蔣明晃-生管供應鏈與全球運籌

86
111/06/06 1 生生生生 供供供供供供供供供供供供 Production Management Supply Chain Management and Global Logistics Practices

description

91年度中小企業創新育成中心專業經理人培訓

Transcript of 蔣明晃-生管供應鏈與全球運籌

Page 1: 蔣明晃-生管供應鏈與全球運籌

112/04/08 1

生產管理供應鏈及全球運籌實務技巧

Production Management Supply Chain Management and

Global Logistics Practices

Page 2: 蔣明晃-生管供應鏈與全球運籌

2 David Chiang

Mitigating Factors for Integration and SCM

• Changing nature of the marketplace– Volatile demand

– Decreased customer loyalty

– Shorter product life cycles

– Mass product customization

• Changing channel structures and relationships• Globalization of the economy and markets• Technology• Government policy and deregulation

Page 3: 蔣明晃-生管供應鏈與全球運籌

3 David Chiang

What is Supply Chain?

• Supply chain consists of all the stages involved,

directly or indirectly, in fulfilling a customer request

• Supply chain includes manufacturers, suppliers,

transporters, warehouses, retailers, and customers

Page 4: 蔣明晃-生管供應鏈與全球運籌

4 David Chiang

A Detergent Supply Chain

Customer wantsdetergent and goes

to Wal-mart

Customer wantsdetergent and goes

to Wal-mart

Wal-MartSupermarket

Wal-MartSupermarket

Wal-Mart or third

party DC

Wal-Mart or third

party DC

P&G or othermanufacturerP&G or othermanufacturer

PlasticProducerPlastic

Producer

Chemicalmanufacturer

(e.g. Oil Company)

Chemicalmanufacturer

(e.g. Oil Company)

TennecoPackagingTenneco

Packaging

Paper Manufacturer

Paper Manufacturer

TimberIndustryTimberIndustry

Chemicalmanufacturer

(e.g. Oil Company)

Chemicalmanufacturer

(e.g. Oil Company)

Page 5: 蔣明晃-生管供應鏈與全球運籌

5 David Chiang

Supply Chain: Logistics Network

StorageStorage Plant 1

Plant 1 WarehouseWarehouse AA

StorageStorage Plant 3

Plant 3 WarehouseWarehouse CC

StorageStorage Plant 2

Plant 2 WarehouseWarehouse BB

Physical supplymaterials management

inbound logistics

Physical distributionoutbound logistics

RAW MATERIALSSUPPLIERS RAW

MATERIALSSTORAGE

MANUFACTURING

FINISHEDGOODS

STORAGEMARKETS

Material costsMaterial costs

Transportation costsTransportation costs

Manufacturing costsManufacturing costs Inventory costsInventory costs

Transportation costsTransportation costs

Page 6: 蔣明晃-生管供應鏈與全球運籌

6 David Chiang

The Objective of a Supply Chain

• Objective: maximize the overall value generated

• Value : the difference between what the final product

is worth to the customer and the effort the supply chain

expands in fills the customer’s request

• Profitability: the total profit to be shared across all

supply chain

Page 7: 蔣明晃-生管供應鏈與全球運籌

7 David Chiang

Integrating Supply Chain Process

Information

Cash flow

Product flow

Supplier Manufacturers Wholesalers Retailers Consumers

Page 8: 蔣明晃-生管供應鏈與全球運籌

8 David Chiang

Key Characteristics of Traditional Systems with Supply Chain

Factor Traditional Supply Chain

Inventory management Local focused Pipeline coordination

Inventory flows Interrupted Seamless/visible

Cost Local minimized Landed cost

Information Local controlled Shared

Risk Local focused Shared

Planning Local oriented coordinated

Interorganizationalrelationships

Local focused on low cost Partnerships focused onlanded cost

Page 9: 蔣明晃-生管供應鏈與全球運籌

9 David Chiang

What is SCM?

Supply chain management is a set of approaches utilized to

efficiently integrateintegrate suppliers, manufacturers, warehouses

and stores, so that merchandise is produced and

distributed at the right quantitiesright quantities, to the right locationsright locations,

and at the right timeright time, in order to minimize system-wide minimize system-wide

costscosts while satisfying service levelservice level requirements.

