Transcript Main Function of GSCM

Main Function of SCM (Part II)
Main Functions
 Procurement (supplier selection, optimal
procurement policies, etc.)
 Manufacturing (plant location, product line
selection, capacity planning, production
scheduling, etc.)
 Distribution (warehouse location, customer
allocation, demand forecasting, inventory
management, etc.)
 Logistics (selection of logistics mode, selection
of ports, direct delivery, vehicle scheduling,
etc.)
 Global Decisions (product and process
selection, planning under uncertainty, real-time
monitoring and control, integrated scheduling)
Logistics
 To manage the supply chain and science of
managing and controlling the flow of goods,
information and other resources like energy
and people between the point of origin and the
point of consumption in order to meet
customers' requirements
 To involve the integration of information,
transportation, inventory, warehousing,
material handling, and packaging
Design Options for Facility Decision
Making
 Manufacturer Storage with Direct Shipping
 Manufacturer Storage with Direct Shipping and
In-Transit Merge
 Distributor Storage with Carrier Delivery
 Distributor Storage with Last Mile Delivery
 Manufacturer or Distributor Storage with
Consumer Pickup
 Retail Storage with Consumer Pickup
 Selecting a Distribution Network Design
Variation in Logistics Costs and Response
Time with Number of Facilities
Response Time
Total Logistics Costs
Number of Facilities
Manufacturer or Distributor Storage
with Customer Pickup
Factories
Retailer
Cross Dock DC
Pickup Sites
Customers
Customer Flow
Product Flow
Information Flow
Global Decisions
 Strategic network optimization, including the
number, location, and size of warehouses,
distribution centers and facilities.
 Strategic partnership with suppliers,
distributors, and customers, creating
communication channels for critical information
and operational improvements.
Global Decisions
 Product design coordination, so that new and
existing products can be optimally integrated
into the supply chain, load management
 Information Technology infrastructure, to
support supply chain operations.
 Where-to-make and what-to-make-or-buy
decisions
Case Study : UPS’s Global Supply
Chain Solution for Cisco
 Cisco asked UPS Supply Chain Solutions to reengineer and manage its European supply
chain
 “The key for us was integrating a solution that
was seamless to both the customer and Cisco,”
stated Edwin de Boer, Manager of EMEA
Logistics, Cisco Systems
UPS’s Challenges
 Cisco’s shipping area suffered congestion, with
more than 150 different transportation
providers picking up finished goods.
 Cisco had limited control or visibility of finished
goods in the shipping area.
 Customer service opportunities were limited.
 Transportation costs for European customers
were higher than they would have been for a
coordinated distribution system
UPS Supply Chain Solution
Create an integrated solution to manage
transportation from manufacturer to Cisco
customers. Crossdocking, fulfillment and VAS
occur at a centralized distribution center
How did technology help UPS and
Cisco ?
 To integrate UPS supply chain solution with
Cisco ERP system
 Every logistics movement registered in the UPS
Supply Chain Solutions system is also
registered immediately in the Cisco system
 To allow the customers to compile and send
their own shipping reports via the Internet
The Outcome
 Consolidated transportation carriers from 150
to 6 total
 Achieved online visibility of the supply chain
 Enabled time-definite deliveries and consistent
rates
 Handled customs clearance, documentation,
billing and carrier selection
Discuss the following questions:
 What problems do UPS address? How does
UPS supply chain solution help solve these
problems?
 What issues and challenges do Cisco
present? What can be done to address these
issues?
 What are the business as well as the
technology issues that should be addressed
when UPS and Cisco integrate global supply
chain solution?