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Strategic Framework to Analyze Supply Chains 【本著作除另有註明外,採取創用 CC 「姓名標示 -非商業性-相同方式分享」台灣 3.0 版授權釋出】創用 CC 「姓名標示 -非商業性-相同方式分享」台灣 3.0 版 第一單元: Strategic Framework to Analyze Supply Chains 郭瑞祥教授 1
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Introduction 2
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Flowers _Online Microsoft 。 Nipic.com 。 3
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Flowers _Online Amazon.com 4
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Flowers _Online Amazon.com 5
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Flowers _Online Microsoft 。 6 Wikimedia Commons, 作者 : Kevin Legg
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Amazon.com 7
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Amazon stock Wikipedia Wikimedia Commons 8
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A Strategic Framework for Supply Chain Design, Planning, and Operation ►Part I: Understand the supply chain ►Part II: Supply chain performance ►Part III: Supply chain drivers 9
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Part I: Outline ►W►What is supply chain? ►W►What is supply chain management? ►P►Process view of a supply chain 10
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Definition of Supply Chain Management Consumer distribution Outbound storage/ Transportation Operations Inboundstorage/ Transportation Sourcing VendorsCustomers Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. 11
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The Fifth Discipline & The Beer Game The MIT Forum for Supply Chain Innovation 12 Wikipedia
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Definition of Supply Chain Management Consumer distribution Outbound storage/ Transportation Operations Inboundstorage/ Transportation Sourcing VendorsCustomers Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements. Consumer distribution Outbound storage/ Transportation Operations Inboundstorage/ Transportation Sourcing 13
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Supply Chain: Logistics Network Storage Plant 1 Plant 1 A A Storage Plant 3 Plant 3 C C Storage Plant 2 Plant 2 B B RAW MATERIALS STORAGE FINISHED GOODS STORAGE MARKETS Material costs Transportation costs Manufacturing costs Inventory costs Transportation costs RAW MATERIALS SUPPLIERS Warehouse Physical supply materials management inbound logistics Physical distribution outbound logistics MANUFACTURING production logistics 14
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Supply Chain: Logistics Network Storage Plant 1 Plant 1 A A Storage Plant 3 Plant 3 C C Storage Plant 2 Plant 2 B B RAW MATERIALS STORAGE FINISHED GOODS STORAGE MARKETS Material costs Transportation costs Manufacturing costs Inventory costs Transportation costs RAW MATERIALS SUPPLIERS Warehouse Physical supply materials management inbound logistics Physical distribution outbound logistics MANUFACTURING production logistics Microsoft 。 15
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Supply Chain: Logistics Network Storage Plant 1 Plant 1 A A Storage Plant 3 Plant 3 C C Storage Plant 2 Plant 2 B B RAW MATERIALS STORAGE FINISHED GOODS STORAGE MARKETS Material costs Transportation costs Manufacturing costs Inventory costs Transportation costs RAW MATERIALS SUPPLIERS Warehouse Physical supply materials management inbound logistics Physical distribution outbound logistics MANUFACTURING production logistics Independence demand dependence demand 16
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Integrating Supply Chain Process Information Cash flow Product flow SupplierManufacturersWholesalersRetailersConsumers 17
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Process View of a Supply Chain ►C►Cycle view –E–Each cycle performs at the interface between two successive stages of a supply chain –T–This view is useful when considering operational decisions, because it specifies the roles of each member and the desired outcome for each process ►P►Push/Pull view –D–Depend on whether they are executed in response to a customer order(pull) or in anticipation of customer order(push) –T–This view is useful when considering strategic decisions relating to supply chain design 18
