CSCMP – Chicago April 12, 2012

Supply Chain Building & Re-Engineering

(Tales from the Front!)

Supply Chain Evaluation Steps

1. Define Strategic Supply Chain Requirements

Alignment with Corporate Objectives & Metrics!!!!

Hoshin is One Method

Customer Service

Sales & Operations Planning

Global Sourcing

Material Buying & Production Scheduling

Inv. Control / Warehousing

Transportation /

Forecasting &

Master Schedule

Manufacturing Operations

Now 1 month 2 months 3 months 4 months 5 months 6 months

What is proper Supply Chain Structure? Supply Chain (Priorities) Planning

Capacity Planning

Resource Planning Rough-Cut Capacity Planning

Capacity Requirements Planning

Input / Output Control Operations Sequencing

Production Scheduling Material Buying

Forecasting / VMI / Demand Management

Global Sourcing

Sales & Operations Planning

Master Scheduling

Approximate Timeframes

Customer Service Demand Management

Forecasting

Sales & Operations Planning (S&OP) / Master Scheduling

Global Sourcing Material Buyer /

Production Scheduling

• Demand Management -Forecasting -Order Service Policy -Total Demand Aggreg. • Inventory Management • Vendor Managed Inv. • Customer Planned Inv. • Customer Inquiry

Support

• Rough-Cut Capacity Planning

•  Resource Planning •  FG Master Scheduling •  Capacity Planning • Delivery Perf. Metrics •  MRP Oversight - Data Entry / validation - BOM Maintenance •  Sub-Contract vs. in-

house

•  Contract Negotiation & Administration •  Long-Term Agreement

Structure •  New Supplier Research •  Supplier Development •  Supplier Relationship

Mgt (high level) •  Industry / Supplier Cap.

Review •  Multi-Sourcing Strategy

Dev. •  Develop Supplier KPIs • Supplier Inventory

Levels

•  Supplier Relationship Mgt (day-to-day)

•  Issue Release Orders •  Manage outsourcing

(Temp) •  Daily issue resolution - Delivery Perf. - PPV Variance - PO clarification •  Minor quality issue

resolution •  Quality coordination •  RM Inventory Mgt •  Supplier Perf. Metrics

Supply Chain Skill Set Distribution

Supply Chain Operational Hierarchy