物流专业英语（第2版）CHAPTER II

1、Chapter I ISupply Chain ManagementOutline-1Part I Supply Chain Management Overview of supply chain and supply chain management Comparison of logistics and supply chain management Types of supply chain strategies Market driven Operationally agile Freshness oriented Customer-guidedLogistics optimizer

2、Trade focusedPart III Supplementary ReadingDell Computers: Using the Supply Chain to CompeteOutline-2Part II Supply Chain Strategies Five supply chain strategy Many suppliers strategy Few suppliers strategy Vertical integration Keiretsu networks Virtual companies Part III Supplementary ReadingDell C

3、omputers: Using the Supply Chain to Compete Part I Supply Chain Management Overview of Supply Chain Definition of supply chain Supply chain, (also called value chain or demand chain), is the network of the involved companies, through upstream and downstream linkages, in the different processes and a

4、ctivities that produce value in the form of products and services in the hands of the ultimate consumer. Figure 2.1 shows a typical supply chain in which the production and distribution systems are made up of two stages each. In the production system, components and semi-finished parts are produced

5、in two manufacturing centres while finished goods are assembled at a different plant. The distribution system consists of two central distribution centres (CDCs) supplied directly by the assembly centre, which in turn replenish two regional distribution centres (RDCs) each.Figure2.1 a typical supply

6、 chainConcept Supply Chain Management Supply chain management can be defined as the following: the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole The supply chain arrangement links a firm

7、 and its distributive and supplier network to end customers. The integrated value-creation process must be managed from material procurement to end-customer product delivery. The integrated supply chain management shifts traditional channel arrangements from loosely linked groups of independent busi

8、nesses that buy and sell inventory to each other toward a coordinated initiative to increase market impact, overall efficiency, continuous improvement, and competitiveness. Nowadays, a supply chain becomes the basic unit of competition. The leading companies have realized that the real competition i

9、s not company against company but rather supply chain. SCM focus on the channel relationship managementThus the focus of supply chain management is upon the management of relationships in order to achieve a more profitable outcome for all parties in the chain. This brings with it some difficulties s

10、ince there may be occasions when the narrow self-interest of one party has to be included for the benefit of the chain as a whole. The context of an integrated supply chain is the firms relationship management within a framework as capacity limitations, information, core competencies, capital, and h

11、uman resource problems.Relationship between Logistics Management and SCM SCM is an extension of Logistics.The concept of supply chain management is relatively new, however, it is in fact an extension of the logistics. Logistics management is basically concerned with optimizing flows within the organ

12、ization, while supply chain management extend such internal integration to the outside of the organization. Comparing with Logistics Logistics is essentially a planning orientation and framework that seeks to create a single plan for the flow of product and information through a business. Supply cha

13、in management builds upon this framework and seeks to achieve linkage and co-ordination between processes of other firms in the pipeline, i.e. suppliers and customers, and the organization itself. SCM is highly customer-oriented Supply chain management is highly customer-oriented. “supply chain inte

14、gration really begins with the goal of satisfying consumer demand,” says LaHowchic, the President and CEO of Limited Logistics Services Co., “This fundamental belief impacts everything we do in the supply chain. We seek to raise the level of quality throughout the chain to more effectively respond t

15、o consumer demand. And to do this, we need to optimize information and product flows through interdependent linked business processesfrom the sourcing of raw materials all the way to the sale of the finished products.” Transportation and information play important role in SCM Technology is an essent

16、ial tool of this supply chain integration process. Limited Logistics Services Co. has implemented a transportation management system to handle the worldwide flow of goods and a warehouse management system for inventory management and replenishment operations. In LaHowchics opinion, information syste

17、ms will play an even more prominent role in enabling the firms total supply chain capabilities. He believes that supply chain management can add value in a number of important ways.SCM StrategiesSix strategies for SCMWith the numerous advantage of supply chain integration, its management can be a co

18、mplex challenge. A recent study revealed six different, but equally successful, supply chain strategies. Market Driven: Focusing on generating high profit margins through strong brands and ubiquitous marketing and distribution.Operationally Agile: Configuring assets and operations to react nimbly to

19、 emerging consumer trends along lines of product category or geographic region. Freshness Oriented: Concentrating on earning a premium by providing the consumer with product than competitive offerings. Consumer-guided: building and maintaining close relationships with end consumers through direct sa

20、les. Logistics Optimizer: Emphasizing a balance of supply chain efficiency and effectiveness. Trade Focused: Prioritizing “low price, best value” for the consumer (as with the logistics optimizer strategy but focusing less on brand than on dedicated service to trade customers). New Words and Phrases

21、 linkage 5liNkidV n.fabric 5fAbrik n.fibre 5faibE n.channel 5tFAnln.arrangement E5reindVmEnt n.initiative i5niFiEtiv n.framework 5freimwE:k petency 5kRmpIt(E)nsIn.optimize 5Cptimaiz vt.orientation 7C(:)rien5teiFEn n.orientation 7C(:)rien5teiFEn n.replenishment ri5pleniF minent 5prCminEnt adj.ub

