Professional Documents
Culture Documents
Session # 3
Push-
Pull
Boundary
Raw
Materia Generic Product Customized Product
ls
End
Supply Chain Timeline Consumer5
Macro Process Perspective
Figure 1-8
Traditional Functional Perspective
Purchase / Procurement
Inventory Control
Warehousing
Material Handling
Order Processing
Transportation
Customer Service
Planning Group
Supply Chain as a System
Bullwhip Effect
Segmentation for Managing Supply
Chain
o Type of product
o Cost
o Type of customer
o Profit margin
o Location etc.
How can I segment my products?
Physical characteristics
(value, size, density, etc.)
Demand characteristics
(sales volume, volatility, sales duration, etc)
Supply characteristics
(availability, location, reliability, etc.)
Segmentation based on type of
customer or supplier
Lead time
Purchase History
Geography
Sales Trends
Strategic Importance
Service Level
Order/Volume
Demographic
Channel Segmentation
Session # 4
Business
Strategy
Organizational
Strategy
Supply Chain
Strategy
Supply Chain Strategy or Design
Decisions about the structure of the supply chain and what processes
each stage will perform.
Planning decisions:
Which markets will be supplied from which locations
Planned buildup of inventories
Subcontracting, backup locations
Inventory policies
Timing and size of market promotions
Margin 5 % to 20 % 20 % to 60 %
Average Stockout 1 % to 2 % 10 5 to 40 %
Rates
Forced Mark down 0% 10 % to 25 %
Figure 2-3
Challenges to Effective Supply Chain
Management
30
Supply Chain Management Key Issues
ISSUE CONSIDERATIONS
Network Planning Warehouse locations and capacities
Plant locations and production levels
Transportation flows between facilities to minimize cost and
time
Outsourcing & Procurement What are our core supply chain capabilities and which are
Strategies not?
Does our product design mandate different outsourcing
approaches?
Risk management
31
Source:
Product Simchi-Levi
Design How are inventory holding and transportation costs
Thank You