供应链管理课件9

1、SUPPLY CHAIN MANAGEMENTDr Vinh ThaiModule 9: Strategic Partnering & Collaboration in Supply Chain1Some initial observationsA framework of strategic partnering & collaborationSupply chain partnership modelsManufacturer and supplier partnershipStrategic partnering with logistics service providersRSP o

2、r retailer supplier partnershipDistributor integrationTopics2At the completion of this module you should be able to:explain the role of strategic partnering in s integrated supply chain managementexplain what is vendor managed inventory and why major retailers are moving towards itoutline the option

3、s available to firms when deciding on outsourcing logistics functions of the firmoutline the scope of strategic partnering in improving supply chain performanceidentify the major challenges for new business models and how these challenges can be converted into advantages for firmsLearning Outcomes3T

4、extbook: Chapter 6 (undergraduate); Chapter 1, pp. 1-24; Chapter 5, p. 240, pp. 248-252; Chapter 7, pp. 324-325Readings:Undergraduate: 8.1-8.5 (N26726)Postgraduate: 8.1-8.5 (N26726); 10.1-10.3 (N09726)Textbook and Readings4We have roughly 30,000 employees now, and $26 billion in revenue this year. I

5、f we were vertically integrated, I dont know how many employees I would have, but it would be some huge numbers.- Michael Dell in Ayers (2001) Food for Thought.5Food for Thought.Recall that SCM is built on the notion of integration. So why are they, e.g. Dell, doing that, e.g. virtual instead of ver

6、tical integration?And what is the value to the supply chain?6Recall that it is supply chain competing against supply chain, not individual firm against firm in business world todayIt thus makes sense for firms to collaborate so as to maximise strength of SCFour basic ways to assure business function

7、 completion (Simchi-Levi et al. 2003):Internal activities: vertical integrationPerform activities in-house using internal resources & expertiseRequire large & capable firmsSome Initial Observations7Acquisitions:Acquire another firm that has expertise & resources in other areasFull control gained, bu

8、t culture may clash, effectiveness of acquired company may be lostManagement is more important than ownership in achieving goalsArms-length transactions:For many times, this is the most effective arrangement as specialised firms (suppliers) have economies of scale Goals & strategies may not matchDoe

9、s not lead to long-term strategic advantageSome Initial Observations (C)8Strategic alliances:Multifaceted, goal-oriented, long-term partnership between companiesRisks and rewards are sharedAiming at achieving long-term supply chain goalsEliminating acquisition downsides, while more resources committ

10、ed for mutual goalsLeading to long-term strategic benefits for both partnersSome Initial Observations (C)So why is it critical to supply chain success?9The most obvious purposes of strategic partnering & collaboration are to reduce cost & enhance better product qualityThis takes advantage of learnin

11、g & innovation (coordination & collaboration) between partnersWith partnering firm would be able to focus more on their core competenceactivities in which it can achieve definable pre-eminence and provide unique value for customersactivities which are central to a companys business, and which it can

12、 perform more effectively than its competitorsA Framework for Strategic Partnering and Collaboration10A Framework for Strategic Partnering and Collaboration (C)What Does It Take to Have an Area of Core Competency?Source: Coyle e al. (2003) 11Strategic alliance or partnership may help achieve benefit

13、s in the followings (Simchi-Levi et al. 2003):Adding value to products Ex: improved time to market, distribution times, partnerships between companies with complementary product lines can add value to both companies productsImproving market access Ex: better advertising or increased access to new ma

14、rket channels, e. g. consumer product manufacturers cooperate to address the needs of major retailers, increasing sales for everyoneA Framework for Strategic Partnering and Collaboration (C)12Strengthening operations Ex: improve operations by lowering system costs and cycle times, efficiently and ef

15、fectively use facilities and resourcesAdding technological strength Partnerships in which technology is shared can help add to the skills base of both partnersEnhancing strategic growth Partnerships might enable firms to pool expertise and resources to explore new opportunities by overcoming high en

