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ISQA 407 Introduction to Global Supply & Logistics Management Winter 2012. Portland State University. Agenda. Introductions Syllabus review & Course expectations Key concepts of SCM Outsourcing & GPN Strategy Q&A. Supply Chain Management Defined.

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ISQA 407

Introduction to Global Supply & Logistics Management

Winter 2012

Portland State University


Agenda
Agenda

  • Introductions

  • Syllabus review & Course expectations

  • Key concepts of SCM

  • Outsourcing & GPN

  • Strategy

  • Q&A


Supply chain management defined
Supply Chain Management Defined

  • “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into immediate and finished products and the distribution of these finished products to customers.” (p. 3)

  • ….but also, Design for “X” (manufacturing, service, sustainability, etc..), Closed loop supply chain, finance, marketing.


What is the supply chain
What Is the Supply Chain?

  • Also referred to as the Global Production Network

  • Suppliers, manufacturers, warehouses, distribution centers, channels, design centers, & back again!

    Including:

  • Raw materials

  • Work-in-process (WIP) inventory

  • Finished products

    that flow between global facilities to the customer & back again


Extended supply chain p 27
Extended supply chain (p. 27)

  • The concept of global production network (GPN)

Source: Ernst & Kim, 2001


The supply chain another view

Suppliers

Manufacturers

Warehouses &

Distribution Centers

Customers

Transportation

Costs

Transportation

Costs

Transportation

Costs

Material Costs

Manufacturing Costs

Inventory Costs

The Supply Chain – Another View

Design

Plan

Source

Make

Deliver

Buy

Return


What is supply chain management scm

Design

Plan

Source

Make

Deliver

What Is Supply Chain Management (SCM)?

Buy

Return

  • A set of approaches used to efficiently integrate

    • Suppliers

    • Manufacturers

    • Warehouses

    • Distribution centers

    • Channels

    • Design

  • So that the product is produced and distributed

    • In the right quantities

    • To the right locations

    • And at the right time

  • System-wide costs are minimized and

  • Service level requirements are satisfied


Why is scm difficult
Why Is SCM Difficult?

  • Uncertainty is inherent to every supply chain

    • Travel times (Asia -> West)

    • Breakdowns of machines and vehicles (24/7)

    • Weather, natural catastrophe, war (Japan Earthquake)

    • Local politics, labor conditions, border issues (N. Korea)

  • The complexity of the problem to globally optimize a supply chain is significant

    • Minimize internal costs (DFx, NPI, MFG)

    • Minimize uncertainty (Risk Mitigation, continuity of supply)

    • Deal with remaining uncertainty (Shortages, consumer taste)


Decisions regarding 5 key areas
Decisions regarding 5 key areas

  • Production – Master production schedule

  • Inventory – how much is held and at what state?

  • Location – production, warehouse, etc…

  • Transportation – Air, water, land, & how?

  • Information – ERP, MRP, CRM, EDI, RFID, etc.

  • Many more when developing a strategy…..


Strategic planning steps strategies to achieve goals
Strategic Planning Steps: Strategies to Achieve Goals

  • Supply System Strategies May Involve

    • Staff

    • Technology

    • Resources

    • Time

    • Supply Base


Strategic planning steps strategies to achieve goals1
Strategic Planning Steps: Strategies to Achieve Goals

  • Corporate Goal Congruency

  • Internal Customer Impacts

  • External Supplier Impacts

  • Defining Resources to Implement

  • Defining Resources to Sustain

  • Defining Structure


Strategic planning steps markets
Strategic Planning Steps: Markets

  • Customer buying habits: bulk or small

  • Response Customers are willing to live with

  • Variety

  • Service requirements

  • Price

  • Innovation expectations


Strategic considerations
Strategic Considerations

  • Vertical Integration

  • Outsourcing

  • Manufacturing Location

  • Warehouse Location

  • Inventory Strategy

  • Logistical Configuration

  • Automation

  • Sustainability

  • Risk Analysis and Mitigation


General supply chain strategies
General Supply Chain Strategies

Supply Base Reduction

Supply Base Addition

Supplier Development

Inventory Strategies

VMI

Consignments

Lean Operations

Simplification

Standardization

Automation

Risk Management

Identification

Mitigation

Cost Reduction

Administrative

Commodities

Services

Leveraging Technology

Lead Time Management

Sustainability


Supply chain management activities

Forecasting

Product Design

Process Design

Purchasing

Inbound Transportation

In-House Transportation

Inventory Planning and Control

Production Planning and Control

Process/Quality Control

Distribution

Maintenance

Supply Chain Management Activities


Responsibilities of sourcing professionals
Responsibilities of Sourcing Professionals

  • Beyond just continuity of supply..

    • Labor rights

      • Child labor

      • Working conditions

      • Benefits and hours

      • Employee safety considerations

    • Environmental considerations

      • Pollution/emissions/utilization of scare or protected resources

      • Recycling/Reclaim

      • Utilization of hazardous materials (IE: ozone depleting substances, lead, etc.)

      • Who is responsible? What is produced via mfg process? What is included in the finished product? Have we disclosed to end customer?

  • What is the impact to the company? (CSRs, tracking. Expensive)


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