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Every Supply Chain is NOT as weak as its weakest L ink – it is MUCH weaker !

Every Supply Chain is NOT as weak as its weakest L ink – it is MUCH weaker !. SUPPLY CHAIN MANAGEMENT. The simple mathematical MODEL and .. .. the complex REALITY of Intracom. ‘Handheld Calculator’ Model. no cost no training very true everybody understands it.

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Every Supply Chain is NOT as weak as its weakest L ink – it is MUCH weaker !

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  1. Every Supply Chain is NOT as weak as itsweakest Link –it is MUCHweaker ! Stefan Mittmann, INTRACOM -- Tinos, May 2001

  2. SUPPLY CHAIN MANAGEMENT The simple mathematical MODEL and .. .. the complex REALITY of Intracom Stefan Mittmann, INTRACOM -- Tinos, May 2001

  3. ‘Handheld Calculator’ Model • no cost • no training • very true • everybody understands it Stefan Mittmann, INTRACOM -- Tinos, May 2001

  4. Calculate the total efficiency of this chain .9 x .9 x .9 x .9 x .9 x .9 x .9 x .9 x .9 = 38.7% ! A simple chain with 9 elements Stefan Mittmann, INTRACOM -- Tinos, May 2001

  5. Chain Efficiency Examples Stefan Mittmann, INTRACOM -- Tinos, May 2001

  6. Keeping the BALANCE is important • HIGH links can be expensive & rarely increase revenues • LOW links dramatically reduce performance Revenues max Cost Service Level / Performance Stefan Mittmann, INTRACOM -- Tinos, May 2001

  7. The role of our CUSTOMER • The Customer is the FIRST and LAST Link • The Customer sets the required efficiency level • Is the Customer balanced ? Stefan Mittmann, INTRACOM -- Tinos, May 2001

  8. Improving Chain Efficiency • Improve efficiency of ALL links • Improve or Replace weakest link • Eliminate weakest link / Consolidate • Subcontract / Outsource (Specialist Sub-Chain) • Keep the Balance Stefan Mittmann, INTRACOM -- Tinos, May 2001

  9. Intracom’s Supply Chain Data • 20,000+ different items • Big range of categories • Big range of quantities • 1,200+ Suppliers • Europe, USA, Far East • Subcontractors (mechanical parts) Stefan Mittmann, INTRACOM -- Tinos, May 2001

  10. The basic Steps of the Chain Stefan Mittmann, INTRACOM -- Tinos, May 2001

  11. Proactive Supply Chain Management • Normal Items (90 % of the parts, require 40% of the management effort • CRITICAL Items (10 % of the parts, require 60% of the management effort Stefan Mittmann, INTRACOM -- Tinos, May 2001

  12. Proactive Supply Chain Management • Project Management Type of Activity • Identify Critical Path • Set clear Priorities • Everybody help the weakest link Stefan Mittmann, INTRACOM -- Tinos, May 2001

  13. Proactive Supply Chain Management All Problems can be solved effectively if properly identified in due time Reliable flow of up-to-date information Go to the Source of the info ! Stefan Mittmann, INTRACOM -- Tinos, May 2001

  14. A clearer picture … Stefan Mittmann, INTRACOM -- Tinos, May 2001

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