SUPPLY CHAIN MANAGEMENT
Design an Ideal Supply Chain Strategy
Muhammad Arif Naufal
5 Approaches in Designing Supply Chains
Quality (quality of a product or services) Speed (waiting time)
Dependability (on-time)
Flexibility (ability to cope disturbances) Cost (competitiveness of cost)
SUPPLY CHAIN WITH FIVE OBJECTIVES
2.
Determine whether the product is innovative or functional.
Decide to design a supply chain towards responsiveness to the market.
Formulate an ideal supply chain strategy.
EFFICIENT AND RESPONSIVE SUPPLY CHAIN
1.
5 Approaches in Designing Supply Chains
Removing waste and delays.process design quality management
constraint management layout design
supply chain design
technology and inventory management
Keeping the minimum levels of inventory as well as assuring production process continuously to reduce cost and maintain product quality.
Objectives:
SUPPLY CHAIN USING LEAN SYSTEM APPROACH
3.
5 Approaches in Designing Supply Chains
Toyota Production System (TPS) is an example for
utilizing lean systems approach. TPS pursues the aims of highest quality, lowest cost, no waste, and shortest lead time with the supports of Just In Time (JIT)
system to reduce inventory level and non-value-added activities along with Jidoka, a visual management
system to always guarantee the quality of products
meeting customers‟ expectations within the culture of continuous improvement.
SUPPLY CHAIN USING LEAN SYSTEM APPROACH
4.
5 Approaches in Designing Supply Chains
SUPPLY CHAIN USING LEAN SYSTEM APPROACH
The degree of complexity of products/services and the uncertainty demand influence:
5 Approaches in Designing Supply Chains
Agility
Adaptability
Alignment (information, identities, and incentives).
The performance of supply chains which focused on greater speed and cost-
effectiveness got worse and decreased the consumer satisfaction with product
availability over the period.
TRIPPLE-A SUPPLY CHAIN
5.
5 Approaches in Designing Supply Chains
TRIPPLE-A SUPPLY CHAIN
Triple-A strategy
Improvement of Supply
Chain
Performance
Improvement of marketing performance
Improvement of financial performance Impact of the Tripple-A strategy on organizational performance:
5 Approaches in Designing Supply Chains
Financial responsibility
Environmental responsibility Social responsibility
“The needs of the present without compromising the ability of future generations to meet their own needs".
SUPPLY CHAIN TOWARDS SUSTAINABILITY
“The effective coordination of supply chain processes through the seamless flow of information up and down the supply chain”.
Sharing data on sales and inventories between partners throughout the supply chain
Creating collaboration among activities
Reducing lead times that will lead to diminishing bullwhip effect and cutting pipeline inventories
Lowering order lot sizes
Limiting short supplies to intentional behaviors of customers when they inflate their orders after a prediction of shortage in the
future.
etc.
Advantages of an integrated supply chain:
DESIGN AN
INTEGRATED
SUPPLY CHAIN
DISRUPTION OF A SUPPLY CHAIN INTEGRATION
Changing the quantities of ordered items or the mix of items in an order from customers
Late deliveries and underfilled shipments from suppliers
Generated shortages due to machine breakdowns Inexperienced workers
Changes in designing services or products
Introducing new services or products, doing promotions and information errors
External disruptions:
Internal disruptions:
DESIGN AN INTEGRATED SUPPLY CHAIN
HOW TO MINIMIZE THE DISRUPTIONS
BY HAVING HIGH DEGREE OF FUNCTIONAL AND ORGANIZATIONAL INTEGRATION
NEW SERVICE OR PRODUCT DEVELOPMENT PROCESS
Define the requirements of the supply chain and its final purpose by creating new products or services that are suitable with the corporate and competitive
capabilities.
SUPPLIER RELATIONSHIP PROCESS
It goes through sourcing, design, collaboration, negotiation, buying, and information exchange with
the suppliers.
ORDER FULFILLMENT PROCESS
This process contains processes of customer demand planning, supply planning, production and logistics to produce and deliver products or services
to customers.
ORDER FULFILLMENT PROCESS
This process contains processes of customer demand planning, supply planning, production and logistics to produce and deliver products or services
to customers.
Summary of different approaches to design an ideal supply chain
Design and efficient and responsive supply chain
Cost, Speed
Emphasized features:
Design a Supply Chain with 5 objectives (quality, speed, dependability, flexibility, and cost)
Cost, Speed, Quality, Dependability, and Flexibility
Emphasized features:
Design a supply chain using the lean systems approach
Lean (No waste, Cost, Speed, Quality, Dependability)
Emphasized features:
Design a Triple-A supply chain
Agility, adaptibility, and alignment
Emphasized features:
Design a supply chain towards sustainability
Financial responsibility,
environmental responsibility, and social responsibility.
Emphasized features:
