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Supply Chain Management Insights

Ellery F. Jose has over seven years of experience in supply chain management in fast-moving consumer goods companies. He is a certified supply chain professional and holds a master's degree in technology management. Supply chain management involves designing processes to link a firm's internal activities with its suppliers and customers through information sharing, physical distribution, and cash flow. The key is to determine appropriate inventory levels and position inventory to meet customer expectations given demand variability and cycle times.

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Ellery Jose
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361 views15 pages

Supply Chain Management Insights

Ellery F. Jose has over seven years of experience in supply chain management in fast-moving consumer goods companies. He is a certified supply chain professional and holds a master's degree in technology management. Supply chain management involves designing processes to link a firm's internal activities with its suppliers and customers through information sharing, physical distribution, and cash flow. The key is to determine appropriate inventory levels and position inventory to meet customer expectations given demand variability and cycle times.

Uploaded by

Ellery Jose
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Ellery F.

Jose, MTM, CSCP

More than seven years experience in Supply Chain in FMCG companies (Kraft, Perfetti Van Melle, Timex) Certified Supply Chain Professional from APICS US 2011 Master in Technology Management from UP Diliman 2006

Give

a definition and present the major themes of supply chain management

The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution and cash

Definition from APICS Dictionary 13th Edition

The challenge for the supply chain manager is designing processes that will effectively link the internal activities of the firm with the complementary activities within its suppliers and customers.

Supplier Collaboration

Internal Firm Activities

Customer Collaboration

I. Inventory and Materials Management

II. Network Planning


Distribution and Logistics III. Supply Matrix Sourcing and Supplier Selection Supply Contracts IV. Collaborative Arrangements Customer Relationship Management

Determining appropriate inventory level based to meet customer expectations

Service Level X Demand Variability X Cycle Time

Cycle Time X Average Demand

Involves positioning inventory and designing the physical supply chain


Furniture

Computers
Assemble to order with and stock in few locations

Demand uncertainty

Make to order and consolidate deliveries

Grocery
Make to stock and store in multiple locations

Books/CD
Make to stock and may expedite transport

Value relative to transport costs


Adopted from Simchi-Levi et al Designing and Managing the Supply Chain 3rd ed

Bottleneck

Strategic
Form partnerships

Supply Risk

Ensure Supply

Non-critical
Simplify and automate

Leverage
Exploit buyer power

Profit Impact
Adopted from Simchi-Levi et al Designing and Managing the Supply Chain 3rd ed

Shipping Cartons

Flavours and Ingredients

Supply Risk

Office Supplies

Consultancy Services

Profit Impact
Adopted from Simchi-Levi et al Designing and Managing the Supply Chain 3rd ed

How does a firm respond to customer demand? Transactional


Focus on order fulfilment No information sharing

Quick Response
Sales data is shared between partners Inventory owned by buyer

Continuous Replenishment
Agreed inventory levels Inventory owned by either buyer or supplier

VMI
Inventory is owned and managed by supplier

Increasing Trust and Collaboration between Parties

Adopted from Simchi-Levi et al Designing and Managing the Supply Chain 3rd ed

Supplier Collaboration

Internal Firm Activities

Customer Collaboration

I. Inventory and Materials Management

II. Network Planning


Distribution and Logistics III. Supply Matrix Sourcing and Supplier Selection Supply Contracts IV. Collaborative Arrangements Customer Relationship Management

Focused on design and software and outsourced most production/transportation activities

Leveraged its size to guarantee volumes and lock-out competitors from supply of flash technology
Mostly from Supply Chain Asia May/June 2011 issue and NY times website

ACTIVITY

Primary Supply Chain Metrics


Service Level or Fill Rate Inventory Weeks of Supply Demand Forecasts Accuracy

Primary Impact to Financials


Revenue Profit Margins Assets turnover (inventory) Cash conversion cycle

Internal Activities

Customer-Facing Activities

Joint KPIs Demand Forecasts Accuracy (at per customer level)

Revenue Cash conversion cycle

Supplier-Facing Activities

Joint Planning KPIs


Supplier Performance (lead time and quality)

Costs (Total Costs of Ownership)


Assets turnover (inventory) Cash conversion cycle

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