Supply Chain Management PDF

AR-RASHID SMART ‫الجمهورية اليمنية‬ UNIVERSITY ‫وزارة التعليم العالي والبحث العلمي‬ Republic of Yemen Ministry of Higher Education & Scientific Research Teaching by: Dr: Abdulkarim Al-Gafri Market Performance Categories – 1-9-24  Marke...

AR-RASHID SMART ‫الجمهورية اليمنية‬ UNIVERSITY ‫وزارة التعليم العالي والبحث العلمي‬ Republic of Yemen Ministry of Higher Education & Scientific Research Teaching by: Dr: Abdulkarim Al-Gafri Market Performance Categories – 1-9-24  Market Performance Categories Markets in each quadrant have their own mix of opportunities for the supply chains that support them. A different mix of performance characteristics is required of companies in the supply chains of each kind of market. In order to thrive, the companies in a supply chain must be able to work together to exploit the opportunities available in their markets. Some Questions must be asked as follows:  1- What are the markets your company serves? 2- What quadrants are they in? 3- How can your company responds to the opportunities in these markets? We introduced some characteristics that describe supply chain performance, responsiveness and efficiency. We all naturally, know what these characteristics suggests, but now we need to define it in more precise terms so that they can be measured objectively. We will use four measurement categories: 1. Customer services 2. Internal efficiency 3. Demand flexibility 4. Product development 1. Customer Services; Customer services measures the ability of the supply chain to meet the expectations of its customers. Depending on the type of market being served, the customers in that market will have different expectations for customer service. ////Customers in some markets both expect and will pay for high levels of product availability and quick delivery of small purchase quantities. Customers in other markets will accept longer waits for products and will purchase in large quantities. Whatever the market being served, the supply chain must meets the customer service expectations of the people in that market.  2.. An internal Efficiency Internal efficiency refers to the ability of a company or a supply chain to operate in such a way as to generate an appropriate level of profitability. As with customer service, market conditions vary and what is an appropriate level of profit varies from one market to another. In a risky developing market, the profit margins need to be higher in order to justify the investment of time and money. Q- An internal efficiency is the ability of a company to generate …...………………………………..  3.. Demand Flexibility This category measures the company’s ability regarding to uncertainty in levels of product demand. It shows how much of an increase over current levels of demand can be handled by a company or a supply chain. It also includes the ability to respond to uncertainty in the range of products that may be demanded. This ability is often needed in established markets. Q- Demand Flexibility measures the ability the company regarding to certainty in levels of product demand ( )  Collaborative (S&OP) Sales & Operations (Planning) What is Sales & Operations Planning (S&OP)? Sales and operations planning (S&OP) is an integrated process that aligns demand, supply, and financial planning and then to be managed as part of a company’s master planning. S&OP, is a process that businesses use to ensure to have the right amount of inventory, not too much and not too little (which would cause them to miss out on potential sales). Q- S&OP, is a process that businesses use to ensure to have the right amount of inventory, not too much and……………………… Q-Sales and Operations planning (S&OP) is an integrated process that aligns demand, supply, and financial planning ( ) S&OP is designed and executed to support executive decision-making related to approving a feasible and profitable material and financial plan. The sales and operations plan is part of both strategic and tactical planning. Strategically, insights into how demand may shift in particular geographies or for specific product lines can impact decisions such as increasing (or decreasing) manufacturing capacity. Q- S &OP is a part of only tactical planning ( ) Q- Discuss in detail the concept of Sales & Operations Planning? Q- S&OP, is a process that businesses use to ensure to have the right amount of inventory, not too much and not too little ( )  3 components of S&OP The entire S&OP process relies on equal involvement of three key components: People, Process, and Technology. If any one of these components is missing or out of balance, the S&OP process falls apart. Q - try to design Exhibit of components of S&OP? 1-People Here's the problem, you don't just need logistics support. You need support and approval of your department’s stakeholders? in order to execute your Sales & Operations Planning verey well. When you don't involve your people in the process, you wind up with an isolated and disengaged workforce. 2-Process Steps of S&OP process aren't as cut and reject as your regular checklist. The process is ongoing and repeats as soon as it's completed, and different phases can overlap as parts are delegated to different team members. With these semi-blurred lines separating your process steps, it's easy to lose your structure entirely, which will bring the whole operation down quickly. A well-structured process is necessary to keep your S&OP cycle flowing smoothly. Automation can help with a lot of that, allowing you to offload repeatable tasks to technology and focus on the work that most requires your attention. But if you have people and technology without a process, you wind up with automated chaos. There's a reason that automations aren't designed to replace people , they require structured oversight to work effectively. The Question will come later...  3-Technology There are lots of things that are made easier by technology , The S&OP process is not one of those things. Unless you're running a very, very small operation, trying to do your S&OP by hand will be very frustrating. Without technology, S&OP teams would have to collect and process data by hand, create forecasts manually, and personally implement their plans once they're approved by the executive team. With automated systems, you can collect data through-on an ongoing process, produce reports with multiple views and time frames and set up implementation triggers, and communicate immediately with your team. Q- How could the Automation help in S&OP Process?  Sales & Operations Planning benefits S&OP eliminates the "guess and hope for the best" approach from your business… S&OP helps: 1. Increase profitability: When you align sales forecasts with production capabilities, you reduce excess inventory costs and minimize stockouts. 2. Shorten the planning process: Dragging your feet through a long planning process limits your business opportunities. By integrating data and communication, you can make decision-making quicker and respond faster to market changes. 3. Enhance cross-functional collaboration: S&OP (nicely) forces sales, production, and other cross-functional departments to break down silos and collaborate. As a result, you have better-informed decisions, optimal resource allocation, and a more flexibility response to customer demands. 4. Deliver on customer needs: Nobody wants to buy fuzzy sweaters after December. Synchronizing sales forecasts and production schedules helps ensure products are available when and where customers need them. 5. Improve production stability: Similarly, everybody hates when products are out of stock. S&OP balances inventory levels and production rates to reduce the impact of demand fluctuations. 6. Optimize production capacity: Alignment with anticipated demand helps avoid the over- or underutilization of resources, ensuring efficient production and savings. It's the ultimate satisfaction to use the exact amount of resources to produce what you need. Q- S & OP balances inventory levels and…..……………to reduce the impact of demand fluctuations. Q- Discuss with detail Three benefits of S.&OP Planning?  Synchronized Supply Chain The Global Data Synchronization Network (GDSN) is a network of independently owned and operated databases that can exchange data with each other and the GS1 Global Registry. The GS1 Global Registry acts as a central coordinator between all the other databases to provide for timely and traceable distribution of verified product descriptive information between all the databases. It is the locator and routing mechanism for finding source data and sending requested data between databases.  Home assignment: Answer the Supposed questions which Inside the slides for the next lecture?