case 5 : brunswick corporation: improving supply-chain results

Case 5 :Brunswick Corporation:Improving Supply-Chain Results

What is the business value of SCM systems for Brunswick?951702

The business value of SCM systems for BrunswickGet the product rightGet the distribution rightShrink the period of order to deliveryBe the best cost in the industriesRaise sales volumeBe global Increase the competitive advantage

Introduce the highest quality product with the most innovative technology and design at the best price, faster than the competition.

Get the product right

Distribute products through a model that benefits their partners dealers and distributors and provides world-class service to customers.Get the distribution right

Get the distribution right (cont.)

Some of the efforts include:By the different distribution channels to extensive marine parts and accessories to customers. By the ability of developing manufacture and distribution, let the product dispersion right.

Shrink the period of order to delivery

By exactly deal with the needs, supply and the use of product in the right place to decrease the period from order to delivery.

Be the best cost in our industries

Be the best cost manufacturer of products, develop and maintain low-cost manufacturing and continually improve productivity and efficiency.

Raise sales volume

Because decreasing the cost of manufacture and forecast and so on, the price of product will be lower and raise the sales volume.

Be global

To become the best price manufacturer in the product market, they use the abilities which produces from SCM to develops and maintains the process that improves the productivity and raise the efficiency unceasingly.

Increase the competitive advantage

By decreasing the cost and shrink the process of manufacturing product and so on, that can help business increase the competitive advantage.

Does the business value of SCM depend upon what type of business a company is in? Explain.951623

AnswerYES!1.Implementing SCM matches the operational focus of the organization.2.For manufacturing environments with well-defined final products and parts stand to gain the most profits. NO!- The services sector would be unlikely to adopt SCM since they lack a manufacturing process at all.

The key to a successful SCM implementation is that it matches the operational focus of the organization.Use IT integrate Individual enterprises and operating process.Reduce waste and redundant Has a data warehouse that holds information such as inventory SCM can use the information to arrange the operating schedule.Standard business process

For manufacturing environments with well-defined final products and parts stand to gain the most profitsIf there are no well-defined final products and parts stand , it will have(1) uncertainty of demand (such as amount)Inaccurate demand forecasts cause the accumulation of stock or out of stock(2) the uncertainty of manufacturing (such as yield, machine crashes, transport reliability) Delivery delay(3)uncertainly of supply Delivery delay

Example[ Wal-Mart ]

Wal-Mart exclusively used SCM to increase its projected growth rate.Manage their demand and supply in accurate manner

Example[ Wal-Mart ] (cont.)RFIDCan reduce the global retails labor costs 40 ~ 50%, and reduced the inventory volume of 10 ~ 30%.

Wal-Mart's profit will increase by 38 percent, and its productivity higher than the industry more than 40 percent.

Example[ Wal-Mart ] (cont.)Advanced satellite communications networkGet the sales information immediately.A short number of hours to complete "fill orders - a summary of all branch orders - send orders.BenefitImprove the capacity of inventory replenishment.Speed up the checking out time and recording of transaction.

Organizations in the services sector would be unlikely to adopt SCM

Because they lack a manufacturing process.

To the service industry ,services cannot be inventoried. So they cannot to forecast the inventory.

Organizations in the services sector would be unlikely to adopt SCM (cont.)

uncertainty of service quality : services are created and delivered at the same time.

Service rate and service quality cannot measure and store with digital.

For example

DriversDrivers cannot forecast when customers need their service.Divers cannot use SCM to forecast the revenue at next month.

For example (cont.)

BarbersThey dont know when customers want to have the haircut.They cannot measure the service quality with digital , so that they cannot use SCM to forecast.

How does Brunswicks approach to SCM differ from that of the other companies explored in this chapter? Is one approach superior to all others? Why or why not?951620

Getting a better grip on the data they generate to control its supply chain.Brunswick

How to use? - Used informatica corporations data integration and business - intelligence tools. - Has a data warehouse that holds information pulled from a wide range of enterprise systems.Brunswick (cont.)

Benefit - Can better manage sourcing and procurement across its supply chain.

Brunswick (cont.)

IBM created Configure-to-order system for its personal systems division.

