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Summary - Supply chain logistics management
1 21st-Century Supply Chains
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Through computerization the transference of information has become easier, more accurate, and more accessible and overall more cost efficient
What are the changes since 1990's supply chains?Nowadays, customers want to have a wide range of products which they can customize and which can be delivered very fast. Massive change has occured as a result of available information technology (IT). Nowadays, information is characterized by speed, accessibility, accurancy and relevancy. Because of this, a global economy has emerged.
In the information age, reality and connectivity among businesses create new types of relationships called supply chain management. Because of this, products can be manufactured to exact specifications, delivered fast and with a zero - defect (Six Sigma) performance.
compare the concept of a modern sc with more traditional distribution channels. Be specific about similarities and differences.
During the last decade, the focus of channel strategy and structure has been focussed more toward integration and collaboration.
what specific role does logistics play in sc operations
What are the 3 value's and their matching strategies?
- Economic value -> builds on economy of scale in operations as the source of efficiency -> manufacturing strategy
- Market value -> is about presenting an attractive assortment of products at the right time and place to realize effectiveness. This value focuses on economic of scope -> distribution strategy
- Relevancy value -> involves customazation of value-adding services that make a real difference to customers. -> supply chain strategy
describe and illustrate an integrated service provider. How does the concept of isp differ from traditional sp, such as for hire transportation and warehousing?
What are the 5 elements that causes synergy in the supply chain alignment model?
Compare and contrast anticipatory and resposive business models. Why has responsiveness become more popular in sc strategy and collaboration?
The focus of integrated management is lowest total process cost.
Compare and contrast manufacturing and geographic postponement
Integrative management and supply chain processes: seeks to identify and achieve lowest total process cost by capturing trade-offs that exist between different functions in the supply chain. This doesn't mean that each function separately achieves the lowest cost. Things like total cost analyses, process engineering and ABC are methods to make an overview of the the total process costs.
Define and illustrate cash-tocash conversion, dwell time minimization, and cash spin. How do supply chain strategy and structure impact each?
To realize better integration within the supply chain and eventually lower total process costs, there are some crucial factors:
- Enterprise extension
- Integrated service providers (ISP)
Supply chain management consists of mutiple firms collaborating to leverage strategic positioning and to improve operating efficiency.
For each firm involved, the supply chain relationship reflects a strategic choice. A supply chain strategy is a channel and business organizational arrangement based on acknowledged dependency and collaboration.
Externprise extension: The central thrust of enterprise extension is to expand managerial influence and control beyond the ownership boundaries of a single enterprise to facilitate joint planning and operations with customers and suppliers.
Logistics, the work required to move and position inventory. Basicly a subset of and occurs within the broader framework of a supply chain.
Value is created by timing and positioning inventory
Logistics excist of
- order management
- materials handling
While the purpose of logistical work has remained essentially the same over decades, the way the work is performed continous to radically change.,
Enterprise extensions builds on two basis paradigms:
- Information sharing paradigm
- Process specialization paradigm
Customers have 3 value perspectives:
- Economic value
- builds on economy of scale/ doing things as well as posible
- Customer take away: high quality at a low price.
- Market value
- Presenting an attractive assortment of products at the right time and place
- Builds on Economy of scope
- Customers take awayL convenient product/service assortment and choice.
- Relevance value
- builds on customization of value adding services
- Customers take away is a unique product/service bundle
What are the two types of responsiveness?
- push model -> based on forecast, produce no matter what, and use of inventory
- pull model -> demand driven, when there is an order, the product will be assembled/manufactured
The context of an integrated supply chain is multifirm collaboration within a framework of key source flows and constraints.
Supply chain structure and strategy results from operationally allign an enterprise with customers as well as the supporting distributive and supplier networks to gain competitive advantage.
Value results from synergy from 5 critical flows:
The integrated value created process must be aligned and managed from material procurement to end customer product/service delivery in order to achieve effectiveness, efficiency, relevancy and sustainability.
