This document discusses key aspects of supply chain management. It defines supply chain management as the management of the flow of goods from raw materials to finished products, and as streamlining business activities to maximize customer value. The five basic components of supply chain management are also mentioned. Several sectors of supply chain management are then outlined, including demand management planning and strategic lead time management. The remainder of the document focuses on concepts and strategies for managing strategic lead times, including time-based competition, reducing lead times, and improving visibility of demand within the supply chain.

1. IExplorer : TRIUMPH FOR SUPPLY
CHAIN
OCTOBER 14, 2013
Group 9:
Solomon
Ardales
Dionson
Chua
Hizola

2. But First… Let’s Recap!

3. What is Supply Chain Management?
• The management of the flow of goods. It
includes the movement and storage of raw
materials, work-in-process inventory, and
finished goods from point of origin.
• The streamlining of a business' supplyside activities to maximize customer value
and to gain a competitive advantage in the
marketplace.

4. Five Basic Components of SCM

5. Sectors of Supply Chain Management
• Demand Management Planning
• Strategic Lead Time Management
• Product Development and
Commercialization

6. Managing Strategic Lead Times
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Time Based Competition
Life Cycle and Lead Time
Drive to Reduced Inventories
The Concept of Lead Time
The Order to Delivery Cycle
Cash to Cash Cycle
Logistics Pipeline Management
Lead Time Gap
Reducing Logistics Lead Time
Improving Visibility of Demand

7. Time Based Competition
• Price and quality important, but
increasingly cost of time is crucial element
in choice:
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Shortening life cycles
Customers drive for reduced inventory
Volatile markets making reliance on forecasts
dangerous

8. Life Cycle and Lead Time

9. Drive to Reduced Inventories
• The drive towards Just in time delivery has
had a major impact .

Responsiveness can only be achieved
through time compression in supply chain.
• Volatile Markets & Forecasts:
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History tell us that no matter how
sophisticated the forecasting technique it will
be wrong

10. The Concept of Lead Time
• The time it takes for customers to receive
their purchases.
• The order to delivery cycle
• Customers are increasingly sensitive to
time.
• Shortening delivery time a major potential
source of competitive advantage

11. The Order to Delivery Cycle

12. Cash to Cash Cycle
• Time taken to convert order in to cash.
• The longer the pipeline from the source of
materials to the final user the less
responsive to changes in demand the
system will be.
• Ensuring timely response to volatile
demand will require a fundamentally new
approach.

13. Logistics Pipeline Management
• The process whereby manufacturing and
procurement lead time are linked to the
market.
• Key managing the supply Chain as a
single entity.
• Common fallacy long lead times give
security. It’s the other way around!

14. Lead Time Gap
• If logistics lead time = customers required
order cycle. F
orecast & inventory not required!

15. Reducing Logistics Lead Time
• The visibility of the logistics process must be
increased.
• Fundamental questioning of why we do things
the way we do.
• Optimising Production Technology (OPT):
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All activities can be categorised as bottleneck
(slowest activity in the chain)or non bottle necks.
Throughput of whole system is determined by
bottlenecks.
Bottlenecks often associated with information flow

16. Improving Visibility of Demand
• Key requirement of getting earlier warning
about customer’s requirements.
• Real demand may happen a lot earlier than
demand penetrating the system.

17. Improving Visibility of Demand
• How:
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Improving information flow so
manufacturing gets to hear about changes
in the market earlier.
Postponement of commitment of product to
its final form
Earlier notification of customer intentions
get customers to order more frequently

18. End of Presentation…
ks
an
Th
g!
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