22、iquitous ju:5bikwitEs adj.agile 5AdVail adj.nimble5nImb(E)ladj.offering 5CfEriN n. Part II Supply Chain StragetiesFive Supply Chain Strategies For those items to be purchased, companies must decide upon a supply-chain strategy. One such strategy is the traditional approach of negotiating with many s

23、uppliers and playing one supplier against another. A second strategy is to develop long-term, “partnering” relationships with a few suppliers. A third strategy is vertical integration, where firms may buy the supplier. A fourth strategy is keiretsu, in which suppliers become part of a company coalit

24、ion. Finally, a fifth strategy is virtual companies. We will discuss each of these strategies.Many Suppliers With the many-supplier strategy, the supplier responds to the demands and specifications of a “request for quotation”, with the order usually going to the low bidder. This strategy plays one

25、supplier against another and places the burden of meeting the buyers demands on the supplier. Suppliers aggressively compete with one another. Although many approaches to negotiations can be used with this strategy, long-term “partnering ” relationships are not the goal. This approach holds the supp

26、lier responsible for maintaining the necessary technology, expertise, and forecasting abilities, as well as cost, quality, and delivery competencies.Few SuppliersA strategy of few suppliers implies that rather than looking for short-term attributes, such as low cost, a buyer is better off forming a

27、long-term relationship with a few dedicated suppliers. Long-term suppliers are more likely to understand the broad objectives of the procuring firm and the end customer. Using few suppliers can create value by allowing suppliers to have economies of scale that yields both lower transaction costs and

28、 lower production costs.Advantages of few- suppliers strategy Few suppliers, each with a large commitment to the buyer, may also be more willing to participate in JIT systems, as well as provide innovations and technological expertise. However, the most important factor may be the trust that comes w

29、ith compatible organization cultures. A champion within one of the firms often promotes a positive relationship between purchase and supplier organizations by committing resources toward advancing the relationship, further strengthen the partnership.DaimlerChryslers few- suppliers strategy Many firm

30、s have moved aggressively to incorporate suppliers into their supply system. DaimlerChrysler, for one, now seeks to choose suppliers even before parts are designed. Motorola also evaluates suppliers on rigorous criteria, but in many instances has eliminated traditional supplier bidding, placing adde

31、d emphasis on quality and reliability. Downsides of few- suppliers strategy Like all strategies, a downside exists. With few suppliers, the cost of changing partners is huge, so both buyer and supplier run the risk of becoming captives of the other. Poor supplier performance is only one risk the pur

32、chaser faces. The purchaser must also be concerned about trade secrets and suppliers that make other alliances or venture out on their own. Vertical Integration Purchasing can take the form of vertical integration. By vertical integration, we mean developing the ability to produce goods or services

33、previously purchased or actually buying a supplier or a distributor. As shown in Figure 2.2, vertical integration can take the form of forward ro backward integration. Backward integration Backward integration suggests a firm purchase its suppliers, as in the case of Ford Motor Company deciding to m

34、anufacture its own car radios. Forward integration, on the other hand, suggests that a manufacturer of components make the finished product. An example is Texas Instruments, a manufacturer of integrated circuits that also makes calculators and computers containing integrated circuits. Vertical integ

35、ration can offer a strategic opportunity for the operations manager. For firms with the necessary capital, managerial talent, and required demand, vertical integration may provide substantial opportunities for cost reduction. Other advantages in inventory reduction and scheduling can accrue to the c

36、ompany that effectively manages vertical integration or close, mutually beneficial relationships with suppliers. Many organizations find interest in vertical integration nowadays. Vertical integration can yield cost reduction, quality adherence, and timely delivery. Vertical integration appears to w

37、ork best when the organization has large market share or the management talent to operate an acquired vendor successfully. However, backward integration may be particularly dangerous for firms in industries undergoing technological change if management cannot keep abreast of those changes or invest

38、the financial resources necessary for the next wave of technology. Fig.2.2 Vertical Integration Can Be Forward or BackwardKeiretsu NetworksKeiretsu is Japanese term to describe suppliers who become part of a company coalition. Many large Japanese manufacturers have found a middle ground between purc

39、hasing from few suppliers and vertical integration. These manufacturers are often financial supporters of suppliers through ownership or loans. The supplier then becomes part of a company coalition known as a keiretsu. Members of the keiretsu are assured long-term relationships and are therefore exp

40、ected to function as partners, providing technical expertise and stable quality production to the manufacturer. Members of the keiretsu can also have suppliers further down the chain, making second-and even third-tier suppliers part of the coalition. Virtual CompaniesVirtual companies rely on a vari

41、ety of supplier relationships to provide services on demand. Virtual companies rely on a variety of supplier relationships to provide services on demand. Suppliers may provide a variety of services that include doing the payroll, hiring personnel, designing products, providing consulting services, m

42、anufacturing components, conducting test, or distributing products. The relationships may be short-term or long-term and may include true partners, or simply able suppliers. Whatever the formal relationship, the result can be exceptionally lean performance. The advantages of virtual companies includ

