Topics covered. 1. Components of typical supply chain 2. IT and supply chain 3. Successful supply chain management system 4. SCM planning and strategy

Transcription

1 Proses Bisnis dan Informasi Suryo Widiantoro, ST, MMSI, M.Com(IS) 1 Topics covered 1. Components of typical supply chain 2. IT and supply chain 3. Successful supply chain management system 4. SCM planning and strategy 2 1

2 3 The average company spends nearly half of every dollar that it earns on production In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains 4 2

3 A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material A supply chain is a collection of companies and processes moving a product: suppliers of raw materials suppliers of intermediate components final production to the customer 5 Supply Chain Management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability 6 3

4 Supply chain management helps a company: Get the right products To the right place At the right time In the proper quantity At an acceptable cost 7 Goals of SCM Forecast demand Control inventory Enhance relationships with customers, suppliers, distributors, and others Receive feedback on the status of every link in the supply 8 4

5 BASICS OF SUPPLY CHAIN The supply chain has three main links: 1. Materials flow from suppliers and their upstream suppliers at all levels. 2. Transformation of materials into semi-finished and finished products through the organization s own production process. 3. Distribution of products to customers and their downstream customers at all levels

6 Upstream flow from sources of raw materials and components. Downstream flow to customers. Suppliers have their own supply chain. A better name: supply network. 11 Supply Chain for Apple s iphone 12 6

7 Benefits and Problems with Supply Chains Potential benefits Process innovations Just-In-time Production (JIT) Vendor-Managed Inventory (VMI) Potential problems Distorted information Excessive inventories Inaccurate capacity plans Missed product schedules 13 Just-in-Time Production (JIT) Keeping inventory is costly (storage, capital, missed production schedules). JIT optimizes ordering quantities. Parts and raw materials arrive when needed for production. As orders arriver in smaller quantities, but at higher frequency) investment in storage space and inventory is minimized. The approach was pioneered by Toyota. It is used extensively by computer manufacturers to avoid component obsolescence (Moore s law). Example: Dell keeps only two hours of inventory in stock JIT requires tight cooperation between all partners in the supply network. 14 7

8 Vendor-Managed Inventory (VMI) Business model in which the suppliers to a manufacturer (or retailer) manage the manufacturer s (or retailer s) inventory levels based on preestablished service levels. Under a VMI model, the manufacturer or retailer shares real-time sales data with their suppliers, who maintain inventory levels based on preestablished agreements. Help to reduce the manufacturer s (or retailer s) inventory, both saving costs and minimizing stockout situations. Helps supplier to produce more accurate forecasts, reduces ordering errors, and helps prioritize the shipment of goods

9 17 INFORMATION TECHNOLOGY S ROLE IN THE SUPPLY CHAIN Information Technology s primary role is to create integrations or tight process and information linkages between functions within a firm Information Technology integrates planning, decisionmaking processes, business operating processes, and information sharing for business performance management 18 9

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11 21 1# VISIBILITY Supply Chain Visibility The ability to view all areas up and down the supply chain Bullwhip Effect Occurs when distorted product demand information passes from one entity to the next throughout the supply chain To make a supply chain work most effectively, organizations must create visibility in real time 22 11

12 The Bullwhip Effect Ripple effects in which forecast errors and safety stocks multiply when moving up the supply chain Happens when businesses include safety buffer to prevent stock-outs Small end-product demand fluctuations cause large fluctuations further up the supply chain. Small forecasting errors at end of supply chain cause large errors further up the supply chain. Integrated business processes help mitigate the bullwhip effect. 23 2# CONSUMER BEHAVIOR Companies can respond faster and more effectively to consumer demands through supply chain enhancements Demand Planning Software Generates demand forecasts using statistical tools and forecasting techniques One study found that companies managing demand in supply chains can average 50% reduction in inventory and a 40% increase in timely deliveries 24 12

13 3# COMPETITION Supply Chain Planning (SCP) Software Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain Supply Chain Execution (SCE) Software Automates the different steps and stages of the supply chain

14 4# SPEED Three factors fostering speed 27 Emerging SCM Trends Key trends Supplier portals Customer portals Business-to-business (B2B) marketplaces All of these provide an alternative to proprietary supply linkages Key enabling technologies Extensible Markup Language (XML) Radio Frequency Identification (RFID) 28 14

15 Radio Frequency Identification (RFID) RFID tags will soon replace standard bar codes. RFID is the use of electromagnetic energy to transit energy between a reader (transceiver) and the tag (antenna). Line-of-sight reading is not necessary. RFID tags can contain more information than bar codes. Tags are programmable, so there is a vast array of potential uses. Scanning can be done from greater distance. Passive tags inexpensive, range of few feet. Active tags more expensive, range of hundreds of feet. Source: METRO AG

16 31 SUPPLY CHAIN SUCCESS FACTORS SCM industry best practices include: 1. Make the sale to suppliers. 2. Wean employees off traditional business practices. 3. Ensure the SCM system supports the organizational goals. 4. Deploy in incremental phases and measure and communicate success. 5. Be future oriented

17 SCM Success Stories Top reasons why more and more executives are turning to SCM to manage their extended enterprises 33 Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains DSSs allow managers to examine performance and relationships over the supply chain and among: Suppliers Manufacturers Distributors Other factors that optimize supply chain performance 34 17

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19 Supply Chain Planning (SCP) Four types of plans are developed: 1. Demand planning and forecasting o Examination of historic data 2. Distribution planning o o Delivering products to consumers Warehousing, delivering, invoicing, and payment collection 3. Production scheduling o o Coordination of activities needed to create the product/service Optimization of the use of materials, equipment, and labor 4. Inventory and safety stock planning o Development of inventory estimates 37 Supply chain visibility the ability to track products as they move through the supply chain but also to foresee external events. Supply chain analytics the use of key performance indicators to monitor performance of the entire supply chain, including sourcing, planning, production, and distribution

20 Developing an SCM Strategy SCM efficiency and effectiveness need to be balanced. Efficiency cost minimization. Effectiveness customer service maximization. Tradeoffs Supply chain strategy should match overall competitive strategy