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CHAPTER 11 Supply Chain Management การจัดการโซ่ อปุ ทาน Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Supply Chain โซ่ อุปทาน หรื อเครื อข่ายผูข้ ายปั จจัยการผลิต (Supply Chain) จะประกอบ ไปด้วยทุกๆ ขั้นตอนที่เกี่ยวข้องกับการตอบสนองความต้องการของลูกค้า ผูผ้ ลิต หรื อ ผูจ้ ดั ส่ งวัตถุดิบ ผูข้ นส่ ง คลังสิ นค้า พ่อค้าคนกลาง และลูกค้าอีกด้วย • • • • • กลุ่มธุรกิจที่เกี่ยวข้องกับกระบวนการ SCM ผูป้ ้ อนวัตถุดิบ (Supplier) ผูผ้ ลิต (Manufacturer) ตัวแทนจาหน่ายและกระจายสิ นค้า (Distributer) ผูค้ า้ ส่ ง (Wholesaler) และผูค้ า้ ปลีก (Retailer) ผูบ้ ริ โภค (Customer) Supply Chain Supply chain management (SCM) • The goal of SCM is to match supply to demand as effectively and efficiently as possible. • SCM process includes Planning Implementing Controlling Key issues of SCM • • • • • • Determining the appropriate level of outsourcing Managing procurement Managing suppliers Managing customer relationships Being able to quickly identify problems and respond to them Managing risk Producing vs. Outsourcing เหตุผลสาหรับการทาเอง ต้นทุนต่า ผูจ้ ดั หาวัตถุดิบมีคุณสมบัติไม่เหมาะสม มีปัจจัยการผลิตเพียงพอ สร้างกาไรด้านแรงงาน ตอบสนองด้านคุณภาพ ตัดปัญหาผูจ้ ดั หาวัตถุดิบหลอกลวง ใช้วตั ถุดิบไม่เหมือนใคร ไม่เกิดการพักงานของพนักงาน ป้ องกันด้านการออกแบบและคุณภาพ เหตุผลสาหรับการซื้อ ต้นทุนการได้มาต่ากว่า มีขอ้ ผูกมัดกับผูจ้ ดั หาวัตถุดิบ มีเทคนิคดีกว่า ไม่มีขีดความสามารถเพียงพอ ลดต้นทุนคงคลัง มีทางเลือกด้านแหล่งขาย ขาดการบริ หารทรัพยากร เป็ นการช่วยเหลือซึ่ งกันและกัน สิ นค้ามีลิขสิ ทธิ์ Key issues of SCM • • • • • • Determining the appropriate level of outsourcing Managing procurement Managing suppliers Managing customer relationships Being able to quickly identify problems and respond to them Managing risk Trend in SCM • • • • • Reevaluation of outsourcing Risk management Inventory management Lean supply chains Sustainability Global Supply Chains • Increasing complexity Language Culture Currency fluctuations Political Transportation costs Local capabilities Finance and economics Environmental Management responsibilities • • • Legal responsibilities: being knowledgeable about laws and regulations, obeying the laws and operating to conform to regulations Economic responsibilities: supplying products and services to meet demands as efficiently as possible Ethical responsibilities: conducting business in ways that are consistent with the moral standards of society Benefits of Supply Chain Management • • • • • • • Lower inventories/increase inventory turnover Higher productivity Greater agility Shorter lead times Higher profits Greater customer loyalty Integrates separate organizations into a cohesive operating system Functions and Activities • • • • • • • • Forecasting Purchasing Inventory management Information management Quality assurance Scheduling Production and delivery Customer service Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Purchasing • Purchasing is responsible for obtaining the materials, parts, and supplies and services needed to produce a product or provide a service. • Goal: Develop and implement purchasing plans for products and services that support operations strategies • Important factors of purchasing include: Cost Quality Timing Purchasing interfaces Organization Operations Receiving Legal Purchasing Accounting Data processing Suppliers Design Duties of Purchasing • Identifying sources of supply • Negotiating contracts • Maintaining a database of suppliers • Obtaining goods and services • Managing supplies Purchasing Cycle 1. 2. 3. 4. 5. Receive requisition Select supplier Place order with a vendor Monitor orders Receive orders Value analysis • Examination of the function of purchased parts and materials in an effort to reduce cost and/or improve performance Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics E-Business • E-Business: the use of electronic technology to facilitate business transactions • Applications include • Internet buying and selling • E-mail • Order and shipment tracking • Electronic data interchange (EDI) Advantages E-Business • Companies can: • Have a global presence • Improve competitiveness and quality • Analyze customer interests • Collect detailed information • Shorten supply chain response times • Realize substantial cost savings • Create virtual companies • Level the playing field for small companies Disadvantages of E-Business • Customer expectations • Order quickly fast delivery • Order fulfillment • Order rate often exceeds ability to fulfill it • Inventory holding • Outsourcing loss of control • Internal holding costs Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Factors in Choosing a Supplier • Quality and quality assurance • Flexibility • Location • Price • Product or service changes • Reputation and financial stability • Lead times and on-time delivery Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Evaluating Sources of Supply • Vendor analysis - evaluating the sources of supply in terms of • Price • Quality • Services • Location • Inventory policy • Flexibility Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Supplier audits • Management style • Quality assurance • Materials management • The design processed used • Process improvement policies • Procedures for corrective action and follow-up Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Supplier Relationship Management • Short-term contracts: competitive bidding • Medium-term contracts: ongoing relationship • Long-term contracts: partnerships stable relationship with few reliable suppliers who can provide high-quality supplies, maintain precise delivery schedules, and remain flexible relative to changes in productive specifications and delivery schedules Supplier as a Partner Aspect Supplier Partner Number of suppliers Many One or a few Length of relationship May be brief Long-term Low price Major consideration Moderately important Reliability May not be high High Openness Low High