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Cycle View of a Supply Chain ►Cycle view –Each cycle performs at the interface between two successive stages of a supply chain –This view is useful when considering operational decisions, because it specifies the roles of each member and the desired outcome for each process ►Push/Pull view –Depend on whether they are executed in response to a customer order(pull) or in anticipation of customer order(push) –This view is useful when considering strategic decisions relating to supply chain design Customer Retailer Distributor Manufacturer Procurement Cycle Manufacturing Cycle Replenishment Cycle Customer Order Cycle Supplier Customer Order Cycle ATP-Available to promise 19
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Cycle View of a Supply Chain ►Cycle view –Each cycle performs at the interface between two successive stages of a supply chain –This view is useful when considering operational decisions, because it specifies the roles of each member and the desired outcome for each process ►Push/Pull view –Depend on whether they are executed in response to a customer order(pull) or in anticipation of customer order(push) –This view is useful when considering strategic decisions relating to supply chain design Customer Retailer Distributor Manufacturer Procurement Cycle Manufacturing Cycle Replenishment Cycle Customer Order Cycle Supplier Replenishment Cycle 20
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Cycle View of a Supply Chain ►Cycle view –Each cycle performs at the interface between two successive stages of a supply chain –This view is useful when considering operational decisions, because it specifies the roles of each member and the desired outcome for each process ►Push/Pull view –Depend on whether they are executed in response to a customer order(pull) or in anticipation of customer order(push) –This view is useful when considering strategic decisions relating to supply chain design Customer Retailer Distributor Manufacturer Procurement Cycle Manufacturing Cycle Replenishment Cycle Customer Order Cycle Supplier Manufacturing Cycle 21
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Push/Pull View of L.L. Bean Supply Chain Procurement, Manufacturing and Replenishment cycles Customer Order Cycle Customer Order Arrives PUSH PROCESSESPULL PROCESSES 22
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Push/Pull View of L.L. Bean Supply Chain Procurement cycles Customer Order and Manufacturing Cycle Customer Order Arrives PUSH PROCESSESPULL PROCESSES Wikipedia 23
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Part II: Outline ►C►Competitive and supply chain strategies ►S►Strategic fit ►E►Expand the scope 24
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The Value Chain: Linking Supply Chain and Business Strategy New Product Development Marketing and Sales Operations Distribution Service Business Strategy New Product Strategy Marketing Strategy Supply Chain Strategy Finance, Accounting, Information Technology, Human Resources 25
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Achieve Strategic Fit Strategic fit means both the competitive and supply chain strategies have the same goal. ►S►Step 1: Understand the customer ►S►Step 2: Understand the supply chain ►S►Step 3: Achieve strategic fit 26
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Step 1: Understand the Customer - Implied Demand Uncertainty- Implied Demand Uncertainty Implied Demand Uncertainty Customer demand attributes Implied demand uncertainty is the uncertainty that exists due to the portion of demand that the supply chain is required to meet. ►Lot size ►Response time ►Service level ►Product variety ►Price ►Innovation 27
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Implied Demand Uncertainty Spectrum Low High PriceResponsiveness Customer Need Implied Demand Uncertainty High Fashion Emergency steel Detergent Long lead time steel CoolCLIPS 網站 Microsoft 。 28
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Step 2: Understand the Supply Chain - Supply Chain Responsiveness - ►R►Respond to wide range of quantities demanded ►M►Meet short lead time ►H►Handle a large variety of products ►B►Build highly innovative products ►M►Meet a very high service level 29
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Responsiveness Spectrum Low High Responsiveness Highly Responsive Highly efficient Integrated steel mills Dell Auto production Hanes apparel CoolCLIPS 網站 Wikipedia 30
