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1、0 automotive best practices forum supply chain management 1 todays meeting will focus on the results of the supply chain management assessment, completed by 22 automotive supplier executives and 3 vehicle manufacturer executives. introduction 2 table of contents introduction4 - 13 supply chain manag

2、ement14 - 21 definitions and strategy22 - 32 understanding expectations33 - 38 supply chain management39 - 47 performance measurement48 - 55 technology solutions56 - 60 scm opportunities61 - 72 page number 3 industry forces and issues introduction the automotive supply chain is going through a perio

3、d of unprecedented change in order to meet increasing consumer expectations with regard to price, delivery, and product customization. the managing of the supply chain pipeline is therefore faced with a number of key issues including; q elevating supply chain management as a critical success factor

4、to achieving competitive advantage q aligning the organizational structure to support global supply chain management q establishing a process oriented, functionally integrated supply chain q forecasting the impact of changing global markets on supply chain costs and capabilities q defining key perfo

5、rmance indicators and measuring supply chain performance q understanding, selecting and integrating supply chain management enabling technology q anticipating and responding to the impact of supplier consolidations q anticipating and responding to the impact of oem consolidations q defining and trac

6、king total supply chain costs 4 introduction q define supply chain management and its components q understand the elements of a supply chain strategy q position the role of a supply chain executive q identify the elements of supply chain management q understand the role of information technology app

7、lications q identify how to utilize performance measures in the supply chain process q understand how to use best practices and benchmarking in support of supply chain management q understand role of customers, suppliers, and third parties for collaborative support. todays objectives 5 the integrate

8、d supply chain concept has gone through three distinct phases. “push” era focused on distribution of finished goods managed wip, raw materials, and finished goods as separate functions mgmt required production to be balanced with customer requirements phase i 1960-1975 importance realized in integra

9、ting operations within the enterprise computer horsepower applied to manage material flow companies began to migrate from “inventory push” to a “customer pull” channel phase ii 1975-1990 significant productivity increases could only be realized through managing relationships, information and materia

10、l flow across enterprise borders recognized the “delivery of enhanced customers and economic value through the synchronized management of the flow of physical goods and associated information from sourcing to consumption” phase iii late 80s - present source: bernard lalonde, professor emeritus of lo

11、gistics at ohio state university history of scm scm overview 6 the following represent some of the other initiatives which have either helped develop or have been spawned from the scm movement agile manufacturing efficient consumer response total quality management directives channel management shar

12、ed services constraint based scheduling channel integrationvalue chain (extended) flow replenishment/ fluid distribution distribution resource planning vendor managed inventory theory of constraints change based strategy vendor managed inventory (vmi) flexible manufacturing time based mfg. /logistic

13、s continuous replenishment planning (crp) quick response (qr) reverse flow logistics theory of constraints synchronous manufacturing just-in-time (jit) third party logistics (3pl) flexible distribution category management continuous replenishment planning scm related concepts scm overview just-in-ti

14、me (jit) total quality management synchronous manufacturing theory of constraints 7 value complexity functional “silos” virtual extended chains integrated internal supply chain integrated external supply chain select vendor/customer collaboration selected cross-functional teaming internally focused

15、optimization collaborationpullpush supply chain continuum scm overview 8 a survey conducted on supply chain essentials resulted in a management response from 451 companies in 25 countries q almost one-third (29%) of the companies surveyed do not involve their suppliers in inventory management q near

16、ly one-quarter of the companies (22%) do not involve their customers in planning manufacturing requirements q only 13% rated their ability to communicate with customers on forecasting as strong 1. planning and deploying inventory effectively 2. providing predictable delivery performance 3. creating

17、new products and services 4. reducing order fulfillment cycle time 5. having products in stock 6. decreasing manufacturing cycle time 7. reducing transportation costs 8. reducing customer returns 9. communicating electronically with customers and suppliers top supply chain essentials source: 1997 kp

18、mg / northwestern supply chain study current state of scm movement scm overview 9 degree of completion the majority of companies are implementing supply chain initiatives. this figure has increased dramatically from 10% reported in 1996. question 3 5% 35% 60% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 70%

19、80% 90% 100% improvement initiatives are complete plan to begin addressing initiatives beyond 2000 no initiatives or opportunities planned plan to begin addressing initiatives during 1999 currently evaluating improvement opportunities currently implementing an improvement initiative(s) % of responde

