Review of Last Class•Supply Chain Management – THEN & NOW–Ford versus Auto Industry Today•Growing Demands – One, Two, and Three Dimensions–Ford versus Today–Laundry Detergent–Customer Demands•Supply Chain Tiers•Bullwhip•ERRORS and DEMAND VARIANCE•Expansion of Needs – Onion Skin Growth of SCM•Productivity Math – RISK vs BENEFIT – Blanket, Expense Initiatives, Growth•Vertical versus HorizaNTAL•Supply Chain Definitions
WHY SUPPLY CHAIN MANAGEMENT?1.Increased Complexity of Products (diversity)2.Increased Competition competing for Market3.Increased Complexity of Supply Chain Network4.Increased Innovation in Products5.Benefit of Best in Class Time to Market6.Globalization7.Supply Chain Mgmt controls 90% of COGS8.… more
SUPPLY CHAIN CONTROLS 90% of COGS - IT IS THE DOORWAY TO PROFIT
GROWING DEMANDSAs Diversity grows, so does Complexity and Difficulty of Planning and controlling Inventory Levels
APROCESS IMPROVEMENT – PRODUCTIVITY MATH GraphREDUCE EXPENSE or INCREASE PRODUCTION?