43、e specialized management expertise, low capital investment, flexibility, and speed. The result is efficiency. The apparel business provides a traditional example of virtual organizations. The designers of clothes seldom manufacture their designs; rather, they license the manufacture. The manufacture

44、r may then rent rooms, lease sewing machines, and contract for labor. The result is an organization remains flexible, and can respond rapidly to the market. New Words and Phrases vertical 5vE:tikEl adj. integration 7inti5reiFEn n. backward 5bAkwEd adj. coalition 7kEuE5liFEn n. virtual 5vE:tjuEl, -tF

45、uEl adj. quotation kwEu5teiFEn n. bidder 5bidE n. aggressive E5resiv adj. attribute E5tribju(:)t n. economy of scale foster 5fCstE v. alignment E5lainmEnt n. incorporate in5kC:pEreit v. 垂直的，纵向的集成，整合后向的，倒向的联盟，联合虚拟的报价，行情投标者激进地特性，属性规模经济培养结盟把合并 rigorous 5riErEs adj. downside 5daun7said n. alliance E5lai

46、Ens n. forward 5fC:wEd egrated circuit 5sE:kit n. substantial sEb5stAnFEl adj. undergo v. keep abreast of E5brest fluid 5flu(:)id adj. payroll n. lean adj. apparel E5pArEl n. 严密的,严格的缺陷联盟,同盟向前的，向末端的集成电路大量的，可观的经历,遭受与并进，跟上，不落后不固定的，易变的工资单精益的，精细的服装Part III SUPPLEMENTARY READINGDell Computers: Usin

47、g the Supply Chain to CompeteIntroduction of Dells unique advantage Dell sells computer in a special wayMichael Dell was different from other computer manufacturers since the starting of its PC business in the early 1980s. It was the way in which the computers were solddirectly to the customerthat g

48、ave Dell a unique advantage over established PC makers.Dells inventory management Dell remained focused on the end user, thus avoiding the double risk created by the changing and economics of the industry . Firstly, around 80 per cent of the costs of manufacturing a PC are component costs, and compo

49、nent costs have been falling since the industrys early years, particularly the very important processors that continue to fall in price by an average of 30 percent per year. The longer these components wait to be sold, the worse value they become. Secondly, there is the risk that changes in technolo

50、gy may make millions of pounds worth of finished PCs out of date overnight, forcing manufacturers to either compensate distributors for unloading stocks at a loss, or ship them to developing countries where they can be sold off cheaply. Dells JIT Policy By 1997, Dell was not only a model of JIT manu

51、facturing, but had applied its own exacting time standards to the rest of its supply chain. It had specified that the majority of components have to be warehoused within 15minutes of Dells three factories (in Austin, Texas; Limerick, Ireland; Penang, Malaysia), and many components are not ordered fr

52、om a supplier before Dell receives a customer order. To achieve such levels of co-operation and integration, Dell has reduced its number of suppliers from 204 companies in 1992 to just 47. At the same time it has preferred to source from suppliers close to their plants rather than from more distant

53、suppliers, even though the local manufacturing costs may be higher. Relationship between Dell and its suppliersFor Dells Limerick plant, at least 40 per cent of components are produced and supplied on a JIT basis, a further 45 per cent of components are held in supplier hubs, located close to Dells

54、factory. The suppliers restock their own warehouses and manage their own inventories, delivering to the factories on an entrustment stock basis. Bulky finished subassemblies, such as monitors and speakers are treated differently. Instead of shipping them to Dells factories, they are sent directly to

55、 the customer from the suppliers hub (located close to the market rather than close to Dells factory), saving Dell $30 per item in freight costs. Dell is billed for the components only when they leave the suppliers warehouse in response to a customer order, so that the components themselves are like

56、ly to spend only half a day as Dells own inventory. The supplier receives payment about 45 days later. For Dells Limerick plant, at least 40 per cent of components are produced and supplied on a JIT basis, a further 45 per cent of components are held in supplier hubs, located close to Dells factory.

57、 The suppliers restock their own warehouses and manage their own inventories, delivering to the factories on an entrustment stock basis. Bulky finished subassemblies, such as monitors and speakers are treated differently. Instead of shipping them to Dells factories, they are sent directly to the cus

58、tomer from the suppliers hub (located close to the market rather than close to Dells factory), saving Dell $30 per item in freight costs. Dell is billed for the components only when they leave the suppliers warehouse in response to a customer order, so that the components themselves are likely to sp

59、end only half a day as Dells own inventory. The supplier receives payment about 45 days later. Where the suppliers of essential components (such as disk drives) cannot be assembled quickly, Dell is pressing the suppliers to shorten their own lead times, but in the meantime, their components must be

60、built to forecast. Fortunately, demand for components is much more predictable than demand for finished goods, though shortages of some critical components (most noticeably microprocessors) continues to be a problem across the industry. Here again, the direct sales method places Dell at an advantage