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supply chain management mind map


Jacques Matthee

on 29 May 2013

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Transcript of supply chain management mind map

challenges currency fluctuations complex and demanding lack of skilled staff geographic distances improve customer service flexibility shared vision improve collaboration supply chain management collaborative approach to make & distribute to customers production delivery recycling sourcing & procurement conversion & logistics coordination & collaboration design & manage value adding processes share information on:
forecasts, production plans,
capacity changes,
new product development etc. reduce costs increase productivity create supplier partnerships improve process design constantly source new products jit tqm activities mrp maintain customer relationships greening elements purchasing operations distribution integration bullwhip successful corporate culture think long term high levels of trust collaboration honest & accurate communications share plans work together forecasting safety stock performance measurement coordination &
integration activities demand
management erp mrp tqm jit supplier alliance supplier
management strategic sourcng production
problems transport
management crm network
design service
logistics sustainable
advantage cost advantage focus on adding value deliver superior
customer service design for flexibility innovation create productivity
& efficiency business
processes crm customer service
management demand
management order
fulfillment manufacturing
flow management srm product development
& commercialisation returns management identify key
customer segments tailor offering measure
profitability products
available order status shipping dates customer demand
output capacity forecast synchronise marketing,
production & distribution
plans mix of flexibility &
velocity to satisfy demand close working
relationship reduce time
to market recalls add value global advantages risks economies of scale larger goods market lower labour costs new prod ideas fluctuating
exchange rate security
concerns operating
exposure government
intervention integrated
processes members work together purchasing, inventory, production,
quality & logistics decisions determine optimal purchase
quantities, product availibility,
service levels, lead times, production
quantities, use of tech & product support trends expansion responsiveness depth breadth sustainable reduce total
costs green continually look at
market & competitors
& adjust effective info &
communications system new product
development &
shorter cycles recyclable
materials less waste efficient
transport lower overall
costs waste purchases &
costs excessive
inventory produce &
distribute products supply
management identify acquire access position manage
resources logistics contract
development negotiations uninterrupted flow
of raw materials at
lowest cost to improve
quality and maximise
customer satifaction purchasing procurement expediting supplier quality
control e-procurement
system benefits time savings cost savings accuracy real time mobility trackability upstream downstream buy/outsource cost advantage insufficient
capacity lack experience quality make vs protect proprietary
technology higher
fixed cost lower
variable cost use existing
idle capacity break even analysis
assumptions fixed or variable
costs linear variable
cost analysis fixed cost higher
on make option variable cost higher
on buy option selecting suppliers product technology high & consistent
quantity tco capacity to meet
requirements reliability location single supplier established good
relationship less quality
variability econo of
scale multiple suppliers need additional
capacity spread supply
interrupt risk create competition centralised purchasing quantity discounts specialisation common
supply base avoid duplication vs decentralised
purchasing closer knowledge
of requirements local
sourcing less
bureacracy global sourcing politics customs taxes forex lower prices building successful
partnerships building trust shared values
& objectives personal
relationships mutual benefits
& needs change
management information sharing &
lines of communications share
information expectations aligned make things happen compatible needs effective internal
commnications free flow of
information performance
metrics cost/price
responsiveness & flexibility
tco pre, trans & post
costs continual
improvement eliminate
waste cost, quality,
delivery, technology weighted criteria
system 1) select key dimensions
2) monitor & collect petformance data
3) assign weights to each dimension
4) evaluate each performance measure between 0 & 100
5) multiply dimension rating by respective weights
6) classify vendors by score
7) audit & ongoing review competitive zero defects reliable supplier
development 1) identify citical goods
2) identify critical supplies not meeting performance requirements
3) form cross functional supplier development team
4) meet with top management of suppliers
5) rank supplier development projects
6) define details of buyer-supplier agreement
7) monitor project status & modify strategy high volume no substitutes roi balanced scorecard revenue &
profitability growth functional internal business process customer learning & growth product mix cost reduction asset utilisation flexibility innovation quality new product
development reliability retention new customer
acquisition people health & safety world class performance
measurement system identify strategic objectives
develop understanding of each functional area
design & document petformance measures
assure compatibility
implement system set targets to determine realistic & desirable performance levels
achieve targets by identifying root cause of problems
stay excellent through capabilities to continually improve supply chain
performance measures total management costs
cash to cash cycle time
production flexibility
delivery performance
orders arrived perfectly on time, complete and damaged
environment risk management
activities increase safety stock & forward buying
identify backup supplies & logistics
diversify supply base
develop formal risk management program (identify & prioritise risk)
utilise supply chain it sstem order batching shortages process integration obstacles silo mentality lack of visibility lack of trust lack of knowledge 1) identify critical trading partners
2) review & estimate strategies
3) align strategies with key process objectives
4) develop internal performance measures for key process effectiveness
5) assess & improve internal integration of key processes
6) develop performance measures for key processes
7) assess & improve external process integration & performance
8) extend process to 2nd tier
9) review model annually customer relationship
management segment customers
predicting customer behaviour
customer valuation determination
personalising customer communications
manage customer service capabilities
1) create crm plan
2) know users from the outset
3) select right application & provider
4) integrate existing crm applications
5) establsh performance measures satisfaction
average sales revenue per customer
crm productivity
user training
Full transcript