IBM

How to use? - A customer in Europe can configure a personal computer on IBMs website and get real-time availability and order confirmation.

IBM (cont.)

Places an order in Europe

Order travels to IBMs systems located in world Fulfillment engine E-commerce engine ERP & production management systems Sales reporting system Product database

IBM (cont.)

3. back to the customers browser

Benefit - Can integrate with the data in everywhere. - Customer can get information immediately.IBM (cont.)

Installed a industrialstrength B2B integration software to integrate 18 different software.

Dell inc.

How to use? - A business customer pulls product information from Dells server into the customers purchasing system, which creates an electronic requesting.Dell inc. (cont.)

BenefitReduce order timeReduce procurement process errorsReduce the cost of processing each orderBuild links to 40 its bigger customers, allowing a customer purchase easily.Dell inc. (cont.)

Provide service between customers and cable companies.

Syntellects Online Transaction processing

How to use? - Cable TV viewers can select pay-per-view events offered by their cable companies using the phone or the World Wide Web.

Syntellects Online Transaction processing (cont.)

The order is captured by syntellects interactive voice response system or web server.

Transported to syntellect database application server.


Updated sales database, and the approved order is relayed back to the cable companies video server.

Cable companies transmits the video to the customers.


BenefitInstead of paying for a year and so many views that will not to watch, customer can choose the view he want and pay for it.Can reduce customer costs.Can profit Synellect and cable companies.Syntellects Online Transaction processing (cont.)

Used salesfore.com solution Moved from a paper-based system to a Web-based system. Eliminating the step of transferring information from paper documents to the database.Baker Tanks

How to use?Sales all have each PDA.Every PDA can link to salesforce.com for customer contact information, sales history and anecdotal notes.Sales can e-mail responses to customers more promptly.Baker Tanks (cont.)

BenefitCommunicating better with customers.Our salespeople have become more productive.

Baker Tanks (cont.)

YesCan better manage sourcing and procurement across its supply chain.NoBecause Brunswick didnt have a perfect customer-oriented service like other companies.Is one approach superior to all others? why or why not?

Describe what the IS/IT in the real case is all about?

supply-chain management system951736

What is SCMS?

Supply Chain Management aims to manage the entire supply chain in the premise of meet customer, for example, from the procurement, materials management, production, distribution, marketing to consumers.

Goal

Reducing overall system operating costs.

The cost of shared information.

To improve their overall competitive advantage, developed into a large-scale virtual enterprise.

Goal (cont.)

By information technology, make information format standardization, operational efficiency, and eliminate unnecessary complexity of operations, supply operations and timely delivery response to consumer demand.

While functionality in such systems can often be broad it commonly includes:

Customer requirement processing Purchase order processing Inventory management Goods receipt and Warehouse management Supplier Management/Sourcing

What does supply chain management software development now?

Supply chain management software is possibly the most fractured group of software applications on the planet.

No vendor has a complete package that is right for every companyMany companies decide to go with targeted best of breed products instead

What are the advantages and disadvantages of the supply-chain management system ? 951602

Advantage(1)1.Reduce the amount of inventory. This is the practice known as just-in-time manufacturing, and it allows companies to reduce the amount of inventory that they keep.2.Can cut costs substantially. You no longer need to pay to produce and store excess goods.

Advantage(2)

3.For supplier, reducing the uncertain problem about sales and customer demand.4.Reducing the cost of administration and process integrate.

Advantage(3)

5.Integrate the product and process development6.Increase sales amount

Squeeze out costs and use efficient and effective supply chains to bump up sales

Disadvantage(1)Flexibility A long way to go for many companies and their supply chain partners before that level of supply chain flexibility can be achieved.

Disadvantage(2)Incorrect information Inter-related companies could have the problem of sharing incorrect information due to lack of mutual trust or fear of control.

Disadvantage(3)Congestion of stock To allow other companies take control of their inventory, there may have some risks about the supplier's own inventory to plug downstream.

Disadvantage(4)Wrong estimate EX: People bought more of the SCM applications than they should have, says Steve Banker, an ARC analyst.