20、nts scm overview 10 customer service network strategy channel design warehouse design and operations transportation management materials management organization and change management facilities and equipment policies and procedures information systems structural structural functional functional stra

21、tegic strategic implementation implementation there are many approaches, concepts, models, and ideologies developed to describe scm plan sourcemakedeliver buys from manufacturer/wholesaler stores in warehouses moves it to retailers stores it on shelves sells it to customers supplier whouse whouse re

22、tail retailcustomer trucks transport produce plan source sell store scm approaches scm overview 11 transport produce plan source sell store source this portion of the model pertains to procurement of goods (raw materials, semi-finished, or finished) and services. partnership building, strategic sour

23、cing, organization compatibility, technological capabilities, and commitments to continuous improvement are all important elements. produce this section of the model addresses the physical manufacturing process and any corresponding constraints, if applicable. production scheduling, labor scheduling

24、, and minimizing downtime and setup costs are all key factors in the production process and supply chain management. more importantly, the coordination of these efforts with other functional areas of a company must be evaluated to ensure the greatest supply chain efficiency. store the store segment

25、of the model refers to receiving and shipping practices, inventory management, warehouse management, and selection of products for distribution. internal vs. outsourcing alternatives, process flows, layouts, and storage-density practices must be evaluated in terms of cost, quality, and speed. the ec

26、onomic and competitive consequences of various warehousing strategies must be analyzed to ensure a better return on assets and long-term, bottom-line impact. supply chain model scm overview 12 plan disciplined planning is needed to maximize the coordination of supply chain functions. in addition, it

27、 is important that an overall strategic plan and goals exist in order to provide a common and uniform direction to the different operating functions. this information must be accurate, timely, and freely shared. forecasting is part of the planning process, in addition to the integration and collabor

28、ation of processes and practices. transport this section covers the movement of goods from the supplier to the production facility and/or distribution center and from the distribution center to the customer. regulations, litigation, technology, relationships, customer expectations, and delivery alte

29、rnatives are all important components. the right strategy, including partnering relationships, can differ dramatically from one market to the next. sell attracting, managing, and retaining customers is the main focus of the selling section of the model. a better understanding of customers needs, goa

30、ls and behavior can improve product development and delivery. policies, procedures, processes, and systems are significant factors which must be examined in order to improve service and increase customer satisfaction. transport produce plan source sell store supply chain model scm overview 13 the fo

31、llowing model has been developed as a guide for discussing an effective supply chain management solution guiding principles of scm definition and strategies 14 develop it strategy and infrastructure assess customer needs outsource processes where the company lags in expertise of efficiency. q develo

32、p an outsourcing strategy that reflects the corporate vision. q work with trusted outsourcers, yet clearly communicate expectations in original contracts. q define requirements and expectations in terms of outcomes, not tasks or activities. q link outsourcer compensation to outsourcer performance. q

33、 integrate third-party outsourcing goals, objectives and resource requirements into the supply chain strategic plan. 38 q the list of activities included in the definitions of supply chain are broader than the scope of the supply chain executives responsibilities. q supply chain responsibilities are

34、 shared in most organizations. most notably, supply chain executives are not responsible for manufacturing and customer-facing sales activities. q companies with shared responsibilities for supply chain management require flexible organizational structures to facilitate communication among supply ch

35、ain executives to foster optimization of the total supply chain. q on a limited basis, suppliers are looking to their own suppliers, customers and other third parties to help fill resource and skill deficiencies. q third party relationships are expected to grow as the outsourcing trend increases. ke

36、y findings supply chain management 39 q develop key performance measurers which span the entire supply chain (including vendors improve response time reduce inventory by increasing jit deliveries; reduce lead times and costs erp systems capabilitiesmonitor and measure performanceimproved performance

37、 optimizing satellite facilities locations using modeling and simultation tools reduce overhead and inventoryincrease customer satisfaction identified benefits technologies and information systems must be integrated to provide the organization, and its trading partners, with intelligent data to supp

38、ort business decisions. question 24 scm opportunities 58 supply chain management best practices best practices in supply chain management s9 s10 s7 s8 s4 s2 s1s3 s6s5 1.00 2.00 3.00 4.00 5.00 1.002.003.004.005.00 performance importance s1 segment customers by distinct service needs and then tailor s

39、ervices to those particular segments. s2 customize and design your logistics network to focus on the service requirements and profitability of the customer segments identified. s3 listen to signals of market demand and plan accordingly by expanding the span of sales and operations planning to the en

