The document discusses the strategic importance of aligning a company's procurement strategy with its overall corporate strategy. It emphasizes that procurement strategy is integral to corporate strategy and the two must fit together. The document outlines factors that create uncertainty in demand and procurement chains. It also discusses how companies can evaluate capabilities and customer needs to achieve strategic fit between corporate and procurement strategies. This allows companies to effectively balance responsiveness with cost efficiency.
This document discusses achieving strategic fit between a company's competitive strategy and its supply chain strategy. It outlines three key steps: 1) Understanding customer needs and how they impact supply chain uncertainty. 2) Understanding the company's supply chain capabilities and how to balance responsiveness and efficiency. 3) Aligning the supply chain strategy to best meet customer needs given the company's supply chain capabilities. Strategic fit is achieved when a company's supply chain strategy supports its competitive strategy to satisfy customer priorities. The document also discusses factors like product life cycles and competitive changes that require evolving the supply chain strategy over time.
The document outlines 6 key obstacles to achieving strategic fit within a company's supply chain: 1) increasing variety of customized products, 2) decreasing product life cycles, 3) increasingly demanding customers, 4) fragmentation of supply chain ownership, 5) globalization adding coordination difficulties, and 6) difficulty executing new strategies once formulated. Overcoming these obstacles presents opportunities for untapped improvements, as supply chain management has become major to firms' success or failure due to obstacles' increasing impact.
Supply Chain of Dell Inc.
Covering the foll. topics:
- Overview
-Value Chain
-Pull/Pull view
-Responsiveness v/s efficiency
-strategic fit
-Drivers of supply chain
-Distribution
This document provides an overview of Sime Darby Plantation (SDP), a major palm oil producer in Malaysia. It discusses SDP's vision, mission, profile, history, organizational structure, current issues, PESTEL analysis, SWOT analysis, financial ratios, production process, BCG matrix, competitive profile, and opportunities for improvement in operations, finance, and human resources management. Key points include that SDP is one of the world's largest palm oil producers, faces challenges related to deforestation and sustainability, and has opportunities to strengthen decision making, diversify into renewable energy like biodiesel, and better attract and retain Malaysian employees.
This document discusses achieving strategic fit between a company's competitive strategy and its supply chain strategy. It outlines three key steps: 1) Understanding customer needs and how they impact supply chain uncertainty. 2) Understanding the company's supply chain capabilities and how to balance responsiveness and efficiency. 3) Aligning the supply chain strategy to best meet customer needs given the company's supply chain capabilities. Strategic fit is achieved when a company's supply chain strategy supports its competitive strategy to satisfy customer priorities. The document also discusses factors like product life cycles and competitive changes that require evolving the supply chain strategy over time.
The document outlines 6 key obstacles to achieving strategic fit within a company's supply chain: 1) increasing variety of customized products, 2) decreasing product life cycles, 3) increasingly demanding customers, 4) fragmentation of supply chain ownership, 5) globalization adding coordination difficulties, and 6) difficulty executing new strategies once formulated. Overcoming these obstacles presents opportunities for untapped improvements, as supply chain management has become major to firms' success or failure due to obstacles' increasing impact.
Supply Chain of Dell Inc.
Covering the foll. topics:
- Overview
-Value Chain
-Pull/Pull view
-Responsiveness v/s efficiency
-strategic fit
-Drivers of supply chain
-Distribution
This document provides an overview of Sime Darby Plantation (SDP), a major palm oil producer in Malaysia. It discusses SDP's vision, mission, profile, history, organizational structure, current issues, PESTEL analysis, SWOT analysis, financial ratios, production process, BCG matrix, competitive profile, and opportunities for improvement in operations, finance, and human resources management. Key points include that SDP is one of the world's largest palm oil producers, faces challenges related to deforestation and sustainability, and has opportunities to strengthen decision making, diversify into renewable energy like biodiesel, and better attract and retain Malaysian employees.
This document discusses Tyco Electronics' automotive products and services. It provides an overview of Tyco Electronics' global automotive division and their portfolio of electronic components used in automotive applications. This includes connector systems, relays, sensors, fiber optic products, wire and cable. The document also describes Tyco Electronics' online resources and product literature available to customers.
Supply chain management involves the integration of suppliers, manufacturers, warehouses, and stores to minimize costs while meeting customer demand. It aims to produce and distribute goods in the right quantities, locations, and times. Key aspects of supply chain management include supply chain planning, procurement, manufacturing, and distribution. Effective supply chain management requires cross-functional collaboration, information sharing, and managing uncertainties to achieve global optimization across the entire supply chain network.
The document discusses key concepts about supply chain management including:
1) A supply chain includes all stages involved in fulfilling a customer request from raw materials to delivery, and it aims to maximize overall value by balancing customer value and supply chain costs.
2) Supply chain decisions can be classified into three phases: strategy, planning, and operations, with each having a different time horizon and level of uncertainty.
3) Supply chain processes can be viewed through the cycle view which looks at interfaces between stages or the push/pull view which categorizes processes as reactive to customer demand or speculative.
This document provides an overview of Procter & Gamble (P&G) India. It discusses that P&G India is a subsidiary of the world's largest consumer goods company and was established in India in 1964. It serves over 650 million consumers in India with popular brands like Vicks, Ariel, Tide, Whisper, Olay, Gillette, Pampers, Oral-B, Head & Shoulders and Duracell. The document also summarizes P&G's supply chain management approaches, including Collaborative Planning Forecasting and Replenishment and Consumer Driven Supply Network, and how it has collaborated with retailers like Walmart.
The document provides an introduction to supply chain management, including definitions and key concepts. It defines a supply chain as a network of facilities and distribution options that fulfill customer requests. It also defines supply chain management as the management of business processes and activities involving procurement, manufacturing, and distribution to customers. The objectives of supply chain management are also outlined, such as maximizing value, improving quality and reducing costs. Decision phases in supply chain management are discussed, including supply chain strategy, planning and operations.
