17/10/2019THEUNIVERSITYOFWAIKATO-TEWHAREWANANGAOWAIKATO1WaikatoManagementSchool2005ResearchSeminarSeriesMakingSupplyChainsWorkForYouDrPaulChilderhouse江西不孕不育医院©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO2Overview•Whataresupplychains?•Whatissupplychainintegration?•Howwellintegratedaresupplychainsinpractice?•Howcanmanagersincreasetheintegrationoftheirsupplychains?17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO3AGenericSupplyChainProductdisposalConsumptionMotherearthExtractorsminersharvestersConverters(suppliers)OriginalequipmentmanufacturersDistributorsRetailersConsumersMaterialInformationCash(Hines,2004)17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO4AnAutomotiveSupplyChainExample(Childerhouse,2002)Germ.Fran.Germ.UKUSUKUSSwed.Germ.UKUKUKUKUKUKUKUKUKUKUKUKGerm.Germ.Fran.Fran.UKJapanUKUKUKUKUKUKUKUKFran.UK/JapanVehicleManufacturersAftermarketOperationsAutomotiveSystemSuppliers2ndTierSuppliersRawMaterialSuppliersGerm.UKUSUKFran.SpainUK/JapanUK/JapanDistributionCentresUKUKUKUKUKUKUKUKUKUKUKUKLocationKeyUK=UnitedKingdomGerm.=GermanySwed.=SwedenFranc.=FranceJapan=JapanUS=UnitedStatesUK/Japan=UKbasedJapanesetransplant17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO5ANZSupplyChainExampleBeveragesDairyForestOilFieldsSugarProductionFruitProductionBlowMoldingFoodsBCDInternationalIntermediariesNationalSupermarketsNationalFranchiseesCONSUMERSSugarRefiningFlavorHousesWoodProcessingResinProcessingResinLabelsPaperandCardboardFlavorsFruitPulpLiquidSugarRawMilkMilk&CheesePowdersCheesePuhoiUHTLabelManufacturingPlasticContainersButterProductionYellowFatBlendsProcessed,Grated&BlockCheeseBlockCheeseProductionMilkProcessingYellowFatsButterFruitProcessingPots&TubsPackagingIngredientsKeyNZDFFonterra17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO6“Themanagementofupstreamanddownstreamrelationshipswithsuppliersandcustomerstodeliversuperiorcustomervalueatlesscosttothesupplychainasawhole”(Christopher,1998)SupplyChainManagement(SCM)Definition17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO7ServiceleaderCostandserviceleaderCommoditymarketCostleaderLoHiHiLoProductivityadvantageValueadvantage(Christopher,1998)•Tailoredservices•Reliability•Responsiveness•Capacityutilization•Assetturn•Co-markership/scheduleintegrationSCMandCompetitiveAdvantage17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO8•Integrationisawellrecognisedgoalofsupplychainmanagement•Integratedsupplychainsprovidesuperiorvaluetoconsumers•Atrulyintegratedsupplychainisseamlesswithallplayersthinkingandactingasone•Integrationinvolvestheremovalofinternalboundarieswithinacompanyandinterfaceboundariesbetweencompanies•Processboundaries•Human/socialboundariesSupplyChainIntegration17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO9ARowingAnalogy17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO10“Themostcommonsituationiswhenafirmachievesonlypartialintegration…ontheoutboundside…andontheinboundside.”“…managersreportconsiderabledifficultiesinlinkingthesetwotypesofexternalcollaborationintoanenterprisewideprocess.”TheGreatDivide(Bowersoxetal,2002)ProcurementandmanufacturingintegrationDistributionandmarketingintegration17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO11“Managersdonotattempttointegrateoperationsinavacuum,Itisimportanttorecognisebarriersthatservetoinhibitprocessintegration.”•Organization•Measurementandrewardsystems•Inventoryleverage•Infocraticstructure•Knowledgehoarding(Bowersoxetal,2002)InternalIntegrationBarriers17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO12•Stageone:baseline•Stagetwo:functionalintegration•Stagethree:internalintegration•Stagefour:externalintegrationManufacturingmanagementStagesofSupplyChainIntegrationPurchasingMaterialcontrolProductionSalesDistributionMaterialsmanagementDistributionMaterialsmanagementManufacturingmanagementDistributionMaterialsmanagementManufacturingmanagementDistribution(Stevens,1989)17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO13PresentationProgressWhataresupplychains?Whatissupplychainintegration?•Howwellintegratedaresupplychainsinpractice?•Howcanmanagersincreasetheintegrationoftheirsupplychains?17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO14OrganizationsStudied•28supplychains•Collectedoverasevenyearperiod•Viaasupplychaindiagnosticstool•43productvaluestreamsstudied•Fromtheautomotive,electronics,lighting,FMCGanddairyindustries17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO15IntegrationMaturityResults(Childerhouse,2002)Directionofintegrationmaturity17October2019©THEUNIVERSITYOFWAIKATO•TEWHAREWANANGAOWAIKATO1601234563StevensIntegrationEuclideanNormalUncertaintyBaselineFunctionalInternalExternalIntegrationIntegrationIntegration201681,2217,21181413712,6152103,1991154STRUGGLINGWITH揕EANTHINKING?CONCEPTSMUCHGOODPRACTICEEXEMPLARSMINIMALCONTROLOFOWNPROCESS23252728,303132ValueStreamIdentificationNumbers2426,29(Childerhouse,2002)IndividualIntegrationMaturityResults17Octob