Supply chain management examples ppt

lean supply chain management ppt and supply chain management models ppt
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Dr.FlynnHanks,United States,Teacher
Published Date:26-07-2017
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Section 1 Why is strategic supply chain management important? PwC Section 1 Introduction About the book All-in-one guidebook and reference targeted to:  Senior executives seeking an understanding of the importance of the supply chain for the management agenda  Supply chain operations professionals seeking insights into practices that can make a difference  Executives interested in getting a better view of how their functions affect supply chain performance  Students of business eager to supplement their knowledge of how companies operate Supply chain knowledge that will help your company create value and achieve competitive advantage In-depth profiles of six leading companies from the energy, healthcare, agricultural, consumer ,and high tech sectors Numerous examples of how companies applied the techniques detailed in the book to achieve results Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 3 Section 1 Introduction Strategic supply chain management is more important than ever Shorter economic cycles More frequent natural disasters Increased pressure Rising costs in low-cost countries on companies and their Strategic Reduced access to working capital supply chains supply chain Competition for talent management is more challenging Greater focus on sustainability — and much more critical to the Increased competition bottom line Shorter product life cycles Multiplication of channels and segments 1990’s Today Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 4 Section 1 Introduction Consumer goods CEOs are reshaping their organizations Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 5 Section 1 Your supply chain as a strategic asset While cost, profitability, and service remain critical, CPG executives see other trends growing in importance 1) 2 Significant Supply Chain trends In 2013-2015 % Increase by Consumer Goods in 2013 % % 2015 vs. 2013 Managing profitability of total supply chain 86 3 (+4%) Reducing total supply chain cost 79 7 (+9%) Meeting increasing customer requirements 78 4 (+6%) Preparing supply chain for up/downwards 66 8 (+12%) volume flexibility Acquiring and developing supply chain talent and skills 60 11 (+18%) 9 Responding to competitive pressures 62 (+15%) 9 Assuring supply and supplier performance 53 (+16%) Implementing techniques to automate and increase 54 5 (+10%) transparency Supporting demand growth in emerging markets 51 7 (+13%) Managing supply chain security and risk 43 11 (+26%) Making the supply chain more sustainable 39 15 (+38%) 6 Responding to changing regulatory requirements 32 (+19%) Note 1) % participants who judged trend as critical or significant in 2013 Cross Industry Average Importance increase by 2) % participants who think that trend is significant, critical or moderate in ≥ 20% Top 4 Supply Chain trends 2013 and who think that importance will increase by 2015 or who have 10% and 20% indicated critical or significant for 2013 and indicate that it will stay same Remaining Supply Chain trends ≤ 10% for the next 2 years Source: PwC Global Supply Chain Survey 2013, Next-Generation Supply Chains : Fast, Efficient and Tailored Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 6 Section 1 Your supply chain as a strategic asset Leaders reap significant benefits from strategic supply chain management as … … it improves the top line Best-in-class companies’ (BICC) sales growth is almost 50% higher than non-BICC Sales growth BICCs Non-BICCs 50 60 70 80 90 100 110 120 130 140 150 Percentage of industry average … it improves the bottom line Best-in-class companies have 20% higher profitability than non-BICC Profitability BICCs Non-BICCs 50 60 70 80 90 100 110 120 130 140 150 Percentage of industry average Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 7 Section 2 Strategic supply chain management’s five core disciplines PwC Section 2 The five core disciplines of Strategic Supply Chain Management First—what is the Supply Chain? Plan Plan Plan Source Source Make Deliver Make Deliver Source Make Deliver Return Return Return Return Supplier’s Customer’s Suppliers Customers Supplier Customer Company A • End to end—not just sourcing and suppliers • Not just physical goods – services have a supply chain • The ideal: seamless, integrated flow of materials and information • The value chain includes supply chain, but is much broader Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 9 Section 2 The five core disciplines of Strategic Supply Chain Management The book details the five core disciplines that drive performance Design the supply chain around a defined basis of competition to enable the overall business strategy Use metrics to measure the health of Develop integrated supply chain processes each core supply chain process and and systems that interface efficiently with identify problem areas the rest of the enterprise Understand core competencies Develop and maintain organizational and choose partners to maximize structure and skills to define and focus and profitability manage the supply chain of the future Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 10 Section 2 The five core disciplines of Strategic Supply Chain Management Retail & Consumer challenges and the five core disciplines Challenges Retailer expectations for efficiency + greater end-to-end management Simultaneous retail consolidation and fragmentation Consumer demand for multi-channel capability Increased pace of innovation in retail supply chains Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 11 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 1: View your supply chain as a strategic asset Four primary bases of competition Innovation time to market and time to volume Align your supply chain with your business strategy and your primary basis Quality of competition procurement and production excellence and quality control Supply Consider customer service proposition, chain sales channels, value system, operating strategy Customer experience model and asset footprint in your supply interactions designed from chain