How does the supply-chain management system change the way new business operate now? (compare it with the traditional / conventional method, if there is any. ) 932641

Building the system

Traditional wayUse IS/ITSupply chains are a kludge of systems.Replace aginghomegrown systemsthat run pieces of their supply chains with state-of-the-art software that incorporates cutting-edge features.

Controlling the system

Traditional wayUse IS/ITPeople bought more of the SCM applications than they should have, and folks were burned.Gain control over the various systems in its supply chain by getting a better grip on the data they generate.All supply-chain issues aren't necessarily solved with supply-chain applications.Use data-integration and business-intelligence tools to improve supply-chain visibility.

Effect

Traditional wayUse IS/ITThe supply chain has been looked at as a way to manage bottom-line (reduce operating costs), not top-line growth (earn more revenue) .They've managed to move supply chain from a back-office operation to a front-line, customer-oriented service.

Conclusion

Relationship Integration :Squeeze out costs and use efficient and effective supply chains to bump up sales.

Visibility :It can better manage sourcing and procurement across its supply chain.

Conclusion (cont.)

Optimizing revenue :Controlling supply chain can affect both the bottom and top lines .

Besides those mentioned in the case, what other ways can a business realize more business benefits from the supply-chain management system ? 951755

Focus on: the back end of the supply-chain

WayDesign an integrated database.This database can provide information for all system, include SCM system, at the back end of the supply-chain.

Focus on: the back end of the supply-chain (cont.)

BenefitsBecause all systems are use the same database, it dont need time to convert data from one database to another, systems can use the data directly.Hence, the data flowing between these systems can be more consistent and timely.


WayCombine SCM system with PRM (Partner Relationship Management) system.PRM system can help business obtain and retain the distribution/transportation partner.Keep good relationship and communication with partners that can strengthen the businesss products and service.


BenefitsLong-term cooperation with particular partner would give the quality assurance and dont need to spend another convert cost.Even more business can ask to decrease the distribution cost.

Focus on:the front end of the supply-chain

WayIntegrate the information generated from supply-chain planning software and CRM system. Supply-chain planning software can decide which products to build based on forecast.CRM system can analyze what the customer like based on the customers profile and purchase records.Combine these two information to make forecast and decision more accurate and appropriate.

Focus on: the front end of the supply-chain (cont.)

BenefitsMore accurate the forecasts and decisions are, the customers will like more the products that businesses build and buy more. So the profit increase.

Focus on:the front end of the supply-chain (cont.)

WayUse the B2B (business-to business) integration software .For example, E-procurement can pull product information directly to customer, it creates electronic order.After the order is approved online by the customer, a computer-generated purchase order shoots back to business and supplier.

Focus on: the front end of the supply-chain (cont.)

BenefitsIt would decrease the process cost.Electronic order can deliver over Internet, so the whole process time can be shortened.

Focus on : supply-chain execution software

WayAdd a tracking function for transportation management.Customers (retailers or wholesalers) can know where the products have been.Businesses can monitor the transportation of the products on time and correctly.

Focus on : supply-chain execution software (cont.)

BenefitsIncreasing the dependency of customer and the efficiency of transportation.

Do some searches from the Web and provide some historical background about the supply-chain management system ?951712

Supply-chain ManagementHistorical Background

Six major development can be observed in the evolution of supply chain management (SCM).

1. Creation Era2. Integration Era 3. Globalization Era4. Specialization Era -- Phase One Outsourced Manufacturing and Distribution5. Specialization Era -- Phase Two -- Supply Chain Management as a Service6. Supply Chain Management 2.0 (SCM 2.0)

Supply-chain Management (cont.)Historical Background

1. Creation Era The term supply chain management was first coined by an American industry consultant in the early 1980s.

Supply-chain Management (cont.)Historical Background

2. Integration Era This era of supply chain management was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems.

Historical Background

3. Globalization Era The third movement of supply chain management development, globalization era, can be characterized by the attention towards global systems of supplier relations and the expansion of supply chain over national boundaries and into other continents.Supply-chain Management (cont.)


4. Specialization Era -- Phase One Outsourced Manufacturing and Distribution In the 1990s industries began to focus on core competencies and adopted a specialization model. Supply-chain Management (cont.)