What are the two types of postponement (& their descriptions)?
- Manufacturing postponement -> products are being manufactured one order at a time with no preparatory work or component procurement until exact customer specifications are fully known and the purchase is confirmed. The operative goal of manufacturing postponement is to maintain products in a neutral status as long as possible.
- Geographical postponement -> the base of geographical postponement is to build and stock a full-line inventory at one or a limited number of strategic locations. Forward deployment of inventory is postponed until customer orders are received. One the logistical process is initiated, every effort is made to accelerate the economic movement of products direct to the customers
THe eight SC integrative processes:
- Demand planning responsiveness, design to achieve maximum responsiveness to c q's
- customer realationship collaboration, relationships with c's to facilitate strategic information sharing, joint planning, and integrated operations.
- order fullfillment/service delivery, ability to deliver superior and sustainable order to delivery performance.
- product/service development launch, the participation in product service development and lean launch.
- Manufacturing customization, support of manufactoring strategy and facilitation of postphonement throughout the sc.
- supplier relationship collaboration, development and administration of relationships with suppliers to facilitatie strategic information sharing, joint planning and integrated operations.
- life cycle support, the repair and support of products during their live cycle, including warranty, maintenance, and repair.
- reverse logistics, return and disposition of inventories in a cost effective and secure manner.
What are integrated service providers?These providers began to market a range of logistics services that include all work necessary to accommodate customers, ranging from order entry to product delivery.
The advent of collaboration, extended enterprise visioning, and increased availability of integrated service providers created new SC sollutions.
What are the advantages of manufacturing postponement?- reduces the number of stock keeping units in logistical inventory while supporting broad-line marketing effort and retaining mass manufacturing economies of scale
- until the product is customized, it has the potential to serve many different customers
Anticipatory business model (push)
driven by forcasts, high cost and risk-> each firm needed to protect its own interest.
Typicall stages on the anticipatory business model
Forecast-> buy componements-> manufacture-> warehouse-> sell-> deliver
Responsive business model (pull)
fundamental difference is timing, reduced forecast reliance by joint planning
all made possible by new information technology
pull has fewer steps, less cost and is faster
Primary difference, time to excecute order, and degree of potential customization
Direct connectivity to customers has 3 benefits:
- whider product choice of customers
- better informed about prices
- innovation thorugh customer choice board.
There are 2 types of postphonement:
Manufacturing: goal is to maintain products in a neutral status as long as possible.
Impact: 1 variety of differentiated products can be reduced, lowering risk
2 Increase use of logistical facilities to perform light manufacturing and final assembly.
Geographic, build stock at limitic locations. End result is highly reliable customer service with reduced inventory. Compared with postphonement, geo retains economies of scale.
Barriers to implementing responsive systems:
The need for publicly held corporations to mainain planned quarterly profits-> leads to higher inventory in pipeline
need to establish and sustain collaborative relationships-> difficult to manage
fast delivery-> less inventory-> less working capital
3 aspects of financial sophistication
cash to cash conversation-> time requered to convert raw material into sales
Dead net pricing-> discounts and allowances are factored in the selling price
dwell time minimization -> time asset idle, to reduce : firm collaboration by eliminating duplicated inventory and non value added work.
CAsh spin-> potential benefits of reducing asssets across a SC
Global market places offer :
- opportunities to source material
- offer labour advantages by relocation
- favorable tax laws in specific regions
Describe integrative management
why is responsibility popular in SC's
compare/contrast manufacturing and geographic postphonement
Latest added flashcards
- impact of response based systems creates a larger number of small shipments
- desire of shipper and carriers to participate in consolidation saving
- preorder planning of quantity and timing to consolidated freight movement. Significant freight consolidations opportunities also may exist if non related firms can be coordinated. Commonly referred to as multivendor consolidations.
- Reactive: combine individual orders into larger shipments for line-haul movement (market area, scheduled delivery and pooled delivery