The Codex of Business Writing Software for Real-World Solutions 2.pptx
Low cost supply chain
1. Low cost supply chain
Kenny Koay
Technical Lead/founder of anyPiece
Global Connect Resources
Connecting business affordable & efficient
Connecting business through through affordable &
efficient framework
framework
2. What is supply chain?
A supply chain is a system of organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier
to customer. Supply chain activities transform natural resources,customer…
…moving a product or service from supplier to raw materials
and components into a finished product that is delivered to the end customer. In
sophisticated supply chain systems, used products may re-enter the supply
chain at any point where residual value is recyclable. Supply chains link value
chains.
- Source: Wikipedia
Connecting business through affordable &
efficient framework
3. Problem statement
How can I cut
down my cost
Competitor instead?
Profit
margin
drop
Selling Purchase
Goods Goods
RM 4.00 RM 3.00
RM 3.80
RM 3.50
Connecting business through affordable &
efficient framework
4. Low cost supply chain
How it work?
Streamline
Supplier Internal Customer
Collaboration Manage
…moving a product or service from supplier to customer…
Connecting business through affordable &
efficient framework
5. Low cost supply chain
Streamline
Streamline Simplify the process flow and make it measureable
Activities Tools
The product portfolio Rationalization & Product
Internal Portfolio Planning
The product design Design for
Manufacturability
Part and raw material Standardization
variety
Manufacturing processes Lean, continuous flow mfg
*Excerpts from the Book: Build-to-Order & Mass Customization
Connecting business through affordable &
efficient framework
6. Low cost supply chain
Collaboration
Know your vendor and collaborate with them closely
Collaboration
Activities Tools
The vendor base Vendor/Partnerships
WIP inventory Just-in-time
Supplier
*Excerpts from the Book: Build-to-Order & Mass Customization
Connecting business through affordable &
efficient framework
7. Low cost supply chain
Collaboration
Manage your customer and understand their needs
Manage
Activities Tools
Finished goods inventory Build-to-Order
The distribution network BTO & ship direct
Customer
Order entry Configurators & data links
*Excerpts from the Book: Build-to-Order & Mass Customization
Connecting business through affordable &
efficient framework
10. JP
KL
100,000 tons of metal
expected to arrive to JP
on 1-Mar-2015
Connecting business through affordable &
efficient framework
11. Japan inventory
Suggested selling price 5
Lowest suggested price 3
Quantity availability 100,500 tons
Max quantity sellable 400,000 tons
Connecting business through affordable &
efficient framework
12. Simulation #1
Japan inventory
Sell Quantity 100,500
Suggested selling price 5 Selling Price RM5.00
Lowest suggested price 3 Net profit estimate 60%
Quantity availability 100,500 tons
Max quantity sellable 400,000 tons Simulation #2
Sell Quantity 300,000 tons
- WarehouseSelling Price+ Extra RM5.00
cost in KL Net profit estimate cost
shipment 55%
Simulation #3
Sell Quantity Japan
+ 50,000
+ ShipmentSelling Price RM5.00
warehouse
back to KL Net profit estimate 30%
Connecting business through affordable & cost
efficient framework
13. …forecast and reduce their cost and maximize their profit margin while
making customer happy with cheaper than competitor price…
With all the right tools in place, our customer able to forecast and reduce
their cost and maximize their profit margin while making customer
happy with cheaper than competitor price
Connecting business through affordable &
efficient framework
14. Can any company do it?
• As long as your company have supplier or
customer, the answer would be YES
Connecting business through affordable &
efficient framework
15. Low cost supply chain
How it work?
Streamline
Supplier Internal Customer
Collaboration Manage
…moving a product or service from supplier to customer…
Connecting business through affordable &
efficient framework