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Supply Chain Management

Prezi for whole module of Level 5 SCM - Worcester College of Technology
by

Ruth Plane

on 10 October 2016

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Transcript of Supply Chain Management

Supply Chain Management
HNC Manufacturing

Ruth Plane

WEEK 1
WEEK 2
WEEK 3
Supply Chain Management
How organisations can manage and control their supply chain to gain competitive and/or cost advantages
WEEK 4
WEEK 5
WEEK 6
WEEK 7
WEEK 8
WEEK 9
WEEK 10
WEEK 11
WEEK 12
WEEK 13
WEEK 14
WEEK 15
What is Supply Chain Management
"Management of material and information flow in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost"


Supply Chain Diagram
The Manufacturer is the area
of the supply chain where
'we' as engineers can influence
the effectiveness of the Supply
Chain.
What does OEM stand for?
Retail - not only the end of the Supply Chain but also the beginning!
Logistics is the management of the movement/transport of materials and products
A supplier, also called a vendor, is a person or company that provides goods and/or services to other companies
A Distribution Center or
Company may or may not
be in the Supply Chain -
it is dependent upon the
product, location and
business structure.
The Customer is Central to the Supply Chain
What is Supply Chain Management?
The History of Supply Chain Management
1950s & 1960s
U.S. manufacturers focused on mass production techniques as their principal cost reduction and productivity improvement strategies
1960s-1970s
Introduction of new computer technology lead to development of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory management and improve internal communication
1980s & 1990s
Intense global competition led U.S. manufacturers to adopt
Supply Chain Management along with
Just-In-Time (JIT),
Total Quality Management (TQM), and
Business Process Re-engineering (BPR) practices
2000s and Beyond
Industrial buyers will rely more on third-party service providers (3PLs) to improve purchasing and supply management
Wholesalers/retailers will focus on transportation and logistics more & refer to these as quick response, service response logistics, and integrated logistics

Review the list of objectives and identify why they are applicable to SCM
Supply Chain Management
Today we will be:

1.Intoduced to the module
2.Understand the module assessment
3.Receive Assignment one
4.Able to explain what a supply chain is
5.Able to list the main components of a supply chain
6.Able to identify and discuss the objectives of a supply chain

Case Study
Case Study Activity
Take 5 minutes (or as long as you need)
to read the case study
In pairs (or threes): Describe what you think Whirlpool actually did to standardize their systems to improve their SCM. Give some examples of how it may have been improved and be prepared to share these with the group.
Case Study Examples
Have we achieved
what we wanted to
today?
Today we will be:
1.Able to identify key factors as to variation in different organisations Able to identify key information flow methods
2.Able to identify methods used for physical flow
3.Able to explain how physical and information flow can be integrated
4.Ready to explain the different types of supply chain flow and direction
5.Ready to answer Q1&2 on Assignment 1.

Watch this Rolls Royce Video clip and note down the key points that are relevant to the their supply chain management

Biggest selling product
4 engines a week
Complex assembly
Module Assembly
8 Sections
Upto 4000 parts
per engine
Handling Issues
£200M value stock
Are any of these issues relevant
to where you work? (Even the Spar shop )
Why is the video clip about the Mini relevant to Supply Chain Management?
http://www.bbc.co.uk/learningzone/clips/successful-products-the-story-of-the-mini/12260.html
http://www.bbc.co.uk/learningzone/clips/12266.html
Original Equipment Manufacturer
In the supply chain there are three types of flow from the supplier to the end customer in the chain.

1. Product Flow.
2. information flow.
3. money flow.

Product
flow is nothing but starting from the raw materials to the end product to the customer.

Information
flow is nothing but the sharing of informations from the customer as well as supplier . It is both directions.

Money
flow is nothing but the funds flow from the consumers to the manufacturer, from manufacturer to supplier.
What are the three types of flow in supply chain?
1.Able to identify key factors as to variation in different organisations Able to identify key information flow methods
2.Able to identify methods used for physical flow
3.Able to explain how physical and information flow can be integrated
4.Ready to explain the different types of supply chain flow and direction
5.Ready to answer Q1&2 on Assignment 1.
Have we achieved what we wanted?
Today we will:
1. Explain how physical and information flow can be integrated
2. Describe and use SWOT analysis
3. Identify key factors in organisation control of SCM
4. Begin to explain competitive and cost advantage in SCM by using a case study
5. Understand the requirements of assignment 1 task 3

So what is the integration of Physical Product and Information in the Supply Chain?
Lets
go back
in time
Activity: The flow chart provided gives the flow of information through a manufacturer for a simple Order.
Consider the time frame for each stage (remember we are in 1960)
1960
Back to 2013
What
is
different?
Information Technology revolutionised SCM and then the integrated supply chain developed:
To define the integration of SCM:

It is the use of technology to enhance and allow simultaneous flow of information and product thus delivering an improved product to the customer.
What is SWOT?
A SWOT analysis is a method used by business to analyse where it stands in a market. To do this it has to look at both the internal factors (those over which the business has some control) and the external factors (those over which the business has no control) that effect its position.
Activity 4
The SWOT analysis example is based on a business-to-business manufacturing company, who historically rely on distributors to take their products to the end user market. The opportunity, and therefore the subject for the SWOT analysis, is for the manufacturer to create a new company of its own to distribute its products direct to certain end-user sectors, which are not being covered or developed by its normal distributors.
Would you recommend creating a new distribution company?

