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1、Supply Chain ManagementYuhua ZhangProfessor of Guangdong University of Foreign StudiesTel:020-39328850E-mail:培训专用ReferencesReferencesDesigning and Managing the Supply Chain,David Simchi-Levi et al,McGraw Hill,2011.Supply Chain Management,Ma Shihua,Higher Education Press,2011.Supply Chain Management:
2、Strategy,Planning,and Operation,Sunil Chopra et al,Prentice Hall,2011.Supply Chain Management from Vision to Implementation,Stanley E.Fawcett et al,Prentice Hall,2007.培训专用Evaluation ModeEvaluation Mode Check on class attendance：20%Case study 20%Class assignment 20%Final Test：40%培训专用Chapter1 Introduc
3、tion to Supply Chain ManagementChapter2 Inventory Management,Supply Contracts and Risk PoolingChapter3 Logistics Network ConfigurationChapter4 The Value of InformationChapter5 Supply Chain Integration,Strategic AlliancesChapter6 Procurement and Outsourcing,International Issues in SCMChapter7 Design
4、for Supply Chain ManagementChapter8 Pricing and Customer Value培训专用Chapter 1 Introduction to Supply Chain Management培训专用CopyrightMeditech SurgicalCase describes a scenario with typical symptoms inventories are too high and customer service is poor.Initial explanation is that the problems are due to p
5、oor forecasting of customer demand.Theres a perception that demand is highly variable and unpredictable,possibly due to irrational customer behavior,e.g.,panic ordering.if only Meditech could forecast what the customers will order,then they could improve customer service and reduce inventories.Case
6、1培训专用CopyrightOutline Intent diagnosis of supply chainBusiness overviewSupply chainProduction planningWhats wrong?How to fix it?Case 1培训专用CopyrightEndoscopic Surgical InstrumentsPermits minimally invasive surgeryMarket created in early 80s,rapidly growingOld products continually updated and replaced
7、 with new product introductionsCase 1培训专用CopyrightBusiness OverviewNational and Meditech split the marketCompete based on product innovations,customer service,costNational sells to physicians;Meditech sells to material managersCustomer preferences change slowlyCase 1培训专用External Supply ChainPart sup
8、pliersMeditech Assembly plantsMeditechWarehouse:autonomous regional warehousesDomestic DealersIntl MeditechAffiliatesHospitalsHospitalsCase 1培训专用Internal Supply ChainParts InventoryAssemblyBulk InventoryFG InventoryPackaging&Sterilization2-16weeks2weeks1 weekCase 1Assembly organized into multiple fl
9、exible lines,manual.Packaging and sterilization have adequate capacity培训专用Production PlanningAnnual ForecastMonthly RevisionTransferRequirements MonthlyPlanMRPPartsProcurement PlanWeeklyAssemblyScheduleCase 1Annual forecast determined by marketing and financeRevision done at beginning of month by ma
10、rketing and central planningTransfer requirements=forecast FG inventory+safety stock(3 weeks of demand),done by central planningMonthly plan sent to business units,who input it into MRP to get material plans and assembly schedules 培训专用Production PlanningParts InventoryAssemblyBulk InventoryPackaging
11、&SterilizationFG inventoryMonthlyPlanMRPOrder point;Order quantityMaterialPlanfocusing on information flows培训专用CopyrightWhats wrong?Poor service for new product introductionsPoor forecasting?Panic ordering?And high FG inventoryCase 1培训专用CopyrightWhat is going on?Demand is quite predictableUsage in h
12、ospitals is quite stableMarket share moves slowly over timeWith each new product,dealer must build inventory to fill pipelineCase 1培训专用CopyrightWhy did Meditech think demand was unpredictable?Poor information systemsNo one looked at demandNo one had responsibility for forecast errorsTendency to shif
13、t the blameBuilt-in delays and monthly buckets in planning systemAmplifier in planning systemCase 1培训专用CopyrightWhat to do?Recognize that demand is stable and predictableEstablish accountability for forecastEliminate planning delays and/or reduce time bucketAlternatively,put assembly within pull sys
14、tem and eliminate bulk inventoryCase 1培训专用CopyrightWrap UpCase illustrates a supply chain challenge understand why Meditech has poor customer service and high inventory,particular for new products.Context is characterized by lack of data and a some what archaic,albeit typical,planning system that ob
15、scures the problem.Case 1培训专用CopyrightWhat Is A Supply Chain?SCM ArchitectureStrategies for SCMWhy Supply Chain Management?Key IssuesOutline培训专用Copyright1.1 What Is A Supply Chain?The system of suppliers,manufacturers,transportation,distributors,and vendors that exists to transform raw materials to
16、final products and supply those products to customers.SupplierSupplierManufacturerManufacturerDistributorDistributorRetailerRetailerCustomerCustomerUpstreamDownstream培训专用What is SCM?Buying What is SCM?SellingMakingMovingWarehousingSCM is a business network covering from buying,making,moving,warehous
17、ing to selling SCM培训专用CopyrightWhat Is the Goal of Supply Chain Management?Supply chain management is concerned with the efficient integration of suppliers,factories,warehouses and stores so that merchandise is produced and distributed:In the right quantitiesTo the right locations At the right timeI