Download our content ready supply chain management PowerPoint presentation to showcase the flow of goods and services to the management and client. This predesigned supply chain analysis PPT presentation comprises 77 slides. The Supply Chain Management presentation covers slide on various relevant subjects such as supply chain management process, SCM decision phases, strategic sourcing process, logistics, and it, planning and forecasting, inventory management, inventory management models, performance measures, and common problems with supply chain management. A team of the researcher has researched the content of the presentation, and top professional graphics designers have converted it into a stunning presentation. Use this SCM PowerPoint PPT to represent the process of design, planning, implementation, control, and monitoring of supply-chain tasks with the goal of preparing net value and constructing a competitive framework. Our presentation designers have used an appealing graphics of table, pie charts, bar graphs, circles, and icons to make this presentation professional and attention-grabbing. Grab this complete presentation on supply chain management and improve the relationship with customers. Throw a line with our Supply Chain Management Powerpoint Presentation Slides. Reel them in slowly to your point of view.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
The document provides a strategic marketing plan for 99 Speedmart Sdn Bhd, a Malaysian mini market chain with over 1000 stores. The plan includes:
1) Conducting a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats.
2) Developing recommendations through a TOWS matrix to leverage strengths and opportunities, and mitigate weaknesses and threats.
3) Proposing key marketing objectives and strategies centered around developing customer loyalty programs using a new e-Groceries application and e-loyalty program integrated with social media marketing on Facebook.
4) Outlining implementation tactics and an evaluation framework to measure the success of the marketing plan.
Customer value and supply chain managementLayman Gud
The document discusses key aspects of customer value and supply chain management. It defines customer value as how customers perceive a company's offerings and explains it can be measured based on factors like conformance to requirements, product selection, price, brand, value-added services, and relationships. The document also outlines how supply chain management aims to efficiently integrate suppliers, manufacturers, warehouses to minimize costs and satisfy customer needs. It emphasizes the importance of customer value in driving supply chain changes and determining the appropriate supply chain type for a company.
Customer relationship management and supply chain managementRohit Kumar
Customer relationship management (CRM) is a model for managing a company's interactions with current and future customers using technology to organize sales, marketing, customer service, and technical support. CRM helps companies identify and reward loyal customers to retain business, acquire new customers through improved marketing efficiency, and enhance customer service to keep customers happy. Effective CRM requires centralizing customer data, supporting mobility, and flexibility to customize the software to user needs.
The document discusses supply chain mapping, including what a supply chain map is, how mapping can help businesses, and how to create a supply chain map. It provides an example of how two companies, Capital Equipment Inc. and Mare Technologies, collaborated to map their supply chain, identify inefficiencies, prioritize improvements, and implement changes that reduced lead times, work-in-process, and costs. The document also covers potential difficulties in supply chain collaboration and provides an activity for mapping the peanut butter supply chain of Ritz Peanut Butter Co.
Transco India Ltd is a Rs 3 Crore logistics company established in 2008 to provide supply chain solutions to the Indian retail industry. It has 2 branch offices, warehouses totaling 1 lakh sqft near highways, and 75 employees. Transco aims to close gaps in the supply chain through direct consignment, reducing cycle times and costs, and improving services for manufacturers and retailers. It provides services like returns management and re-marking from its Delhi mother warehouse.
This document provides an overview of information technology management in supply chain operations, using Walmart as a case study. It discusses key concepts like traditional vs integrated supply chain views, the importance and benefits of IT in supply chain management. It also describes various types of IT systems used in supply chains, including ERP, transportation management, inventory management, EDI, barcoding, RFID and e-commerce systems. Finally, it discusses management of supply chain information systems and the development process.
this is marketing plan for gardenia. in this slide describe more about Gardenia Company in Malaysia. Example types of Gardenia breads, SWOT analysis and more. so, enjoy :)
Supply chain management involves coordinating all parties involved in fulfilling customer requests, including suppliers, manufacturers, distributors, retailers, and customers. The objective is to maximize overall profit by generating revenue from customers that exceeds costs incurred along the entire supply chain. An effective supply chain manages product, information, and fund flows to have the right products in the right quantities available at the minimal cost. A simple example supply chain for bread shows the value added at each stage from farmer to grocery store. Logistics is the management of the flow of goods, information, and resources between the point of origin and consumption, integrating transportation, inventory, and warehousing to add time and place value.
The document is a report proposing a short English course at the University of Gujrat based on findings from an English department meeting. It discusses that 80% of students have poor English skills based on exam scripts. Interviews found students lacked writing correctness and speaking fluency. The report recommends opening the course to help students with English basics and improve their exam performance. It believes the course will be popular and help students, non-students, and professionals.
This document discusses transportation networks and planning. It covers several key topics:
1. The role of transportation in supply chains is to provide critical links between organizations, permitting goods to flow between facilities and promoting supply chain competitiveness.
2. Different transportation modes like trucks, rail, air and water each have their own costs, capacities and issues to consider. Designing transportation networks requires balancing these factors against inventory and responsiveness needs.
3. Transportation network design options include direct shipping, shipping through distribution centers, using milk runs, and tailored networks. Each have their own pros and cons regarding costs, complexity and inventory levels.
The document discusses key concepts regarding product decisions in marketing. It covers definitions of a product, classifications of consumer and business products, levels of products including items, lines and mixes. It also discusses branding, including brand names, marks and equity. Product adjustments like modification, extension and contraction of lines are explained. The benefits of branding and important considerations for brand names are highlighted.
DELL utilizes a build-to-order supply chain strategy where customer orders trigger product assembly. This approach keeps inventory costs low and allows for fast responses to demand changes. DELL also sells directly to customers rather than through retailers. This direct sales model creates efficiencies and strong customer relationships. DELL carefully manages demand across strategic, tactical, and operational levels. Accurate demand forecasting is crucial to DELL's supply chain success. Integration with suppliers also provides benefits while allowing partners to focus on their specializations.
The document discusses Dell, a large technology company founded in 1984 by Michael Dell. Some key points:
- Dell is based in Round Rock, Texas and employs over 100,000 people worldwide.
- Michael Dell still serves as CEO and has a net worth of $18.2 billion according to Forbes.
- Dell utilizes a lean supply chain model, cutting inventory from 20-25 days to just 72 hours.
This document discusses Tyco Electronics' automotive products and services. It provides an overview of Tyco Electronics' global automotive division and their portfolio of electronic components used in automotive applications. This includes connector systems, relays, sensors, fiber optic products, wire and cable. The document also describes Tyco Electronics' online resources and product literature available to customers.
