Global Supply Chain Management PDF

Global Supply Chain Management A Warm Welcome  Course Logistics https://nsmart.wsu.ac.kr/courses ⚫ Pedagogy ⚫ Student Expectations ⚫ Session Plan  References ⚫ We shall use the following textbook for the course  Sunil Chopra, Peter Meind...

Global Supply Chain Management A Warm Welcome  Course Logistics https://nsmart.wsu.ac.kr/courses ⚫ Pedagogy ⚫ Student Expectations ⚫ Session Plan  References ⚫ We shall use the following textbook for the course  Sunil Chopra, Peter Meindl, Supply Chain Management – strategy, planning and operation, Global Edition (Sixth or Later Editions), Pearson ⚫ Additional references for further reading:  David Simchi Levi, et all, Designing & Managing the supply chain, McGrawhill  Bowersox, Donald, Supply Chain Logistics Management, McGraw-Hill  Eliyahu M. Goldratt, Ilan Eshkoli, Joe Brownleer, Isn't It Obvious? North River Press ⚫ Eliyahu M. Goldratt, Eli Schragenheim, Carol A. Ptak, Necessary But Not Sufficient, North River Press ⚫ Assessment & Grading ⚫ Group project - 15 percent ⚫ Individual field activity- 10 percent ⚫ Case analysis - 15 percent ⚫ Quiz 10 percent ⚫ Final exam - 30 percent These slides are only for the learning purposes of the Global Supply Chain Management course. Do not distribute these slides. Slides are not a substitute for readings / textbook and are only meant to complement the textbook and readings. Understanding the supply chain Supply Chain Management: The True Magnitude ⚫ Compaq estimates it lost $0.5 billion to $1 billion in sales in 1995 because laptops were not available when and where needed ⚫ When the 1 gig processor was introduced by AMD, the price of the 800 meg processor dropped by 30% ⚫ P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand ⚫ Airbus had to absorb more than $1 billion due to a 2 year delay in its entry into service caused by a an uncoordinated supply chain  What is a supply chain? Customer wants P&G or other Third HomePlus detergent and goes manufacturer party DC Retail stores To HomePlus Chemical Plastic Packaging manufacturer Producer producer (e.g. Oil Company) Chemical Paper Timber manufacturer Manufacturer Industry (e.g. Oil Company) Chopra & Meindl/Logistics Strategy  Automotive Supply Chain Raw Material Tier 2 Tier 1 Assembly Customers Dealers Suppliers Suppliers Suppliers Plant Camera Electronic assembly Cylinder Powertrain Bearings  Flows in a Supply Chain Converter Supplier Retailer Distributor Source Converter Consumers Distributor End-User Supplier Information Product Supplier Customer Funds  Objective of a Supply Chain ⚫ Maximize supply chain surplus/profitability ⚫ Difference between ⚫ revenue generated from the customer and ⚫ the overall cost across the supply chain ⚫ Higher the supply chain surplus, the more successful is the supply chain  Supply Chain Performance is Rewarded Accenture Study Gartner SC Top 25 - 2023 The Masters: Amazon Apple P&G Unilever Importance of supply chain decisions Supply chain design, planning, and operation decisions play a significant role in the success or failure of a firm.  Decision Phases in a Supply Chain Categorized depending on the time frame: ⚫ DESIGN (Strategic) ⚫ PLANNING (Tactical) ⚫ OPERATIONAL Process View of a Supply Chain Two different ways of viewing processes: ⚫ CYCLE VIEW Series of cycles at the interface between two successive stages ⚫ PUSH/PULL VIEW Push ➔ In anticipation of customer order Pull ➔ In response to a customer order  Cycle View of Supply Chains Customer Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement Cycle Supplier Courtesy: Chopra & Meindl  Customer Order Cycle CUSTOMER CUSTOMER ORDER ARRIVAL RECEIVING CUSTOMER CUSTOMER ORDER ORDER ENTRY FULFILLMENT OBJECTIVE: OBJECTIVE: QUICK & ACCURATE ENTRY CORRECT AND COMPLETE ORDERS FAST COMMUNICATION PROMISED DUE DATES LOWEST POSSIBLE COST  Replenishment Cycle RETAIL ORDER RETAIL ORDER TRIGGER RECEIVING RETAIL ORDER RETAIL ORDER ENTRY FULFILLMENT OBJECTIVE: QUICK & ACCURATE ENTRY OBJECTIVE: CONVEY ORDERS QUICKLY UPDATE INVENTORIES & DISPLAYS QUICKLY AND ACCURATELY AT THE LOWEST POSSIBLE COST  Manufacturing Cycle ORDER ARRIVAL RECEIVING. PRODUCTION MANUFACTURING SCHEDULING & SHIPPING OBJECTIVE: OBJECTIVE: TO MAXIMIZE THE PROPORTION OF SHIP BY PROMISED DUE DATE ORDERS FILLED ON TIME WHILE WHILE MEETING QUALITY REQMTS KEEPING COSTS DOWN & KEEPING COSTS DOWN  Procurement Cycle ORDER BASED ON MANUFACTURER’S RECEIVING AT PRODUCTION SCHEDULE or SUPPLIER’S STOCKING NEEDS MANUFACTURER SUPPLIER PRODUCTION COMPONENT MANUFG & SCHEDULING SHIPPING IF A SUPPLIER’S LEAD TIMES ARE LONG, THEN IT HAS TO PRODUCE TO FORECAST BECAUSE THE MANUFACTURER’S PRODUCTION SCHEDULE MAY NOT BE FIXED THAT FAR IN ADVANCE.  Push/Pull View of Supply Chains Customer Order Decoupling Point Procurement, Customer Order Manufacturing and Cycle Replenishment cycles PUSH PROCESSES PULL PROCESSES Customer Order Arrives  Push/Pull Processes for Dell Customer Pull Processes Customer Order and Manufacturing Cycle Customer Order Manufacturer Arrives (Dell) Push Procurement Cycle Processes Supplier Source: Chopra & Meindl Thank You…