Session 4, Supply Chain Management Systems

,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Prepared by Zlatko Muhvic,MKTG-7217L, Manage the Supply Chain,*,Thought of the day,“,Beauty is in the eye of the beholder,”,(Proverb),Prepared by Zlatko Muhvic,1,MKTG-7217L, Manage the Supply Chain,Session no. 4,Supply Chain Management Systems,Prepared by Zlatko Muhvic,2,MKTG-7217L, Manage the Supply Chain,Introduction,Learning outcome,At the end of this session you will be able to explain why and how supply chian operates as an integrated system,Topics,System theory,Supply Chain integration,Prepared by Zlatko Muhvic,3,MKTG-7217L, Manage the Supply Chain,Systems,A system is a set of objects or elements in interaction to achieve a specific goal.,process,input,output,feedback,environment,control,goal,Prepared by Zlatko Muhvic,4,MKTG-7217L, Manage the Supply Chain,environment,Market / Economy / Political,Process,Collabrative,Operations,A Supply Chain System,Input,Customer Demand,Raw Materials,Technology,Feedback,Performance Measurements,Control,Management,Goal,Profit,Market share,Output,Products &,Services,Prepared by Zlatko Muhvic,5,MKTG-7217L, Manage the Supply Chain,Systems Theory,View the whole as opposed to the parts,Understands the interactions and inter-relationships of the parts within a systems, with other systems and with the surrounding environments,Deal with increased number of variables and complexity that existed,Irving A.,1999 http:/www.,globalresearchbusiness,.com/methods/,stheory,.,php,Prepared by Zlatko Muhvic,6,MKTG-7217L, Manage the Supply Chain,System,Types,Closed systems, no or very minimal interaction with the surrounding environment,Open systems, consist of inter-related and interdependent sub-systems, linked to their environment, constantly providing feedback,Prepared by Zlatko Muhvic,7,MKTG-7217L, Manage the Supply Chain,Open Systems,This interconnection between the system and its environment means that a system imports energy and information across its boundary, transforms the energy and information in some way then re-exports the transformed result back into its environment and other systems within the environment. This feedback systems is important to an organization as it enables the organization to maintain a degree of equilibrium with environment.,Irving A.,1999 http:/www.,globalresearchbusiness,.com/methods/,stheory,.,php,Prepared by Zlatko Muhvic,8,MKTG-7217L, Manage the Supply Chain,System Integration,Create whole or integrated effort greater than the sum of the individual efforts (leverages ordinary people to produce extraordinary results),SYNERGY = A principle which states that the whole is greater than the sum of its parts.,Focus on interaction between parts each part contributes a specific function essential to achieving system objectives,Prepared by Zlatko Muhvic,9,MKTG-7217L, Manage the Supply Chain,W.Edwards Deming,“,When there is a problem, 85% of the time it is with the system, 15% of the time it will be with the workers”,“The systems run the business, the people run the system”,Prepared by Zlatko Muhvic,10,MKTG-7217L, Manage the Supply Chain,Interlinking Systems,Student notes prepared by Don,Livesey Swinburne,University,Management System,(Practices, procedures, protocols),Social System,(People working together),Technical System,(Process, tools, techniques),Prepared by Zlatko Muhvic,11,MKTG-7217L, Manage the Supply Chain,The Progression of Systems,Controlled systems,(workers just an another factor of production),Participative systems,(team work, self-monitoring, dependence on information),High performance systems,(customer focused operating units, decentralized decision making authority),Integrated systems,(many systems viewed as a single,system),Prepared by Zlatko Muhvic,12,MKTG-7217L, Manage the Supply Chain,Why Integration Creates Value?,Bowersox,Closs, Cooper, “Supply Chain Logistics Management”McGraw Hill,2002,p.161,Economic Value,Market,Value,Relevancy Value,Good and cheap,Lowest,total cost,Economy of scale,Product/service creation,Convenient,Attractive,assortment,Economy of scope,Product/service presentation,Customisation,Segmental diversity,Product/service positioning,Procurement/,Manufacturing Strategy,Market/,Distribution Strategy,Supply Chain Strategy,Prepared by Zlatko Muhvic,13,MKTG-7217L, Manage the Supply Chain,Supply Chain Integration Objectives,Responsiveness ability to fulfil customer requirements on time - postponement,Variance reduction result of failure to perform,Inventory reduction asset commitment and turn velocity,Shipment consolidation,Quality Total Quality Management (TQM),Life cycle support “Cradle-to-cradle”,Prepared by Zlatko Muhvic,14,MKTG-7217L, Manage the Supply Chain,Internal Integration Barriers,Organization structure sandbox or silo mentality stifle cross-functional processes,Measurement and reward system usually follows organisational structure how contribute to a process not stand-alone performance,Inventory leverage buffer and safety stock to support functional performance,Infocratic,structure information formatted to support functional accountability,Knowledge hoarding unwillingness to share common knowledge,Prepared by Zlatko Muhvic,15,MKTG-7217L, Manage the Supply Chain,Supply Chain Integrative Framework,Bowersox,Closs, Cooper, “Supply Chain Logistics Management”McGraw Hill,2002,p.175,RESOURCEBASE,END CUSTOMER,Product/Service Value Flow,Market Accommodation Flow,Behavioural Context,Relationship,Planning and Control Context,Measurement,Technology and Planning,Operational Context,Material and Service Supplier Integrations,Internal Operations,Customer Integration,Information Flow,Cash Flow,Prepared by Zlatko Muhvic,16,MKTG-7217L, Manage the Supply Chain,The 8,Is,of Successful Relationship,Individual excellence, add value,Importance, strategic objectives,Interdependence, need each other,Investment, tangible sign,Information, open communication,Integration,- linkages,Institutionalisation, formal status,Integrity, mutual trust,Prepared by Zlatko Muhvic,17,MKTG-7217L, Manage the Supply Chain,Conclusion,Whole is grater than the sum of its parts,The systems run the business, the people run the system,Systems progressed from: controlled, participative, and high performance to integrated,Integration creates economic, market, and relevancy value,Prepared by Zlatko Muhvic,18,MKTG-7217L, Manage the Supply Chain,References,Andrew Irving, 1999 “Summary of Systems Theory”, Global Research B,http:/www.,globalresearchbusiness,.com/methods/,stheory,.,php, Visited 3/8/04,Bowersox,Closs, Cooper, 2002,“Supply Chain Logistics Management”McGraw Hill, NY, USA,Prepared by Zlatko Muhvic,19,MKTG-7217L, Manage the Supply Chain,Reading,Irving 1999, handouts,Coyle,Bardi,and Langley 2003, p.58-60,Christopher 1998, p.199-212,Prepared by Zlatko Muhvic,20,MKTG-7217L, Manage the Supply Chain,Next Session,Session no. 5,Supply Chain Planning and Action Tools,Prepared by Zlatko Muhvic,21,MKTG-7217L, Manage the Supply Chain,