Supply chain management involves the integration of suppliers, manufacturers, warehouses, and stores to minimize costs while meeting customer demand. It aims to produce and distribute goods in the right quantities, locations, and times. Key aspects of supply chain management include supply chain planning, procurement, manufacturing, and distribution. Effective supply chain management requires cross-functional collaboration, information sharing, and managing uncertainties to achieve global optimization across the entire supply chain network.
The document discusses key concepts about supply chain management including:
1) A supply chain includes all stages involved in fulfilling a customer request from raw materials to delivery, and it aims to maximize overall value by balancing customer value and supply chain costs.
2) Supply chain decisions can be classified into three phases: strategy, planning, and operations, with each having a different time horizon and level of uncertainty.
3) Supply chain processes can be viewed through the cycle view which looks at interfaces between stages or the push/pull view which categorizes processes as reactive to customer demand or speculative.
This document provides an overview of Procter & Gamble (P&G) India. It discusses that P&G India is a subsidiary of the world's largest consumer goods company and was established in India in 1964. It serves over 650 million consumers in India with popular brands like Vicks, Ariel, Tide, Whisper, Olay, Gillette, Pampers, Oral-B, Head & Shoulders and Duracell. The document also summarizes P&G's supply chain management approaches, including Collaborative Planning Forecasting and Replenishment and Consumer Driven Supply Network, and how it has collaborated with retailers like Walmart.
The document provides an introduction to supply chain management, including definitions and key concepts. It defines a supply chain as a network of facilities and distribution options that fulfill customer requests. It also defines supply chain management as the management of business processes and activities involving procurement, manufacturing, and distribution to customers. The objectives of supply chain management are also outlined, such as maximizing value, improving quality and reducing costs. Decision phases in supply chain management are discussed, including supply chain strategy, planning and operations.
Download our content ready supply chain management PowerPoint presentation to showcase the flow of goods and services to the management and client. This predesigned supply chain analysis PPT presentation comprises 77 slides. The Supply Chain Management presentation covers slide on various relevant subjects such as supply chain management process, SCM decision phases, strategic sourcing process, logistics, and it, planning and forecasting, inventory management, inventory management models, performance measures, and common problems with supply chain management. A team of the researcher has researched the content of the presentation, and top professional graphics designers have converted it into a stunning presentation. Use this SCM PowerPoint PPT to represent the process of design, planning, implementation, control, and monitoring of supply-chain tasks with the goal of preparing net value and constructing a competitive framework. Our presentation designers have used an appealing graphics of table, pie charts, bar graphs, circles, and icons to make this presentation professional and attention-grabbing. Grab this complete presentation on supply chain management and improve the relationship with customers. Throw a line with our Supply Chain Management Powerpoint Presentation Slides. Reel them in slowly to your point of view.
• Make Versus Buy
• Benefit of Outsourcing
• Source of Supplier Information
• Strategis Selection
• Supplier Relationship Management (SRM)
• Industry Example
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
The document provides a strategic marketing plan for 99 Speedmart Sdn Bhd, a Malaysian mini market chain with over 1000 stores. The plan includes:
1) Conducting a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats.
2) Developing recommendations through a TOWS matrix to leverage strengths and opportunities, and mitigate weaknesses and threats.
3) Proposing key marketing objectives and strategies centered around developing customer loyalty programs using a new e-Groceries application and e-loyalty program integrated with social media marketing on Facebook.
4) Outlining implementation tactics and an evaluation framework to measure the success of the marketing plan.
Customer value and supply chain managementLayman Gud
The document discusses key aspects of customer value and supply chain management. It defines customer value as how customers perceive a company's offerings and explains it can be measured based on factors like conformance to requirements, product selection, price, brand, value-added services, and relationships. The document also outlines how supply chain management aims to efficiently integrate suppliers, manufacturers, warehouses to minimize costs and satisfy customer needs. It emphasizes the importance of customer value in driving supply chain changes and determining the appropriate supply chain type for a company.
Customer relationship management and supply chain managementRohit Kumar
Customer relationship management (CRM) is a model for managing a company's interactions with current and future customers using technology to organize sales, marketing, customer service, and technical support. CRM helps companies identify and reward loyal customers to retain business, acquire new customers through improved marketing efficiency, and enhance customer service to keep customers happy. Effective CRM requires centralizing customer data, supporting mobility, and flexibility to customize the software to user needs.
The document discusses supply chain mapping, including what a supply chain map is, how mapping can help businesses, and how to create a supply chain map. It provides an example of how two companies, Capital Equipment Inc. and Mare Technologies, collaborated to map their supply chain, identify inefficiencies, prioritize improvements, and implement changes that reduced lead times, work-in-process, and costs. The document also covers potential difficulties in supply chain collaboration and provides an activity for mapping the peanut butter supply chain of Ritz Peanut Butter Co.
Transco India Ltd is a Rs 3 Crore logistics company established in 2008 to provide supply chain solutions to the Indian retail industry. It has 2 branch offices, warehouses totaling 1 lakh sqft near highways, and 75 employees. Transco aims to close gaps in the supply chain through direct consignment, reducing cycle times and costs, and improving services for manufacturers and retailers. It provides services like returns management and re-marking from its Delhi mother warehouse.
This document provides an overview of information technology management in supply chain operations, using Walmart as a case study. It discusses key concepts like traditional vs integrated supply chain views, the importance and benefits of IT in supply chain management. It also describes various types of IT systems used in supply chains, including ERP, transportation management, inventory management, EDI, barcoding, RFID and e-commerce systems. Finally, it discusses management of supply chain information systems and the development process.
this is marketing plan for gardenia. in this slide describe more about Gardenia Company in Malaysia. Example types of Gardenia breads, SWOT analysis and more. so, enjoy :)
Supply chain management involves coordinating all parties involved in fulfilling customer requests, including suppliers, manufacturers, distributors, retailers, and customers. The objective is to maximize overall profit by generating revenue from customers that exceeds costs incurred along the entire supply chain. An effective supply chain manages product, information, and fund flows to have the right products in the right quantities available at the minimal cost. A simple example supply chain for bread shows the value added at each stage from farmer to grocery store. Logistics is the management of the flow of goods, information, and resources between the point of origin and consumption, integrating transportation, inventory, and warehousing to add time and place value.
