Supply Chain Networks: Best Practices and Emerging Trends

Transcription

1 Global S u p p l y C h a i n s Supply Chain Networks: Best Practices and Emerging Trends N. Viswanadham Deputy Executive Director, The Logistics Institute Asia Pacific National University of Singapore mpenv@nus.edu.sg Global S u p p l y C h a i n s Outline What is a Supply Chain? Some Best Practices Web Enabled Supply Chain 1

2 What is a Supply Chain? Transport mode Availability Schedules Shippers Product and Process Design Design Center Raw Parts Inventory Status Customers Materials Supplier INTEGRATED MANUFACTURING SUPPLY CHAIN Products Costs Services Intelligent Agents Logistics Chain Information Network Distribution Centers Finished Goods Inventory Company A Subassemblies Company B Assemblies 2

3 Exploration Products Legalities Petrochemical Plants Petrol Pumps Drilling Distribution Production Information Network Field Processing Storage Storage Refining The Oil Chain Transportation Storage Internet Integrated Supply Chain Network IT Network (Extranet) Logistics Provider Information Network Customer Supplier Assembler Logistics Network Material Flow Integration Supplier Distributor Retailer Bank Logistics Hub 3

4 Supply Chain Decomposition B2B Logistics Value Chains i i i i i i Supplier OEM Distributor Customer i i Design Manufacturing Sales i i Machine 1 Machine 2 Machine 3 Supply Chain For a Specific Product B2B Logistics Value Chains i i i i i Supplier OEM Distributor Logistics B2C Logistics Value Chain Movement of materials between businesses and from business to the consumer In-bound Logistics: Suppliers to Manufacturers Out-bound Logistics: Manufacturer to Resellers Freight transportation, warehousing, material handling, protective packaging, inventory control, order processing Third parties i Customer 4

5 Some Best Practices in Supply Chain Networks End to End Value Delivery Process Perspective Outsourcing Customer Centricity Information Sharing Vendor Managed Inventory Cross docking Supplier Value Delivery Processes Manufacturer Logistics Distributor Customer Channel master or a process owner. Interface management. Process based Performance measurement 5

6 Inputs Business Process Outsourcing To Competitors? Logistics ASPs From Competitors? End Products Outsourcing DATA HUB OPERATIONS CALL CENTRE SUPPORT POSTPONEMENT & CONFIGURATION GLOBAL SOUTIONS TEAM Supply Chain Solutions RETURN MATERIALS AUTHORIZATION MATERIALS / VENDOR HUB TRADE FINANCING 6

7 What is Customer-Centricity? The Traditional Supply Chain Starts with Assets, Core Competencies Assets& Core Competencies Inputs & Raw Materials Product/ Service Offering Channels The Customer-Centric Supply Chain Starts with the Customer The Customer Channels Product/ Service Offering Inputs & Raw Materials The Customer Assets& Core Competencies Collaborative Opportunities in Supply Chains 7

8 B2B Collaborative Optimization Tools Suppliers EDI Consumption report (daily) Inventory report (wkly) Supplier Hub EDI up to 18 mth forecast (weekly) EDI PO ABC (Kitting Hub) FTZ 4 hourly delivery Min-max control Inventory owned by supplier Kits for 20 units Procurement Office Assembly Line Wait-Room (operated by ABC) 8

9 Web Enabled Supply Chains Emergence of the Internet and the www has impacted the Logistics Industry in fundamental ways Internet Enabled Supply Chain What does the Internet enable? Non-intrusive communication ( ) Information transfer Global reach Rich content In the Business context this means Direct selling ( Dis-intermediation) Customer self-service (Product: search, comparison, configuration; order, pay, and track, self-repair) Collaboration Product development Planning and forecasting Scheduling Monitoring outsourced activities 9

10 The Response Customers Expect Global S u p p l y C h a i n s Dell Online BTO, CTO N. Viswanadham Five Day Car 10

11 Disintermediation Selling something directly to consumers. Positive effects: lower costs of distribution and happier customers who get exactly what they want for less money and in less time. Negative effects: serious dislocation as intermediaries disappear. With the arrival of a truly ubiquitous, universally accessible WWW, the theory goes, companies can provide consumers with precisely what they want at the lowest possible cost with the shortest time between manufacture and delivery. Shortening the Supply Chain Through e-commerce Participant Traditional Cut-Flower Industry Chain Grower Jobber Wholesaler Florist Customer Price Charge $8.00 $12.00 $24.00 $60.00* Markup 50% 100% 150% * Survey of Boston florist, price included delivery charge and tax, July Participant Price Charged Grower Calyx & Corolla s New Cut-Flower Industry Chain Calyx & Corolla $54.00** Customer 11

12 Portal In case of Vortals there will be Industry specific content and Services. 12

13 Trading Exchanges Suppliers OEMs Agents B U Y E R S Steel Exchange Logistics Logistics Exchange Exchange Electronic Components Exchange S E L L E R S Other Vertical Exchanges Public, Private and consortia Exchanges Sea Cargo 3PLs Agent Freight Air Cargo Forwarder Issues in Traditional Supply Chains Products and services were designed and built far in advance of customer needs. Today customers want to configure the products and services to their own requirements Customers cannot compare prices quickly and easily. Producers made billions of dollars in profits Harnessing the word of Mouse, called Viral marketing, messages both good and bad spread like a contagion Supply chain that runs backward is optimized. The delivery chain that runs forward toward customers has hardly changed in the past 100 years. Retailers tell customers You come to us. Online consumers are saying:my place, my time is the new mantra.they say it is not e-buz but Me-buz 13

14 Regardless of technology innovations & The promise of the internet, we are still dealing with people and relationships Fulfillment Perspective Tangible goods still have to move (and be stocked) through space and time... new strategies and methods must create new value e-channel Solutions Facilitate Responsive and Efficient Links Between Shippers, Carriers and others 14

15 Four Types of Automation: Investment View Point Material Flow Automation Information flow and Decision making Automation Supervision and Control Automation Relationships Balanced Investments The Four Types of Automation Material Flow Automation Assembly Automation Face to Face Interface Relationship Automation Automated Supply Chain Information Automation Paper based, word of mouth Open loop (human) Controllers Control & Supervision Automation 15

16 E-Supply Chains Should not Underestimate Fulfillment Requirements $$ 100% Internet Retailer Technology Investment 0% $0 Process Browse Select Order Pay Receive Customer Satisfaction Potential Come Back Attract Sell Fulfill Retain 16