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Supply Chain Management (5th Edition)

سلسلة توريد

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sojoud shorbaji
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41 views

Supply Chain Management (5th Edition)

سلسلة توريد

Uploaded by

sojoud shorbaji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Supply Chain Management

(5th Edition)

Chapter 3
Supply Chain Drivers and Obstacles

© 2007 Pearson Education 3-1

A Framework for
Structuring Drivers
Competitive Strategy

Supply Chain
Strategy
Efficiency Responsiveness
Supply chain structure

Logistical Drivers

Facilities Inventory Transportation

Information Sourcing Pricing

Cross Functional Drivers

© 2007 Pearson Education 3-2

A Framework for
Structuring Drivers

We provide a visual framework for supply chain


decision making in Figure 3-1. Most companies begin
with a competitive strategy and then decide what their
supply chain strategy ought to be.

The supply chain strategy determines how the supply


chain should perform with respect to
efficiency and responsiveness.

© 2007 Pearson Education 2-3

1
A Framework for
Structuring Drivers
The supply chain must then use the three logistical
and three cross-functional drivers to reach the
performance level the supply chain strategy dictates
and maximize the supply chain profits.
Although this framework is generally viewed from the
top down, in many instances, a study of the six drivers
may indicate the need to change the supply
chain strategy and potentially even the competitive
strategy.
The main objective of this framework is “Maximizing
profits for a company”
© 2007 Pearson Education 2-4

Drivers of Supply Chain Performance


1. Facilities are the actual physical locations in the
supply chain network where product is stored,
assembled, or fabricated. The two major types of
facilities are production sites and storage sites.

2. Inventory encompasses all raw materials, work in


process, and finished goods within a supply chain. The
inventory belonging to a firm is reported under assets.
Changing inventory policies can dramatically alter the
supply chain’s efficiency and responsiveness.

© 2007 Pearson Education 2-5

Drivers of Supply Chain Performance


3. Transportation entails moving inventory from
point to point in the supply chain.
Transportation can take the form of many
combinations of modes and routes, each with its own
performance characteristics.
 4. Information consists of data and analysis
concerning facilities, inventory, transportation, costs,
prices, and customers throughout the supply chain.
Information is potentially the biggest driver of
performance in the supply chain because it directly
affects each of the other drivers.
© 2007 Pearson Education 2-6

2
Drivers of Supply Chain Performance
5.Sourcing is the choice of who will perform a
particular supply chain activity such as production,
storage, transportation, or the management of
information.
6. Pricing determines how much a firm will charge
for the goods and services that it makes available in
the supply chain. Pricing affects the behavior of the
buyer of the good or service, thus affecting supply
chain performance.

© 2007 Pearson Education 2-7

We devote the next six slides to a detailed discussion


of each of the three logistical and (e.g. facilities,
inventory and transportation) three cross-functional
drivers (e.g. information, sourcing and pricing), their
roles in the supply chain, and their impact on financial
performance.

© 2007 Pearson Education 2-8

Facilities
Role in the supply chain
Role in the competitive strategy
Components of facilities decisions

© 2007 Pearson Education 3-9

3
Facilities
Role in the supply chain
– Facilities are the actual physical locations in the supply
chain network where a product is stored (warehouses),
assembled, or fabricated (manufacturing).
Role in the competitive strategy
– economies of scale (efficiency priority)
e.g. companies can gain economies of scale when a product is
manufactured or stored in only one location; this centralization
increases efficiency.
– larger number of smaller facilities (responsiveness priority)
e.g. If the customer demands and is willing to pay for the responsiveness
that having numerous facilities adds, however, then this facility's decision
helps meet the company’s competitive strategy goals
© 2007 Pearson Education 3-10

Example 3.1: Toyota and Honda (Page 45)


H.W (why Honda company maintained a high level of
utilization in 2008?)
Components of facilities decisions of facilities decisions that
companies must analyze.

1-ROLE Firms must decide whether production


facilities will be flexible, dedicated, or a combination
of the two.
NOTE: Flexible capacity can be used for many types of products
but is often less efficient, whereas dedicated capacity can be used
for only a limited number of products but is more efficient.
© 2007 Pearson Education 2-11

Components of Facilities Decisions


2-Location
– centralization (efficiency) vs. decentralization (responsiveness)
– other factors to consider (e.g., ‫القرب‬proximity to customers)
3-Capacity (flexibility versus efficiency).
FACILITY-RELATED METRICS
A manager should track the following facility-related
metrics that influence supply chain performance:
1-Capacity measures the maximum amount a facility
can process

© 2007 Pearson Education 3-12

4
FACILITY-RELATED METRICS
2-Utilization measures the fraction of capacity that is
currently being used in the facility. Utilization affects
both the unit cost of processing and the associated
delays.
3-Processing/setup/down/idle time measure the
fraction of time that the facility was processing units,
being set up to process units, unavailable because it
was down, or idle because it had no units to process

© 2007 Pearson Education 2-13

4-Production cost per unit measures the average cost


to produce a unit of output. These costs may be
measured per unit, per case, or per pound depending
on the product.
5-Quality losses measure the fraction of production
lost due to defects. Quality losses hurt
both financial performance and responsiveness.
6-Flow time efficiency is the ratio of the theoretical
flow time to the actual average flow time.
 Product variety measures the number of
products/product families processed in a facility.
Processing costs and flow times are likely to increase
with product variety.

© 2007 Pearson Education 2-14

OVERALL TRADE-OFF: RESPONSIVENESS


VERSUS EFFICIENCY

Increasing the number of facilities increases facility


and inventory costs but decreases transportation costs
and reduces response time.
Increasing the flexibility or capacity of a facility
increases facility costs but decreases inventory costs
and response time.

© 2007 Pearson Education 2-15

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