Supply Chain Management/ e-Procurement/ cMfg Workshop Date: April 27, 2001 Time: 9:00 A.M - 3:00 P.M,Agenda,9:00 - 9:15 - Introductions 9:15 - 10:00 - Supply Chain Management 10:00 - 11:00 - e-Procurement Overview 11:00 - 11:15 - Break 11:15 - 12:00 - c-Manufacturing 12:00 - 1:00 - Lunch 1:00 - 2:30 - Workshop 2:30 - 3:00 - Implementation Considerations, Case Studies 3:00 - Summary and Conclusion,Supply Chain Management,Supply Chain Management,“Planning, implementing and controlling the efficient and effective sourcing, production and delivery processes for a final product, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. “,Supply Chain Management Goal,“To create a real-time, virtual marketplace where all the people connected to SAIC are engaged in informed decision making and customer fulfillment. Evidenced by: Lead time- response time is reduced, revenue opportunities are generated, costs are cut, customer satisfaction is increased. “,The 5 major strategic concepts of Supply Chain Management,Customization Companies have a choice and ability to adapt their operational environment to changing market demand Collaboration All partners in the supply chain do not only optimize their operations but jointly plan, optimize, monitor and execute. Visibility All partners have real time information about status and performance of each element in the supply chain from customers to suppliers. Optimization Best practices and most advanced tools bring the partners in the supply chain and its total result closer to its optimum. Synchronization The end result is a totally synchronized supply chain that is entirely driven by the customers demand.,Supply Chain Value Principles,Provide Visibility of Information Inventories, Forecasts, Orders, Plans, Engineering Changes, KPIs Synchronize Activities Optimized feasible sourcing/planning, pull-based triggers Promote Responsiveness Reduce time to detect demand, commit, produce, fulfill Leverage Market Mechanisms Aggregated buying power, auction-based buying/selling Achieve Process Simplification Automated steps, One-step business,SUPPLIER NETWORK,INTEGRATED ENTERPRISE,DISTRIBUTIVE NETWORK,Information, Product, Service, Financial and Knowledge Flows,M A T E R I A L S,Capacity, Information, Core Competencies, Capital and Human Resources,Relationship Management,Sourcing,Operations,Logistics,E N D C O N S U M E R S,Source: Supply Chain Faculty, Michigan State University,THE INTEGRATED SUPPLY CHAIN,Challenges for Supply Chains,Take orders over the web, or automatically via B2B Offer rich product selection and/or the ability to customize Source the order and commit to delivery, immediately, online Service the order online, including changes and inquiries Deliver product quickly, efficiently, profitably Be in constant communication with customers and suppliers to respond quickly to “pull signals” to manage inventories adapt quickly and economically to changes in demand/supply operate with low inventories,Internet Selling Collaborative Planning, Forecasting and Replenishment CPFR Internet Vendor Managed Inventory iVMI Collaborative Supply Planning CSUP Collaborative Production Planning Capable to Promise CTP e-Procurement (auctioning, bidding) Internet-based Tendering Internet-based Kanban e-Fulfillment,Collaborative Business Scenarios,Drivers of High Performance Achievement (Rated by Priority),Customer integration Internal integration Technology/Planning integration Relationship integration Measurement integration Supplier integration,Customer Integration,High Achievers: Identify and focus on important customers Use formal visioning process Implement preplanned solutions Develop responsive or pull logistical capabilities,Segmental Focus Relevancy Responsiveness Flexibility,Material/Service Supplier Integration,High Achievers: Develop interlocking programs and activities Commit to shared responsibility with suppliers Place employees at customer/supplier business facilities Enter into long-term agreements Include suppliers suppliers in planning,Fusion Financial Linkage Strategic Alignment Operational Supplier Relationship Management,E.Dashboard - Key Performance Indicators,On-Time Delivery,Lead Time,Cash-to-Cash Cycle,Inventory Turns,Order Management Cost,Perfect Order Fulfillment,Order Fill Rates,Inventory Carrying Cost,SG&A,Increase Revenue Decrease Cost Improve Asset Utilization,The E-Dashboard . . .,Is a web-based tool that allows dynamic monitoring of the Supply Chain Solution Monitors Key Performance Indicators to optimize important business processes Measures Return on Investment Allows decision makers at all levels of an organization to navigate, organize, record, and analyze strategic business information to develop insights and understand possible scenarios which would lead to improved decision ma