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Supply Chain

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rajesh pradeshik

on 19 February 2013

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Transcript of Supply Chain

Supply Chain Management Porter 5 forces - Analysis Analyzing the industry’s competitive structure to determine how you should compete Definitions Definitions contd. Supply chain management can be defined as the effective control of the flows of
material
information
and finance
in a network consisting of
suppliers
manufacturers
distributors
and customers Uncertainties Uncertainty framework Value Chain - Porter Information Integration- Cortada A chain of activities for a firm operating in a specific industry The glue that binds the value chain activities, its lifeblood The Basics Supply side Demand side based on product life cycle
demand
product variety
market standards for lead time Functional Products have long product life cycles and therefore more stable demand Innovative Products have short life cycles with high innovation based on manufacturing process
and the underlying technology stable supply process evolving supply process supply base is well established supply base is changing rapidly Uncertainty framework
mapping Efficient Supply Chain Focuses on producing the highest cost efficiencies in the supply chain.
In order to do this you must focus on getting the best capacity utilization in production and distribution.
Two ways to achieve this Productivity Improvement and Effective logistics and distribution . Example of Efficient Supply Chain Implemented state-of-the-art technology (Non-Stop was the company they partnered with) that assisted with forecasting, inventory control, transportation, materials handling, and warehousing
This optimized demand chain activities http://www.sccori.com/SCM/DemandChainExcellenceATale%20ofTwoRetailers.htm Longs Drug Store Longs Drug Store Cont. Because they did this they were able to reduce inventory and use the money to open 20 new Risk-Hedging Supply Chain Focuses on pooling and sharing resources in a supply chain in order to share the risks of supply distribution.
This can be achieved by inventory pooling among different facilities so that the order fulfillment process will not be disrupted.
Companies that use Risk-hedging need develop backup sources for their products. Example of Risk-hedging As mentioned in the reading the Internet is a great tool to help companies do this.
Enterprise Rent-a –Car (home city offices) as well as car sales division practice this strategy Enterprise Rent-a-Car Car Sales Department Responsive Supply Chain Aims to be responsive and flexible to changing and diverse customer need.
This strategy is suitable for cases when demand is highly unpredictable with short selling seasons which could result in excessive inventory.
Concepts companies should focus on is postponement and build-to-order strategies. Examples of Responsive Supply Chain Benetton : uses postponement with their sweater process, instead of dye first then knit, they knit first than dye.
Sport Obermeyer : produces products with more predictable demand before the season, makes unpredictable products within the season.
Zara : also keeps manufacturing facilities at a low utilization within the season. To secure quick delivery Zara uses planes and trucks instead of trains and ships. Agile Supply Chain Are also responsive and flexible to customers needs, while hedging for the risks of supply shortages and disruptions by pooling inventories or other capacity resources.
The Agile Supply Chains try to combine the strengths of the other three supply chain techniques. They are called agile because of their flexibility, adaptability as well as risk-hedging capabilities. http://zamanfam.com/MBA/SupplyChain.html Examples of Agile Supply Chain They partnered with (2) foundries {United microelectronics Corporation in Taiwan and Seiko in Japan} that carry out the final assembly and testing
Products were designed to be programmable and some were made to order. Also kept minimal generic pieces in inventory http://interfaces.journal.informs.org/content/30/4/65.abstract Xilinx Inc.- Specializes in high end circuits CIM 610 - Business Information and Strategies for a Global Environment Professor: Briotta Introduction and Example by:
Rajesh Pradeshik
Vanessa Parris Questions ? like I said, only questions. not the answers..... Why we need Supply Chain Mgmt. 1970 - companies competed by excelling in quality
1980 - the focus turned to efficiency in manf.
1990 - quality is basic requirement, so...
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