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For For Operations Management, 9eOperations Management, 9e by by Krajewski/Ritzman/Malhotra Krajewski/Ritzman/Malhotra © 2010 Pearson Education© 2010 Pearson Education
Global Supply Chain Management
Global Supply Chain Management
Global Supply Chain Management
Inventory Reduction Tactics
Global Supply Chain Management
Themes• Supplier Consolidation / Purchasing and Procurement• RFID• VMI• Green• Information Technology• Lean• Pull
Global Supply Chain Management
Total Sales = $10,000,000
Purchased Materials = 7,000,000Labor and Salaries = 2,000,000
Overhead = 500,000
Profit = 500,000
Purchasing / ProcurementHow can we double profits to $1,000,000?
Global Supply Chain Management
Purchasing / ProcurementHow can we double profits to $1,000,000?
Global Supply Chain Management
Purchasing / ProcurementImportant Practices
•Leverage buying power
•Commit to small number of dependable suppliers
•Partner with suppliers to reduce total cost
• Supply Chain Management • Some Lingo• Some Global Issues• The Bullwhip Effect in Supply Chains• Information Technology• Improvement Ideas• Cases
Global Supply Chain Management
Global Supply Chain Management
Factors to be considered when moving from (mostly) domestic chains to global ones
Global Supply Chain Management
Global Supply Chain Management
HP and DeskJet Background.
Problems and Goals.
Potential Solutions.
HP Solution.
Global Supply Chain Management
• Supply Chain Management Systems:
• Supply Chain Management:
• Supply Chain:
Global Supply Chain Management
Information Systems Can Help Supply Chain Participants:• • • •
Global Supply Chain Management
Information Technology
Global Supply Chain Management
Upstream Downstream
Inboundlogistics
Productionprocesses
Outboundlogistics
Sales andmarketing
Customerservice
Information Technology
Upstream Downstream
Global Supply Chain Management
Yes No
Global Supply Chain Management
• Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc) to move products from origin destination
• This creates supply chain complexities
Global Supply Chain Management
Logistics
•
•
•
•
•
•
Global Supply Chain Management
A Good SCM System will help a firm
Global Supply Chain Management
Identify the problem(s) Haworth was facing.
What alternative solutions were available to management?
How well did the chosen solution work?
What people, organization, and technology issues need to be addressed?
Global Supply Chain Management
• i2 Technologies – www.i2.com• Manugistics• Supply Chain Knowledge Base – supplychain.ittoolbox.com• Supply Chain Management Review – www.scmr.com• CIO Magazine – www.cio.com• About Inc. (Logistics/Supply Chain) – logistics.about.com• IBM - http://www-03.ibm.com/solutions/businesssolutions/scm/index.jsp
• Oracle/PeopleSoft Supply Chain – www.oracle.com/applications/scm• Institute for Supply Chain Management – www.ism.ws
Additional SCM Resources
Global Supply Chain Management