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SupplyChainManagement/e-Procurement/cMfgWorkshopDate:April27,2001Time:9:00A.M-3:00P.MAgenda9:00-9:15-Introductions9:15-10:00-SupplyChainManagement10:00-11:00-e-ProcurementOverview11:00-11:15-Break11:15-12:00-c-Manufacturing12:00-1:00-Lunch1:00-2:30-Workshop2:30-3:00-ImplementationConsiderations,CaseStudies3:00-SummaryandConclusionSupplyChainManagementSupplyChainManagement•“Planning,implementingandcontrollingtheefficientandeffectivesourcing,productionanddeliveryprocessesforafinalproduct,servicesandrelatedinformationfromthepointoforigintothepointofconsumptionforthepurposeofconformingtocustomerrequirements.SupplyChainManagementGoal•“Tocreateareal-time,virtualmarketplacewhereallthepeopleconnectedtoSAICareengagedininformeddecisionmakingandcustomerfulfillment.•Evidencedby:Leadtime-responsetimeisreduced,revenueopportunitiesaregenerated,costsarecut,customersatisfactionisincreased.The5majorstrategicconceptsofSupplyChainManagement•CustomizationCompanieshaveachoiceandabilitytoadapttheiroperationalenvironmenttochangingmarketdemand•CollaborationAllpartnersinthesupplychaindonotonlyoptimizetheiroperationsbutjointlyplan,optimize,monitorandexecute.•VisibilityAllpartnershaverealtimeinformationaboutstatusandperformanceofeachelementinthesupplychainfromcustomerstosuppliers.•OptimizationBestpracticesandmostadvancedtoolsbringthepartnersinthesupplychainanditstotalresultclosertoitsoptimum.•SynchronizationTheendresultisatotallysynchronizedsupplychainthatisentirelydrivenbythecustomer’sdemand.SupplyChainValuePrinciples•ProvideVisibilityofInformationInventories,Forecasts,Orders,Plans,EngineeringChanges,KPIs•SynchronizeActivitiesOptimizedfeasiblesourcing/planning,pull-basedtriggers•PromoteResponsivenessReducetimetodetectdemand,commit,produce,fulfill•LeverageMarketMechanismsAggregatedbuyingpower,auction-basedbuying/selling•AchieveProcessSimplificationAutomatedsteps,One-stepbusinessSUPPLIERNETWORKINTEGRATEDENTERPRISEDISTRIBUTIVENETWORKInformation,Product,Service,FinancialandKnowledgeFlowsMATERIALSCapacity,Information,CoreCompetencies,CapitalandHumanResourcesRelationshipManagementSourcingOperationsLogisticsENDCONSUMERSSource:SupplyChainFaculty,MichiganStateUniversityTHEINTEGRATEDSUPPLYCHAINChallengesforSupplyChains•Takeordersovertheweb,orautomaticallyviaB2B•Offerrichproductselectionand/ortheabilitytocustomize•Sourcetheorderandcommittodelivery,immediately,online•Servicetheorderonline,includingchangesandinquiries•Deliverproductquickly,efficiently,profitably•Beinconstantcommunicationwithcustomersandsuppliersto–respondquicklyto“pullsignals”tomanageinventories–adaptquicklyandeconomicallytochangesindemand/supply–operatewithlowinventories•InternetSelling•CollaborativePlanning,ForecastingandReplenishmentCPFR•InternetVendorManagedInventoryiVMI•CollaborativeSupplyPlanningCSUP•CollaborativeProductionPlanning•CapabletoPromiseCTP•e-Procurement(auctioning,bidding)•Internet-basedTendering•Internet-basedKanban•e-FulfillmentCollaborativeBusinessScenariosDriversofHighPerformanceAchievement(RatedbyPriority)•Customerintegration•Internalintegration•Technology/Planningintegration•Relationshipintegration•Measurementintegration•SupplierintegrationCustomerIntegrationHighAchievers:–Identifyandfocusonimportantcustomers–Useformalvisioningprocess–Implementpreplannedsolutions–Developresponsiveorpulllogisticalcapabilities•SegmentalFocus•Relevancy•Responsiveness•FlexibilityMaterial/ServiceSupplierIntegrationHighAchievers:–Developinterlockingprogramsandactivities–Committosharedresponsibilitywithsuppliers–Placeemployeesatcustomer/supplierbusinessfacilities–Enterintolong-termagreements–Includesuppliers’suppliersinplanning•Fusion•FinancialLinkage•StrategicAlignment•OperationalSupplierRelationshipManagementE.Dashboard-KeyPerformanceIndicatorsMaximizeEconomicValue•IncreaseRevenue•DecreaseCost•ImproveAssetUtilizationTheE-Dashboard...•Isaweb-basedtoolthatallowsdynamicmonitoringoftheSupplyChainSolution•MonitorsKeyPerformanceIndicatorstooptimizeimportantbusinessprocesses•MeasuresReturnonInvestment•Allowsdecisionmakersatalllevelsofanorganizationtonavigate,organize,record,andanalyzestrategicbusinessinformationtodevelopinsightsandunderstandpossiblescenarioswhichwouldleadtoimproveddecisionmakingDigitalOrderFulfillmentProcessExampleERPATPERPATPERPATPWEBATPERPOrder/ProductConfigurationDSSMESWEBPCSQI’dlikeProductA,withFeaturesB,CandD,byDateE.QDowehaveallthematerial?QWhatisthepriority?QBuildable?QCost?QWhencanwedeliver?QSpecialhandlingrequired?Q1stSupplier:Yes,I’llreserveit.Q2ndSupplier:No.Q3rdSupplier:I’llneedaconfirmationsignalfrommysuppliers.123CustomerManufacturerSuppliersDigitalOrderFulfillmentProcessExampleQWecanhaveyourproductbythisdateQYes,wecan684QConfirmed57QOrderit!QConfirmtheorderstosuppliersQAllocatethematerialQScheduleproductionERPATPERPATPERPATPWEBATPERPOrder/ProductConfigurationDSSMESWEBPCSCustomerManufacturerSuppliersIndustrySpecificValueChainIssues/Challenges/SolutionsBetter,FasterDecisionsDriveVelocity...ReceiveMaterialReleaseDataProcessOrdersPlanProduction&MakeIntellig