供應(yīng)鏈評(píng)估指標(biāo)

ISYOURSUPPLYCHAINCOMPETITIVE?

HOWDOYOUKNOW?BLAIRRWILLIAMSProfessorandDirector,PolytechnicUniversity.Brooklyn,NewYorkblairrw@718-260-3835OBJECTIVESANDOUTLINEOBJECTIVE:TOHELPYOUDETERMINEIFYOURCOMPANYHASACOMPETITIVESUPPLYCHAIN.OUTLINE:ELEMENTSOFASUPPLYCHAINSCORMODELANDMETRICSBENCHMARKINGIMPLICATIONSBESTPRACTICESINFORMATIONSOURCESDEFINITIONOFASUPPLYCHAINASUPPLYCHAINCOVERSTHEFLOWOFMATERIALS,INFORMATIONANDCASHACROSSTHEENTIREENTERPRISESUPPLYCHAINMANAGEMENTISTHEINTEGRATEDPROCESSOFPLANNING,SOURCING,MAKINGANDDELIVERINGPRODUCT,FROMRAWMATERIALTOENDCUSTOMERELEMENTS-SUPPLYCHAINMANAGEMENT

PLAN-SOURCE-MAKE-DELIVER-MEASURESUPPLYCHAININFRASTRUCTURE

TRANSFEROFINFORMATION,MATERIALSANDCASHDEMANDMANAGEMENTCUSTOMERORDERMANAGEMENTPROCESSFORECASTINGCUSTOMERPARTNERSHIPSSOURCINGSELECTING,QUALIFYING,PARTNERING,MEASURINGANDPROVIDINGFEEDBACKTOKEYSUPPLIERSELEMENTSOFSUPPLYCHAINMANAGEMENT

PLAN-SOURCE-MAKE-DELIVERSUPPLYORMANUFACTURINGPROCESSFACTORYSCHEDULINGINVENTORYMANAGEMENTLEADTIMEREDUCTIONLOGISTICALPROCESSTRANSPORTATION,WAREHOUSING,DISTRIBUTION,DELIVERYGLOBALPERFOMANCEMEASUREMENTS-SCORSUPPLYCHAINCOUNCIL(SCC)SCCISANINTERNATIONALPROFESSIONALBODYFORSUPPLYCHAINMANAGEMENT(SCM)SYSTEMSANDPRACTICESDEVELOPEDANDENDORSEDTHESCOR(SUPPLYCHAINOPERATIONSREFERENCEMODEL)ASACROSSINDUSTRYSTANDARDFORSCMSPECIALINDUSTRYGROUPSAEROSPACEANDDEFENCECOMPUTERS&ELECTRONICSEQUIPMENTPHARMACEUTICALS&CHEMICALSUTILITIES-TELECOMMUNICATIONSRETAIL-CONSUMERPACKAGEDGOODSDEFENSEANDINDUSTRIALSEMICONDUCTORSSCORMODELBUSINESSPROCESSREENINEERING‘ASIS’TO‘TOBE’METRICSBENCHMARKINGIMPLICATIONSBESTPRACTICEANALYSISPROCESSREFERENCEMODELBASEDON‘BESTINCLASS’RESULTSCHARACTERIZEMANAGEMENTPRACTICESIDENTIFYSOFTWARESOLUTIONSLEVELIMETRICSDELIVERYPERFORMANCEPERFECTORDERFULFILLMENTPRODUCTIONFLEXIBILITYTOTALSUPPLYCHAINMANAGEMENTCOSTMATERIALACQUISITIONCOSTCASHTOCASHCYCLETIMETOTALINVENTORYDAYSOFSUPPLYASSETTURNS

