance Broaden cooperation. Consider the tradeoffs  Certified (a) suppliers  Alternative (b) suppliers Glocal (see my SlideShare presentation at http://goo.gl/eDSai) Dont ignore a risk just because you cant quantify it.dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 9 All international rights reserved
  • 10. Develop a win/win SCM system Communication  Lead time – both  Automated portals Certified supplier program  Multiple levels  Alternatives Data  Accurate  Timely  Complete  1st vs. 2nd generation  Objective Forecasting  Expected  Alternative scenarios Partnership –  Upstream  Downstreamdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 10 All international rights reserved
  • 11. Use of proven tools for immediate & continuous results1. Review your current supply chain (SC)2. Draw an “as-is” SC flow chart3. Identify “critical” suppliers4. Contact each “critical” supplier5. Obtain a copy of their contingency plan 1. If they have one, review 2. If not, have them create one 3. If they won’t they do not qualify as a critical supplier6. Add this to the Critical Supplier Program7. Review the SC8. Draw a “future-state” flowchart9. Annually audit the SCdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 11 All international rights reserved
  • 12. Training Methodology Communication Preparation Demonstration Participation Collaborationdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 12 All international rights reserved
  • 13. Participant discussions In your experience what have you seen:  Work • - • - • - • -  Not work • - • - • - • -  Suggestions • - • - • - • -dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 13 All international rights reserved
  • 14. Real world templates-takeaway ABC, Inc. Supplier Comparison Chart Rate the Quality Critical Features of the suppliers ( 1 ‐ worst, 5 ‐ best ) Quality Critical Features Weights Supplier X Supplier Y Supplier Z Supplier T Supplier Q Product Quality 25% 4 6 4 1 6 Service Quality 13% 5 5 7 1 4 Lead Time 12% 7 6 3 2 2 Reputation 10% 8 9 8 4 5 Responsiveness 5% 2 8 10 4 2 Price 35% 3 10 2 9 1 Total Scores:   29 44 34 21 20 Total Weighted Scores:   4.44 7.67 4.27 4.37 3.21 Rank:   2 1 4 3 5 General Supplier X ████ Best Supplier Y ████████ Supplier Z ████ Supplier T ████ Supplier Q ███dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 14 All international rights reserved
  • 15. Best practices options External Internal Certified Supplier program  PICMA model  A suppliers  Value stream mapping  B suppliers  Continuous Process Improvement Communications  Accountability  Verbal  Written  Transparency  Published  Consistency Expectations  Champion  Objective  Added-value only focus  Consistent  Documented  6S Accountability  Leverage TOC  Transparency Audits  Self  Annual “Real” scorecardsdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 15 All international rights reserved
  • 16. Other item of interest from Daniel Feiman YouTube videos: Books: Accounting http://goo.gl/XJhKf  Daniel Feiman, et al; 2011; THE Book on…Business From A to Z: The 260 Most Branding http://goo.gl/8gFDD Important Answers You Need to Know; Build It Backwards Publishing; Los Angeles, California, USA; Amazon http://goo.gl/jMY79 or Kindle http://goo.gl/7SxeY Cash flow http://goo.gl/R04bC  Tony Miller & Daniel Feiman; 2009; THE Book on…Improving Productivity by Fair Efficiency http://goo.gl/MepxX Means or Foul; Build It Backwards Publishing; Los Angeles, California, USA; - http://goo.gl/Jp5yB Equity http://goo.gl/Ydyp7 Press; Forecasting http://goo.gl/NqGIJ  Kinaxis - Supply Chain Management simulation - http://goo.gl/ii3iq Generations http://goo.gl/0Pufe  Small Business Online Community: Accounting & Budgeting - http://goo.gl/OmYXv Innovation http://goo.gl/NNo3t  New York Times - http://goo.gl/2eCwo Leadership http://goo.gl/pZ1Fw  Pepperdine Alumni News - http://goo.gl/hbvHh Marketing http://goo.gl/bYoyZ  The LA CPA - http://ping.fm/oaYAG  Shoestring Ventures - http://goo.gl/zmgVO Mediation http://goo.gl/Re6RZ  Carol Roth’s blog on Top Book Marketing Tips: - http://goo.gl/RSUG8 Negotiation http://goo.gl/EGIL4  LEAN Guide for the Business Traveler - http://goo.gl/3fKnW Process http://goo.gl/EpTnU  Kinaxis Supply Chain Expert Community interview - http://goo.gl/RZ5hf Quality http://goo.gl/E4dmh  BizTalk radio interview - http://goo.gl/fmytq Quality http://goo.gl/qW3XY  Jim Blasingame’ Small Business Advocate radio show - http://goo.gl/zopgF Whitepapers Strategy http://goo.gl/xAeOo  Daniel Feiman & Eric Augusta; 2009; What Everyone Needs to Know about Financial Strategy http://goo.gl/sqLb5 Modeling; California Certified Public Accountants conference; Turnaround http://goo.gl/9B3JC - www.BuildItBackwards.com/publishing  Daniel Feiman & Ivan Rosenberg; 2009; Strategic Planning WORKS-If You Give It a Underperformance http://goo.gl/2l83Z Chance; - www.BuildItBackwards.com/publishing Valuation http://goo.gl/timfH  Daniel Feiman & Tom Drucker; 2009; Process Improvement is NOT a Dirty Word; - www.BuildItBackwards.com/publishing X-Ray http://goo.gl/a0Twq  Daniel Feiman; 1995; How to Develop an Asset Based Lending Department; Yield http://goo.gl/C6lPE American Bankers Association; (Award winning paper) Z-Score http://goo.gl/flde2 Reasons why http://goo.gl/cnyuVdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 16 All international rights reserved
  • 17. Daniel Feiman, MBA, CMC©, Visiting Professor Consultant, Trainer, Author, Publisher, Reviewer Daniel Feiman, MBA, CMC®, Visiting Professor is the Founder & Managing Director ofBuild It Backwards, a consulting & training firm based in Redondo Beach, CA. He turnsRoadblocks into Roadmaps(SM) by teaching companies how to Assess, Achieve & Accelerateexceptional success; with measureable results in 90 days. His core competencies include:Strategy; Finance & Process. Mr. Feiman is an internationally recognized seminar facilitator;working with firms such as Apple, ADNOC (United Arab Emirates), ARAMCO (Saudi Arabia),California Institute of International Business & Economics, Credit Suisse, Hilton HotelsInternational, Institute for Supply Management (ISM), Mattel, PEMEX (México), Promigas(Colombia), Reliance (India), TRW, University of Manchester (UK) & others. He is adjunct faculty at the University of California, Los Angeles (UCLA) ExtensionDepartment (since 1990) has taught at the University of Manchester (UK) & is the VisitingProfessor at the Business School of the University of Huddersfield (UK). He has consulted with firms in many industries including, manufacturing, distribution,financial services, oil & gas, education, healthcare, consumer products, legal, & hospitality. Hisdiverse knowledge-base & world-wide contacts is leveraged to assist his clients in gainingadvantages not available through other resources. (Please see www.BuildItBackwards.com forcase studies and testimonials). Mr. Feiman is a reviewer for the New York Journal of books(http://www.nyjournalofbooks.com/) . Build It Backwards Publishing (www.BuildItBackwards.com/Publishing) publishesbusiness books with recognized expert authors targeting those who have decided to learn whatthey really need to know in the simplest straight forward way; without jargon. Mr. Feiman is theauthor of numerous articles and whitepapers, is a contributing author to several books as well asco-author of others. The latest book in the series, THE Book on…Business from A to Z: the 260Most Important Answers You Need to Know, was published this fall. He has been interviewed bytelevision, radio & print resources.dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 17 All international rights reserved
  • 18. Contacting us: Daniel Feiman, MBA, CMC® Managing Director Build It Backwards(TM) Success by Choice; Not Chance(SM) Office: 310.540.6717 Cell: 818.522.2892 Consulting & Training in: Strategy * Finance * Process DanielFeiman@BuildItBackwards.com www.BuildItBackwards.com http://goo.gl/j6F5b http://goo.gl/TxRuAdsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com310.540.6717 18 All international rights reserved

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