Page 10: 蔣明晃-生管供應鏈與全球運籌

10 David Chiang

Traditional View: Logistics in the Economy (1990, 1996)

• Freight Transportation $352, $455 Billion

• Inventory Expense $221, $311 Billion

• Administrative Expense $27, $31 Billion

• Logistics related activity 11%, 10.5% of GNP.

Source: Cass Logistics

Page 11: 蔣明晃-生管供應鏈與全球運籌

11 David Chiang

Traditional View: Logistics in the Manufacturing Firm

• Profit 4%

• Logistics Cost 21%

• Marketing Cost 27%

• Manufacturing Cost 48%

Profit

Logistics Cost

Marketing Cost

Manufacturing Cost

Page 12: 蔣明晃-生管供應鏈與全球運籌

12 David Chiang

Supply Chain Management: The Magnitude in the Traditional View

• Estimated that the grocery industry could save $30 billion (10%

of operating cost) by using effective logistics and supply chain

strategies

– A typical box of cereal spends 104 days from factory to sale

– A typical car spends 15 days from factory to dealership

• Laura Ashley turns its inventory 10 times a year, five times

faster than 3 years ago

Page 13: 蔣明晃-生管供應鏈與全球運籌

13 David Chiang

Supply Chain Management: The True Magnitude

• Compaq estimates it lost $0.5 billion to $1 billion in sales in 1995 because laptops were not available when and where needed.

• When the 1 gig processor was introduced by AMD, the price of the 800 meg processor dropped by 30%.

• P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand.

Page 14: 蔣明晃-生管供應鏈與全球運籌

14 David Chiang

The Value Chain: Linking Supply Chain and Business Strategy

NewProduct

Development

Marketingand

Sales Operations Distribution Service

Finance, Accounting, Information Technology, Human Resources

Business Strategy

New ProductStrategy

MarketingStrategy Supply Chain Strategy

Page 15: 蔣明晃-生管供應鏈與全球運籌

15 David Chiang

Achieving Strategic Fit

• Step 1: Understanding the customer

• Step 2: Understanding the SC

• Step 3: Achieving Strategic fit

Page 16: 蔣明晃-生管供應鏈與全球運籌

16 David Chiang

Achieving Strategic Fit

• Understanding the Customer– Lot size

– Response time

– Service level

– Product variety

– Price

– Innovation

ImpliedDemand

Uncertainty

Page 17: 蔣明晃-生管供應鏈與全球運籌

17 David Chiang

Levels of Implied Demand Uncertainty

Low High

Price Responsiveness

Customer Need

Implied Demand Uncertainty

DetergentLong lead time steel

High FashionEmergency steel

Page 18: 蔣明晃-生管供應鏈與全球運籌

18 David Chiang

Supply Chain Responsiveness

• Respond to wide range of quantities demanded

• Meet short lead time

• Handle a large variety of products

• Build highly innovative products

• Meet a very high service level

Page 19: 蔣明晃-生管供應鏈與全球運籌

19 David Chiang

Comparison of Efficient and Responsive SC

Efficient SC Responsive SC

Goal Lower cost to meet demand Response quickly

Product Design Max performance at min cost Create modularity to allow postponement

Pricing Lower margin Higher margin

Manufacturing Lower cost high utilization Maintain flexibility

Inventory Min inventory Maintain buffer inventory

Lead time Reduce but not at the expense of cost

Aggressively reduce even if the cost is significant

Supplier Based on cost and quality Based on speed, flexibility, and quality

Transportation Low cost modes Responsive modes

Page 20: 蔣明晃-生管供應鏈與全球運籌

20 David Chiang

Achieving Strategic Fit

Implied uncertainty spectrum

Responsive supply chain

Efficient supply chain

Certain demand Uncertain demand

Responsiveness spectrum Zone o

f

Strateg

ic Fit

Page 21: 蔣明晃-生管供應鏈與全球運籌

21 David Chiang

Other Issues Affecting Strategic Fit

• Multiple products and customer segments

• Product life cycle

• Competitive change over time

Page 22: 蔣明晃-生管供應鏈與全球運籌

22 David Chiang

SCOR Metrics (I)

Perspectives Metrics MeasureReliability On time delivery Percentage

Fulfillment lead time DaysFill rate PercentagePerfect order fulfillment Percentage

