HPSPLY1 - Unit 2 PDF

CHAPTER 2 VALUE OF INFORMATION AND SCM  LEARNING OUTCOMES Having successfully completed this module you will be able to: 1. Understand the importance of sustainability in supply chain. 2. Describe the key metrics that can be used to measure sustainability for a supply chain. 3...

CHAPTER 2 VALUE OF INFORMATION AND SCM  LEARNING OUTCOMES Having successfully completed this module you will be able to: 1. Understand the importance of sustainability in supply chain. 2. Describe the key metrics that can be used to measure sustainability for a supply chain. 3. Explain the strategic importance of logistic elements and describe how they affect supply chain management. 4. Analysed the creation of new value in the supply chain for customers, society and the environment. INFORMATION IN THE SUPPLY CHAIN A. Information Technology: A Supply Chain Enabler  B. E-business and Supply Chain – Cost savings and price reductions – Reduction or elimination of the role of intermediaries – Shortening supply chain response and transaction times – Gaining a wider presence and increased visibility for companies – Greater choices and more information for customers – Improved service as a result of instant accessibility to services – Collection and analysis of voluminous amounts of customer data and preferences – Creation of virtual companies – Levelling playing field for small companies – Gaining global access to markets, suppliers, and distribution channels C. Improved service as a result of instant accessibility to services Collection and analysis of voluminous amounts of customer data and preferences Creation of virtual companies Levelling playing field for small companies Gaining global access to markets, suppliers, and distribution channels D. Methods for Improving Forecast  II. SUPPLY CHAIN COLLABORATION – What Is It? Many different definitions depending on perspective The means by which companies within the supply chain work together towards mutual goals by sharing by: – Ideas – Information – Processes – Knowledge – Information – Risks – Rewards Why collaborate? -Accelerate entry into new markets - Changes the relationship between cost/value/profit equation - Cornerstone of effective SCM The focus of many of today’s SCM initiatives The only method that has the potential to eliminate or minimize the Bullwhip effect A. Benefits of Supply Chain Collaboration  B. Successful Supply Chain Collaboration – Try to collaborate internally before you try external collaboration – Help your partners to work with you – Share the savings – Start small (a limited number of selected partners) and stay focused on what you want to achieve in the collaboration – Advance your IT capabilities only to the level that you expect your partners to manage – Put a comprehensive metrics program in place that allows you to monitor your partners’ performance – Make sure people are kept part of the equation Systems do not replace people Make sure your organization is populated with competent professionals who’ve done this before C. Emerging Best Practices in SCM Strategy III. SUPPLY CHAIN INTEGRATION III. SUPPLY CHAIN INTEGRATION  A. Suppliers – Procurement purchase of goods and services from suppliers – On-demand (direct response) delivery requires supplier to deliver goods when demanded by customer – Continuous replenishment supplying orders in a short period of time according to a predetermined schedule – Cross-enterprise teams coordinate processes between company and supplier  B. Outsourcing – Sourcing selection of suppliers – Outsourcing purchase of goods and services from an outside supplier – Core competencies what a company does best – Single sourcing a company purchases goods and services from only a few (or one) suppliers  C. E-Procurement – Key performance indicators inventory turnover – cost of annual sales per inventory unit inventory days of supply – total value of all items being held in inventory fill rate – fraction of orders filled by a distribution center within a specific time period IV. GLOBAL CHAIN AND GREEN SUPPLY CHAIN MANAGEMENT To compete globally requires an effective supply chain Information technology is an “enabler” of global trade Nations form trading groups No tariffs or duties GSC is a method to design and/or redesign the supply chain that incorporates recycling and remanufacturing into the production process and it involves minimization of the firm’s total environmental impact from start to finish of the supply chain and also from beginning to end of the product life cycle.  The Practice This refers to supply chain management functions which include: – Green purchasing (in-bound logistics) – Design for the environment (internal supply chain) – Green marketing (out-bound logistics) – Reverse logistics  Benefits –Cost savings –Waste minimization –Customer satisfaction –Increased competitiveness –Enhanced environmental performance –Increased awareness of HSE –Improved productivity –Improved business-to-business relations Thank you!