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More than seven years experiencein Supply Chain in FMCGcompanies (Kraft, Perfetti VanMelle, Timex)

Certified Supply ChainProfessional from APICS US 2011

Master in TechnologyManagement from UP Diliman -

2006

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Give a definition and present themajor themes of supply chainmanagement

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The global networkused to deliverproducts andservices from raw

materials to endcustomers throughan engineered flowof information,

physical distributionand cash

Definition from APICS Dictionary 13th

Edition

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The challenge for thesupply chain manageris designingprocesses that will

effectively link theinternal activities ofthe firm with thecomplementaryactivities within itssuppliers andcustomers.

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SupplierCollaboration

Internal FirmActivities

CustomerCollaboration

III. Supply Matrix

I. Inventory and Materials Management

II. Network Planning

Distribution and Logistics

IV. Collaborative Arrangements

Sourcing and Supplier Selection

Supply ContractsCustomer Relationship

Management

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Service Level X XCycle Time

Determining appropriate inventory level based to meet customer expectations

X Average Demand

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Furniture

Make to order

and consolidate

deliveries

Computers

Assemble to

order with and

stock in few

locations

Grocery

Make to stock

and store in

multiple locations

Books/CD

Make to stock

and may expeditetransport

Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed

Involves positioning inventory and designing the physical supply chain

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Bottleneck

Ensure Supply

Strategic

Form

partnerships

Non-critical

Simplify and

automate

Leverage

Exploit buyer

power

Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed

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Shipping

Cartons

Flavours and

Ingredients

Office

Supplies

Consultancy

Services

Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed

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Focus on orderfulfilment

No informationsharing

Sales data is sharedbetween partners

Inventory owned bybuyer

Agreed inventorylevels

Inventory owned byeither buyer or

supplier

Inventory is ownedand managed by

supplier

Increasing Trust and Collaboration between Parties

How does a firm respond to customer demand?

Adopted from Simchi-Levi et al Designingand Managing the Supply Chain 3rd ed

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SupplierCollaboration

Internal FirmActivities

CustomerCollaboration

III. Supply Matrix

I. Inventory and Materials Management

II. Network Planning

Distribution and Logistics

IV. Collaborative Arrangements

Sourcing and Supplier Selection

Supply ContractsCustomer Relationship

Management

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Internal Activities Service Level or Fill Rate

Inventory Weeks of Supply

Demand Forecasts Accuracy

Customer-Facing Activities Joint KPIs

Demand Forecasts Accuracy (atper customer level)

R

Supplier-Facing Activities Joint Planning KPIs

Supplier Performance (lead timeand quality)

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