ITO Bild 8-1 Supply Chains Chapter Eight Overview SECTION 8.1 – SUPPLY CHAIN FUNDAMENTALS –Basics of Supply Chain –Information Technology’s Role in the Supply Chain –Supply Chain Management Success Factors –SCM Success Stories SECTION 8.2 – APPLYING A SUPPLY CHAIN DESIGN –Using Information Technology to Drive the Supply Chain –Facilities Driver –Inventory Driver –Transportation Driver –Information Driver –Applying a Supply Chain Design –Future Supply Chain Trends

ITO Bild SUPPLY CHAIN FUNDAMENTALS The average company spends nearly half of every dollar that it earns on production In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains

ITO Bild 8-3 Basics Of Supply Chain Organizations must embrace technologies that can effectively manage supply chains

ITO Bild 8-4 Basics of supply chain

ITO Bild 8-5 Information technology’s role in the supply chain IT’s primary role is to create integrations or tight process and information linkages between functions within a firm

ITO Bild 8-6 Information technology’s role in the supply chain Factors Driving SCM

ITO Bild 8-7 Visibility Supply chain visibility – the ability to view all areas up and down the supply chain Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain För att kunna reagera krävs inblick och överblick Kvalitetssystem kräver transparans

ITO Bild 8-8 Consumer Behavior Companies can respond faster and more effectively to consumer demands through supply chain enhances Demand planning software – generates demand forecasts using statistical tools and forecasting techniques Att snabbt kunna ställa om produkter, rutiner och flöden Kräver flexibilitet i Processer och flöden Personalstyrka, kunskapKunskap Administration och IT-stöd SVÅRT !!

ITO Bild 8-9 Competition Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain Supply chain execution (SCE) software – automates the different steps and stages of the supply chain För att kunna överleva, måste Du överträffa Dina konkurrenter Eftersom Supply Chain ofta står förhuvuddelen av företagets kostnader, Är det ofta där man måste bli mästare Toyota JIT (Just In Time) ex. vis

ITO Bild 8-10 Competition SCP and SCE in the supply chain

ITO Bild 8-11 Speed TBM (Time Based Management) går ut på att ständigt korta tiden ABB:s T50-projekt. För att kunna korta tider väsentligt, krävs att man inte gör några fel Kortare tid = Högre kvalitet. Win – Win !!

ITO Bild 8-12 Supply chain management success factors

ITO Bild 8-13 Supply chain management success factors SCM industry best practices include: 1.Engage the suppliers 2.Wean employees off traditional business practices 3.Ensure the SCM system supports the organizational goals 4.Deploy in incremental phases and measure and communicate success 5.Be future oriented + Kontinuerliga mätningar Fokusera på det Du är bra på, outsourca resten

ITO Bild 8-14 Förändringsarbete JAPANSKA SJÖN = Ta bort resurser Vatten är resurser: Människor, lokaler, maskiner, datorer……….. Grund är problem: Dålig rutin, utbildning saknas, långsamma transporter……

ITO Bild 8-15 Scm success stories Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains DSSs allow managers to examine performance and relationships over the supply chain and among: –Suppliers –Manufacturers –Distributors –Other factors that optimize supply chain performance

ITO Bild 8-16 Scm success stories

ITO Bild APPLYING THE SUPPLY CHAIN DESIGN The four primary drivers of supply chain management 1.Facilities 2.Inventory 3.Transportation 4.Information Organizations use these four drivers to support either a supply chain strategy focusing on efficiencyperformance, throughput, speed, effektivitet effectivenessimpact on processes, customer satisfaction

ITO Bild 8-18 Using it to drive the supply chain

ITO Bild 8-19 Facilities driver

ITO Bild 8-20 Inventory driver

ITO Bild 8-21 Transportation driver

ITO Bild 8-22 Information driver

ITO Bild 8-23 Applying a supply chain design Wal-Mart’s supply chain management strategy emphasizes efficiency, but also maintains adequate levels of effectiveness –Facilities focus – Efficiency –Inventory focus – Efficiency –Transportation focus – Effectiveness –Information focus - Efficiency

ITO Bild 8-24 Applying a supply chain design

ITO Bild 8-25 Future supply chain trends Fastest growing SCM components –Supply chain event management (SCEM) –Selling chain management –Collaborative engineering –Collaborative demand planning