The document is a report proposing a short English course at the University of Gujrat based on findings from an English department meeting. It discusses that 80% of students have poor English skills based on exam scripts. Interviews found students lacked writing correctness and speaking fluency. The report recommends opening the course to help students with English basics and improve their exam performance. It believes the course will be popular and help students, non-students, and professionals.
This document discusses transportation networks and planning. It covers several key topics:
1. The role of transportation in supply chains is to provide critical links between organizations, permitting goods to flow between facilities and promoting supply chain competitiveness.
2. Different transportation modes like trucks, rail, air and water each have their own costs, capacities and issues to consider. Designing transportation networks requires balancing these factors against inventory and responsiveness needs.
3. Transportation network design options include direct shipping, shipping through distribution centers, using milk runs, and tailored networks. Each have their own pros and cons regarding costs, complexity and inventory levels.
The document discusses key concepts regarding product decisions in marketing. It covers definitions of a product, classifications of consumer and business products, levels of products including items, lines and mixes. It also discusses branding, including brand names, marks and equity. Product adjustments like modification, extension and contraction of lines are explained. The benefits of branding and important considerations for brand names are highlighted.
DELL utilizes a build-to-order supply chain strategy where customer orders trigger product assembly. This approach keeps inventory costs low and allows for fast responses to demand changes. DELL also sells directly to customers rather than through retailers. This direct sales model creates efficiencies and strong customer relationships. DELL carefully manages demand across strategic, tactical, and operational levels. Accurate demand forecasting is crucial to DELL's supply chain success. Integration with suppliers also provides benefits while allowing partners to focus on their specializations.
The document discusses Dell, a large technology company founded in 1984 by Michael Dell. Some key points:
- Dell is based in Round Rock, Texas and employs over 100,000 people worldwide.
- Michael Dell still serves as CEO and has a net worth of $18.2 billion according to Forbes.
- Dell utilizes a lean supply chain model, cutting inventory from 20-25 days to just 72 hours.
Getting from Smart Metering to the Optimized Grid: How Can You Get There Today?
• How can you leverage current investments in smart metering to get the vital grid intelligence required for an optimized grid?
• What role does communication, standards and interoperability play?
• How far away are we from the “future of the smart grid” when electric vehicles, integration of renewables and decentralized generation are happening today? How can you prepare for this future today?
• Speaker: Par Schroder, Echelon Corporation
The Development Of Closed Loop Supply ChainsWyndham Cramer
Sustainable Supply Chains are discussed frequently and are in vogue at present. This paper published in 2005 provides an insight in to the author\'s futuristic thought process on sustainability specifically the development of closed loop supply chains. A leader who has guided the supply chain of many global multinationals in the South Pacific, this paper was awarded the runner- up prize for the 2005 Logistics Development Award by the Logistics Association of Australia.
The document outlines Dell's supply chain and order fulfillment process. A customer places an order through Dell's website or by phone. Dell then processes the order, which involves financial evaluation, configuration checking, and sending the order to an assembly plant. The plant builds, tests, and packages the product within eight hours. Dell typically ships orders within five days of receiving an order.
Logan icty streamlining business processes in the procurement value chain_2012Logan Vadivelu
The document discusses streamlining procurement processes through business process management (BPM). It begins by noting that leading organizations prioritize process effectiveness. It then discusses the need to automate procurement processes like procure-to-pay to gain efficiencies. As an example, it describes how BPM can optimize the vendor onboarding process. The presentation introduces IBM BPM software, highlighting how it allows users to model, monitor, and improve end-to-end business processes in real-time. It asserts IBM's strong position in the BPM market based on customer base, partnerships, and expertise.
CSCM Chapter 3 strategic procurement and value chain cscmEst
Strategic procurement aims to facilitate added value across the entire value chain, not just reduce costs. A value chain displays the total value created by a firm through its unique activities and margins. Porter's value chain model divides activities into primary and support activities. Primary activities directly relate to product creation and support, while support activities underpin primary activities through functions like procurement, HR and infrastructure. Firms gain competitive advantage by configuring activities to create more value for customers than competitors.
Steps to a Successful E-Procurement Journey – A Program In ReviewSAP Ariba
When it comes to eProcurement, many of the toughest challenges are faced in the first couple years, but spend management is really a journey not a destination. Whether you are just considering beginning the journey, or whether you’re in your second decade, this session is a must attend. During this time we will hear how Bank of America has taken the vision of eProcurement to successful implementation, execution and beyond. We will look at many of the challenges they faced, technically, politically, and culturally, and the approaches that proved successful and not so successful. This will prove to be one of the most beneficial sessions to your journey in the upcoming years, whether you will be taking your first step or your 100th.
Dell was facing increasing costs in its L5 desktop manufacturing supply chain due to motherboards being air freighted to the US for integration. The BPI team evaluated 6 options to address this, including keeping the existing 3PI model or moving integration to Dell facilities. After assessing factors like costs, complexity, quality and capital requirements, the team recommended Option 3A of establishing an offline integration facility at Dell's Supplier Logistics Center. While this would make cost accounting more complex, it offered low capital costs and improved supplier quality management. However, the sustainability of this approach could be impacted by further chipset supply issues.
The document discusses purchasing/procurement management and outlines key concepts. It begins with definitions of purchasing and procurement and their role in supply chain management. It then covers traditional roles and how they have evolved, highlighting how procurement now supports various functions across the organization. The document also outlines the supplier selection process and criteria for evaluating suppliers. It provides an overview of the typical purchase order process flow and documents involved. Finally, it discusses supplier resource management and factors to consider when managing supplier relationships.
The document discusses strategies for developing model suppliers and optimizing a company's supply base. It defines attributes of model suppliers, such as managing quality systems, demonstrating technology leadership, and supporting business goals. It also outlines steps for a mature supply management process, including defining a preferred supplier base, establishing strategic partnerships, integrating suppliers, and conducting supply base segmentation. Commodity source plans are developed annually based on supplier performance data and input from stakeholders to guide one-year and three-to-five-year sourcing strategies.
This Presentation Explains about the Various Segments of the Retail Giant Walmart's Supply Chain. The CRM, SCM, SRM sections are discussed. We have also done a bit of additional research on the meat Supply at Walmart.