18、n order toMinimize total system cost Satisfy customer service requirementsThe rightProductHigherProfitsThe rightTimeThe rightCustomerThe rightQuantityThe rightStoreThe rightPrice=+培训专用CopyrightThe power and the potential impact of supply chain management to make organizations more globally competiti
19、ve and to increase market share with consequent improvement in share-holder value.Supply Chain management Concept培训专用CopyrightDevelopment of the ConceptA number of studies done during the 1950s and 1960s indicated the potential of the systems concept if it were applied in business-related situations
20、.The focus of physical distribution management was on the system costs and analyzing trade-off scenarios to arrive at the best or lowest physical distribution system cost.The system relationships that exist among transportation,inventory levels,warehousing,exterior packaging,materials handling,and c
21、ustomer service cost centers were analyzed and evaluated.The initial focus on physical distribution or outbound logistics was logical since finished goods were usually higher in value,which meant that their inventory,warehousing,materials handling,and packaging costs were relatively higher than for
22、inbound raw materials.培训专用CopyrightDevelopment of the ConceptThe 1980s were a decade of change with the deregulation of transportation,financial institution,and the communication industry.The technology revolution was also well underway.During the 1980s,the business logistics or integrated logistics
23、 management concept developed in a growing number of organizations.Logistics in its simplest form added the inbound side to outbound logistics of physical distribution management.The underlying logic of the systems concept was also the rationale for the development of the logistics management concep
24、t,because in addition to analyzing trade-offs for total cost it could also include the value or demand aspects of customer service effectiveness.培训专用CopyrightDevelopment of the ConceptAfter 1990s,supply chain management can be viewed as a pipeline or conduit for the efficient and effective flow of p
25、roducts and materials,services,information,and financials(usually cash)from the suppliers supplier through the various immediate organizations out to the customers customer.It is a system of connected networks between the original vendor and the ultimate final customer.The extended enterprise or bou
26、ndary spanning perspective of supply chain management represents a logical extension of the logistics concept,providing an opportunity to view to total system of interrelated companies and their impact for the final product in the marketplace in terms of its price-value relationship.培训专用CopyrightImp
27、ortant Points Extended enterpriseCoordinated or integrated two-way flow of goodsReverse logistics systemsInformationBull whip effectAdvanced shipment noticesFinancials(especially cash)“Free”cash flow培训专用Supply Chain StatusTIER2TIER1SupplierSupplierSupplierOEM-Manual communication(Phone/Fax/EDI)-Spon
28、taneous planning-Hypothetical planning-Tier To Tier-Enormous inventory bufferSupply Chain StatusProspect of supply chainFax/E-mailEDIOn-line78%65%28%60%60%88%2000 2002 Forrester Research,2000TIER3Yet existing supply chain is managed manually,causing serious loss of efficiency and cost SCM培训专用Backgro
29、und of SCM and its effect Background Emerging new channelSevere competition Speed managementInternet boomingEffects Shorter product life cycleChannel integrationSpeedy adaption to change supply chainEnhanced customer satisfaction Supply chain integration thru webProduct life cycle management“Competi
30、tion among supply chainsnot among companies”The change in the industrial environment demands the business to adopt to SCM and it can bring the following effectsStandardization of product and techSCM培训专用Components of SCM Supply Chain PlanningSupply Chain ExecutionCollaborative Planning-Supply Chain N
31、etwork Design-Demand Planning&Forecasting-Supply Planning-Distribution Planning-Manufacturing Planning&Scheduling-Warehouse Management-Transportation Management-Inventory Management-Order ManagementFacilitating collaboration among participants-Design Collaboration-Demand Collaboration-Procurement Co
32、llaboration-Retailer CollaborationDeliver the Right Productat the Right Placeat the Right TimeSCM is devided by SCP to offer optimized planning,SCE to stable execution platform,CP to collaborateOptimized planning for balanced supply for varied demandsTimely execution for buying,moving,making and ord
33、eringSCM培训专用CopyrightRecent Supply Chain Studies Suggest.“Only 7%of companies today are effectively managing their supply chain.However,these companies are 73%more profitable than other manufacturers.”Deloitte&Touche Study,October 2003“培训专用CopyrightNoticeWho is involved?What is the goal?What level o