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Step 3: Achieve Strategic Fit Implied uncertainty spectrum Responsive supply chain Efficient supply chain Certain demand Uncertain demand Responsivenes s spectrum Zone of Strategic Fit 31
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Comparison of Efficient and Responsive SC Efficient SCResponsive SC Goal Lower cost to meet demand Respond quickly Product design Max performance at min cost Create modularity to allow postponement PricingLower marginHigher margin Manufacturing Lower cost through high utilization Maintain capacity flexibility to meet unexpected demand InventoryMin inventoryMaintain buffer inventory Lead time Reduce but not at the expense of cost Aggressively reduce even if the cost is significant SupplierBased on cost and quality Based on speed, flexibility, and quality TransportationLow cost modesResponsive modes Microsoft 。 32
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Other Issues Affecting Strategic Fit ►M►Multiple products and customer segments ►P►Product life cycle ►C►Competitive changes over time –Set up independent SC for each different product or customer –Tailor the SC to best meet the needs of each product’s demand – Use responsive SC in the early stage – Use efficient SC when market is matured 33
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Step 3: Achieve Strategic Fit Implied uncertainty spectrum Responsive supply chain Efficient supply chain Certain demand Uncertain demand Responsivenes s spectrum Zone of Strategic Fit 34
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Part III: Outline ►Framework for structuring drivers –Inventory –Transportation –Facilities –Information 35
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Supply Chain Decision-Making Framework InventoryTransportationFacilitiesInformation Supply chain structure Drivers Supply chain strategy Competitive strategy Supply chain strategy EfficiencyResponsiveness Inventory↓ 36
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Inventory Driver --- What InventoryTransportationFacilitiesInformation Supply chain structure Drivers Supply chain strategy Competitive strategy EfficiencyResponsiveness Inventory ►Little’s law ►Responsive v.s. efficient ►Components of inventory decision: –Inventory = Flow time Throughput –Message for SCM: lower flow time lower inventory –Ex: Nordstorm –Safety inventory: inventory held to counter uncertainty in demand –Cycle inventory : inventory to satisfy demand between receipts of shipments –Seasonal inventory: inventory held to counter predictable variability in demand Microsoft 。 37
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Transportation Driver --- How InventoryTransportationFacilitiesInformation Supply chain structure Drivers Supply chain strategy Competitive strategy EfficiencyResponsiveness Transportation ►Efficient v.s. responsive ►Components of transportation decision: –Ex : Laura Ashley with Fedex for next day delivery –Mode of transportation –Route and network selection –In-house or outsource 》 Air, truck, rail, ship, pipeline, electronic CoolCLIPS 網站 38
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Facilities Driver --- Where InventoryTransportationFacilitiesInformation Supply chain structure Drivers Supply chain strategy Competitive strategy EfficiencyResponsiveness Facilities ►Efficient v.s. responsive ►Components of facilities decision – Ex: Toyota and Honda – Location – Capacity (flexibility v.s. efficiency) – Manufacturing methodology (product-focus v.s. process-focus) – Warehousing methodology 》 SKU storage 》 job lot storage 》 cross-docking Microsoft 。 39
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Facilities Driver --- Where InventoryTransportationFacilitiesInformation Supply chain structure Drivers Supply chain strategy Competitive strategy EfficiencyResponsiveness Information ►Connect various stages in SC ►Crucial to daily operations in each stage ►Components of information decision: –Ex: Dell –Push (MRP) v.s. pull –Coordination and information sharing –Forecasting and aggregate planning –Enabling technology: EDI, Internet, ERP, SCM Photobucket.com 。 40
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Considerations for Supply Chain Drivers DriverEfficiencyResponsiveness InventoryCost of holdingAvailability TransportationConsolidationSpeed FacilitiesConsolidation / Dedicated Proximity / Flexibility InformationWhat information is best suited for each objective 41
