您的供应链是否是竞争的

ISYOURSUPPLYCHAINCOMPETITIVE?

HOWDOYOUKNOW?BLAIRRWILLIAMSProfessorandDirector,PolytechnicUniversity.Brooklyn,NewYork718-260-3835第一页，共四十页。OBJECTIVESANDOUTLINEOBJECTIVE:TOHELPYOUDETERMINEIFYOURCOMPANYHASACOMPETITIVESUPPLYCHAIN.OUTLINE:ELEMENTSOFASUPPLYCHAINSCORMODELANDMETRICSBENCHMARKINGIMPLICATIONSBESTPRACTICESINFORMATIONSOURCES第二页，共四十页。DEFINITIONOFASUPPLYCHAINASUPPLYCHAINCOVERSTHEFLOWOFMATERIALS,INFORMATIONANDCASHACROSSTHEENTIREENTERPRISESUPPLYCHAINMANAGEMENTISTHEINTEGRATEDPROCESSOFPLANNING,SOURCING,MAKINGANDDELIVERINGPRODUCT,FROMRAWMATERIALTOENDCUSTOMER第三页，共四十页。ELEMENTS-SUPPLYCHAINMANAGEMENT

PLAN-SOURCE-MAKE-DELIVER-MEASURESUPPLYCHAININFRASTRUCTURE

TRANSFEROFINFORMATION,MATERIALSANDCASHDEMANDMANAGEMENTCUSTOMERORDERMANAGEMENTPROCESSFORECASTINGCUSTOMERPARTNERSHIPSSOURCINGSELECTING,QUALIFYING,PARTNERING,MEASURINGANDPROVIDINGFEEDBACKTOKEYSUPPLIERS第四页，共四十页。ELEMENTSOFSUPPLYCHAINMANAGEMENT

PLAN-SOURCE-MAKE-DELIVERSUPPLYORMANUFACTURINGPROCESSFACTORYSCHEDULINGINVENTORYMANAGEMENTLEADTIMEREDUCTIONLOGISTICALPROCESSTRANSPORTATION,WAREHOUSING,DISTRIBUTION,DELIVERYGLOBALPERFOMANCEMEASUREMENTS-SCOR第五页，共四十页。SUPPLYCHAINCOUNCIL(SCC)SCCISANINTERNATIONALPROFESSIONALBODYFORSUPPLYCHAINMANAGEMENT(SCM)SYSTEMSANDPRACTICESDEVELOPEDANDENDORSEDTHESCOR(SUPPLYCHAINOPERATIONSREFERENCEMODEL)ASACROSSINDUSTRYSTANDARDFORSCM第六页，共四十页。SPECIALINDUSTRYGROUPSAEROSPACEANDDEFENCECOMPUTERS&ELECTRONICSEQUIPMENTPHARMACEUTICALS&CHEMICALSUTILITIES-TELECOMMUNICATIONSRETAIL-CONSUMERPACKAGEDGOODSDEFENSEANDINDUSTRIALSEMICONDUCTORS第七页，共四十页。SCORMODELBUSINESSPROCESSREENINEERING‘ASIS’TO‘TOBE’METRICSBENCHMARKINGIMPLICATIONSBESTPRACTICEANALYSISPROCESSREFERENCEMODELBASEDON‘BESTINCLASS’RESULTSCHARACTERIZEMANAGEMENTPRACTICESIDENTIFYSOFTWARESOLUTIONS第八页，共四十页。LEVELIMETRICSDELIVERYPERFORMANCEPERFECTORDERFULFILLMENTPRODUCTIONFLEXIBILITYTOTALSUPPLYCHAINMANAGEMENTCOSTMATERIALACQUISITIONCOSTCASHTOCASHCYCLETIMETOTALINVENTORYDAYSOFSUPPLYASSETTURNS

