Ahfad University for Women Management Course Integration in Supply Chains PDF

Ahfad University for Women School of Management  Advanced Procurement & Supply Chain Management Course Integration in Supply Chains Lecture (8)  Benefits of Integration of Supply chain stages The integration is crucial in supply chain regarding the following a...

Ahfad University for Women School of Management  Advanced Procurement & Supply Chain Management Course Integration in Supply Chains Lecture (8)  Benefits of Integration of Supply chain stages The integration is crucial in supply chain regarding the following aspects: Customer Satisfaction: in term of a. More accurate delivery times b. Better product availability c. Improved service quality d. Faster response to customer needs Benefits of Integration of Supply chain stages Enhanced Efficiency: by a. Streamlined processes and workflows b. Reduced duplicate efforts c. Faster response times d. Lower operational costs Better Visibility a. Real-time tracking of inventory b. Early detection of bottlenecks c. Improved demand forecasting d. End-to-end transparency  Benefits of Integration of Supply chain stages Risk Management a. Risk Management b. Quick identification of disruptions c. Faster problem resolution d. Better contingency planning e. Reduced supply chain vulnerabilities Competitive Advantage a. Improved market responsiveness b. Better resource utilization c. Enhanced collaboration with partners d. Data-driven decision making The three main approaches for SC integration The main three approaches of supply chain integration: 1. Push: the process operates based on demand forecast, build-to-stock is a good example, includes larger quantities Advantages of push approach: Making use of the economies of scales Disadvantages: Not responding properly to changes in demand Producing large quantity some products become obsolete bullwhip effect The three main approaches for SC integration 2.Pull: the process is reactive initiated by customers’ orders example build to order Advantages: Less inventory Less bullwhip effect Better responsiveness Disadvantages no leverage of economies of scales The three main approaches for SC integration 3.Push and Pull A push and pull system is a combination of push and pull, taking the best from both worlds. The initial section of supply chain (where the procurement and production are done) is based on push in order to minimize costs. Then in the section of supply chain where uncertainty is high, a company can respond using a pull approach. It is critical for the company to determine the right combination of push and pull corresponding to the level of uncertainty the firm faces. Smart Product and Process Design Smart Product and Process Design  Smart Product and Process Design Two concept applied in smart product design: A. Modularity Interchangeable components Flexible configurations Examples: Smartphones: Same chassis, different storage capacities Laptops: Standard parts with upgradeable components Furniture: Modular sofas with customizable sections  Smart Product and Process Design B. Component Commonality Shared parts across products Examples: Volkswagen: Same platform for multiple car models Samsung: Common phone components across different models Bosch: Standard power tool batteries across product lines  Smart Product and Process Design 1. Economic packaging and transportation :result in lower inventory-carrying costs. This means a company can carry more stock to manage fluctuating demand. 1.1.Coca-Cola: Concentrated syrup shipped to bottlers Local bottlers add water and carbonation Reduces transportation costs Smaller storage space needed Lower environmental impact  Smart Product and Process Design 1.2. IKEA: Flat-pack furniture design Customers assemble at home More items per shipment Lower transportation costs Easier warehouse storage Reduced damage during shipping Smart Product and Process Design 2. Concurrent and parallel processing involved doing multiple processes at once. If you can manufacture, for example, multiple components in parallel, your supply chain becomes shorter so you can delay the detailed demand forecast until the last minute. Apple iPhone Production: Multiple components manufactured simultaneously Screen production parallel to chip manufacturing Assembly lines working concurrently Testing done alongside production Packaging prepared while products are being made Smart Product and Process Design 3. Standardization: A. Part Standardization (PC Example): Gaming PC vs. Office PC: Common Components (Standardized): Power supply units RAM slots Motherboard form factors SATA connections USB ports Smart Product and Process Design 3. Standardization: B. Process Standardization: McDonald's: Standardized cooking procedures Same equipment worldwide Consistent training methods Standard operating procedures Thank You