34、f activities are involved?What do we mean by integration?培训专用 SCM ArchitectureSCM培训专用SupplySources:plantsvendorsportsRegionalWarehouses:stocking pointsField Warehouses:stockingpointsCustomers,demandcenterssinksProduction/purchase costsInventory&warehousing costsTransportation costsInventory&warehous
35、ing costsTransportation costs培训专用Copyright 2004 D.Simchi-LeviWhat makes supply chain management difficult?Supply chain strategies cannot be determined in isolation.They are directly affected by another chain that most organizations have,the development chain.It is challenging to design and operate a
36、 supply chain so that total systemwide costs are minimized,and systemwide service levels are maintained.Uncertainty and risk are inherent in every supply chain.培训专用Copyright 2004 D.Simchi-LeviThe development chainThe development chain is the set of activities and processes associated with new produc
37、t introduction.培训专用Copyright1.3 Strategies for SCMAll of the advanced strategies,techniques,and approaches for Supply ChainManagement focus on:Global OptimizationManaging Uncertainty培训专用Copyright1.3.1 Global OptimizationWhat is it?Why is it different/better than local optimization?What are conflicti
38、ng supply chain objectives?What tools and approaches help with global optimization?培训专用Procurement PlanningManufacturingPlanningDistributionPlanningDemandPlanningSequential OptimizationSupply Contracts/Collaboration/Information Systems and DSSProcurement PlanningManufacturingPlanningDistributionPlan
39、ningDemandPlanningGlobal OptimizationSequential Optimization vs.Global OptimizationSource:Duncan McFarlane培训专用CopyrightGlobal OptimizationThe process of finding the best systemwide strategy is known as global optimization.培训专用CopyrightWhy is Global Optimization Hard?The supply chain is a complex net
40、work Different facilities in the supply chain frequently have different,conflicting objectives The supply chain is a dynamic systemThe power structure changesSystem variations over time 培训专用CopyrightSupply Chain:The ComplexityNational Semiconductors:Production:Produces chips in six different locatio
41、ns:four in the US,one in Britain and one in IsraelChips are shipped to seven assembly locations in Southeast Asia.DistributionThe final product is shipped to hundreds of facilities all over the world20,000 different routes12 different airlines are involved95%of the products are delivered within 45 d
42、ays5%are delivered within 90 days.培训专用CopyrightConflicting Objectives in the Supply Chain1.Purchasing Stable volume requirements Flexible delivery time Little variation Large quantities2.Manufacturing Long run production High quality High productivity Low production cost培训专用CopyrightConflicting Obje
43、ctives in the Supply Chain3.Warehousing Low inventory Reduced transportation costs Quick replenishment capability4.Customers Short order lead time High in stock Enormous variety of products Low prices培训专用CopyrightTools and Approaches for Global OptimizationEverything for optimization,plusStrategic A
44、lliances/Supplier PartnershipsSupply Contracts/Incentive Schemes培训专用CopyrightTools and Strategies for OptimizationDecision Support SystemsInventory ControlNetwork DesignDesign for LogisticsCross DockingCross Docking翻译为翻译为“直接换装直接换装”，定义为：定义为：“物品在物流环节中，不物品在物流环节中，不 经过经过中间仓库或者站点，直接从一个交通工具中间仓库或者站点，直接从一个交通
45、工具换载到另一个运输工具的物流衔接方式。换载到另一个运输工具的物流衔接方式。”培训专用Copyright1.3.2 UncertaintyWhat is variation?What is randomness?What tools and approaches help us to deal with these issues?培训专用CopyrightCant Forecasting Help?Forecasting is always wrongThe longer the forecast horizon the worse the forecast End item forecast
46、s are even more wrong培训专用CopyrightWhy Is Uncertainty Hard to Deal With?Matching supply and demand is a major challenge.Forecasting doesnt solve the problem.Inventory and back-order levels typically fluctuate considerably across the supply chain,even when customer demand for specific products does no
47、t vary greatly.Demand is not the only source of uncertainty:Lead timesYieldsTransportation timesNatural DisastersComponent AvailabilityRecent trends such as lean manufacturing,outsourcing,and offshoring that focus on reduction increase risks significantly.培训专用CopyrightSupply Chain VariabilityVolumes
48、TimeSource:Tom Mc Guffry,Electronic Commerce and Value Chain Management,1998ActualConsumerDemandRetailer Warehouseto ShopRetailer OrdersProduction PlanManufacturer Forecastof Sales培训专用CopyrightWhat Management Gets.VolumesTimeSource:Tom Mc Guffry,Electronic Commerce and Value Chain Management,1998Con
49、sumerDemandProduction Plan培训专用CopyrightWhat Management WantsVolumesTimeSource:Tom Mc Guffry,Electronic Commerce and Value Chain Management,1998ConsumerDemandProduction Plan培训专用CopyrightDealing with UncertaintyPull SystemsRisk PoolingCentralizationPostponementStrategic AlliancesCollaborative Forecast
50、ing培训专用Copyright1.4 Why Supply Chain Management?培训专用CopyrightSupply Chain:the MagnitudeIn 1998,American companies spent$898 billion in supply-related activities(or 10.6%of gross domestic product).Transportation 58%Inventory 38%Management 4%Third party logistics services grew in 1998 by 15%to nearly$