What would your recommendations for the next steps be?

Control of the Supply Chain
A Control Tower Definition:
"A supply chain control tower is a central hub with the required technology, organisation, and processes to capture and use supply chain data to provide enhanced visibility for short- and long-term decision-making that is aligned with strategic objectives."
4
key
Control
Requirements
Connectivity
The capability to exchange information with supply chain partners in a suitable format
Integration
The process of combining seperate functions to enable them to interact in a seamless fashion
Visibility
The ability to access relevant data
Responsiveness
The ability to react quickly and effectively to customer needs.
Case Study
Take a few minutes to read the case study and have a go at answering the questions
What are the marketing strategies of Benetton?
Do you agree with it?
Case Study Answers
Did we?
1. Explain how physical and information flow can be integrated
2. Describe and use SWOT analysis
3. Identify key factors in organisation control of SCM
4. Begin to explain competitive and cost advantage in SCM by using a case study
5. Understand the requirements of assignment 1 task 3
Task 1 LO1 /1.1
a) Identify and discuss three specific supply chains that Nestlé have to manage. You should identify a supply link from each of the primary, secondary and tertiary stages of the business and discuss the importance of the management of it.
b) Consider and discuss how the supply chains you have discussed in part a are managed in:
i. Any similar food manufacturer
ii. Any different sector organisation (it could be the company you work for).

Task 2 LO1 /1.2
a) Draw a map diagram that represents the types and directions of flow in the Nestlé supply chain. This diagram should be at least A4 size, well presented and should be annotated to explain your reasoning and analysis behind the types and direction of flow.

Task 3 LO1/1.3
a) To evaluate the Nestlé supply chains construct a detailed SWOT analysis.
b) Using your SWOT analysis describe where the Nestlé Supply Chain could give them a competitive advantage.
c) Further describe how you think Nestlé could develop the opportunities identified in the SWOT analysis.

1. Able to determine the importance of inventory on SCM
2. Able to explain the Forrester and bullwhip effect
3. Able to list barriers to effective supply chain function

The Aim
What was the variation on your flowchart total time between 1960 and 2013?

Why is this?
Complete the table in Activity 3
Activity 5
Today:
1. Discuss the importance of inventory
2. Understand Forrester Effect or Bullwhip Effect
3. Think about barriers to effective SCM
Why is inventory
important in SCM?
Bullwhip Effect
Supply Chain Networks and Contracts
Long Term & strategic advantages to consideration of supply network:
The Company can focus on how to compete in the market
The Company can identify significant relationships in the network
Sustained focus on long-term issues

Configuring the network
Supply chains tend to evolve over time - this can result in 'unordered' supply chains - to combat this many industries are moving towards more 'ordered' supply networks
THINK! How can a company 'order' its supply chain network?
It is possible to simplify the supply side
The cusomter side is unlikely to be simplified
To influene the supplier the company has to be powerful (small companies will struggle)

“Vertical integration is a strategy used by a company to gain control over its suppliers or distributors in order to increase the firm’s power in the marketplace, reduce transaction costs and secure supplies or distribution channels.”


“Forward integration is a strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers).”
“Backward integration is a strategy where a firm gains ownership or increased control over its previous suppliers.”
The Location of Capacity
The Location of a business can be critical to its success, the influencing factors can be:
Customer location
Supplier Location
Environmental issues
Social Issues
http://www.bbc.co.uk/learningzone/clips/supplying-our-chocolate/11379.html
A quick clip about chocolate supply chain (might be useful for assignment 1)
Location Clusters
Clustering is when like-minded companies with similar needs locate relatively close to each other.
An example of a cluster is Silicon Valley in California - the centre of gravity of the computer industry!
Clusters start when companies are small and they need to be located with easy access to inputs, these include:
Skilled Labour
Materials
Componenet Suppliers
Service Suppliers

Locations
Case Study
Contracts Handout Discussion
Today:
1. What is a Supply Network
2. Network Integration Issues
3. Supply Chain Location
4. Contracts in Supply Chain
1. Able to describe the following:
i) Outsourcing
ii) Contracting Relationships
Joint Ventures
Subsidiaries
2. Able to construct a diagram to reflect process of SCM strategies
3. Able to explain the typical company objectives
4. Clear of the requirements of assignment 2

Company Decisions
Outsourcing
Manufacturing companies have lots of reasons for outsourcing production, but the main impetus for deciding in favour of outsourcing usually boils down to one thing: cost reduction.

Labour Costs
Overhead Costs
Flexibility
Operations Stratey/Focus
Joint Ventures
A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits.
Strategic development
Competitive Advantage
Acquistion of knowledge
Subsidiary Companies
A subsidiary is most commonly a corporation which is controlled by another corporation, which holds controlling interest (more than 50 percent) of the voting shares of the subsidiary's stock. The controlling corporation is sometimes called the "parent company" or "holding company."
Assignment 2
FORD case study
Full transcript