4. The Supply Chain Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
5. The Supply Chain – Another View Plan Source Make Deliver Buy Suppliers Manufacturers Warehouses & Distribution Centers Customers Material Costs Transportation Costs Transportation Costs Transportation Costs Inventory Costs Manufacturing Costs
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17. Supply Chain Management Operations Strategies Source: Simchi-Levi STRATEGY WHEN TO CHOOSE BENEFITS Make to Stock standardized products, relatively predictable demand Low manufacturing costs; meet customer demands quickly Make to Order customized products, many variations Customization; reduced inventory; improved service levels Configure to Order many variations on finished product; infrequent demand Low inventory levels; wide range of product offerings; simplified planning Engineer to Order complex products, unique customer specifications Enables response to specific customer requirements
29. Characteristics of Push, Pull and Push/Pull Strategies Source: Simchi-Levi PUSH PULL Objective Minimize Cost Maximize Service Level Complexity High Low Focus Resource Allocation Responsiveness Lead Time Long Short Processes Supply Chain Planning Order Fulfillment
39. SCOR Structure Supplier Plan Customer Customer’s Customer Suppliers’ Supplier Make Deliver Source Make Deliver Make Source Deliver Source Deliver Internal or External Internal or External Your Company Source SCOR Model Return Return Return Return Return Return Return Return Building Block Approach Processes Metrics Best Practice Technology
40. Customers Suppliers P1 Plan Supply Chain Plan P2 Plan Source P3 Plan Make P4 Plan Deliver Source Make Deliver S1 Source Stocked Products M1 Make-to-Stock M2 Make-to-Order M3 Engineer-to-Order D1 Deliver Stocked Products D2 Deliver MTO Products D3 Deliver ETO Products S2 Source MTO Products S3 Source ETO Products Return Source P5 Plan Returns Return Deliver Enable D4 Deliver Retail Products SCOR 7.0 Model Structure
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Editor's Notes
Dependent on each instructor’s requirements
Dependent on each instructor’s requirements
Dependent on each instructor’s requirements
Dependent on each instructor’s requirements
Dependent on each instructor’s requirements
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21 4 Building block approach Source connects to supplier Deliver connects to customer Not all companies have make We can model as far up or down the supply chain as we view important (not limited to two tiers) Customers and / or suppliers can be internal or external
Point 1 SCOR is applied in 4 steps...Analyze Basis of Competition defines performance needs, Configure Supply Chain maps the high level material flow, Align Performance, Practices, and Systems maps the general transaction flow, and Implement Design organizes the list of projects to improve SC performance. Point2 This should also be drawn on POST IT POSTER and displayed on the wall OR have one drawn up in advance using VISIO.