Flexibility and Response time DaysResponsiveness Production flexibility Days

Page 23: 蔣明晃-生管供應鏈與全球運籌

23 David Chiang

SCOR Metrics (II)

Perspectives Metrics MeasureExpenses Management cost Dollars

Warranty cost DollarsValue added per employee Dollars

Assets/Utilization Total inventory days of supply DaysCash-to-cash cycle time DaysNet asset turns Turns

Page 24: 蔣明晃-生管供應鏈與全球運籌

24 David Chiang

Increasing Variability of Orders

20

15

10

5

0

Ord

er Q

uant

ity

Time

Consumer Sales20

15

10

5

0

Ord

er Q

uant

ity

Time

Retailer ‘s Orders to Manufacturer

20

15

10

5

0

Ord

er Q

uant

ity

Time

Wholesaler’s Orders to Manufacturer20

15

10

5

0

Ord

er Q

uant

ity

Time

Manufacturer’s Orders to Supplier

Page 25: 蔣明晃-生管供應鏈與全球運籌

25 David Chiang

Bullwhip Effect - Operational Obstacles (Batching)

• Contributing factors– High Order Cost– Full TL economies– Random or correlated ordering

• Counter Measures– EDI & Computer Assisted Ordering (CAO)– Discounted on Assorted Truckload, consolidated by 3rd party logistics– Regular delivery appointment– Volume and not lot size discounts

• State of Practice– McKesson, Nabisco, ...– 3rd party logistics in Europe, emerging in the U.S.– P & G

Page 26: 蔣明晃-生管供應鏈與全球運籌

26 David Chiang

Bullwhip Effect - Pricing Obstacles

• Contributing factors– High-Low Pricing leading to forward buy– Delivery and Purchase not synchronized

• Counter Measures– EDLP– Limited purchase quantities– Scan based promotions

• State of Practice– P&G (resisted by some retailers)

– Scan based promotion

Page 27: 蔣明晃-生管供應鏈與全球運籌

27 David Chiang

Bullwhip Effect - Incentive Obstacles

• Contributing factors– Incentives based on sell-in leading to forward buy

• Counter Measures– Focus sales force on increasing sell-thru– Incentives based on rolling horizon– Sales force do not compete with each other but with

the competition

Page 28: 蔣明晃-生管供應鏈與全球運籌

28 David Chiang

The Bullwhip Effect: Information Processing Obstacles

• Contributing factors– No visibility of end demand– Multiple forecasts– Long lead-time

• Counter Measures– Access sell-thru or POS data– Direct sales (natural on web)– Single control of replenishment– Leadtime reduction

• State of Practice– Sell-thru data in contracts (e.g., HP, Apple, IBM)

– CFAR, CPFR, CRP, VMI (P&G and Walmart)

– Quick Response Mfg. Strategy

Page 29: 蔣明晃-生管供應鏈與全球運籌

29 David Chiang

Bullwhip Effect - Operational Obstacles (Rationing Game)

• Contributing factors– Proportional rationing scheme– Ignorance of supply conditions– Unrestricted orders & free return policy

• Counter Measures– Allocation based on past sales.– Shared Capacity and Supply Information– Flexibility Limited over time, capacity reservation

• State of Practice– Saturn, HP– Schedule Sharing (HP with TI and Motorola)– HP, Sun, Seagate

Page 30: 蔣明晃-生管供應鏈與全球運籌

30 David Chiang

Managerial Implications of the Bullwhip Effect - Behavioral Factors

• Contributing factors– Lack of trust– Local reaction

• Counter Measures– Building trust and partnership

• State of Practice– Wal-Mart and P&G with CFAR

Page 31: 蔣明晃-生管供應鏈與全球運籌

31 David Chiang

Drivers of Supply Chain Performance

Efficiency Responsiveness

Inventory Transportation Facilities Information

Supply chain structure

Drivers

Page 32: 蔣明晃-生管供應鏈與全球運籌

32 David Chiang

Inventory Driver --- What

• Inventory = Flow time Throughput• Responsive v.s. efficient

– Ex: Nordstorm

• Components of inventory decision:– Cycle inventory

– Safety inventory

– Seasonal inventory

Page 33: 蔣明晃-生管供應鏈與全球運籌

33 David Chiang

Inventory Management

• Inventory types– Raw material inventory

– Work-in-process (WIP) inventory

– Finished good inventory

• Objective

Minimize inventory level (or maximize inventory turnover ratio) while maintaining good service levels

