1、OutlinesOutlines1234SCM in TodayPrinciple 1 Principle 2Principle 35678Principle 4Principle 5 Principle 6Principle 7Supply Chain Management in TodayvManagers find themselves assigned the role of the rope in a very real tug of war.They recognize two important things:1.Think the supply chain as a whole
2、2.Pursue tangible outcomesSupply Chain Management in Todayv The successful initiatives:broad efforts,combining both strategic and tactical change.holistic approach the whole improvement achieved is greater than the sum of its parts.vUnsuccessful efforts:functionally defined and narrowly focused lack
3、 sustaining infrastructure uncoordinated change activity eruptsDistill seven fundamental principles of supply chain management.SummaryPrinciple 1vSegment customers based on the service needs of distinct groups and adapt the supply chain to serve these segments profitably.Principle 1Traditionally com
4、panies take an one-size-fits-all approach to serving all customersResultWe dont fully understand the relative value customers place on our service offerings.Then,what should we do?Principle 1vDevelop a portfolio of services tailored to various segments.Progressive Manufacturerscluster and conjoint a
5、nalysis1.Measure customer tradeoffs2.Predict the marginal profitabilityTraditional tools:surveys,interviews,and industry researchv Research also can established the services valued by all customers versus those valued only by certain segments.n not mean tailoring for the sake of tailoring.Principle
6、1vCustomer needs and preferences do not tell the whole storyThe service packages must turn a profit.Only by understanding their costs at the activity level and using that understanding to strengthen fiscal control can companies profitably deliver value to customers.Analyze the profitability of segme
7、ntsThe costs and benefits of alternate service packagesA reasonable return on their investment and the most profitable allocation of resourcesPrinciple 2vCustomize the logistics network to the service requirements and profitability of customer segments.Principle 2vTraditionally,a monolithic approach
8、 to meet a single standard to meet the average service requirements of all customers to satisfy the toughest requirements of a single customer segmentTailoring distribution assetsComplexThe actual productsPrinciple 2vOne paper companys example:2 key segments:Large publishers Small regional printersA
9、 multi-level logistics network Three full-stocking distribution centers 46 quick-response cross-docks,stocking only fast-moving itemsReturn on assets and revenues improved substantially The new inventory deployment strategyPrinciple 2vKey characteristics:The logistics network probably will be more c
10、omplexAlliances with third-party logistics providers Be more flexible than the traditional network.Fundamental changes are typically necessary.More robust logistics planning enabled by real-time decision-support toolsProvide a lower-cost industrywide solutionPrinciple 3vListen to market signals and
11、align demand planning accordingly across the supply chain,ensuring consistent forecasts and optimal resource allocation.Principle 3vHistorically,forecasting has proceeded silo by silo.vSuch independent,self-centered forecasting is incompatible with excellent supply chain managementA cross-functional
12、 planning processPrinciple 3vToday,the company enjoys lower inventory and warehousing costs and much greater ability to maintain price levels and limit discountingDeveloping forecasts collaboratively and maintaining the required capacity across the operations.Channel-wide S&OP can detect early warni
13、ng signals of demand and takes into account vendor and carrier capabilities,capacity,and constraintsPrinciple 4vDifferentiate product closer to the customer and speed conversion across the supply chain.Principle 4vEven traditionalists can make progress in cutting costs by postponement.More efficient
14、Principle 4vReact to market signals by compressing lead times,speeding the conversion from raw materials to finished products tailored to customer requirements.More efficientPrinciple 5vManage sources of supply strategically to reduce the total cost of owning materials and services.Principle 5vOur s
15、uppliers costs are in effect our costs.Suppliers cost Suppliers price Inventory Costs The logical extension of this thinking is gain-sharing arrangements to reward everyone who contributes to the greater profitability.Principle 5vFundamental prerequisiteCommodity costsDirect materialsMaintenanceRepa
16、irOperating suppliesUtilities,travel,temps,and virtually everything elsePrinciple 5vWith their marketplace position and industry structure in mindShort-term competitive bidsLong-term contracts and strategic supplier relationships,outsourcing,or integrating verticallyExcellent supply chain management
17、 calls for creativity and flexibility.Principle 6vDevelop a supply chain-wide technology strategy that supports multiple levels of decision making and gives a clear view of the flow of products,services,and information.Principle 6vToo many of these companies will find themselves victims of the power
18、ful new transactional systems they put in place.Leading-edge information systemsReams of dataActionable intelligenceEnhance real-world operationsPrinciple 6vIntegrates capabilitiesHandle day-to-day transactions and electronic commerce to help align supply and demand by sharing information on orders
19、and daily scheduling.Short termFacilitate planning and decision making to allocate resources efficientlyMid-termEnable strategic analysis by providing tools to help managers evaluate plants,distribution centers,suppliers,and third-party service alternatives.Long-termPrinciple 6vFew companies are ade
20、quately connected to obtain the necessary information.vElectronic connectivity creates opportunities to change the supply chain fundamentallyPrinciple 7vAdopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently.Principle 7vA broader
21、view Measures that apply to every link in the supply chain and include both service and financial metrics.First,measure service in terms of the perfect order.Second,determine their true profitability of service by identifying the actual costs and revenues of the activities required to serve an account.Principle 7vTo facilitate channel-spanning performance measurement,many companies are developing common report cards.Toward the same goalsLeverage their complementary assets and skillsLocate and capitalize on synergies