第九页，共四十页。LEVELIMETRICSDELIVERYPERFORMANCE-%THEPERCENTAGEOFORDERSTHATAREFULFILLEDONORBEFORETHECUSTOMER’SREQUESTEDDATE第十页，共四十页。LEVELIMETRICSPERFECTORDERFULFILLMENT-%DELIVEREDCOMPLETEWITHALLITEMSONTHEORDERINTHEQUANTITYREQUESTEDDELIVEREDONTIMETOCUSTOMER’SREQUESTDATEDELIVEREDINPERFECTCONDITIONWITHTHECORRECTCONFIGURATIONANDCOMPLETE&ACCURATEDOCUMENTATION第十一页，共四十页。LEVELIMETRICSPRODUCTIONFLEXIBILITY-DAYSTHENUMBEROFDAYSREQUIREDTOACHIEVEANUNPLANNED,SUSTAINABLE20%INCREASEINPRODUCTION第十二页，共四十页。LEVELIMETRICSTOTALSUPPLYCHAINMANAGEMENTCOST-$’sSUMOFCOSTSOF:ORDERMANAGEMENTMATERIALSACQUISITIONINVENTORYCARRYINGSUPPLYCHAIN-FINANCE,PLANNING ANDMIS第十三页，共四十页。LEVELIMETRICSMATERIALACQUISITIONCOST-$’sSUMOFCOSTSTOMANAGE:COMMODITYMANAGEMENT&PLANNINGSUPPLIERQUALITYENGG.INBOUNDFREIGHT&DUTIESRECEIVINGANDMATERIALSTORAGEINCOMINGINSPECTIONMATERIALPROCESSENGG.&TOOLING第十四页，共四十页。LEVELIMETRICSCASHTOCASHCYCLETIME-DAYSTHENUMBEROFDAYSBETWEENPAYINGFORRAWMATERIALSANDGETTINGPAIDFORPRODUCT,ASCALCULATEDBY:INVENTORYDAYSOFSUPPLYPLUSDAYSOFSALESOUTSTANDING(RECEIVABLES)MINUS

AVERAGEPAYMENTPERIODFORMATERIAL(PAYABLES)CtoCCTIME=INVDAYS+DAYSREC–DAYSPAY第十五页，共四十页。LEVELIMETRICSTOTALINVENTORYDAYSOFSUPPLY(THEAVERAGECOSTOFINVENTORYDIVIDEDBYTHECOSTOFGOODSSOLD)TIMES365 TOTALINVENTORYDAYSSUPPLY =INVENTORYx365 COGS第十六页，共四十页。LEVELIMETRICSASSETTURNS–NUMBERTOTALREVENUEDIVIDEDBYTOTALASSETS

=TOTALREVENUE TOTALASSETS第十七页，共四十页。BENCHMARKINGANDBESTPRACTICESDELIVERYPERFORMANCETOREQUEST

%(8/2000)

BICAverMedianPharmasandChemical 98.9 78.4 91.9Computers 82.8 56.4 58.8ConsumerPackagedGoods 98.4 72.3 84.4DefenseandIndustrial 98.0 69.4 71.7ElectronicEquipment 97.4 67.6 74.2Semiconductors 84.5 62.0 64.8Telecommunications 94.8 63.4 72.6第十八页，共四十页。DELIVERYPERFORMANCETOREQUEST%RANGE–62%TO98% (20to30%pointsperIndustryGroup)IMPLICATIONSMOSTFUNDAMENTALMEASUREMENTOFCUSTOMERSATISFACTIONINDICATESHOWWELLTHESUPPLYCHAINISCONFIGURED&INTEGRATED第十九页，共四十页。DELIVERYPERFORMANCETOREQUEST%BESTPRACTICESORDERTRACKINGSYSTEMSTOCOMPAREREQUESTEDVS

ACTUALDATESATLINEITEMLEVELDEMANDVISIBILITYTOSUPPLIERSCONSOLIDATION,PACKINGANDDELIVERYOUTSOURCED.DELIVERYDIRECTLYTOCUSTOMERPOINTOFUSEONLINEATPANDORDERSTATUSAVAILTOCUSTOMER第二十页，共四十页。BENCHMARKINGANDBESTPRACTICESUPSIDEPRODUCTIONFLEXIBILITY

(8/2000) DAYS

BIC Aver MedianPharmasandChemical 18.4 229.3 120Computers 9.7 53.4 38.5ConsumerPackagedGoods 9.4 144.8 60.0DefenseandIndustrial 16.7 96.1 36.0ElectronicEquipment 9.0 73.3 60.0Semiconductors 30.0 188.5 175.0Telecommunications 9.6 41.7 30.0第二十一页，共四十页。UPSIDEPRODUCTIONFLEXIBILITYDaysRANGE–9to230DAYS (6to10timeswithinIndustryGroup)IMPLICATIONS–MEASUREOFCOMPANY’SSUPPLYFLEXIBILIYINCREASEINPRODUCTIONWITHOUTCAPITALINVESTMENT第二十二页，共四十页。UPSIDEPRODUCTIONFLEXIBILITYDaysBESTPRACTICESEFFECTIVESUPPLIERPARTNERSHIPSSYNCHRONIZINGOPERATIONSACROSSTHECOMPANYTOREDUCERAMPTIMEHIGHPERFORMANCEMANUFACTURINGTECHNIQUES–DEMANDPULL,CELLULARMFG,MULTISKILLEDFORCEBUILD/CONFIGURETOORDER–MODULARDESIGN第二十三页，共四十页。BENCHMARKINGANDBESTPRACTICESTOTALSUPPLYCHAINMANAGEMENTCOSTS(8/2000) %OFREVENUE