levelinventory averagesales annual

ratioturnover Inventory

Page 34: 蔣明晃-生管供應鏈與全球運籌

34 David Chiang

Risk Pooling - Centralized Control

• Centralizing inventory reduces safety stock and average inventory level– reallocate over-supply inventory to short-supply market

area

• Demand coefficient of variation Benefit of centralized control

• Dependence of market areas demands Benefit of centralized control

demand Averagedeviation Standard

variationoft Coefficien

Page 35: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Meaning of Postponement

• Delay the timing of the crucial processes in which end products assume their specific functionality, features, identities, or ‘personality’

• Can be viewed as information strategy• 3 different kinds of postponement:

– pull, logistics, form

Page 36: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Pull Postponement

• BTS vs BTO• Decoupling point: the point from which the process

switches from a build-to-stock mode to the build-to-order mode.

• Meaning of pull postponement:– Making the decoupling point earlier in the process.

Page 37: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Pull Postponement

• Basic Elements:– The process steps must be sequenced so that the less

differentiating steps are performed at prior to the decoupling point.

– After the decoupling point, the process steps can be performed flexible and fast.

– Accurate order capture for BTO.

• Example: National Bicycle, Benetton.

Page 38: 蔣明晃-生管供應鏈與全球運籌

38 David Chiang

延遲差異化

• 延遲差異化 (Postponement Differentiation) 之意義

– 此種延遲主要是運用在最終產品的需求未確定時,先生產一些通用或產品族共通的部分,等到特定的產品需求確定後再進行生產或製造,以減少不確定性。

Page 39: 蔣明晃-生管供應鏈與全球運籌

39 David Chiang

延遲差異化的做法

• 作業程序的重排序 (Resequencing)– 例子 : Benetton, postpone dyeing until after assembled.

Cost: 10% more expensive, new machine purchased and employee retrained.

– 例子 : US disk drive manufacturing. Insert generic circuit board into assembly, complete much of the testing, remove the generic circuit board, and add customer-specific boards later.

Page 40: 蔣明晃-生管供應鏈與全球運籌

40 David Chiang

延遲差異化的做法

• 產品的共通性 (Commonality)– 利用產品線或產品族的重新設計來達成– 例子 : Printer manufacturing, redesign the new and old

products to share a common circuit board and printhead such that final process can be delayed.

Page 41: 蔣明晃-生管供應鏈與全球運籌

41 David Chiang

延遲差異化的做法• 模組化 (Modularity):

– 模組化產品設計:將功能採模組化,使各個模組能夠簡易且以較低成本的添加到產品上,例子 : HP Laser Jet 。

– 模組化製程設計:製程應設計盡量獨立的生產模組,容易因應不同的要求進行彈性的調整。例子 : print-and-pigment mixture, Levis jeans 。

Page 42: 蔣明晃-生管供應鏈與全球運籌

42 David Chiang

延遲差異化的做法

• 標準化 (Standardization):– 建立數種顧客所需的標準化產品之選擇。

• 機動敏捷的供應網路 (Agile Supply Networks)– 某些網路節點存放基本的產品,並在收到顧客訂單時進行客製化的最後作業。

Page 43: 蔣明晃-生管供應鏈與全球運籌

43 David Chiang

延遲差異化施行的考量

• 重新排序或延遲時所需資本投入之考量。• 重新排序或延遲時所需技術與能力之考量。• 延遲的結果可能使存貨成本提高。• 在國際運籌作業中,各進出口國對原物料,零組件或在製品的關稅考量。

Page 44: 蔣明晃-生管供應鏈與全球運籌

44 David Chiang

What’s Quick Response?

