Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Supply Chain Strategy or Design
     Decisions about the structure of the supply chain and
      what processes each stag...
Supply Chain Planning
     Definition of a set of policies that govern short-term
      operations
     Fixed by the sup...
Supply Chain Planning
     Planning decisions:
       Which markets will be supplied from which locations
       Planne...
Supply Chain Operation
     Time horizon is weekly or daily
     Decisions regarding individual User orders
     Supply...
Process View of a Supply Chain
     Cycle view: processes in a supply chain are divided
      into a series of cycles, ea...
Cycle View of Supply Chains
                                                     User
                           User Orde...
Cycle View of a Supply Chain
     Each cycle occurs at the interface between two
        successive stages
        User o...
User Order Cycle
     Involves all processes directly involved in receiving
        and filling the User’s order
        ...
Replenishment Cycle
     All processes involved in replenishing retailer
        inventories (retailer is now the User)
 ...
Manufacturing Cycle
      All processes involved in replenishing distributor (or
         retailer) inventory
         Or...
Procurement Cycle
  All processes necessary to ensure that materials are
   available for manufacturing to occur accordin...
Push/Pull View of Supply Chains
                                                            User Order
      Procurement,
...
Push/Pull View of
     Supply Chain Processes

      Supply chain processes fall into one of two
       categories depend...
Push/Pull View of Supply Chain
     Processes

      Useful in considering strategic decisions relating to
       supply ...
A Framework for Structuring
     Drivers

                                        C om petitive S tra tegy


             ...
Upcoming SlideShare
Loading in …5
×

Supply Chain Strategy Or Design

6,320 views

Published on

Published in: Business, Technology
  • I need this this presentation if u can kindly tell me how to download
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Supply Chain Strategy Or Design

  1. 1. Supply Chain Strategy or Design  Decisions about the structure of the supply chain and what processes each stage will perform  Strategic supply chain decisions Locations and capacities of facilities  Products to be made or stored at various locations  Modes of transportation  Information systems   Supply chain design must support strategic objectives  Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty Xavier institute of Social Service, Ranchi March 28, 2009 1
  2. 2. Supply Chain Planning  Definition of a set of policies that govern short-term operations  Fixed by the supply configuration from previous phase  Starts with a forecast of demand in the coming year Xavier institute of Social Service, Ranchi March 28, 2009 2
  3. 3. Supply Chain Planning  Planning decisions:  Which markets will be supplied from which locations  Planned buildup of inventories  Subcontracting, backup locations  Inventory policies  Timing and size of market promotions  Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon Xavier institute of Social Service, Ranchi March 28, 2009 3
  4. 4. Supply Chain Operation  Time horizon is weekly or daily  Decisions regarding individual User orders  Supply chain configuration is fixed and operating policies are determined  Goal is to implement the operating policies as effectively as possible  Allocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment orders  Much less uncertainty (short time horizon) Xavier institute of Social Service, Ranchi March 28, 2009 4
  5. 5. Process View of a Supply Chain  Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages  Push/pull view: processes in a supply chain are divided into two categories depending on whether they are executed in response to a User order (pull) or in anticipation of a User order (push) Xavier institute of Social Service, Ranchi March 28, 2009 5
  6. 6. Cycle View of Supply Chains User User Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier Xavier institute of Social Service, Ranchi March 28, 2009 6
  7. 7. Cycle View of a Supply Chain  Each cycle occurs at the interface between two successive stages User order cycle (User-retailer)  Replenishment cycle (retailer-distributor)  Manufacturing cycle (distributor-manufacturer)  Procurement cycle (manufacturer-supplier)  Figure (see previous power point)  Cycle view clearly defines processes involved and  the owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process. Xavier institute of Social Service, Ranchi March 28, 2009 7
  8. 8. User Order Cycle  Involves all processes directly involved in receiving and filling the User’s order User arrival  User order entry  User order fulfillment  User order receiving  Xavier institute of Social Service, Ranchi March 28, 2009 8
  9. 9. Replenishment Cycle  All processes involved in replenishing retailer inventories (retailer is now the User) Retail order trigger  Retail order entry  Retail order fulfillment  Retail order receiving  Xavier institute of Social Service, Ranchi March 28, 2009 9
  10. 10. Manufacturing Cycle  All processes involved in replenishing distributor (or retailer) inventory Order arrival from the distributor, retailer, or User  Production scheduling  Manufacturing and shipping  Receiving at the distributor, retailer, or User  Xavier institute of Social Service, Ranchi March 28, 2009 10
  11. 11. Procurement Cycle  All processes necessary to ensure that materials are available for manufacturing to occur according to schedule  Manufacturer orders components from suppliers to replenish component inventories  However, component orders can be determined precisely from production schedules (different from retailer/distributor orders that are based on uncertain User demand)  Important that suppliers be linked to the manufacturer’s production schedule Xavier institute of Social Service, Ranchi March 28, 2009 11
  12. 12. Push/Pull View of Supply Chains User Order Procurement, Manufacturing and Cycle Replenishment cycles PUSH PROCESSES PULL PROCESSES User Order Arrives Xavier institute of Social Service, Ranchi March 28, 2009 12
  13. 13. Push/Pull View of Supply Chain Processes  Supply chain processes fall into one of two categories depending on the timing of their execution relative to User demand  Pull: execution is initiated in response to a User order (reactive)  Push: execution is initiated in anticipation of User orders (speculative)  Push/pull boundary separates push processes from pull processes Xavier institute of Social Service, Ranchi March 28, 2009 13
  14. 14. Push/Pull View of Supply Chain Processes  Useful in considering strategic decisions relating to supply chain design – more global view of how supply chain processes relate to User orders  Can combine the push/pull and cycle views  The relative proportion of push and pull processes can have an impact on supply chain performance Xavier institute of Social Service, Ranchi March 28, 2009 14
  15. 15. A Framework for Structuring Drivers C om petitive S tra tegy S u p p ly C h ain S tra teg y E fficien cy R esp o n siven ess S u p p ly ch ain stru ctu re L o gistical D rivers F a cilities In ven to ry T ra n sp o rta tio n In fo rm a tio n S o u rcin g P ricing C ro ss F u n ction al D rivers Xavier institute of Social Service, Ranchi March 28, 2009 15

×