5. Specialization Era -- Phase Two -- Supply Chain Management as a Service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non asset based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management.Supply-chain Management (cont.)


6. Supply Chain Management 2.0 (SCM 2.0) Building off of globalization and specialization, SCM 2.0 has been coined to describe both the changes within the supply chain itself as well as the evolution of the processes, methods and tools that manage it in this new era.Supply-chain Management (cont.)

Supply-chain ManagementNow SCM contain two parts1.Supply Chain Execution Address particular segments along the supply chain. Like warehouse management and transportation management.

2. Supply Chain Planning Helps company decide which products to build and when, based on forecast, orders, capacity, and resource.

Describe who else may find the supply-chain management system useful. Give at least 5 examples. And, why you think so? 951637

Example 1 A Taiwans OEM printer manufacturer.

They cooperate with the world's leading brands of printer manufacturer.

Example 1 [ AVISION ]Background:

Since 1991World famous brand partners(Printer Company):Xerox (Fuji Xerox)LexmarkFujitsuPentax

Example 1 [ AVISION ]

EFFECTSWHYThe company uses the supply chain management to let the response be more rapid and reduce the artificial cost of operation.It helps the company to produce faster, higher quality, and products meet the customers need.The company uses the supply chain management to promote the data exchange of materials between upstream and downstream firms.It can reduce the error of stock predictions.

Example 1 (cont.) [ AVISION ]

EFFECTSWHYThe company uses the supply chain management to establish the material system of automatic tracing.It can confirm the movement of materials immediately.The Operation System imports the notice system of shipment.It can reduce the follow-up operations.

Example 2 The company is the fourth largest supplier of LCD panels in the world.

Example 2 [ Chi Mei Optoelectronics ]Background:

Since 1998

Main production : LCD panel Television

Example 2 [ Chi Mei Optoelectronics ]

EFFECTSWHYThe supply chain management uses the existing data to let the analysis be more effective.It can share resources between different departments.The supply chain management can bring easy-to-understand statements and diagrams between different departments.It can reduce the communication time during the meeting.

Example 2 [ Chi Mei Optoelectronics ]

EFFECTSWHYThe supply chain management can reduce the cost of business operation.It maximizes the benefits.The supply chain management standardized the communication platform.It can reduce the communication time between different departments.

Example 3 The company is Europes leading home improvement retail group.

They are also the third largest group in the world.

Example 3 [ Kingfisher PLC ]Background:

Since 1998

With leading market positions in the UK, France, Poland, Turkey and China. Main retail brands like B&Q.

Example 3 [ Kingfisher PLC ]

EFFECTSWHYThe supply chain management ensures that critical business will not be interrupted.It uses the value chain efficiently.The supply chain management provides the support services around the world.It can integrate all of the information from different companies around the world.

Example 4 The company is a manufacturer of digital camera.

Example 4 [ Premier ]Background:

Since 1974(main product camera)

Premier Technology Group is the foremost provider of joint-design, joint-development, manufacturing, assembly and after-sales services to global Computer, Communication and Consumer-electronics ("3C") leaders.

Example 4 [ Premier ]

EFFECTSWHYThe supply chain management let the exchange of information between companies and supplier be more rapid.It will has a clearly communicate of information.The supply chain management let the order process be E-order process.It can avoid the error of manual operation.The supply chain management let the logistics processes be smooth.It ensure the supply of materials be smooth.

Example 5 They are one of the worlds leading providers of semiconductor manufacturing services. And they pride themselves as a leader in offering a comprehensive range of advanced IC packaging.

Example 5 [ ASE GROUP ]Background:

Since 1984

Advanced Semiconductor Engineering Inc. (ASE Inc.)

Example 5 [ ASE GROUP ]

EFFECTSWHYThe supply chain management rapid establish of links with suppliers.It enhances the competitive advantage.By using the supply chain management, the company can share of electronic market.It helps the suppliers to expand the scale of bargain.The supply chain management provides a good competition platform between suppliers.It reduces the cost of procurement effectively.

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case 5 : brunswick corporation: improving supply-chain results

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