• A widely used strategy– By general merchandise, soft-lines retailers and manufacturers

– To reduce retail out-of-stocks, forced markdown, merchandising system and operating costs

• A partnership strategy– Suppliers and retailers work together to respond more rapidly to

consumer needs

– By sharing POS information to jointly forecast future demand for replenishable items, and to continuously monitor trends to detect opportunities for new items

• A JIT strategy– Spread through the supply chain and seamlessly linked at each stage by

electronic data interchange

Page 45: 蔣明晃-生管供應鏈與全球運籌

45 David Chiang

Basic Elements of QR

Time horizonsTime horizons

InformationInformation

Supplier/Manufacturerrelationships

Supplier/Manufacturerrelationships

Philosophical/Cultural change

Philosophical/Cultural change

LogisticsLogistics

ManufacturingOperations

ManufacturingOperations

Page 46: 蔣明晃-生管供應鏈與全球運籌

46 David Chiang

Example: US Textile and Apparel Industry in 1986

FiberFiber

FabricFabric

ApparelApparel

ConsumerConsumer

RetailRetail

Synthetics (75%) highly concentrated

•Ten firms provide more than 90% of market

More fragmented•6,000 firms•12 firms provide 1/4 of market

Extremely fragmented•15,000 firms (70% employ fewer than 50 people)

Increasing concentrationMajor categories:

•Department stores•Mass merchandisers•Mail order•Chains•Specialty stores

Increasing sophisticationExpectation of variety/changeWide choice of retail outlets

Page 47: 蔣明晃-生管供應鏈與全球運籌

47 David Chiang

Expected Results through QR

Fig. 6-15

QR system

Wee

ksFiber, Fabric, Apparel, and Retail Inventories (Working Weeks)

66

46

21

Page 48: 蔣明晃-生管供應鏈與全球運籌

48 David Chiang

Example: Benetton

• Benetton deliver knitted goods in the hottest new colors seemingly overnight.– It knitted the sweaters in neutral yarn and then dyed them to meet

market demand.– Putting in place fast and sophisticated retailer reporting systems.

• Key technologies– Bar code systems– Computer networks– Automated distribution center– EDI or Internet-based EC– CIM

Page 49: 蔣明晃-生管供應鏈與全球運籌

49 David Chiang

ECR (Efficient Consumer Response)

ECR is a Global Industry Strategy in which

Retailers and Suppliers Work Together to

Deliver Better Consumer Satisfaction and Value.

Page 50: 蔣明晃-生管供應鏈與全球運籌

50 David Chiang

What is Efficient Consumer Response?

A strategy in which distributors and suppliers are working closely together to maximize grocery consumer satisfaction and minimize cost.

Timely, accurate, paperless information flowTimely, accurate, paperless information flow

Smooth, continual product flow matched to consumptionSmooth, continual product flow matched to consumption

SupplierSupplier DistributorDistributor Retail storeRetail store Consumerhousehold

Consumerhousehold

Page 51: 蔣明晃-生管供應鏈與全球運籌

51 David Chiang

Anatomy of Efficient Consumer Response

A consumer purchases “Product A” from a supermarket. The transaction is recorded by the store’s scanner.

The scanner forwards the transaction record to an in-store computer. The Product A manufacturer, whose computers interface with the retailer’s, notes the transaction and automatically reorders a replacement unit on a just-in-time basis.

An automatic ordering system allows the product A supplier to match production to demand using product movement information and forecasting.

Because production is tied directly into demand, retailers become increasingly freed from the need for excess inventory and warehousing of excess inventory, thus opening the door for increased cross-docking and direct store delivery shipments.

The retailer’s in-store computer acknowledges receipt of the shipment and automatically issues a computer-generated payment or electronic fund transfer payment, eliminating the need for paper invoices and streamlining the accounting process.

Page 52: 蔣明晃-生管供應鏈與全球運籌

52 David Chiang

Integrated EDIContinuous replenishment

Computer-assisted orderingFlow-through distribution

Activity-based costingCategory managementFlexible manufacturing

Integrated EDIContinuous replenishment

Computer-assisted orderingFlow-through distribution

Activity-based costingCategory managementFlexible manufacturing

Efficient Consumer Response Process

Manufacturingbusinessstrategy

Manufacturingbusinessstrategy

ReplenishmentReplenishment

PromotionPromotion

Product introductionsProduct introductions

Store assortmentsStore assortments

Retailbusinessstrategy

Retailbusinessstrategy

ReplenishmentReplenishment

PromotionPromotion

Product introductionsProduct introductions

Store assortmentsStore assortments

Open communicationOpen communication

Change managementChange management

Page 53: 蔣明晃-生管供應鏈與全球運籌

53 David Chiang

ECR Strategies & Objectives

Strategies

• Efficient Store Assortment

• Efficient Replenishment

• Efficient Promotion/Pricing

• Efficient Product Introductions

ObjectivesOptimize the productivity of inventories and

store space at the consumer interface

Optimize time and cost in the replenishment system

Maximize the total system efficiency of trade and consumer promotion & pricing

Maximize the effectiveness of new product development and introduction activities

