MIM 524 Global Sourcing Class three. Which Comes First? Organization? Strategy? Does function dictate structure or does structure dictate functionality? Does strategy dictate organization or does organization influence strategy?. Chicken or Egg?. Structure. Organizational challenges
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Three enabling strategies
Re-engineer and improve Supply Chain business processes
Strategy #2: Enhance our relationships through the Chain
Strategy #3: Create electronic capabilities to run competitive Supply Chains
Inventory days + Days sales outstanding – Average payment
of supply period for materials
Faultless Invoices 0OPDEL023
Number of Supply Sources
Order Fulfillment Lead Time
Perfect Order Fulfillment
Total Source Lead Time
Delivery Performance to Scheduled Commit Date
Production Lead Times
Machine wait time
Supplier Management Strategy
Supplier Management Segment
Acquire/Equity Investment or
Mid Size Supplier
Supplier Size and Scalability – Flexibility and Willingness to Invest
ODM1 HK FF
ODM2 HK FF
ODM3 HK FF
ODM5 HK FF
ODM6 HK FF
HK Raw Material 3PL
The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell by Joan Magretta
How can the total cost be reduced?
The EOQ model will compute the cheapest batch order size.
What do you do with the order quantity calculated by the EOQ model?
Enter the order quantity into the TC equation.