CHAPTER 15Strategic Challenges and Change for Supply Chains.docx

CHAPTER 15
Strategic Challenges and Change for Supply Chains
Supply Chain Management: A Logistics Perspective (10e)
Coyle, Langley, Novack, and Gibson
© 2016 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
Discussion Outline
© 2016 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
2
Principles of supply chain management
Supply chain analytics and Big Data
Omni-channel
Sustainability
3-D printing
Supply chain talent management
Update on the Seven Principles:
The seven principles basically survive the test of time.
We still have a long way to go on supply chain strategy

implementation.
Technology and data will be the major game changer going
forward.
Principles of Supply Chain Management
3
Source: Figure 15.1
Supply Chain Analytics & Big Data
Supply Chain Analytics and Big Data
From Data to Information to Understanding
One major topic of great contemporary interest is that of supply
chain analytics that center on taking a giant leap from data to
information, and then from information to understanding.
5
Data
Information
Understanding
Unorganized facts that need to be processed
(e.g. levels of inventory at ends of financial periods)

Data that has been gathered, processed, organized & structured
in a given context (e.g. average levels of inventory and/or levels
of inventory by SKU)
Information that has been examined & studied in context of
specific business situations (e.g., inventory levels in relation to
overall economic conditions)
Supply Chain Analytics Maturity
6
Source: Figure 15.2
Supply Chain Perspective
SC Analytics Maturity
High
Low
Operational
Strategic
Descriptive
Predictive
Prescriptive
Cognitive

Analytical Resources
7
accessible website, in whole or in part. Level of
AnalyticsAnalytical ResourcesDescriptiveStandard and ad hoc
reportingData from supply chain partnersAlerts and
notificationsQuery/drill downPredictiveForecastingHeuristic
analysisSimulationStatistical analysisPredictive
modelingPrescriptiveStochastic optimizationScenario
planningCognitiveIBM Watson Analytics
Source: Figure 15.3
Big Data and the Supply Chain
8
Big data may be thought of as the process of accumulating,
organizing and analyzing very large sets of data to identify
patterns, trends and other information of interest.
A primary goal of big data is to help organizations better
understand the information that resides within the data, and to
focus attention on those factors that are most relevant to making
well-informed supply chain decisions.

Images courtesy of Aico Groups
Omni-Channel
Omni-Channel
The omni-channel concept can be defined as “anytime,
anywhere, anyhow, and any device.”
10
Images courtesy of St. Joseph Communications
Omni-Channel Retails
Strategies for Omni-Channel Retailers
11

One view of the customer regardless of whether it is a store or
internet purchase
Short-term forecasts based on understanding of what, where,
and when customers buy.
Seamless order entry and order management
One view of inventory for real-time inventory status availability
at all stocking points
Flexible fulfillment network in terms of delivery options,
meeting seasonal patterns, and handling returns
1
2
3
4
5
Store operations that replicate many of fulfillment center
operations while maintaining the focus of being a retail store.
6
Images courtesy of rishabhsoft.com

Sustainability
Sustainability
Sustainability requires companies to consider and manage the
impact that their supply chain has on both the ecological and
social environment in which they operate.
13
Images courtesy of Buddha Jeans
Sustainability
The Business Case for Sustainability
14
Regulation
Risk
Reputation
Profit

Legislation & Compliance
Short-term cost & Long-term supply
Brand loyalty, sentiment & awareness
Cost reduction & Competitive advantages
Images courtesy of First Alliance
Sustainability
Four “R’s” of Sustainability
15
accessible website, in whole or in part. Sustainability
ApproachesDescriptionReuseReuse often requires disassembly,
which is a systematic method of separating a product into
constituent parts, components, subassemblies, or other
component parts. The parts or components may be reassembled
for reuse after cleaning, checking, and repair, or the individual
components may be reused.RemanufacturingRemanufacturing
essentially means that a product or part is returned to the market
as “good as new.” Auto parts, tires, and electronics are
frequently remanufactured.ReconditioningReconditioning
usually means returning used products to working order but not
“as good as new.”RecyclingRecycling generally refers to the
secondary use of materials. It usually includes glass bottles,
cans, newspapers, corrugated material, tires, etc. The recycling
is usually performed for individual households by municipal
government agencies
Source: Table 15.1

Sustainability
Reverse Flows: Key Observations
16
Easy return as part of customer service policies.
Increased consumer recycling programs.
High obsolescence rate in technological products.
Reverse direction needs continual scrutiny to control and
reduce.
Cash / value from returns, and power of technology has not
received enough emphasis in return flows.
Global supply chains present both challenge and opportunity for
reverse flows.
3-D Printing
3-D Printing
Also referred to as “additive manufacturing,” 3-D printing has
exceptional potential not only to facilitate processes and
activities in the supply chain, but also to become a “game-
changing” innovation.
18

Quick turnaround from design to production
Cost-effective production of small lots with special-purpose
tooling
Design flexibility for complex product structures
Ability to enable product customization
High costs of:
3-D printing machines
Maintenance
Materials
Advantages of
3-D Printing
Adoption Inhibitor of
3-D Printing
3-D Printing
Outlook
19
Near Term
In the near-term, 3-D printing is advantageous for fit-to-scale
prototypes, low-demand parts with long lead times, and
inventory management.
Longer Term
In the longer-term, 3-D printing technologies may play a key
role in “open-source collaboration.”

3-D Printing
Strategic Impacts on Supply Chains and Logistics
20
1
2
3
4
5
6
7
8
9
10
11
12
13
Demand-driven
Customization/ Segmentation
Adaptability & Flexibility
Ranges of product types
Service & replacement parts
Workflows, value chains & processes
Decentralized supply chains
Total landed cost
Sustainability
Inventory
Small batch capabilities
Transportation
Globalization

Supply Chain Talent Management
Key Steps to Building A High Quality SCM Team
22
Acquiring new staff
Developing talent
Fostering the advancement of top supply chain talent
Deploy active recruiting techniques such as building recruiting
relationships with leading universities, leveraging employee
referrals, and creating online communities via LinkedIn and
other sites to facilitate candidate interaction.
Development programs that include effective onboarding,
ongoing training, and individual guidance, coupled with a
strong culture of development and supply chain–human
resources collaboration.
Deploy a proactive combination of career guidance and
challenging assignments, while providing compelling SCM
advancement opportunities via logical career paths, retention
strategies, and succession planning.

Effective Talent Management
23
Source: Figure 15.4
Linking People Strategy to Business Strategy
Summary
Supply chains are impacted by a wide variety of external and
internal factors, among which the importance of technology,
notably 3-D printing, to the future of SCM cannot be overstated.
Supply chains generate a wealth of data that can be transformed
into information and insight through the use of supply chain
analytics.
Strategies for success in the omni-channel environment start
with a new view of the customer and end with how order entry
and order fulfillment/delivery are executed.
A useful way to consider sustainability is on a broad functional
basis: inbound, production and operation, and outbound or
distribution.
A shortage of qualified supply chain talent requires a proactive
SCM talent management process to acquire, develop, and retain
key individuals.

CHAPTER 15Strategic Challenges and Change for Supply Chains.docx

CHAPTER 15Strategic Challenges and Change for Supply Chains.docx

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a CHAPTER 15Strategic Challenges and Change for Supply Chains.docx

Semelhante a CHAPTER 15Strategic Challenges and Change for Supply Chains.docx (20)

Mais de keturahhazelhurst

Mais de keturahhazelhurst (20)

Último

Último (20)

CHAPTER 15Strategic Challenges and Change for Supply Chains.docx