Transcript Supply Chain Integration Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 10 – 1

10
Supply Chain Integration
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
10 – 1
Supply Chain Integration
Upstream
Downstream
Tier 3
Tier 2
Tier 1
Tomato
suppliers
Tomato
grading
stations
Tomato
paste
factories
Ketchup
factory
Retail
sales
Consumers
Information flows
Cash flows
Figure 10.1 – Supply Chain for a Ketchup Factory
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
10 – 2
Supply Chain Dynamics
Manufacturer’s
weekly orders to
package supplier
Order quantity
9,000
Package supplier’s
weekly orders to
cardboard supplier
Retailers’ daily
orders to
manufacturer
7,000
Consumers’
daily
demands
5,000
3,000
0
Day 1
Day 30 Day 1
Day 30 Day 1
Day 30 Day 1
Day 30
Month of April
Figure 10.2 – Supply Chain Dynamics for Facial Tissue
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
10 – 3
First-Tier Supplier
Service/Product Provider
Support Processes
Support Processes
New service/
product
development
process
Supplier
relationship
process
Businessto-business
(B2B)
customer
relationship
process
Order
fulfillment
process
New service/
product
development
process
Supplier
relationship
process
Businessto-customer
(B2C)
customer
relationship
process
Order
fulfillment
process
External Consumers
External Suppliers
Integrated Supply Chain (SCOR model)
Figure 10.3 – External Supply Chain Linkages
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
10 – 4
A. New Service or Product Development
Design
 Service or
product not
profitable
Analysis
 Need to rethink
the new offering
or production
process
Development
 Post-launch
review
Figure 10.4 – New Service/Product Development Process
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Full Launch
10 – 5
Order Fulfillment Process
(include Production and Distribution)
1 (a)
Web site
2
JIT Inventory
1 (b)
Voice-to-voice
1 (d) Direct
relationship sales
1 (c)
Face-to-face
3
Traveler Sheet
4
Kitting
5 Assemble
to order
6 Testing and
system integration
7 Boxing
and shipping
8
Delivery
Figure 10.5 – Dell’s Order Fulfillment Process
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
10 – 6
Performance Measures
TABLE 10.1
|
SUPPLY CHAIN PROCESS MEASURES
Customer Relationship
Order Fulfillment
Supplier Relationship
 Percent of orders taken
accurately
 Percent of incomplete
orders shipped
 Percent of suppliers’
deliveries on-time
 Time to complete the order
placement process
 Percent of orders shipped
on-time
 Suppliers’ lead times
 Customer satisfaction with
the order placement
process
 Time to fulfill the order
 Customer’s evaluation of
firm’s environmental
stewardship
 Cost to produce the
service or item
 Percent of botched
services or returned items
 Customer satisfaction with
the order fulfillment
process
 Inventory levels of workin-process and finished
goods
 Amount of greenhouse
gasses emitted into the air
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
 Percent defects in
services and purchased
materials
 Cost of services and
purchased materials
 Inventory levels of
supplies and purchased
components
 Evaluation of supplier’s
collaboration on
streamlining and waste
conversion
 Amount of transfer of
environmental
technologies to suppliers
10 – 7
Closed Loop Supply Chain
(from consumption back to origin)
Production process
Distribution/Retailers
New service/product
development process
Customers
Direct reuse
Remanufacture
Repair
Returns
processor
Recycle parts
and materials
Product information
Waste
disposal
Forward logistics flow
Figure 10.6 – Flows in a Closed-Loop Supply Chain
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
Reverse logistics flow
10 – 8