16、try barriersA Framework for Strategic Partnering and Collaboration (C)13Enhancing organisational skills Alliances provide a tremendous opportunity for organisational learning (Recall Module 8?)Building financial strengthEx: income can be increased and administrative costs can be shared between partn

17、ers or even reduced owing to the expertise of one or both of the partners. But, alliances also limit investment exposure by sharing riskA Framework for Strategic Partnering and Collaboration (C)14A Framework for Strategic Partnering and Collaboration (C)Source: McLaren, Head & Yuan (2002, p. 355)15W

18、hat and how information is shared?A Framework for Strategic Partnering and Collaboration: The Value of InformationSource: Matchette and Siekel (2005, p. 1)16Two types of partnership (Ayers 2002):Vertical partnerships: spanning different businesses in a common supply chainEx: partnership between supp

19、liers & retailers, manufacturer & 3PL, etc.Streamlining existing capabilitiesHorizontal partnerships: spanning different supply chainsEx: partnership between shipping companies, airlines, 3PLs, etc.Creating new strategic capabilities, access to new markets, new products and services, and the likeSup

20、ply Chain Partnership Models17Supply Chain Partnership Models (C)Source: Ayers (2002)18Four types of vertical partnership in consideration are:manufacturer and supplier partnershipmanufacturer and 3PL service providers partnershipmanufacturer and distributor partnershipsuppliers and retailers partne

21、rshipSupply Chain Partnership Models (C)19Traditional adversarial relationship between manufacturer and supplier shifted to a collaborative relationshipmanufacturer and supplier interact like partnersMain tangible benefitsintegrated SCM through integration of business processes & informationtranspar

22、ency in information and cooperation in activitiesSupply Chain Partnership Models: Manufacturer-Supplier Partnership20Partnership with suppliers came originally from Japanese business culture, keiretsu, a sort of supplier cooperative or association, was found to be linked with each major manufacturer

23、Examples:Dell: with virtual integrationHPChrysler Corporation (Reading 8.1 N26 726)Supply Chain Partnership Models: Manufacturer-Supplier Partnership (C)21The use of an outside company to perform all or part of the firms material management and distribution functions3PL relationships are truly strat

24、egic alliances: long-term commitment, not based on transactions, multi-functionalNot simply trucking or warehousingMost prevalent among large companiesEx: Whirlpool Corporations inbound logistics handled by Ryder Dedicated Logistics, IKEA & Maersk, NIKE & PONL (Now MAERSK), etc.Supply Chain Partners

25、hip Models: Partnership with 3PL22Supply Chain Partnership Models: Partnership with 3PL (C)Source: Brown & Allen (2001)23Supply Chain Partnership Models: Partnership with 3PL (C)Source: Carding (1998) 24Supply Chain Partnership Models: Partnership with 3PL (C)Source: Adapted from European Distributi

26、on & Logistics, January 2001 25Advantages of 3PL partnership (Simchi-Levi 2003, Brown and Allen 2001):Concentrating capital investment &management on core competenciesGaining access to the latest technology and equipment employed by the third-party providerProving other flexibilities, i.e. geographi

27、c locations, in service offerings, etc.The need for investment in new equipment and premises is avoidedSupply Chain Partnership Models: Partnership with 3PL (C)26There are potential cost reductions, for example:shared use may give better utilisation of vehicles and warehouses, leading to lower unit

28、costs due to the consolidation of different customers demands;the specialisation of the contractor may allow volume buying of vehicles, warehouses, and mechanical handling equipment and systems;the labour costs of a third-party operator may be lowerSupply Chain Partnership Models: Partnership with 3

29、PL (C)27Disadvantages of 3PL partnership (Simchi-Levi 2003, Fernie 1990):Cost issue:Operations at cost plus could be run more cheaply in-house, assuming other variables remain equal, because the third-party logistics company needs to make a profit on its operationsMonitoring and control of costs is

