Process Improvement redesign Ordered set of activities Activity inputs outputs

Process improvement redesign ordered set of

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Process Improvement & redesign • Ordered set of activities • Activity: inputs, outputs, controls, mechanisms • Process improvement v. redesign
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Outsourcing Logistics Activities • 3PL • Risk • Cost • Asset
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Lesson 2
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Learning Objective • Explain how a firm (e.g., Walmart) used supply chain design for competitive advantage
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SCM-focused companies outperform their competitors The SCM Competitive Advantage is more Logistics & Supply Chain Leverage
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Example of CA through SCM: Walmart • Logistics network design strategy – Disciplined in putting stores within a couple of days from the DC – Economies of scope – Lead time shorter, less safety stock and/or fewer stockouts
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Supply Chain Management KPI Impact ì  ROA ì  Net Income î  Assets ì  Sales ì  Gross  Margins î  SG&A î  Inventories î  Receivables î  Fixed  Assets ì  Average Sales Price ì  Demand ì  Fill rate î  Raw Material Costs î  Supply Chain Cost î  Logistics costs î  Sales expenses î  Overhead î  Order-to-cash cycle  times î  Non productive 
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