Mc donald’s e procurement, Supply Chain and Logisticsmjahanzaib
McDonalds uses an efficient e-procurement system and supply chain management to source goods from suppliers. Its e-procurement hub, Emac Digital, allows franchises to order supplies online at discounted prices. McDonalds works with major suppliers and small local suppliers. It has strict logistics standards around quality, hygiene and product handling to ensure consistency. McDonalds uses franchising, licensing and joint ventures as distribution strategies in different markets globally.
Value chain analysis was first suggested by Michael Porter in 1995 as a way to present how value is constructed for the end customer. It can be used to increase competitiveness, reduce costs, and improve market share, ultimately improving overall profitability. Value chain analysis involves examining a firm's internal costs and processes that differentiate its products or services from competitors, as well as vertical linkages along the entire supply chain from suppliers to end customers. Firms can use value chain analysis along with frameworks like industry structure analysis, core competencies analysis, and segmentation analysis to develop strategies to enhance competitiveness.
The document discusses supply chain management (SCM). It defines SCM as the active management of supply chain activities to maximize customer value and achieve a competitive advantage. It describes key aspects of SCM including integrating suppliers, distributors and customers; using information systems to automate information flow; and setting objectives at strategic, tactical and operational levels to manage resources, scheduling and production planning. The document also outlines challenges in SCM like demand uncertainties and the bullwhip effect, and how information systems and software can help address these challenges by facilitating information flow, tracking orders and inventory, and enabling collaborative planning across the supply chain.
The document discusses implementing lean six sigma principles and eProcurement/strategic sourcing in a heavy machinery industry's MRO environment. It outlines the implementation highlights, including a focus on change management over technology. Benefits achieved included reduced costs, improved compliance, and faster processing times. The strategic sourcing roadmap included spend analysis, supplier evaluation, contracting, and an eProcurement system to streamline the procure-to-pay process. Key success factors included cross-functional involvement, standardization, and benefits realization monitoring.
The document discusses sourcing strategies for recruitment and hiring. It defines sourcing as an organization's ability to use effective recruitment approaches to fill vacant positions. A sourcing strategy is needed to determine the best methods for different types of roles based on skills required, position needs, and available resources. The strategy should include both internal and external recruitment methods with a focus on targeted recruitment. An effective sourcing strategy drives down candidate interviews while ensuring a proper fit between the candidate and company requirements.
The document discusses strategic sourcing and ADMA-OPCO's plans to implement it. The goals of strategic sourcing are to increase customer satisfaction, improve internal service levels and product quality, and significantly reduce total costs through coordinated purchasing across the organization. ADMA-OPCO aims to leverage its buying power to obtain goods and services efficiently for end users. The document outlines the strategic sourcing process and opportunities for ADMA-OPCO to analyze spending, the supplier base, and develop a sourcing strategy to better meet its goals.
Michael Dell started Dell Computer in 1984 out of his dorm room at the University of Texas with $1000. Dell pioneered a direct sales model where it built computers to customer specifications and shipped directly to consumers without retailers. This allowed Dell to eliminate inventory costs and quickly introduce new technologies. By 2001, Dell became the largest PC maker in the world, but has faced challenges recently from the decline in PC sales as tablets and smartphones increased in popularity. In response, Dell went private in a $24 billion deal in 2013 to restructure away from its reliance on PCs.
This document discusses the strategic implementation of procurement processes. It begins by establishing that effective procurement requires sound business practices to maximize organizational value through acquiring goods and services. The document then discusses factors like competition and technology that impact procurement strategies. It provides examples of companies that struggled or succeeded by effectively aligning their corporate and procurement strategies. Finally, it discusses developing procurement capabilities that strategically fit customer needs and demands while considering uncertainties. The key is finding the right balance between responsiveness and efficiency.
Logistics management aims to coordinate activities from procurement to delivery to satisfy customers at lowest cost. It involves planning material, part, and inventory movement and information flows. The ultimate goal is linking all levels of an organization to efficiently serve customers. Effective logistics and customer service can provide a competitive advantage by establishing cost leadership or value differentiation.
The document discusses themes related to warehouse and distribution footprint. It identifies the top 5 themes as: [1] Network design; [2] Channel control; [3] In-house or 3PL; [4] Re-tender; and [5] Cost to serve. For each theme, the document provides viewpoints and considerations for defining a company's warehouse and distribution strategy.
The document discusses strategy and sustainability in operations and supply chains. It covers key topics like competitive dimensions, order qualifiers and winners, strategic fit, productivity measurement, and how financial markets evaluate operations performance. The learning objectives are to understand how operations strategy relates to other functions, identify strategic factors, and explain how productivity and performance are assessed.
This document discusses various production and supply chain issues that international businesses must consider. It covers factors like facility location, scale of operations, cost of production, and supply chain management. Specific factors discussed for facility location include customer proximity, availability of skilled labor, and environmental policy. Scale of operations can refer to small, medium, or large businesses. Costs include fixed and variable costs. Make-or-buy decisions must also be made. Globalization further impacts supply chain networks.
This document discusses key concepts in operations and supply chain strategy. It covers why logistics activities should be integrated, and provides examples from FedEx. It also discusses strategies for matching production to demand, including chase and level strategies. Finally, it discusses the importance of a triple bottom line approach that considers social, economic and environmental impacts, and defines key related terms like sustainability, stakeholders and shareholders.
Session 3 and 4 Concept in materials.pdfjaiminkhatri4
The document provides an overview of key supply chain management concepts. It discusses how supply chain management involves coordinating materials, information and finances as they move from suppliers to consumers. It also examines the types of decisions that must be made at the strategic, tactical and operational levels of a supply chain. Finally, it explores how measuring performance can help enhance value across the supply chain.
Supply chain collaboration is a critical area of focus for many retail businesses. Before collaboration efforts can be made, key players must first understand the difference between key industry segments. The retail and consumer packaged goods segments are most often confused because of their similarities, but in reality are quite different. Retail is defined as the sale of products to end consumers. This is typically done through a variety of retail channels including brick and mortar stores, e-commerce sites, phone sales and print catalogs. Consumer packaged goods (CPG) is a more broad category encompassing all manufacturers, sellers and marketers of physical goods that are sold through retailers. CPGs often operate at the wholesale level rather than the direct-to-consumer (D2C) level. While these businesses have very similar end goals, they often do not work closely together. In a 2015 article industry experts noted that by working together retailers and CPG manufacturers could benefit from increased sales, cost savings, optimized processes and systems and a more positive customer experience. A strategic collaboration plan can help these businesses to more easily obtain these common objectives.