30、easier when the distribution function remains in-houseThe cost of monitoring the performance of the logistics can be high and is also sometimes difficult to achieve effectivelySome companies do not have the necessary information or expertise to assess which logistics providers are offering good serv

31、ices at competitive pricesSupply Chain Partnership Models: Partnership with 3PL (C)28Control issue:In-house logistics and distribution operations can provide the company with more control over important customer service considerationsFlexibility of operations is also seen as a possible advantage of

32、retaining an in-house distribution function, with the loyalty of the distribution operation not torn between several customersThere is also the concern that outsourcing could result in a loss of security and that confidential information will be passed to competitors Supply Chain Partnership Models:

33、 Partnership with 3PL (C)29Fourth-party Logistics (4PL) or supply chain logistics, or Lead Logistics Provider (LLP): Manages and runs complex logistics operations including resources, control room, and architecture/integrator function Thought of as supply chain integrator, a firm that “assembles and

34、 manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution.”Developed from 3PL but covering the broader scope including 3PL, information technology (IT) services, and business process man

35、agementA single contact that manages and integrates all kinds of resources and oversees 3PL functions throughout the supply chain for the reach of global market, strategic advantages, and long -term relationship Supply Chain Partnership Models: Partnership with 3PL (C)30Supply Chain Partnership Mode

36、ls: Partnership with 3PL (C)Source: Coyle e al. (2003) 31Supply Chain Partnership Models: Partnership with 3PL (C)Fifth-party Logistics (5PL):Developed to serve the e-business market. They are those 3PL and 4PL providers managing all the parties in the supply chain on e-commerce. The key to success

37、in this area is the information technology and system 32Supply Chain Partnership Models: Issues & Requirements in Partnership with 3PLKnow your own cost, compared with cost of using outsourcing firmCustomer orientation of the 3PL: how a 3PL fits into the firms strategic logistics plan, e.g. flexibil

38、ity, reliability, cost saving, etc.Specialisation of 3PL: 3PL whose roots lie in particular area relevant to logistics requirement in question should be consideredAsset-owning versus non-asset-owning 3PL: Asset-owning 3PL: significant size, access to HR, large customer base, economies of scale & sco

39、pe, etc. but bureaucratic, long decision-making cycleNon-asset-owning 3PL: limited resources, lower bargaining power, but more flexible, be able to tailor service, etc.33Supply Chain Partnership Models: Implementation Issues in 3PL PartnershipEnough time to start-up considerations should be devoted:

40、The firm must identify exactly what it needsThe firm must provide specific performance measures & requirementsThe 3PL must discuss these requirements, (including their realism & relevance)Effective communication is essential:Within the firm, managers must communicate to each other & employees on why

41、 to outsource & what to expectCommunication between the firm and its 3PL is critical, e.g. between information systems, etc.34Other important issues for successful implementation (Simchi-Levi et al. 2003):Respect of confidentiality of data sharedSpecific performance measures must be agreed uponSpeci

42、fic criteria regarding subcontractors should be discussedArbitration issues should be considered.Escape clauses should be negotiatedMethods to assure achievement of performance goals should be discussedSupply Chain Partnership Models: Implementation Issues in 3PL Partnership(C)35Supply Chain Partner

43、ship Models: Factors for Success in 3PL PartnershipFive factors that are critical to the success of a logistics partnership (Bowersox 1992):Selective matching: All organisations have compatible corporate cultures and valuesInformation sharing: Partners openly share strategic and operational informat

44、ionRole specification: Each party in the partnership is clear about the specifics of its roleGround rules: Procedures and policies are clearly spelled outExit provisions: A method for terminating the partnership is defined 36Supply Chain Partnership Models: Other Factors for Success in 3PL Partnersh

45、ipTrustthe most significant factor to succeed in outsourcing logistics because companies have to share information, benefits, and risks to each other Performance evaluation:the major factor to measure the success and maintain the achievement after outsourcing startsIf the performance is not satisfie

