100%(3)3 out of 3 people found this document helpful
This preview shows page 1 - 2 out of 3 pages.
Supply Chain– sequence of processes and flows that takeplace within and between all stages involved, directly or indirectly, in fulfilling a customer request; Supplier > Manufacturer > Distributor > Retailer > CustomerObjective – Maximise overall value created// SCV = Customer Value – SC Costs // SCP = Rev – SC Costs // Sources of Rev: The Customer // Sources of Cost: Flows of information, products, or funds between stages of SC // SCM is the management of flows and assets btw and among SC stages to max supply chain value, value may w/o price Decision Phases of SC– (1) SC strategy or design: how tostructure the SC over next several years e.g. Network design, Facilities, Locations, Capacities, IS; (2) SC planning: decisions over the next qtr or yr e.g. Forecasts, Prod, Inv, Subcontracting; (3) SC operation: daily or weekly operational decisions e.g. Fulfillment of customer orders;Cycle View – Customer Order Cycle; Replenishment Cycle;Manufacturing Cycle; Procurement Cycle; Performed at the interfaces between two successive SC stages; useful when considering operational decisions Push/Pull View – Push (Procurement, Manu, Replenish): cost efficient; Pull (Customer): more flex/responsiveStrategic Fit –consistency between customer priorities of competitive strategy and SC capabilities specified by the SCstrategy; (1) Differentiation(2) Cost Leadership(3) Responsive; [How to Achieve] (1) Understand the customer (demand) and SC (supply) uncertainty– Lot size, response time, service level, product variety, price, rate of innovation; Ss uncertainty; [Implied Uncertainty] Low: Predictable dd and Ss; Medium: Predictable Ss/dd and uncertain dd/ss or somewhat uncertain Ss + dd; High: highly uncertain Ss + dd// (2) Understanding the SC capabilities– [SC Responsiveness] ability to respond to wide range of qty demanded, meet short LT, handle large variety of pdts, buildhighly innovative products, meet high svc lvl // Highly Eff, Somewhat Eff, Somewhat Resp, Highly Resp; [SC Efficiency] cost of making and delivering product to customer, responsiveness results in costs that efficiency; [Cost-Responsiveness Efficient Frontier] Responsiveness vs Cost, Frontier – lowest possible cost fora given lvl of responsiveness: lowest cost based on existing technology of the best SC // (3) Achieving Strategic Fit– [Responsiveness Spectrum] Highly efficient > somewhat efficient > somewhat responsive > highly responsive; ZOSF:[Responsiveness spectrum] vs [Implied uncertainty spectrum]; [Challenges] pdt variety and shrinking life cycles, Globalisation and uncertainty, Fragmentation of SC ownership,ing tech and biz env, Env and sustainabilKey Financial Measures –ROE= Net Income / Avg Shareholder Equity //ROA= Earnings before Interest / Avg Tot. Assets //APT= COGS / Acct Payable //ART= Sales Rev / Acct Receivable //INVT= COGS / Inv //C2C= Weeks Receivable (1/ART) + Weeks of Inv (1/INVT) – Weeks Payable (1/APT)SC Drivers –[Logistical] Facilities, Inventory, Tptn; [Cross Functional] Information, Sourcing, PricingSC Decision Making Framework –[Competitive Strategy]