supply chain basics presentation
TRANSCRIPT
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7/31/2019 Supply Chain Basics Presentation
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ASQ Customer Supplier DivisionASQ Customer Supplier Division
2007 Symposium2007 Symposium
22
When you hearWhen you hear
Supply Chain BasicsSupply Chain Basics
What comes to mind?What comes to mind?
33
SuppliersYour
CompanyCustomers
ProductsProducts
InformationInformation
FundsFunds
44
Right productRight product
Right qualityRight quality
Right costRight cost
Right timeRight time
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55
Supply ChainSupply Chain
IsIs
PeoplePeople
66
CollaborationCollaboration
The ability of peopleThe ability of people
to work togetherto work together
across departmentalacross departmental
and company boundariesand company boundaries
77
How do I ensure ideasHow do I ensure ideas
get implemented?get implemented?
How do I bring otherHow do I bring other
people with me?people with me?
How do I make myHow do I make my
supply chain processsupply chain processmore effective?more effective?
88
Implementation of lean manufacturingImplementation of lean manufacturing
with key supplierswith key suppliers
Monitoring and ensuring suppliers meetMonitoring and ensuring suppliers meet
quality and delivery requirementsquality and delivery requirements
Ensuring quality when dealing with offEnsuring quality when dealing with off--
shore suppliersshore suppliers
Finding the right suppliersFinding the right suppliers
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99
Company strategyCompany strategy
Supply chain strategySupply chain strategy
Commodity plansCommodity plans
Sourcing teamsSourcing teams
1010
Customers and marketsCustomers and markets
New productsNew products
Core competenciesCore competencies
Organization structureOrganization structure
1111
Customer serviceCustomer service
Manufacturing /Manufacturing /
outsourcingoutsourcing
Strategic sourcingStrategic sourcing
Transportation, distribution, and logisticsTransportation, distribution, and logistics
1212
Alignment ofAlignment of
Supply Chain StrategySupply Chain Strategy
with Company Strategywith Company Strategy
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LeverageLeverageRoutineRoutine
Strategic (critical)Strategic (critical)BottleneckBottleneckHigh
Low High
Low
RISK
VALUE
LeverageLeverage
High COGSHigh COGS
Does not differentiateDoes not differentiate
Many producersMany producers
RoutineRoutine
Industry standard specIndustry standard spec
Many producersMany producers
Low cost to switchLow cost to switch
Strategic (critical)Strategic (critical)
Significant P&L impactSignificant P&L impact
Key customer benefitKey customer benefit
Limited supply baseLimited supply base
BottleneckBottleneck
Low spendLow spend
No customer impactNo customer impact
Unique specsUnique specs
High
Low High
Low
RISK
VALUE
LeverageLeverage
Active negotiation andActive negotiation and
sourcingsourcing
Watch market changesWatch market changes
RoutineRoutine
Minimize admin costMinimize admin cost
ReRe--engineer outengineer out
Explore new methodsExplore new methods
Strategic (critical)Strategic (critical)
Process improvementProcess improvement
Sr. mgmt. involvedSr. mgmt. involved
Increase marketIncrease market
knowledgeknowledge
BottleneckBottleneck
Contingency PlansContingency Plans
Develop competitionDevelop competition
Increase technicalIncrease technical
understandingunderstanding
High
Low High
Low
RISK
VALUE
LeverageLeverage
Maximize buyingMaximize buying
powerpower
RoutineRoutine
Simplify acquisitionSimplify acquisition
processprocess
Strategic (critical)Strategic (critical)
Develop partnershipsDevelop partnerships Joint developmentJoint development
programsprograms
BottleneckBottleneck
Ensure supplyEnsure supplyavailabilityavailability
Develop alternatesDevelop alternates
High
Low High
Low
RISK
VALUE
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1717
Short termShort term 1 to 2 years1 to 2 years
Focused onFocused on
How many/which suppliersHow many/which suppliers
Total costTotal cost
Material availabilityMaterial availability Supplier qualitySupplier quality
1818
Commodity focusedCommodity focused
Cross functionalCross functional
EmpoweredEmpowered
GlobalGlobal
1919
Measure
Results
Develop
JointPrograms
Build
Trust
ShareInformation
2020
Share strategiesShare strategies
Open booksOpen books
Share resourcesShare resources
Joint problem solvingJoint problem solving
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R&D
Qualit
yRegula
tory
Finance
MarketingManufacturingAccounting
Mana
geme
nt
Sales
R&D
Quality
Regulatory
Finance
Marke
ting
Manufac
turing
Accounting
Management
Purchasing
Supplier Customer
Traditional
Seller-Buyer
Relationship
2222
R&DR&D
Marketing Ma
rketing
Manufac
turing Manufacturing
Accounting Accounting
Sales Purchasing
Finance Finance
Regulatory Regula
tory
Quality QualityM
anagement
Mana
gement
Supplier Customer
Partnering Relationship
2323
What is a partner?What is a partner?
Do we need partners?Do we need partners?
How many supplier partnersHow many supplier partners
can we have?can we have?
2424
Total costTotal cost
Customer satisfactionCustomer satisfaction Inventory velocityInventory velocity
Quality ofQuality of
product/serviceproduct/service
GreennessGreenness
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2525
Most companiesMost companiesprovide the resourcesprovide the resources
Most companiesMost companieshave good peoplehave good people
MostMostsoftware systems worksoftware systems work
2626
Group/team functionalityGroup/team functionality
Relationship building skillsRelationship building skills
Communication skillsCommunication skills
Training/developmentTraining/development
2727
For more information, visit:For more information, visit:
www.HShieldsConsulting.comwww.HShieldsConsulting.com
-- oror--
ee--mail Herb Shields atmail Herb Shields at
[email protected]@aol.com