46、d, the outsourcing can be ceased or failed because the objective of outsourcing is not achieved To maintain the alliance and succeed in the long term, it is necessary to measure or evaluate the performance regularly 37Supply Chain Partnership Models: Other Factors for Success in 3PL Partnership (C)S

47、haring information & maintaining communication:This leverages the efficiency and effectiveness in logistics outsourcing because both partners know what they want and provide the relevant informationLack of information sharing and communication maintaining can fail the outsourcing especially in strat

48、egic partnership Top managements commitment & support:If top management are fully committed and support staff in performing their jobs, the whole company will function in a defined direction and thus achieve concrete goalsThe lack of commitment and support from top management will discourage the ope

49、rations levels decision in management, sharing information, and communication 38Supply Chain Partnership Models: Other Factors for Success in 3PL Partnership (C)Having clear goals, vision, and roles:Goal, vision and roles are required to avoid confusion between staff and staff, and between two compa

50、nies They should be clarified at the early stage and updated from time to time to prevent the risks that the partners may work in the different directionsOther key critical factors can be relationship commitment, sharing benefits and risks, flexibility, etc. Both sides may have to consider these iss

51、ues in their specific condition and context 39Types of RSL: Quick response, Continuous Replenishment, Advance Continuous Replenishment, VMI (Simchi-Levi et al. 2003)Quick Response: Vendors receive POS data from retailers, and use this information to synchronize production and inventory activities at

52、 the supplierThe retailer still prepares individual orders, but the POS data is used by the supplier to improve forecasting and schedulingExample: Milliken and Company: The lead time from order receipt at Millikens textile plants to final clothing receipt at several of the department stores involved

53、 was reduced from eighteen weeks down to three weeksSupply Chain Partnership Models: Retailer-Supplier Partnerships (RSP)40Continuous Replenishment: Vendors receive POS data and use it to prepare shipments at previously agreed upon intervals to maintain agreed-upon levels of inventoryWal-Mart, Kmart

54、Advanced Continuous Replenishment:Suppliers may gradually decrease inventory levels at the retailers store or distribution center as long as service levels are metInventory levels are thus continuously improved in a structured wayKmartSupply Chain Partnership Models: Retailer-Supplier Partnerships (

55、C)41Vendor Managed Inventory (VMI):Supplier/vendor is usually manufacturer, but can also be a distributorSupplier/vendor is in charge of ordering & inventory replenishment decisions, thus reduce cost & improve service level through information sharing & eliminating factors of bullwhip effectIt also

56、leads to better manufacturing scheduling, supplies to retailers, improved service level with coordinated distribution & transshipment of inventory between retailersVMI Projects at Dillard Department Stores, J.C. Penney, and Wal-Mart have shown sales increases of 20 to 25 percent, and 30 percent inve

57、ntory turnover improvementsSupply Chain Partnership Models: Retailer-Supplier Partnerships (C)42Advanced information systems on both sidesTop management commitmentInformation must be sharedPower and responsibility within an organization might change (for example, contact with customers switches from

58、 sales and marketing to logistics)Mutual trustInformation sharing: manufacturer serves many competing retailersManagement of the entire supply chain: inventory of manufacturer and retailersInitial loss of revenuesSupply Chain Partnership Models: Requirements for Effective RSP43Inventory ownership:Tr

59、aditionally retailer owns inventory when receivedIn VMI supplier owns the goods until they are sold (consignment relationship)Why would a firm do this?Performance measures must be agreed upon: POS accuracy, fill rate, inventory level, inventory turns, lead timeConfidentialityCommunication & cooperat

60、ion:Ex: the case of First Brands & Kmart Supply Chain Partnership Models: Important RSP Issues44Fully utilize system knowledgeConsider the partnership between White-Hall Robbins (W-R), who makes over-the-counter drugs such as Advil, and KmartW-R initially disagreed with Kmart about forecasts, and in