中央大學。范錚強 1 scm: supply chain management 國立中央大學、資訊管理系...

中央大學。范錚強 1

SCM: Supply Chain Management

國立中央大學、資訊管理系范錚強

Tel: (03)426-7250

Fax:(03)427-1990

mailto: [email protected]

http://www.mgt.ncu.edu.tw/~ckfarn

2004


Supply Chain

Here, we focus on the FIXED relationships among business buyers and sellers

Supply ChainFrom a FOCAL to its suppliers

Demand ChainFrom a customer to its FOCAL supplier


What is a Supply Chain

聯強

明日世界

顧客

華碩

瀚宇

Intel

世平

TSMC

華通

國巨

三星

Supply

Sources:plantsvendorsports

RegionalWarehouses:stocking points

Field Warehouses:stockingpoints

Customers,demandcenterssinks

Production/purchase costs

Inventory &warehousing costs

Transportation costs Inventory &

warehousing costs

Transportation costs


Definition:

Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying service requirements.

Notice:Everyone is involvedSystems approach to reducing costsIntegration is the key

Supply Chain Management


Conflicting Objectives in the Supply Chain

1. Purchasing• Stable volume requirements • Flexible delivery time• Little variation in mix• Large quantities

2. Manufacturing• Long run production• High quality• High productivity• Low production cost


Conflicting Objectives in the Supply Chain

3. Warehousing• Low inventory • Reduced transportation costs• Quick replenishment capability

4. Customers• Short order lead time• High in stock• Enormous variety of products• Low prices


The Dynamics of the Supply Chain

Ord

er

Siz

e

Time

Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998

CustomerDemand

CustomerDemand

Retailer OrdersRetailer OrdersDistributor OrdersDistributor Orders

Production PlanProduction Plan


What Management Gets...

Ord

er

Siz

e

Time


CustomerDemand

CustomerDemand

Production PlanProduction Plan


What Management Wants…

Vo

lum

es

Time


Production PlanProduction PlanCustomerDemand

CustomerDemand


The Dynamic Supply Chain

Increasing customer power leads to increased demands on retailers

Increased retailer power leads to increased demands on suppliers


Supply Chain: The Magnitude

In 1998, American companies spent $898 billion in supply-related activities (or 10.6% of Gross Domestic Product).

Transportation 58%

Inventory 38%

Management 4%

Third party logistics services grew in 1998 by 15% to nearly $40 billion



It is estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics strategies.

A typical box of cereal spends more than three months getting from factory to supermarket.

A typical new car spends 15 days traveling from the factory to the dealership, although actual travel time is 5 days.



Compaq computer estimates it lost $500 million to $1 billion in sales in 1995 because its laptops and desktops were not available when and where customers were ready to buy them.

In 1993, IBM lost a major fraction of its potential sales of desktop computers because it could not purchase enough chips that control the computer displays.



Boeing Aircraft, one of America’s leading capital goods producers, was forced to announce writedowns of $2.6 billion in October 1997.

The reason? “Raw material shortages, internal and supplier parts shortages…”. (Wall Street Journal, Oct. 23, 1997)


Supply Chain: The Potential

In 10 years, Wal-Mart transformed itself by changing its logistics system. It has the highest sales per square foot, inventory turnover and operating profit of any discount retailer.

Laura Ashley turns its inventory 10 times a year, five times faster than three years ago. This is achieved by using

- New Information System

- Centralized Warehouse


ISSUES:Why Keep Inventory?

Uncertainty in customer demands

Uncertainty in the supply

Uncertainty in quantity and quality

Uncertainty in delivery time

Uncertainty in costs

Economies of scale


General Systems Theory

Input, Process, Output, Feedback

ProcessInput Output

Feedback


Buffer: Inventory

ProcessInput Output

回饋

ProcessInput Output

回饋

ProcessInput Output

回饋

Inter-system interface resource contention

To avoid contention add buffer

Companies LOVES and HATES inventory

The Best Inventory Management: No inventory


ISSUES:Demand Forecast

The three principles of all forecasting techniques:

Forecasting is always wrong

The longer the forecast horizon the worse the forecast

Aggregate forecasts are more accurate


ISSUES: What’s New in Logistics?

Global competition

Shorter product life cycle

Increasing product variety

New, low-cost distribution channels

More powerful well-informed customers



New communications and information technologies POS and EDI technology

Wireless technology

Decision Support Systems

Integrated systems

Multi-modal transportation



New concepts in logistics

Push Vs Pull strategies

Cross docking

Strategic alliances

Manufacturing postponement

Design for Logistics


Visibility

Distributor

Manufacturer

Store Store Store

Replenishments from supplier

0

200

400

600

800

1000

1200

1400

Demand at retailer's warehouse

0

2 0 0

4 0 0

6 0 0

8 0 0

1 0 0 0

1 2 0 0

1 4 0 0

orders

sell-through


Environmental Changes

Processing and communication speed

Response timePotential

Requirements

E.g. 982

Things that were unimportant before becomes important


Keys to improving SC effectiveness

Visibility

Postment

中央大學。范錚強 1 scm: supply chain management 國立中央大學、資訊管理系...

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