0,Automotive Best Practices Forum Supply Chain Management,1,WELCOME! Todays meeting will focus on the results of the Supply Chain Management Assessment, completed by 22 automotive supplier executives and 3 vehicle manufacturer executives.,Introduction,2,Table of Contents,Introduction 4 - 13 Supply Chain Management 14 - 21 Definitions and Strategy 22 - 32 Understanding Expectations 33 - 38 Supply Chain Management 39 - 47 Performance Measurement 48 - 55 Technology Solutions 56 - 60 SCM Opportunities 61 - 72,Page Number,3,Industry Forces and Issues,Introduction,The automotive supply chain is going through a period of unprecedented change in order to meet increasing consumer expectations with regard to price, delivery, and product customization. The managing of the supply chain pipeline is therefore faced with a number of key issues including;,Elevating supply chain management as a critical success factor to achieving competitive advantage Aligning the organizational structure to support global supply chain management Establishing a process oriented, functionally integrated supply chain Forecasting the impact of changing global markets on supply chain costs and capabilities Defining key performance indicators and measuring supply chain performance Understanding, selecting and integrating supply chain management enabling technology Anticipating and responding to the impact of supplier consolidations Anticipating and responding to the impact of OEM consolidations Defining and tracking total supply chain costs,4,Introduction,Define supply chain management and its components Understand the elements of a supply chain strategy Position the role of a supply chain executive Identify the elements of supply chain management Understand the role of information technology applications Identify how to utilize performance measures in the supply chain process Understand how to use best practices and benchmarking in support of supply chain management Understand role of customers, suppliers, and third parties for collaborative support.,Todays Objectives,5,The integrated supply chain concept has gone through three distinct phases.,Source: Bernard LaLonde, professor emeritus of logistics at Ohio State University,History of SCM,SCM Overview,6,The following represent some of the other initiatives which have either helped develop or have been spawned from the SCM movement,SCM Related Concepts,SCM Overview,7,Value,Complexity,Functional “Silos”,Virtual Extended Chains,Integrated Internal Supply Chain,Integrated External Supply Chain,Select Vendor/Customer Collaboration,Selected Cross-functional Teaming,Internally Focused Optimization,COLLABORATION,PULL,PUSH,SCM Continuum,Supply Chain Continuum,SCM Overview,8,A survey conducted on supply chain essentials resulted in a management response from 451 companies in 25 countries Almost one-third (29%) of the companies surveyed do not involve their suppliers in inventory management Nearly one-quarter of the companies (22%) do not involve their customers in planning manufacturing requirements Only 13% rated their ability to communicate with customers on forecasting as strong,1. Planning and deploying inventory effectively 2. Providing predictable delivery performance 3. Creating new products and services 4. Reducing order fulfillment cycle time,5. Having products in stock 6. Decreasing manufacturing cycle time 7. Reducing transportation costs 8. Reducing customer returns 9. Communicating electronically with customers and suppliers,Top Supply Chain Essentials,Source: 1997 KPMG / Northwestern Supply Chain Study,Current State of SCM Movement,SCM Overview,9,Degree of Completion,The majority of companies are implementing supply chain initiatives. This figure has increased dramatically from 10% reported in 1996.,Question 3,5%,35%,60%,0%,0%,0%,0%,10%,20%,30%,40%,50%,60%,70%,80%,90%,100,%,Improvement initiatives are complete,Plan to begin addressing initiatives beyond 2000,No initiatives or opportunities planned,Plan to begin addressing initiatives during 1999,Currently evaluating improvement opportunities,Currently implementing an improvement initiative(s),% of Respondents,SCM Overview,10,There are many approaches, concepts, models, and ideologies developed to describe SCM,Buys from Manufacturer/Wholesaler,Stores in warehouses,Moves it to Retailers,Stores it on shelves,Sells it to Customers,Supplier,Whouse,Whouse,Retail,Retail,Customer,Trucks,SCM Approaches,SCM Overview,11,Source This portion of the model pertains to procurement of goods (raw materials, semi-finished, or finished) and services. Partnership building, strategic sourcing, organization compatibility, technological capabilities, and commitments to continuous improvement are all important elements. Produce This section of the model addresses the physical manufacturing process and any corresponding constraints, if applicable. Production scheduling, labor scheduling, and minimizing downtime and setup c