BIC Aver MedianPharmasandChemical 5.0 10.3 11.2Computers 4.3 9.4 8.4 ConsumerPackageGoods 4.1 11.3 9.1DefenseandIndustrial 3.2 9.4 8.9ElectronicEquipment 5.1 11.4 11.4Semiconductors Telecommunications 3.7 8.6 8.2第二十四页，共四十页。TOTALSUPPLYCHAINMANAGEMENTCOSTS%OFREVENUERANGE–3to11% (doublewithinIndustryGroups)IMPLICATIONS–1BILLIONDOLLARCOMPANYWILLSAVE$50million(5%)PERYEAR,INSUPPLYCHAINMANAGEMENTCOSTS,OVERTHEIRCOMPETITION第二十五页，共四十页。TOTALSUPPLYCHAINMANAGEMENTCOSTS%OFREVENUEBESTPRACTICESSCMVIEWEDASCRITICALPROCESSANDINTEGRATEDINTOBUSINESSPLANNINGPROCESSSINGLEEXECUTIVEOVERALLRESPONSIBILITYONLINEEDIANDPURCHASINGPAYONRECEIPT(ELIMINATERECONCILIATIONOFINVOICES)第二十六页，共四十页。BENCHMARKINGANDBESTPRACTICESMATERIALACQUISITIONCOST1996

%OFREVENUE

BIC Aver MedianPharmasandChemical 0.5 1.3Computers&Electronics 1.0 1.7 ConsumerPackageGoods 1.1 1.7DefenseandIndustrial 1.0 2.6Semiconductors 0.5 1.3Telecommunications 1.0 1.9Automotive 1.8 3.5第二十七页，共四十页。MATERIALACQUISITIONCOST

%OFREVENUERANGE–

0.4to3.5% (doubleacrossindustrygroups)IMPLICATION–

A1BILLION$CO.SAVES$10MILLION(1%)PERYEARINMATERIALBUYINGCOSTS–PURCHASING,QUALITYANDDEVELOPMENT第二十八页，共四十页。MATERIALACQUISITIONCOST

%OFREVENUEBESTPRACTICES–SUPPLIERPARTNERSHIPSKEYSUPPLIERSONPRODUCTDEVELOPMENTTEAMSCERTIFIEDSUPPLIERSDELIVERATPOINTOFUSECOMMODITYTEAMSFOCUSONSTRATEGICPROCUREMENTISSUES第二十九页，共四十页。BENCHMARKINGANDBESTPRACTICESCASH–to–CASHCYCLETIME(8/2000)

DAYS

BIC

Aver MedianPharmasandChemical 31.3 120.2 96.8Computers 27.5 62.1 51.5 ConsumerPackageGoods19.9 77.0 63.6DefenseandIndustrial 20.8 70.3 67.1ElectronicEquipment 31.6 116.3 103.1Semiconductors 49.4 110.3 104.5Telecommunications 19.4 90.5 85.8第三十页，共四十页。CASH–to–CASHCYCLETIME-DAYSRANGE–20to120days (2to4timeswithinIndustryGroups)IMPLICATIONS–50%TO75%OFWORKINGCAPITALBECOMESAVAILABLETOCOMPANIESTOINVEST第三十一页，共四十页。CASH–to–CASHCYCLETIME-DAYSBESTPRACTICES

CASH-RELEASEAGREEMENTFORBLANKETORDERSTHIRDPARTYRECONCILIATIONANDPAYMENTOFRECEIVABLESABILITYTOMAINTAINLOWERINVENTORYLEVELS第三十二页，共四十页。BENCHMARKINGANDBESTPRACTICESINVENTORYDAYSOFSUPPLY(BIC&Median’96,Av.’98)

DAYS

BIC Aver MedianPharmasandChemical 102 120 160Chemical 37 54 60Computers 31 38 76 ConsumerPackagedGoods 72 DefenseandIndustrial 55 80 85ElectronicEquipment 31 77Semiconductors 49 76Telecommunications 50 80 95第三十三页，共四十页。INVENTORYDAYSOFSUPPLY-DAYS

RANGE–20to120days (3to4timeswithinIndustryGroups)IMPLICATIONSFORA1BILLION$CO.,WITHCOGSOF500MILLION,DIFFERENCEOF50DAYSIS$100MILLION!SUPPLIERSSELECTEDONTOTALCOSTOFOWNERSHIP(TCO),NOTJUSTPURCHASEPRICE第三十四页，共四十页。INVENTORYDAYSOFSUPPLY-DAYSBESTPRACTICESAUTOREPLENISHMENT–Ex.VMIVISIBILITYOFDEMANDTOALLKEYPARTICIPANTSINSUPPLYCHAINCAPACITYANDSUPPLYCONSTRAINTSIDENTIFIEDANDMANAGEDPRODUCTDESIGNINCLUDESPARTSTANDARDIZATION,CONFIGURABILITY,ENDOFLIFEMANAGEMENT第三十五页，共四十页。SOURCE