strategy the customer’s perspective Re-evaluate the supply chain strategy Cost regularly efficient, low cost supply chain configurations and processes Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 12 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 1: View your supply chain as a strategic asset Case in point: Luxury menswear company • Custom orders in US, fabrics designed in Italy and garments made in China • Operates with the philosophy that “custom-fitted clothes can be provided at the cost of off-the-shelf garments” Style consultant Style consultant meets customer meets customer Ordering Make Delivery Customer on-line Launch production Delivery to customer order Source: Strategic Supply Chain Management: The 5 Disciplines for Top Performance, second ed., McGraw-Hill, 2013, p.6 Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 13 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 2: Develop an end-to-end process architecture Enterprise process model Leadership and strategy Business planning Objectives deployment Ensure the supply chain process architecture encompasses Plan, Products, services, and technology development Source, Make, Deliver, Return, and Enable processes Marketing and sales Integrate the supply chain with the Supply chain other core enterprise processes (Plan, Source, Make, Deliver, Return, Enable) Use your basis of competition to Customer service and support choose and prioritize specific activities and practices Governance HR IT Finance Legal Support Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 14 Core Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 2: Develop an end-to-end process architecture Case in point: Global on-line retailer  Offers “the Earth's Biggest Selection”  Seeks to be world's most customer-centric company, where customers can find and discover anything they may want to buy online Stocked by on-line retailer Exact delivery date Distributors Best Practice Estimated • Common, robust processes delivery date • Proactive shipping notification • 24x7 order status Partner companies • Link to carrier’s web site Items available in millions Source: Strategic Supply Chain Management: The 5 Disciplines for Top Performance, second ed., McGraw-Hill, 2013, pp.63-64 Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 15 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 3: Design your organization for performance Designing a Supply Chain Organization Ensure the talent mix and pipeline Roles and cover execution, planning and responsibilities enabling activities Consider context, culture and complexity when designing your supply chain structure (centralized, decentralized and hybrid) Organizational structure Insist on clarity in accountabilities, with a priority on cross-functional Skills and talent roles & activities Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 16 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 3: Design your organization for performance Case in point: Multinational consumer goods company • More than 400 brands focused on health and wellbeing • Global scale, local agility seen as a key source of competitive advantage • Demand and Supply Balancing • Customer order management Cluster Operations • Manufacturing and logistics Category Corporate Vice Presidents Supply Chain team • Product Innovation • Global Sourcing • Brand building and Procurement • Logistics Hubs Source: Strategic Supply Chain Management: The 5 Disciplines for Top Performance, second ed., McGraw-Hill, 2013, pp.100-102 Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 17 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 4: Build the right collaborative model The Collaboration Spectrum Extensive Too many best friends Synchronized Master internal collaboration as an enabler for collaboration with external partners Coordinated Segment supply chain partners to determine the Cooperative needed type of relationship Trust your partners while ensuring that you manage your interests Transactional Little pain, little gain Limited Number of relationships Many Few Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 18 Degree of collaboration Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 4: Build the right collaborative model Case in point: Retail delivery specialist • Company orchestrating a network of collaborative relationships with independent couriers and high street retailers • An option at checkout that offers a rapid, point-to-point delivery service in the one-hour window chosen by the consumer • Company’s aim is to be “the world's fastest, most convenient and best-loved delivery option enabling you to get what you want, when you want it” Linking customer, retailer and courier Real-time allocation of an order to a courier Real time visibility on Retailers in a Customer Local network of arrival GPS-enabled map given area same day couriers Integrated with retailers • Higher online conversion • Quick delivery • Higher utilization rate • Positive brand promotion • Control over timeslot • Higher recurring volume e-commerce platform • Higher loyalty for retailer Source: Strategic Supply Chain Management: The 5 Disciplines for Top Performance, second ed., McGraw-Hill, 2013, pp.151-152 Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 19 Section 2 The five core disciplines of Strategic Supply Chain Management Core Discipline 5: Use metrics to drive supply chain performance Level 1 Metrics Performance attributes Focused on the Internally customer focused Level 1 metrics Measure from your customer’s perspective Choose the metrics that will drive your Perfect order fulfillment  supply chain strategy forward Order-fulfillment cycle time  Ensure your metrics are balanced and Upside supply chain flexibility  Upside supply chain adaptability  comprehensive Downside supply chain adaptability  Benchmark to understand potential Total cost to serve  performance levels Overall value at risk  Cash-to-cash cycle time  Return on supply chain fixed assets  Return on working capital  Source: Supply Chain Operations Reference Model, Supply Chain Council Strategic Supply Chain Management • The Five Disciplines for Top Performance PwC Slide 20 Reliability Responsiveness Agility cost Assets Section 3 Transforming the supply chain PwC

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