Responsive supply chains inventory low enable high as

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RESPONSIVE SUPPLY CHAINS Inventory Low, enable high As needed to enable fast investment inventory turns delivery time Lead time Shorten, but do not Shorten aggressively increase costs Supplier Emphasize low prices, Emphasize fast delivery selection consistent quality, on- time, customization, time delivery variety, volume flexibility, top quality Factor Efficient Supply Chains Responsive Supply Chains Operation Make-to-stock or Assemble-to-order, make- strategy standardized services; to-order, or customized emphasize high services; emphasize volume, standardized service or product services or products variety Capacity Low High cushion
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Linking Supply-Chain Performance Measures to Financial Measures Operations Measure Financial Measure Aggregate inventory value Current assets Weeks of supply Working capital Inventory turns Working capital Production and material cost Contribution margin Percentage defects Contribution margin Percentage on-time delivery Revenue New-product development time Revenue Supplier lead times Working capital
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Supply-Chain Dynamics Dynamic in supply chains are an interesting phenomenon. A recent survey found that it takes four to six weeks for materials release information to reach the last tier in automotive supply chain. External Supply Chain Causes: Volume Changes Product/ Service Mix Changes Late Delivery Underfilled Shipments Internal Supply-Chain Causes: Internally Generated Shortages Engineering Changes New Product/ Service Introduction Product/ Service Promotions Information Errors
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Pepperidge Farm SCM System Order Commitment Transportation Management Purchasing Management Demand Management Vendor-Managed Inventory Replenishment Planning Configuration Material Planning Scheduling Master Planning Strategic Planning ©
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Supply-Chain Software Supply-Chain Software: Provides the capacity to share information with suppliers and customers and make decisions affecting internal and external supply chains Often part of enterprise resource planning (ERP) systems Supply-Chain Management Across the Organization Firms must be committed to reengineering information flows for optimal supply chain management Processes most affected are order placement, order fulfillment, and purchasing, processes that intersect all of the traditional functional areas of the firm Supply-chain management is essential for both manufacturing and service firms
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Changing the Role of the Buyer Current Future 10% Strategic 10% Strategic 10% Commercial 60% Supply- Chain Development 80% Administrative (Order placement/ daily queries) 20% Commercial 10% Administrative Core skills required for the future will include: Commercial Partnership development Quality Logistics Leadership Benchmarking Effective communication Performance measurement Analytical Planning & organization Programme management Supplier assessment Creativity negotiation Presentation
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