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中央大學。范錚強 1
SCM: Supply Chain Management
國立中央大學、資訊管理系范錚強
Tel: (03)426-7250
Fax:(03)427-1990
mailto: [email protected]
http://www.mgt.ncu.edu.tw/~ckfarn
2004
中央大學。范錚強 2
Supply Chain
Here, we focus on the FIXED relationships among business buyers and sellers
Supply ChainFrom a FOCAL to its suppliers
Demand ChainFrom a customer to its FOCAL supplier
中央大學。范錚強 3
What is a Supply Chain
聯強
明日世界
顧客
華碩
瀚宇
Intel
世平
TSMC
華通
國巨
三星
Supply
Sources:plantsvendorsports
RegionalWarehouses:stocking points
Field Warehouses:stockingpoints
Customers,demandcenterssinks
Production/purchase costs
Inventory &warehousing costs
Transportation costs Inventory &
warehousing costs
Transportation costs
中央大學。范錚強 5
Definition:
Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying service requirements.
Notice:Everyone is involvedSystems approach to reducing costsIntegration is the key
Supply Chain Management
中央大學。范錚強 6
Conflicting Objectives in the Supply Chain
1. Purchasing• Stable volume requirements • Flexible delivery time• Little variation in mix• Large quantities
2. Manufacturing• Long run production• High quality• High productivity• Low production cost
中央大學。范錚強 7
Conflicting Objectives in the Supply Chain
3. Warehousing• Low inventory • Reduced transportation costs• Quick replenishment capability
4. Customers• Short order lead time• High in stock• Enormous variety of products• Low prices
中央大學。范錚強 8
The Dynamics of the Supply Chain
Ord
er
Siz
e
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
CustomerDemand
CustomerDemand
Retailer OrdersRetailer OrdersDistributor OrdersDistributor Orders
Production PlanProduction Plan
中央大學。范錚強 9
What Management Gets...
Ord
er
Siz
e
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
CustomerDemand
CustomerDemand
Production PlanProduction Plan
中央大學。范錚強 10
What Management Wants…
Vo
lum
es
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Production PlanProduction PlanCustomerDemand
CustomerDemand
中央大學。范錚強 11
The Dynamic Supply Chain
Increasing customer power leads to increased demands on retailers
Increased retailer power leads to increased demands on suppliers
中央大學。范錚強 12
Supply Chain: The Magnitude
In 1998, American companies spent $898 billion in supply-related activities (or 10.6% of Gross Domestic Product).
Transportation 58%
Inventory 38%
Management 4%
Third party logistics services grew in 1998 by 15% to nearly $40 billion
中央大學。范錚強 13
Supply Chain: The Magnitude
It is estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics strategies.
A typical box of cereal spends more than three months getting from factory to supermarket.
A typical new car spends 15 days traveling from the factory to the dealership, although actual travel time is 5 days.
中央大學。范錚強 14
Supply Chain: The Magnitude
Compaq computer estimates it lost $500 million to $1 billion in sales in 1995 because its laptops and desktops were not available when and where customers were ready to buy them.
In 1993, IBM lost a major fraction of its potential sales of desktop computers because it could not purchase enough chips that control the computer displays.
中央大學。范錚強 15
Supply Chain: The Magnitude
Boeing Aircraft, one of America’s leading capital goods producers, was forced to announce writedowns of $2.6 billion in October 1997.
The reason? “Raw material shortages, internal and supplier parts shortages…”. (Wall Street Journal, Oct. 23, 1997)
中央大學。范錚強 16
Supply Chain: The Potential
In 10 years, Wal-Mart transformed itself by changing its logistics system. It has the highest sales per square foot, inventory turnover and operating profit of any discount retailer.
Laura Ashley turns its inventory 10 times a year, five times faster than three years ago. This is achieved by using
- New Information System
- Centralized Warehouse
中央大學。范錚強 17
ISSUES:Why Keep Inventory?
Uncertainty in customer demands
Uncertainty in the supply
Uncertainty in quantity and quality
Uncertainty in delivery time
Uncertainty in costs
Economies of scale
中央大學。范錚強 18
General Systems Theory
Input, Process, Output, Feedback
ProcessInput Output
Feedback
中央大學。范錚強 19
Buffer: Inventory
ProcessInput Output
回饋
ProcessInput Output
回饋
ProcessInput Output
回饋
Inter-system interface resource contention
To avoid contention add buffer
Companies LOVES and HATES inventory
The Best Inventory Management: No inventory
中央大學。范錚強 20
ISSUES:Demand Forecast
The three principles of all forecasting techniques:
Forecasting is always wrong
The longer the forecast horizon the worse the forecast
Aggregate forecasts are more accurate
中央大學。范錚強 21
ISSUES: What’s New in Logistics?
Global competition
Shorter product life cycle
Increasing product variety
New, low-cost distribution channels
More powerful well-informed customers
中央大學。范錚強 22
ISSUES: What’s New in Logistics?
New communications and information technologies POS and EDI technology
Wireless technology
Decision Support Systems
Integrated systems
Multi-modal transportation
中央大學。范錚強 23
ISSUES: What’s New in Logistics?
New concepts in logistics
Push Vs Pull strategies
Cross docking
Strategic alliances
Manufacturing postponement
Design for Logistics
中央大學。范錚強 24
Visibility
Distributor
Manufacturer
Store Store Store
Replenishments from supplier
0
200
400
600
800
1000
1200
1400
Demand at retailer's warehouse
0
2 0 0
4 0 0
6 0 0
8 0 0
1 0 0 0
1 2 0 0
1 4 0 0
orders
sell-through
中央大學。范錚強 25
Environmental Changes
Processing and communication speed
Response timePotential
Requirements
E.g. 982
Things that were unimportant before becomes important
中央大學。范錚強 26
Keys to improving SC effectiveness
Visibility
Postment