Before a strategy can be developed, these key players must also look at the challenges or roadblocks they expect to encounter. Some of the top challenges encountered by the CPG industry include: variable consumer demand and the ability to adapt, shrinking profit margins due to increased competition, increase regulatory requirements, data visibility across global supply chains and the management of complex omni-channel retail strategies. Due to the proximity of these supply chain segments, retailers are often affected by these challenges downstream, but by working together to develop new and innovative products and processes both retail supply chain operations can benefit. Much of this innovation will come from improved analytics derived from WMS technology investment which is expected to increase through 2018. Learn more about how tech investment and supply chain innovation will improve collaboration efforts between consumer packaged goods manufacturers and retailers by contacting Datex experts today at marketing@datexcorp.com or 800-933-2839 ext 243 or www.datexcorp.com.
This document discusses supply chain management. It defines a supply chain as including suppliers, manufacturers, warehouses, distribution centers, and retail outlets, as well as the materials and products that flow between them. It describes how uncertainty increases as you move further up the supply chain away from customers due to lack of information. It also discusses the bullwhip effect, where small fluctuations in retail demand can cause larger fluctuations in orders as you move up the supply chain. The document emphasizes the importance of reducing uncertainty in the supply chain through improved information sharing and collaboration between partners.
The document provides an overview of supply chains and supply chain management. It defines a supply chain as the network of activities involved in delivering a finished product to a customer, including sourcing, production, and distribution. Supply chain management coordinates this network to promote information sharing and efficient movement of goods from suppliers to manufacturers to distributors. The document then describes key components of supply chains, including suppliers, internal functions, and distributors. It also discusses issues like the bullwhip effect, the role of information technology, and trends in supply chain management.
This document discusses supply chain management (SCM) concepts. It defines key terms like supply chain, demand chain, and SCM. It describes the benefits of SCM like increased profits and competitive advantage. It explains the components of supply chains including upstream, internal, and downstream processes. It also discusses challenges in SCM like the bullwhip effect and solutions like strategic partnerships and just-in-time approaches. The role of technology like ERP systems and e-commerce in integrating SCM is also summarized.
This document provides an overview of key concepts for developing competitive advantages and strategies. It defines competitive advantage and discusses Porter's Five Forces model for evaluating industry attractiveness based on supplier power, threat of substitutes, threat of new entrants, rivalry among existing competitors, and bargaining power of buyers. It also describes Porter's three generic strategies of cost leadership, differentiation, and focus. Additionally, it explains value chain analysis for executing business strategies through primary and support activities. The learning outcomes cover explaining why competitive advantages are temporary, describing Porter's Five Forces model, comparing Porter's three generic strategies, and demonstrating value chain analysis.
- Supply chain management involves all stages of fulfilling a customer request, including suppliers, manufacturers, distributors, retailers, and customers. It aims to maximize overall value by managing information, product, and funds flows across the supply chain.
- Supply chain decisions can be categorized into strategy/design, planning, and operations. Strategy/design determines the supply chain structure and roles. Planning sets policies for short-term operations based on demand forecasts. Operations implements plans through daily customer order fulfillment.
- Processes can be viewed through cycles at interfaces between stages or through push/pull based on whether they are reactive or speculative to demand. Integration across customer relationship management, internal supply chain management, and supplier relationship management is important
Strategic Role of Purchasing
Purchasing Portfolio
Supplier Selection
Customer Centric Supply Chain
Supply Chain Management
Supply Chain Management in the 21st Century
Research Topics in Supply Chain Management
This document provides information on supply chain management, quality control, profitability, risk management, customization, and the role of e-business and e-commerce in the supply chain. It discusses key aspects of an effective supply chain including demand planning, procurement, logistics, and inventory management. It also outlines the importance of quality control in reducing costs and increasing customer satisfaction. Factors that impact profitability like defects and inspections are examined. The document then discusses supply chain risk management and approaches to managing known and unknown risks. It also addresses customizing supply chains to balance standardized products with optional services. Finally, it explores the role of e-commerce in modern supply chains and how e-business impacts responsiveness and efficiency.
This document discusses how aligning purchasing, distribution, and sales as a unified supply chain can improve profitability. It provides examples of how decisions made within individual silos, like procurement changing suppliers to reduce costs, can negatively impact other areas by increasing distribution expenses. The document advocates for regular cross-functional planning, defining the full costs of operations, and implementing programs to reduce excess inventory costs that burden the entire supply chain.
The document discusses the balanced scorecard framework developed by Kaplan and Norton. It provides an overview of the four perspectives of the balanced scorecard - financial, customer, internal business processes, and learning and growth. It explains that the balanced scorecard translates strategy into objectives, measures, targets, and initiatives in each of these four areas. It also provides an example of how apparel retailer Pantaloon Retail Limited applied the balanced scorecard across these four perspectives.
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2. • Product supply management is nothing but Procurement
Strategy, which is integral to corporate strategy.
• A corporation’s corporate strategy and procurement
strategy must fit with each other or otherwise, both will
fail.
• We will discuss the strategic decision making issues of
procurement and also how managers make decisions
related to both corporate and procurement strategy.
• The discussions should facilitate understanding of the
issues of strategic implementation.
1-2
3. The new global business environment
• Fierce competition
• Introduction of products with shorter and shorter
life cycles
• Heightened expectations of customer
• Continuing advances in communications and
transportation technologies (e.g. mobile
communication, Internet, overnight delivery)
1-3
4. Cost impact of managing inventory
• It is estimated that the grocery industry could save
$30 billion (10% of its operating cost) by using
effective logistics strategies.
• Compaq computer estimates it lost $500 million to
$1 billion in sales because its laptops and desktops
were not available when and where customers
were ready to buy them (Compaq does not exist
anymore).
1-4
5. Managing costs in the supply arena
• JIT, TQM, lean mfg. techniques have reduced
manufacturing costs as much as they could.
• One area that yet requires improvement:
Inventory Procurement. See the following
examples:
• It takes a typical box of cereals more than 3
months to get from factory to supermarket.
• It takes a new car, on average, 15 days to travel
from factory to dealership.