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頁碼作品授權條件作者 / 來源 3 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 3 Nipic.com(http://www.nipic.com/show/3/95/400c939593dc9eb4.html)http://www.nipic.com/show/3/95/400c939593dc9eb4.html 本作品轉載自 nipic 昵圖網,依據其版權聲明 (http://www.nipic.com/site/copy.html) 與著作權法第 46 、 52 、 65 條合理使用。http://www.nipic.com/site/copy.html 4 Amazon.com 本作品轉載自亞馬遜網站 (http://www.amazon.com) ,瀏覽日期 2011/12/22 。依 據著作權法第 46 、 52 、 65 條合理使用。 ( 因網站商品隨時更新,故此頁面無永 久性網址。 )http://www.amazon.com 5 Amazon.com 本作品轉載自亞馬遜網站 (http://www.amazon.com) ,瀏覽日期 2011/12/22 。依 據著作權法第 46 、 52 、 65 條合理使用。 ( 因網站商品隨時更新,故此頁面無永 久性網址。 )http://www.amazon.com 6 Wikimedia Commons, 作者 : Kevin Legg 本作品轉載自 http://commons.wikimedia.org/wiki/File:A_nice_flower_shop_- _geograph.org.uk_-_1301845.jpg ,瀏覽日期 2011/12/28 。依據著作權法第 46 、 52 、 65 條合理使用。 http://commons.wikimedia.org/wiki/File:A_nice_flower_shop_- _geograph.org.uk_-_1301845.jpg 6 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 7 Amazon.com 本作品轉載自亞馬遜網站 (http://www.amazon.com) ,瀏覽日期 2011/12/22 。依 據著作權法第 52 、 65 條合理使用。 ( 因網站商品隨時更新,故此頁面無永久性 網址。 )http://www.amazon.com 版權聲明 42
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頁碼作品授權條件作者 / 來源 7 臺灣大學 郭瑞祥老師 8 8 本作品轉載自 WIKIPEDIA (http://en.wikipedia.org/wiki/Swoosh) ,瀏覽日期 2011/12/27 。http://en.wikipedia.org/wiki/Swoosh 8 Wikimedia Commons 本作品轉載自 http://commons.wikimedia.org/wiki/File:Dell_Logo.png ,瀏覽日期 2011/12/28 。 http://commons.wikimedia.org/wiki/File:Dell_Logo.png 11 臺灣大學 郭瑞祥老師 12 Peter M. Senge ,《 The Fifth Discipline: The Art & Practice of the Learning Organization 》, Bantam Dell Pub Group , 2006 。本作品轉載自 WIKIPEDIA(http://en.wikipedia.org/wiki/File:The_fifth_discipline_cover.jpg) , 瀏覽日期 2011/12/27 。依據美國著作權法第 107 條及中華民國著作權法第 52 、 65 條合理使用。http://en.wikipedia.org/wiki/File:The_fifth_discipline_cover.jpg 12 本作品轉載自 The MIT Forum for Supply Chain Innovation (http://supplychain.mit.edu/) ,瀏覽日期 2011/12/23 。依據著作權法第 46 、 52 、 65 條合理使用。http://supplychain.mit.edu/ 版權聲明 43
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作品授權條件作者 / 來源 12 臺灣大學 郭瑞祥老師 13 臺灣大學 郭瑞祥老師 14 臺灣大學 郭瑞祥老師 15-16 臺灣大學 郭瑞祥老師 15 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 15 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 19 臺灣大學 郭瑞祥老師 版權聲明 44
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頁碼作品授權條件作者 / 來源 20 臺灣大學 郭瑞祥老師 21 臺灣大學 郭瑞祥老師 22 臺灣大學 郭瑞祥老師 23 Wikimedia Commons 本作品轉載自 http://commons.wikimedia.org/wiki/File:Dell_Logo.png ,瀏覽日期 2011/12/28 。 http://commons.wikimedia.org/wiki/File:Dell_Logo.png 25 臺灣大學 郭瑞祥老師 27 臺灣大學 郭瑞祥老師 28 臺灣大學 郭瑞祥老師 版權聲明 45
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頁碼作品授權條件作者 / 來源 28 本作品轉載自 CoolCLIPS 網站 (http://dir.coolclips.com/Household/Bathroom/Oral_Hygiene/Toothbrushes/toiletries _hous1199.html) ,瀏覽日期 2012/2/17 。依據著作權法第 46 、 52 、 65 條合理使用。http://dir.coolclips.com/Household/Bathroom/Oral_Hygiene/Toothbrushes/toiletries _hous1199.html 28 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 30 臺灣大學 郭瑞祥老師 30 本作品轉載自 CoolCLIPS 網站 (http://dir.coolclips.com/Industry/Resources/Mining/Steel_and_Iron/steel_smelting_ vc011995.html/) ,瀏覽日期 2011/12/23 。依據著作權法第 46 、 52 、 65 條合理使 用。http://dir.coolclips.com/Industry/Resources/Mining/Steel_and_Iron/steel_smelting_ vc011995.html/ 30 Wikimedia Commons 本作品轉載自 http://commons.wikimedia.org/wiki/File:Dell_Logo.png ,瀏覽日期 2011/12/28 。 http://commons.wikimedia.org/wiki/File:Dell_Logo.png 31 臺灣大學 郭瑞祥老師 32 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 版權聲明 46
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頁碼作品授權條件作者 / 來源 32 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 37 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 38 本作品轉載自 CoolCLIPS 網站 (http://search.coolclips.com//media/?D=tran0237&Ref=CSb,2863#/) ,瀏覽日期 2011/12/23 。依據著作權法第 46 、 52 、 65 條合理使用。http://search.coolclips.com//media/?D=tran0237&Ref=CSb,2863#/ 39 本作品轉載自 Microsoft Office 2007 多媒體藝廊,依據 Microsoft 服務合約及著 作權法第 46 、 52 、 65 條合理使用。 Microsoft 服務合約 40 Photobucket.com(http://s1181.photobucket.com/albums/x440/puliteam10/A257Satel liteInternet/?action=view¤t=images35.jpg) 本作品轉載自 hotobucket ,作者 : puliteam10 。依據其版權聲明 (http://photobucket.com/terms/)http://s1181.photobucket.com/albums/x440/puliteam10/A257Satel liteInternet/?action=view¤t=images35.jpg : puliteam10http://photobucket.com/terms/ 與著作權法第 46 、 52 、 65 條合理使用。 版權聲明 47
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