Page 54: 蔣明晃-生管供應鏈與全球運籌

54 David Chiang

ECR Components

• Logistics (Supply Side)– Continuous Replenishment– Cross Docking

• Category Management (Demand Side)– Understanding Consumer Needs– Decisions Made with Data– Category vs. Brand Focused– Total Systems Approach

• Enabling Technologies (Tools)– Electronic Fund Transfer (EFT)– Electronic Data Interchange (EDI)– Activity Based Costing (ABC)– Item Coding & Database Maintenance

Page 55: 蔣明晃-生管供應鏈與全球運籌

55 David Chiang

Example: Throughput Time Improvement of Dry Grocery

Supplier warehouse

38 days

Supplier warehouse

38 days

Distributory warehouse(Forward buy 9 days,

turn inventory 31 days)40 days

Distributory warehouse(Forward buy 9 days,

turn inventory 31 days)40 days

Retail store

26 days

Retail store

26 days

Supplier warehouse

27 days

Supplier warehouse

27 days

Distributorwarehouse

12 days

Distributorwarehouse

12 days

Retail store

22 days

Retail store

22 days

104 days

ECR DRY GROCERY CHAIN

CURRENT DRY GROCERY CHAIN

61 days

Packing line

ConsumerPurchase

Packing line

ConsumerPurchase

Page 56: 蔣明晃-生管供應鏈與全球運籌

56 David Chiang

Example: P&G’s CRP Process

Stores

P & GPlant

P & GHeadquarters

CustomerHeadquarters

CustomerDistribution

Centers

StoreDelivery Orders

Direct store level shipment

Dedicated Carriers a

nd

Prescheduled

Appointments

Ordering info

Demand and

Inventory

Demand andInventoryOrdering info

Orders

Shipping info.

Page 57: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Logistics Postponement

• Meaning:– Redesign the tasks in the SC so that some of the

customization steps can be performed downstream closer to the customers.

Page 58: 蔣明晃-生管供應鏈與全球運籌

58 David Chiang

Concurrent and Parallel Processing

• Concurrent and parallel processing involves modifying the manufacturing process so that steps that were previously performed in a sequence can be completed at the same time.– reduce lead time

– reduce inventory cost

• A key is the concept of modularity or decoupling

Page 59: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Requirements for logistics postponement

• can not lead to quality degradation.• downstream sites have capability to perform the

task without excessive cost and time.• potentially to procure the necessary components or

modules for the customization.• the engineering team is able and willing to design

products and processes to defer the steps effectively.

Page 60: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Form Postponement

• Meaning:– postponement is achieved through the change in the form of

the product structure by standardizing some of the process steps or components.

• Example: HP Laser Printer.

Page 61: 蔣明晃-生管供應鏈與全球運籌

David Chiang

Postponement Enablers

• Products or processes should be modular in structure.

• Design engineer should be aware of the importance of SCM to pursuit design for postponement opportunity.

• Must involve multiple functions or organization in collaboration.

• Quantify the costs and benefits to determine the best point for postponement

Page 62: 蔣明晃-生管供應鏈與全球運籌

62 David Chiang

Transportation Driver --- How

• Efficient v.s. responsive

– Ex : Laura Ashley with Fedex for next day delivery

• Components of transportation decision:

– Mode of transportation

• Air, truck, rail, ship, pipeline, electronic

– Route and network selection

– In-house or outsource

Page 63: 蔣明晃-生管供應鏈與全球運籌

63 David Chiang

Pros and Cons of Different Transportation Networks

Pros Cons

Direct shipping Simple to coordinate Large shipping lot size

Direct shipping with milk run

Lower cost for small lots

Lower inventories

Increased coordination complexity

Via central DC with inventory storage

Lower inbound transportation cost Increased inventory cost

Increased handling at DC

Via central DC with crossdock

Very low inventory

Lower cost through consolidation

Increased coordination complexity

Via DC using milk run

Lower outbound cost for small lots Further increase in coordination complexity

Tailored network Best matchs needs of individual product and store

Highest coordination complexity

Page 64: 蔣明晃-生管供應鏈與全球運籌

64 David Chiang

Tailored Transportation

• Use of different transportation networks and modes based on customer and product characteristics.