Quality Volume of business May be unreliable; buyer inspects At the source; vendor certified May be low High Flexibility Relatively low Relatively high Location Widely dispersed Nearness is important Suppliers Management • Choosing suppliers • Evaluating sources of supply • Supplier audits • Supplier certification • Supplier relationship management • Supplier partnerships Supplier Partnerships • Ideas from suppliers could lead to improved competitiveness; • • • • • • • • • Reduce cost of making the purchase Reduce transportation costs Reduce production costs Improve product quality Improve product design Reduce time to market Improve customer satisfaction Reduce inventory costs Introduce new products or services CPFR Collaborative Planning, Forecasting, and Replenishment (CPFR) Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Velocity • Inventory velocity • The rate at which inventory (material) goes through the supply chain. • The greater the velocity, the lower the inventory holding costs and the faster orders are filled and goods are turned into cash. Bullwhip Effect Demand Initial Supplier Final Customer Inventory oscillations become progressively larger looking backward through the supply chain Reduce inventory Inventory level Process downtime Scrap Setup Quality time problems Late deliveries Reduce inventory Inventory level Process downtime Scrap Setup Quality time problems Late deliveries Reduce inventory Inventory level Process downtime Scrap Setup Quality time problems Late deliveries Order fulfillment • • • • Engineer-to-Order (ETO) Make-to-Order (MTO) Assemble-to-Order (ATO) Make-to-Stock (MTS) Content • Overview • Purchasing • E-business • Supplier management • Inventory management • Logistics Logistics “Refers to the movement of materials and information within a facility and to incoming and outgoing shipments of goods and materials in a supply chain” SUPPLY CHAIN Logistics Logistics • Movement within the facility • Incoming and outgoing shipments • Tracking goods: bar code, RFID, EDI • Distribution • JIT Deliveries Materials Movement Work center 2 Work center Work center Storage Work center 1 3 Storage Storage Shipping Receiving Movement within facility 1. From incoming vehicles to receiving 2. From receiving to storage 3. From storage to the point of use 4. From one work center to the next or temporary storage 5. From the last operation to final storage 6. From storage to packaging/shipping 7. From shipping to outgoing vehicles Logistics • Movement within the facility • Incoming and outgoing shipments traffic management • Tracking goods: bar code, RFID, EDI • Distribution • JIT Deliveries Logistics • Movement within the facility • Incoming and outgoing shipments • Tracking goods: • bar code • RFID: Radio Frequency Identification • EDI: Electronics Data Interchange • Distribution • JIT Deliveries Logistics • Movement within the facility • Incoming and outgoing shipments • Tracking goods: bar code, RFID, EDI • Distribution • JIT Deliveries Distribution Requirements Planning • Distribution requirements planning (DRP) is a system for inventory management and distribution planning • Extends the concepts of MRPII (Material requirements planning ,chapter 12) Logistics • Movement within the facility • Incoming and outgoing shipments • Tracking goods: bar code, RFID, EDI • Distribution • JIT (Just-in-Time) Deliveries Reverse Logistics • Reverse logistics – the backward flow of goods returned to the supply chain • Returned goods include: Defective products Recalled products Obsolete products Unsold products returned from retailers Parts replaced in the field Item for recycling Waste Reverse Logistics • Processing returned goods Restocking Sorting Reconditioning Examining/testing Repairing Recycling Disposing • Gatekeeping – screening returned goods to prevent incorrect acceptance of goods • Avoidance – finding ways to minimize the number of items that are returned Summary Creating an effective supply chain • Trust • Effective communication • Information velocity: the faster info flows (two-way), the better • Supply chain visibility: access to data in real time • Event management capability: ability to detect unplanned events • Performance metrics Performance metrics • To confirm that the supply chain is functioning as expected Financial - Return on assets - Cost - Cash flow - Profits Suppliers - Quality - On-time delivery - Cooperation - Flexibility Operations - Productivity - Quality Inventory - Average value - Turnover - Weeks of supply Order fulfillment - Order accuracy - Time to fill order - % of incomplete order shipped - % of orders delivered on time Customers - Customer satisfaction - % of customer complaints SCOR Metrics(Supply Chain Operations Reference) Perspective Reliability Flexibility Expenses Assets/utilization Metrics On-time delivery Order fulfillment lead time Fill rate (fraction of demand met from stock) Perfect order fulfillment Supply chain response time Upside production flexibility Supply chain management costs Warranty cost as a percent of revenue Value added per employee Total inventory days of supply Cash-to-cash cycle time Net asset turns Dealing with trade-offs 1. 2. 3. 4. 5. Lot size-inventory trade-off Inventory-transportation costs trade-off Lead time-transportation costs trade-off Product variety-inventory trade-off Cost-customer service trade-off Risk management Supply Chain Benefits and Drawbacks Problem Potential Improvement Benefits Large inventories Smaller, more frequent deliveries Delayed differentiation Disintermediation Modular Reduced holding costs Quick response Outsourcing Reduced cost, higher Loss of control quality Able to match supply Less variety and demand Long lead times Large number of parts Cost Quality Variability Shorter lead times, better forecasts Fewer parts Simpler ordering Possible Drawbacks Traffic congestion Increased costs May not be feasible May need absorb functions Less variety