1-5
6. The Success Stories
• In 10 years, Wal-Mart transformed itself by
changing its logistics system. It has the highest
sales per square foot, inventory turnover and
operating profit of any discount retailer.
• Dell Computer has outperformed the competition
in terms of shareholder value growth over the
eight years period, 1988-1996, by over 3,000%
1-6
7. What exactly is procurement?
• All stages and parties involved, directly or
indirectly, in fulfilling a customer request
• Internally, the procurement process includes all
functions involved in fulfilling a customer request
(product development, marketing, operations,
distribution, finance, customer service).
• Externally, it includes the suppliers, vendors,
manufacturers, transportation, and distributors,
that exist to transform raw materials to final
products and supply those products to customers.
1-7
8. A procurement or a supply example
Let us briefly go over how selling a simple box of
detergent through a retail store involves so many
parties and contractual arrangements and why each
one must function effectively to make the process
efficient.
1-8
9. Buying Cereals from Wal-Mart
Timber Paper Tenneco
Company Manufacturer Packaging
P&G or other
Wal- Mart Customer
Manufacturer
Corn Plastic
manufacturer Producer
1-9
10. The Objectives of a Procurement Chain
• Primary purpose is satisfying customer needs.
• Maximizing the overall value created
• Value, measured monetarily, refers to: the difference
between what the final product is worth to the customer
(price the customer is willing to pay) and the effort,
collectively, the procurement chain expends in filling the
customer’s request (the collective costs)
• Therefore, procurement profitability would be: the
difference between revenue generated from the customer
and the overall cost across the entire Procurement chain.
1-10
11. While managing procurement process is important for
managing costs and profits and delivering value to the
customer, it is not easy to do.
It requires understanding, cooperation, coordination, and
information sharing among several trading partners – both
internal and internal.
And, given that there are so many parties, it is indeed a
formidable task to make all of them work towards a
common objective.
1-11
12. Why should procurement be a challenging
problem?
• Procurement chain network is often very
complex
• Procurement chain partners have conflicting
objectives.
• Consequently, making everyone to agree is
not an easy task.
1-12
13. Conflicting Objectives
in the Procurement Chain
1. Purchasing wants
• Stable volume requirements
• Flexible delivery time
• Little variation in mix
• Large quantities
2. Manufacturing wants
• Long run production
• High quality
• High productivity
• Low production cost
Tell me why some of these objectives are conflicting.
1-13
14. Conflicting Objectives
in the Procurement Chain
3. Warehousing wants
• Low inventory
• Reduced transportation costs
• Quick replenishment capability
4. Customers want
• Short order lead time
• High in stock
• Enormous variety of products
• Low prices
Tell me why some of these objectives are conflicting.
1-14
15. While we agree on the importance of
procurement, how does it translate
into a corporate strategy?
17. Business strategies change over time
• In the 1990s, outsourcing was the focus of many
manufacturers.
Example: Nike Shoes
• Nike’s strategy: R and D on one hand and
marketing, sales, and distribution on the other.
Example 2: CISCO
• CISCO’s strategy: Focus on Internet sales;
increased productivity and save on business
expenses.
Example 3: Apple Computers
• Apple computers: outsourced most of its mfg.
2-17
18. The Landscape changed
• In 2001, Nike reported a profit shortfall due to
inventory buildup, shortage for others, and late
deliveries.
• In 2000, CISCO was forced to announce 2.25 B
write-down for obsolete inventory.
• In 1999, Apple had huge customer dissatisfaction
because of shortage of G4 chip supplied by
Motorola.
2-18
19. What went wrong?
• In the examples, the difficulties reflect problems with
procurement chain strategies.
• Nike, CISCO, Apple have short product life cycles.
• When technologies changed, uncertainties related to
customer demand increased.
• Procurement landscape changed significantly with the
introduction of independent, private, and consortium-based
e-market places.
• With changes in procurement landscape, both problems
and opportunities also changed.
• But, Nike, CISCO, and Apple were not able to react to these
changes and formulate a new corporate and procurement
strategy.
2-19
20. The need for a good strategy
• The most important requirement for sustainability
is a well-formulated corporate strategy;
• A corporate strategy, in turn, requires forming sub
strategies such as product strategy, procurement
strategy, marketing strategy, and so on. And,
• A firm should continually evaluate its corporate
strategy and its sub strategies and ensure that they
are appropriate for a changing environment.
2-20
21. Competitive Strategy let managers answer
questions such as
• Relative to competitors, how should my firm
satisfy customers?
• What products and services should we offer?
• Should we focus on cost or should we focus more
on service and quick response?
• How much customization should we allow on our
products?
• Compare the competitive strategies of: Lands End
and a local retailer.
2-21
22. Sub-strategies of
competitive strategy are used to decide
• Product development strategy: Portfolio of new
products the company develops
• Marketing and sales strategy: Market
segmentation and product position, price, and
promotion.
• procurement strategy:
– Nature of material procurement, transportation
of materials, manufacture of products, service,
distribution of product
2-22
23. Competitive Strategy and procurement Strategy –
The relationship
Competitive strategy
New Product Marketing & Operations Distribution Service
Development Sales
procurement Strategy
Supplier Operations Logistics
Strategy Strategy Strategy
24. See the Dell example – Matching competitive and
procurement strategies
• Suppose Dell’s competitive strategy is to deliver a product
within 72 hours of receiving an order but is product
suppliers, on average take 7 days to resupply inventory,
then, Dell is not going to be able to accomplish its
competitive strategy.
• There is a lack of strategic fit.
• Also, look at Dell’s competitive strategy.
2-24
25. The Dell’s competitive and procurement
strategies
• Competitive strategy: provide a large variety of
customizable computer-related products at a reasonable
price and to let customers select from thousands of
configurations.
• procurement strategy: Two possible options: 1. Efficient
procurement limiting variety and exploiting economies of
scale or 2. High flexibility and responsiveness producing a
large variety of products.
• Dell’s procurement Strategy is No. 2
• Consequently, Dell focuses on designing easily
customizable products, common platforms and
components that can be assembled quickly.
2-25
26. Achieving Strategic Fit Achieved –
The steps involved
• Step 1: Understanding the customer and
procurement uncertainty
• Step 2: Understanding the procurement
capabilities
• Step 3: Achieve strategic fit
2-26
27. First, take a look at two types of uncertainties – Demand
Uncertainty and procurement chain uncertainty
• Demand uncertainty: arises because of changing
customer needs – predicting demand for a product or
service absolutely is impossible. This is an external
factor controlled by the customer.