• Various forms of tailored transportation:– By customer density and distance

– By size of customer

– By product value and demand

Page 65: 蔣明晃-生管供應鏈與全球運籌

65 David Chiang

Tailored Transportation---by Customer Density and Distance

Short distance Medium distance Long distance

High density Private fleet with milk runs

Crossdock with milk runs

Crossdock with milk runs

Medium density Third-party milk run LTL carrier LTL or package carrier

Low density Third-party milk run or LTL carrier

LTL or package carrier

Package carrier

Page 66: 蔣明晃-生管供應鏈與全球運籌

66 David Chiang

Tailored Transportation---by Size of Customer

• Large customer: TL carrier• Smaller customer: LTL carrier or milk run

– Depends on distance and number of deliveries

Page 67: 蔣明晃-生管供應鏈與全球運籌

67 David Chiang

Tailored Transportation---by Product Demand and Value

Product Type High Value Low Value

High Demand Disaggregate cycle inventory and aggregate safety inventory. Inexpensive mode for replenishing cycle inventory and fast mode for safety stock

Disaggregate all inventories and use inexpensive mode for replenishment inventory

Low Demand Aggregate all inventories. If needed, use mode of transportation for filling customer orders

Aggregate only safety stock. Use inexpensive mode of transportation for replenishment cycle inventory

Page 68: 蔣明晃-生管供應鏈與全球運籌

68 David Chiang

Outbound Distribution Strategies

• Traditional strategy: warehousing

• Direct shipment

– Advantages

• save operating cost of distribution center

• lead times are reduced

– Disadvantages

• no central warehouse, no risk-pooling effect

• transportation costs increase (quantity no. of locations )

• Cross-docking

– Famous Wal-Mart strategy

Page 69: 蔣明晃-生管供應鏈與全球運籌

69 David Chiang

Cross-Docking Distribution Strategy

• Goods are distributed continuously from suppliers through transitional warehouses to customers.

• Goods spend very little time in warehouse (< 12 hours)• Advantages: inventory costs lead times • Requirements

– advanced information systems to link suppliers, distributors and retailers

– Fast and responsive transportation system– Information sharing to enhance forecast accuracy– effective only for large distribution system

• Expensive start-up investment and complex to manage

Page 70: 蔣明晃-生管供應鏈與全球運籌

70 David Chiang

Economic Packaging and Transportation

• Design products so that they can be efficiently packed, stored, and transported. – Example: Swedish furniture retailer IKEA

• In some cases, final packaging can even be delayed until the goods are actually sold.– Example: many grocery stores sell flour, cereal, and many other goods in

bulk, allowing consumers to package as much as they want.

• Packaging and products that are designed to facilitate cross-docking by making repacking easier will lower logistics costs.

Page 71: 蔣明晃-生管供應鏈與全球運籌

71 David Chiang

Making Transportation Decisions in Supply Chain

• Align transportation strategy with competitive strategy• Appropriate combination of in-house and outsourced

transportation• Design a transportation network that can handle e-

commerce• Use technology to improve performance• Design flexibility into transportation network

Page 72: 蔣明晃-生管供應鏈與全球運籌

72 David Chiang

Facilities Driver --- Where

• Efficient v.s. responsive

– Ex: Toyota and Honda

• Components of facilities decision

– Location

– Capacity (flexibility v.s. efficiency)

– Manufacturing methodology (product-focus v.s.

process-focus)

– Warehousing Methodology: SKU storage, job lot

storage, cross-docking

Page 73: 蔣明晃-生管供應鏈與全球運籌

73 David Chiang

Key Decisions of Network Configuration

• Determining number of facilities*• Determining locations of facilities• Determining sizes of facilities• Allocating facility resources for different products• Determining connections among facilities

