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Impellers of Supply Chain
Supply Chain Concepts
Drivers of supply chain performance
Globalisation
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Information
data and analysis regarding inventory, transportation, facilities throughout
A Framework for
Structuring Drivers
Competitive Strategy
Supply Chain
Strategy
Efficiency
Responsiveness
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Facilities
Inventory
Transportation
Information
Sourcing
Pricing
Facilities
Role in the supply chain
the where of the supply chain
manufacturing or storage (warehouses)
Role in the competitive strategy
economies of scale (efficiency priority)
focused)
Warehousing methodology (SKU storage, job lot storage, crossdocking)
Overall trade-off: Responsiveness versus efficiency
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Processing/setup/down/
Utilization
idle time
Quality losses
Average production batch
size
Production service level
Theoretical flow/cycle
time of production
Actual average flow
Flow time efficiency
Product variety
Inventory
Role in the supply chain
Role in the competitive strategy
Components of inventory decisions
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demand
Source of cost and influence on responsiveness
Impact on
material flow time: time elapsed between when material enters the
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Seasonal inventory
Fill rate (order/demands met on time)
Fraction of time out of stock (Zero inventory)
Obsolete inventory
Transportation
Role in the supply chain
Role in the competitive strategy
Components of transportation decisions
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lower efficiency
Also affects inventory and facilities
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Components of
Transportation Decisions
Mode of transportation:
air, truck, rail, ship, pipeline, electronic transportation
vary in cost, speed, size of shipment, flexibility
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Information
Role in the supply chain
Role in the competitive strategy
Components of information decisions
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supply chain)
Coordination and information sharing
Forecasting and aggregate planning
Enabling technologies
EDI
Internet
ERP systems
Supply Chain Management software
RFID
Forecast error
Seasonal factors
Sourcing
Role in the supply chain
Role in the competitive strategy
Components of sourcing decisions
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a supply chain
Supplier selection, single vs. multiple suppliers, contract
negotiation
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Procurement process
Overall trade-off: Increase the supply chain profits
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Supply quality
Supply lead time
Supplier reliability
Pricing
Role in the supply chain
Role in the competitive strategy
Components of pricing decisions
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chain
Pricing strategies can be used to match demand and supply
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and responsiveness
Low price and low product availability; vary prices by response
times
Example : Amazon.com
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Obstacles to Achieving
Strategic Fit
Increasing variety of products
Decreasing product life cycles
Increasingly demanding customers
Fragmentation of supply chain ownership
Globalization
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