• Procurement chain uncertainty, in contrast, arises
because of uncertainties within a procurement
process.
• While a firm would like to meet 100% of customer
demand, it may not be able to do so because its
procurement is unable to because of multiple reasons
that were listed under procurement uncertainty.
2-27
28. Demand uncertainty
(customer-induced)
• Usually products that are less mature (electronics,
computers) have greater demand uncertainty (unlike
Salt or milk).
• Forecasting demand for such products is very difficult
and usually not very accurate.
• With forecasting difficulties, matching demand
against product and services supply is difficult.
• For uncertain demand products, prices are not steady
and varies depending on demand levels.
• At the same time, a firm could earn greater margin
from uncertain demand products.
2-28
29. Procurement chain uncertainty, on the contrary, arises
due to constraints within a procurement
• procurement uncertainty: The portion of
uncertainty introduced by procurement attributes
such as: production breakdowns, low product
yields, poor quality and rework, procurement
capacity is limited (because of limited production
facilities, availability of raw materials, labor, and
numerous other factors);
• Supply capability is inflexible and cannot increase
with increased product demand;
• Also, changes in production process could lead to
bottlenecks.
2-29
30. Step 1: Therefore, understand both demand and procurement
chain uncertainties
• Identify the needs of the customer segment being
served (retail, wholesale, discount, high-end
customers)
• Quantity of product needed in each lot (large,
small)
• Response time customers will tolerate
• Variety of products needed
• Service level required
• Price of the product
• Desired rate of innovation in the product
2-30
31. Step 2: Evaluate procurement capabilities
• A procurement can rarely meet all demands of all
of its customers. Why?
• How many of the following demands of customers
can we meet?
– Responding to wide range of product demands
– Meeting short lead times
– Handling a large variety of products
– Meeting high service level possible
• Where do we compromise?
2-31
32. Given procurement limitations, responding to
customer demand would require a compromise
• How responsive should a procurement be?
– Quicker response implies increased costs
(responsiveness).
– Delayed response implies lower costs (efficient).
• Therefore, a firm must compromise between
quicker response and lower costs and strike a
balance that suits its objectives.
• See the graph.
2-32
33. A comparison of cost and responsiveness
Responsiveness
High
Low
Cost
High Low
2-33
34. Efficient and Responsive procurement chains – A Comparison
Efficient Responsive
Primary goal Supply demand at the lowest Respond quickly to demand
cost
Product design strategy Min. product cost Modularity to allow
postponement
Pricing strategy Lower margins Higher margins
Mfg strategy High utilization Capacity flexibility
Inventory strategy Minimize inventory Buffer inventory
Lead time strategy Reduce but not at expense of Aggressively reduce even if
greater cost costs are significant
Supplier selection strategy Cost and low quality Speed, flexibility, quality
Transportation strategy Greater reliance on low cost Greater reliance on responsive
modes (fast) modes
35. 3. Achieving Strategic Fit
• Now that a firm has assessed customer needs, demand
uncertainties, and procurement chain constraints and
uncertainties, it is time to make the two fit with each
other.
• How?
• In most cases, by offering high responsiveness to
products with high demand uncertainties and
• Striving towards more cost efficiencies for products
with low demand uncertainties.
• Compare these two products: computers and cheese.
2-35
36. Let us revisit Dell’s strategy
• Dell proposed a competitive strategy that it will
ship ordered consumer products within 72 hours;
a relatively high response rate.
• What are the factors that Dell must consider?
2-36
37. Dell Achieving Strategic Fit
• First, Dell should be able to forecast customer
demand with some degree of accuracy (demand
uncertainty).
Decide how much of this demand uncertainty it
can meet – e.g. we can offer 72 hours shipment in
the case of jackets and overcoats but not for school
bags (implied demand uncertainty).
• Also, note other items that Dell must consider:
2-37
38. Dell – Achieving Strategic Fit
• Decide whether its procurement chain – from manufacturers to
trucking companies to warehouses would be able to meet its goal of
72 hours shipment.
• Decide how much inventory Dell should carry and how much
should its procurement chain partners carry.
• How soon can Dell inform manufacturers of changing fashions and
demands?
• Ascertain the flexibility (in procurement of raw materials, mfg.
capacity, labor, etc.) that its procurement chain partners have (or
do not have)?
• Consider the cost of all of these factors and decide on the
responsiveness spectrum or the zone of fit.
• See the next slide.
•
2-38
39. Remember the following about Strategic Fit
• Two key points
– there is no right procurement chain strategy
independent of competitive strategy
– there is only a right procurement chain strategy
for a given competitive strategy
2-39
40. What did we learn
• Formulating corporate strategy is easier than
implementing strategy.
• Strategy implementation requires the cooperation of
both internal and external parties and
• In turn, that requires common objectives and common
benefits.
• Strategy is not an one time implementation but
something that requires constant redesign.
• Procurement or supply management is one of the
largest assets in an organization and
• The implication of managing it well has significant
consequences to an organization.
Editor's Notes
Why do these times in the system matter?
For example, a customer purchasing a computer from Dell pays $1,000, which represents the revenue the supply chain receives. Dell and other stages of Procurement chain incur costs to convey information, produce components, store them, transport them, transfer funds, and so on. The difference between $1,000 that the customer paid and the sum of all costs incurred by the Procurement chain to produce and distribute the computer represents the Procurement chain profitability. The higher the Procurement chain profitability, the more successful the Procurement chain. Procurement chain profitability should be measured in terms of Procurement chain profitability and not in terms of the profits at an individual stage.
Firms considered outsourcing everything from the procurement function to production and manufacturing. Managers focused on stock value and consequently, profits. Easy way to increase profits, reduce costs through outsourcing. Purchasing volume increased as a percentage of sales. CISCO established manufacturing plants all over the world. Developed close arrangements with major suppliers. Created a single enterprise system that connected customers, employees, chip manufacturers, component distributors, contract manufacturers, logistic companies, and system integrators.
Look at the next slide for a summary of how Customer Needs affect Implied demand uncertainty.
This slide provides a good comparison of when a firm may consider one or the other strategy.