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Implementing Supply Chain Management and e-Fulfillment

Chapter 9Chapter 9

© e-Business Strategies, Inc.

The Basics of Supply Chain ManagementThe Basics of Supply Chain Management

• Material Flows

• Information Flows

• Financial Flows


Supply Chain Investment TrendsSupply Chain Investment Trends

• Trend toward worldwide dispersion of mfg. and distribution facilities

• Channel unpredictability

• Responsiveness over efficiency

• Companies’ willingness to accept lower margins to maintain/increase market share


Internet-Enabled SCMInternet-Enabled SCM

• Interenterprise Integration

• High-Performance Supply Chains– Responsive – to customer needs– Adaptive – to changing demand– Intelligent - dynamic


SCM Planning and ExecutionSCM Planning and Execution

• Supply Chain Planning (SCP)– Order Commitment– Advanced Scheduling– Demand Planning– Distribution Planning– Transportation

Planning

• Supply Chain Execution (SCE)– Order Planning– Production– Replenishment– Distribution

Management– Reverse Distribution

or Logistics


e-Supply Chain Fusione-Supply Chain Fusion

• Diagnosing Root Causes of Supply Chain Problems– Lack of knowledge about end-to-end demand

planning– Inconsistent or out-of-date data– Lack of process integration across partners


e-Supply Chain Fusione-Supply Chain Fusion

• Fixing the Root Cause– Enable information sharing– Create joint performance measurement systems and

collaborative planning processes– Realign work and collaborate fiercely– Redesign products/processes so work becomes

easier/more efficient


Management Issues in e-Supply Chain Management Issues in e-Supply Chain FusionFusion

• Determining the Right e-Supply Chain Structure

• Enabling Effective Differentiation Capabilities

• Facilitating Effective Order-Fulfillment Capabilities

• Determining the Right Infrastructure Capabilities


The Continuing Evolution of e-Supply ChainsThe Continuing Evolution of e-Supply Chains

• Integrated Make-to-Stock: Starbucks

• Continuous Replenishment: The CVS Pharmacy-McKesson Demand Chain

• Build-to-Order: Intel, Solectron, and Ingram Micro


A Roadmap for ManagersA Roadmap for Managers

• Clarify your supply chain goals

• Conduct a supply-chain readiness audit

• Develop a business case

• Establish a supply chain coordination unit

• Begin supplier integration

• Develop a performance scorecard

• Educate, educate, educate

• Learn to manage failure

End of Chapter 9End of Chapter 9

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Education