•Source: Douglas M. Lambert, Martha C. Cooper and Janus D. Pagh, "Supply Chain Management: Implementation •Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2 (1998), p.7.
•Tier 1 •Customers
•Tier 2 •Customers
•Tier 3 to •Consumers/ •End-Customers
•1
•2
•1
•n
•2
•1
•n
•1
•n
•1
•n
•2
•n
•1
•n
•Focal Company •Members of the Focal Company’s Supply Chain •Non-Members of the Focal Company’s Supply Chain
Underlying Process Vision
•Supply Chain Management Vision
•The key to achieving an integrated flow of product and information throughout the supply chain is to create a focused customer interface, a focused supplier interface, and an integrated, process-oriented, supply chain which is driven by the customer.
•Risk and •reward structure
•Culture and •attitude
•Product flow •facility structure
Customer Relationship Management
• Customer service teams develop and implement customer partnering programs.
Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 2.
•Supply Chain Network Structure
•Initial Suppliers •Tier 3 to n suppliers
•Tier 3 to n customers •Consumers / End-Customers
•
Source: Douglas M. Lambert, Martha C. Cooper, Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities”, The International
•1. Who are the key supply •chain members with whom
•to link processes?
Types of Business Process Links
• Managed Process Links • Monitored Process Links • Not-Managed Process Links • Nonmember Process Links
•SUPPLY CHAIN MANAGEMENT
•Integrating and Managing Processes Across the Supply Chain
•Information Flow
•Tier 2 •Supplier
•Tier 1 •Supplier
•Manufacturer
•Purchasing
•Initial Suppliers •Tier 3 to n suppliers
•Tier 3 to n customers •Consumers / End-Customers
•Types of Inter-company Business Process Links
•Tier 3 to •Initial
Fundamental Management Components
•Physical and technical management components
•Planning and •control methods
•Managerial and behavioral management components
• Minimum lot sizes are planned to move toward a make to order environment.
• Production priorities are driven by required delivery dates.
•Supply chain •business •processes
•Supply chain •management •components
•Supply chain •network •structure
•3. What level of integration •and management should be •applied or each process link?
•Tier 3 to •Initial
•suppliers
•Tier 2 •Suppliers
•Tier 1 •Suppliers
•Tier 1 •Customers
•Tier 2 •Customers
•1 •2
•n
•1
•n
•1 •2 •3
•n
•1
•n
•Focal Company
•1•2•1•1•n•1
•2
•2
•n
•3
•n
•1
•2
•n
•n
•Members of the Focal Company’s Supply Chain
•Tier 3 to •Consumers/ •End-Customers
Elements and Key Decisions
•2. What processes should be linked •with each of these key •supply chain members?
•Management •methods
•Work flow/ •activity structure
•Power and •leadership structure
•Organization •structure
•Communication •and information flow
•facility structure
• Manufacturing, distribution, and transportation plans are integrated.
• Strategic alliances with key supply chain members and carriers are formed to meet requirements and to reduce total-delivered-cost to customers
Manufacturing Flow Management
• Product is pulled through the plant based on customer needs.
• Manufacturing processes must flexibly respond to market changes with rapid changeover capabilities for mass customization.
•Customer Service
Management
•Demand •Management
•Customer Relationship •Management
•Customer
•Manufacturing Flow •Management
•Fulfillment •Procurement
•Source: 3M
• Conveys real-time information through interface with product and distribution operations.
• Requires an on-line/real-time product and pricing information to assist customers with inquiries, order placement, and after-sales service.
•suppliers
•Tier 2 •Suppliers
•Tier 1 •Suppliers
•1
•2
•n
•1
•1
•n
•2
•1
•2
•3
•3
•n
•n
•1
•n
•Managed Process Links •Monitor Process Links •Not-Managed Process Links •Non-Member Process Links
• Product/service agreements are established.
• New customer interfaces lead to improved communication and better predictions of customer demand and improve the way customers are serviced.