40、tire supply chain to detect early warning signs of changing demand in order patterns, customer promotions, etc. s4 differentiate product closer to the customer to eliminate inventory stockpiles by postponing product differentiation in the manufacturing process closer to actual customer demand. s5 st

41、rategically manage the sources of supply by working closely with key suppliers to reduce the overall cost of owning materials and services and to enhance the margins of your company and your suppliers. s6 develop a supply-chain wide technology strategy, which supports multiple levels of decision mak

42、ing and affords a clear view of the flow of products, services and information. s7 adopt enterprise-wide performance measures that provide indicators of whether the supply chain is performing according to its strategic intent. s8 appoint a supply chain executive to serve as a natural facilitator and

43、 integrator between the divergent needs of sales and manufacturing, quality and price, cost and service, and financial and qualitative measures. s9 develop a framework for establishing and implementing a supply chain strategic plan. s10 create a vision of the desired supply chain and define those ac

44、tions required to close the gap between tomorrows supply chain vision and todays current performance. scm opportunities 59 best practices comparison high importance / high performance s5. strategically manage the sources of supply by working closely with key suppliers to reduce the overall cost of o

45、wning materials and services and to enhance the margins of your company and your suppliers. s1. segment customers by distinct service needs and then tailor services to those particular segments. s10.create a vision of the desired supply chain and define those actions required to close the gap betwee

46、n tomorrows supply chain vision and todays current performance. s2.customize and design your logistics network to focus on the service requirements and profitability of the customer segments identified. s9.develop a framework for establishing and implementing a supply chain strategic plan. 4.0/3.45.

47、0/4.3 3.8/3.13.0/2.7 4.3/3.14.7/4.0 3.6/3.03.0/2.7 4.4/3.04.3/3.0 automotive suppliers automotive oems question 25 performance rating average on scale of 1 - 5 (n=22) oem (n=3) scm opportunities 60 s7.adopt enterprise-wide performance measures that provide indicators of whether the supply chain is p

48、erforming according to its strategic intent. s8.appoint a supply chain executive to serve as a natural facilitator and integrator between the divergent needs of sales and manufacturing, quality and price, cost and service, and financial and qualitative measures. s6.develop a supply-chain wide techno

49、logy strategy, which supports multiple levels of decision making and affords a clear view of the flow of products, services and information. s3.listen to signals of market demand and plan accordingly by expanding the span of sales and operations planning to the entire supply chain to detect early wa

50、rning signs of changing demand in order patterns, customer promotions, etc. s4. differentiate product closer to the customer to eliminate inventory stockpiles by postponing product differentiation in the manufacturing process closer to actual customer demand. 4.3/2.94.3/4.0 4.1/2.92.7/2.0 4.0/2.74.3

51、/3.7 automotive suppliers automotive oems question 25 importance rating average on scale of 1 - 5 (n=22) oem (n=3) 3.8/2.83.3/2.7 3.6/2.73.3/2.7 scm opportunities best practices comparison high importance / low performance 61 s9. develop a framework for establishing and implementing a supply chain s

52、trategic plan. s6. develop a supply-chain wide technology strategy, which supports multiple levels of decision making and affords a clear view of the flow of products, services and information. s7. adopt enterprise-wide performance measures that provide indicators of whether the supply chain is perf

53、orming according to its strategic intent. s8. appoint a supply chain executive to serve as a natural facilitator and integrator between the divergent needs of sales and manufacturing, quality and price, cost and service, and financial and qualitative measures. s10.create a vision of the desired supp

54、ly chain and define those actions required to close the gap between tomorrows supply chain vision and todays current performance. performanceimportance 3.04.4 2.74.0 2.94.1 3.14.3 question 25 importance rating average on scale of 1 - 5 (n=22) oem (n=3) 2.94.1 scm opportunities best practices compari

55、son importance - performance gaps 62 concurrence of performance and importance question 25 suppliers have significant challenges in closing the gap in the identified importance and performance of supply chain management best practices. performanceimportance 0 10 20 30 40 50 60 70 80 90 1s2s3s4s5s pe

56、rformance/ importance number of responses average =2.9 average =3.9 scm opportunities 63 beware of benchmarking pitfalls. you must understand how the measure is defined and computed to assess its relevance question 27 & 28 elements of supply chain costs 0%20%40%60%80%100% installation costs warranty and returns costs customer service costs information systems costs order entry costs supply chain planning costs manufacturing costs distribution costs material acquisition costs finished goods inventory carrying costs s