*facilities include: suppliers, factories, warehouses, customers

Page 74: 蔣明晃-生管供應鏈與全球運籌

74 David Chiang

Making Network Design in SC

• Do not underestimate the life span of facilities• Do not gloss over the cultural implications• Do not ignore quality of life issues• Focus on tariffs and tax incentive when locating

facilities

Page 75: 蔣明晃-生管供應鏈與全球運籌

75 David Chiang

Information Driver

• Role in Supply Chain:– Connect various stages in SC– Crucial to daily operations in each stage

• Role in competitive strategy:– For growth need– For cost reduction

• Characteristics of information required:– Accurate– Accessible timely– Right kind

Page 76: 蔣明晃-生管供應鏈與全球運籌

76 David Chiang

Basic components of information

• Supplier information– Products, price, lead time, location, order status,

modification, payment

• Manufacturing information– Products, quantity, location, lead time, trade-offs, cost,

batch size

• Distribution and retailing information– Products, location, quantity, mode, price, stored quantity,

lead time

• Demand information– Customers, price, location, quantity, forecasting

Page 77: 蔣明晃-生管供應鏈與全球運籌

77 David Chiang

Components ofInformation Decision

• Push (MRP) v.s. pull• Coordination and information sharing• Forecasting and aggregate planning• Enabling technology: EDI, Internet, ERP, SCM

Page 78: 蔣明晃-生管供應鏈與全球運籌

78 David Chiang

Making Decision on IT in SC

• Give firm advantage to success• Align the level of sophistication with need for

sophistication• Support decision making• Think about future

Page 79: 蔣明晃-生管供應鏈與全球運籌

79 David Chiang

Information Technology in a Supply Chain: Legacy Systems

Strategic

Planning

Operational

Supplier Manufacturer Distributor Retailer Customer

Page 80: 蔣明晃-生管供應鏈與全球運籌

80 David Chiang

Information Technology in a Supply Chain: ERP Systems

Strategic

Planning

Operational

Supplier Manufacturer Distributor Retailer Customer

PotentialERP

PotentialERP

Page 81: 蔣明晃-生管供應鏈與全球運籌

81 David Chiang

Information Technology in a Supply Chain: Analytical Applications

Strategic

Planning

Operational

Supplier Manufacturer Distributor Retailer Customer

SCM

APS

MES

SupplierApps

Transport & InventoryPlanning

Transport execution & WMS

Dem Plan

CRM/SFA

Page 82: 蔣明晃-生管供應鏈與全球運籌

82 David Chiang

Information Technology in a Supply Chain: Future Trends and Issues

• Best of breed versus single integrator

• The role of application service providers (ASP)

• The role of the Internet and B2B exchanges

Page 83: 蔣明晃-生管供應鏈與全球運籌

83 David Chiang

Considerations for Supply Chain Drivers

Driver Efficiency Responsiveness

Inventory Cost of holding Availability

Transportation Consolidation Speed

Facilities Consolidation / Dedicated

Proximity / Flexibility

Information What information is best suited for each objective

Page 84: 蔣明晃-生管供應鏈與全球運籌

84 David Chiang

Managerial Levers to Achieve Coordination

• Align goals and incentives:– Across function, pricing, sell-in to sell-through

• Improve information accuracy:– Share POS, collaborative forecasting and planning,

CRP/VMI

• Improve operational performance:– Reduce lead time, reduce lot sizes, ration based on past

sales and share info to limit gaming

• Design price strategy to stabilize orders:– Volume-based discount, EDLP

• Build strategic partnerships and trust

Page 85: 蔣明晃-生管供應鏈與全球運籌

85 David Chiang

物流整合與供應鏈管理的趨勢

• 由功能轉向作業的過程:跨功能流程的整合規畫與管理,乃至虛擬的整合。

• 由產品轉向顧客的服務:著重市場與顧客價值的創造,管理與評估顧客的需求。

• 由收益轉向績效的評估:基於成本與服務、時基競爭的概念,著重產生主要績效的指標。

Page 86: 蔣明晃-生管供應鏈與全球運籌

86 David Chiang

物流整合與供應鏈管理的趨勢

• 由存貨轉向資訊的分享:建立以需求為基礎的補貨與快速回應的機制,充分運用資訊科技與電子商務。

• 由傳統交易轉向伙伴關係的模式:建立供應鏈各成員間的伙伴乃至結盟關係模式,以雙贏或多贏的理念重視伙伴與結盟關係的管理與協調。