LEVELIMETRICSDELIVERYPERFORMANCE-%THEPERCENTAGEOFORDERSTHATAREFULFILLEDONORBEFORETHECUSTOMER’SREQUESTEDDATELEVELIMETRICSPERFECTORDERFULFILLMENT-%DELIVEREDCOMPLETEWITHALLITEMSONTHEORDERINTHEQUANTITYREQUESTEDDELIVEREDONTIMETOCUSTOMER’SREQUESTDATEDELIVEREDINPERFECTCONDITIONWITHTHECORRECTCONFIGURATIONANDCOMPLETE&ACCURATEDOCUMENTATIONLEVELIMETRICSPRODUCTIONFLEXIBILITY-DAYSTHENUMBEROFDAYSREQUIREDTOACHIEVEANUNPLANNED,SUSTAINABLE20%INCREASEINPRODUCTIONLEVELIMETRICSTOTALSUPPLYCHAINMANAGEMENTCOST-$’sSUMOFCOSTSOF:ORDERMANAGEMENTMATERIALSACQUISITIONINVENTORYCARRYINGSUPPLYCHAIN-FINANCE,PLANNINGANDMISLEVELIMETRICSMATERIALACQUISITIONCOST-$’sSUMOFCOSTSTOMANAGE:COMMODITYMANAGEMENT&PLANNINGSUPPLIERQUALITYENGG.INBOUNDFREIGHT&DUTIESRECEIVINGANDMATERIALSTORAGEINCOMINGINSPECTIONMATERIALPROCESSENGG.&TOOLINGLEVELIMETRICSCASHTOCASHCYCLETIME-DAYSTHENUMBEROFDAYSBETWEENPAYINGFORRAWMATERIALSANDGETTINGPAIDFORPRODUCT,ASCALCULATEDBY:INVENTORYDAYSOFSUPPLYPLUSDAYSOFSALESOUTSTANDING(RECEIVABLES)MINUSAVERAGEPAYMENTPERIODFORMATERIAL(PAYABLES)CtoCCTIME=INVDAYS+DAYSREC–DAYSPAYLEVELIMETRICSTOTALINVENTORYDAYSOFSUPPLY(THEAVERAGECOSTOFINVENTORYDIVIDEDBYTHECOSTOFGOODSSOLD)TIMES365TOTALINVENTORYDAYSSUPPLY=INVENTORYx365COGSLEVELIMETRICSASSETTURNS––NUMBERTOTALREVENUEDIVIDEDBYTOTALASSETS=TOTALREVENUETOTALASSETSBENCHMARKINGANDBESTPRACTICESDELIVERYPERFORMANCETOREQUEST%(8/2000)BICAverMedianConsumerPackagedGoods98.4 72.3 84.4DefenseandIndustrial98.0 69.4 71.7Telecommunications94.8 63.4 72.6DELIVERYPERFORMANCETOREQUEST%RANGE–62%TO98%(20to30%pointsperIndustryGroup)IMPLICATIONSMOSTFUNDAMENTALMEASUREMENTOFCUSTOMERSATISFACTIONINDICATESHOWWELLTHESUPPLYCHAINISCONFIGURED&INTEGRATEDDELIVERYPERFORMANCETOREQUEST%BESTPRACTICESORDERTRACKINGSYSTEMSTOCOMPAREREQUESTEDVSACTUALDATESATLINEITEMLEVELDEMANDVISIBILITYTOSUPPLIERSCONSOLIDATION,PACKINGANDDELIVERYOUTSOURCED.DELIVERYDIRECTLYTOCUSTOMERPOINTOFUSEONLINEATPANDORDERSTATUSAVAILTOCUSTOMERBENCHMARKINGANDBESTPRACTICESUPSIDEPRODUCTIONFLEXIBILITY(8/2000)DAYSBICAverMedianTelecommunications9.641.7 30.0UPSIDEPRODUCTIONFLEXIBILITYDaysRANGE––9to230DAYS(6to10timeswithinIndustryGroup)IMPLICATIONS––MEASUREOFCOMPANY’’SSUPPLYFLEXIBILIYINCREASEINPRODUCTIONWITHOUTCAPITALINVESTMENTUPSIDEPRODUCTIONFLEXIBILITYDaysBESTPRACTICESEFFECTIVESUPPLIERPARTNERSHIPSSYNCHRONIZINGOPERATIONSACROSSTHECOMPANYTOREDUCERAMPTIMEHIGHPERFORMANCEMANUFACTURINGTECHNIQUES––DEMANDPULL,CELLULARMFG,MULTISKILLEDFORCEBUILD/CONFIGURETOORDER––MODULARDESIGNBENCHMARKINGANDBESTPRACTICESTOTALSUPPLYCHAINMANAGEMENTCOSTS(8/2000)%OFREVENUEBICAverMedianComputers4.39.4 8.4ConsumerPackageGoods 4.111.3 9.1SemiconductorsTOTALSUPPLYCHAINMANAGEMENTCOSTS%OFREVENUERANGE––3to11%(doublewithinIndustryGroups)IMPLICATIONS––1BILLIONDOLLARCOMPANYWILLSAVE$50million(5%)PERYEAR,INSUPPLYCHAINMANAGEMENTCOSTS,OVERTHEIRCOMPETITIONTOTALSUPPLYCHAINMANAGEMENTCOSTS%OFREVENUEBESTPRACTICESSCMVIEWEDASCRITICALPROCESSANDINTEGRATEDINTOBUSINESSPLANNINGPROCESSSINGLEEXECUTIVEOVERALLRESPONSIBILITYONLINEEDIANDPURCHASINGPAYONRECEIPT(ELIMINATERECONCILIATIONOFINVOICES)BENCHMARKINGANDBESTPRACTICESMATERIALACQUISITIONCOST1996%OFREVENUEBICAverMedianMATERIALACQUISITIONCOST%OFREVENUERANGE––0.4to3.5%(doubleacrossindustrygroups)IMPLICATION––A1BILLION$CO.SAVES$10MILLION(1%)PERYEARINMATERIALBUYINGCOSTS––PURCHASING,QUALITYANDDEVELOPMENTMATERIALACQUISITIONCOST%OFREVENUEBESTPRACTICES––SUPPLIERPARTNERSHIPSKEYSUPPLIERSONPRODUCTDEVELOPMENTTEAMSCERTIFIEDSUPPLIERSDELIVERATPOINTOFUSECOMMODITYTEAMSFOCUSONSTRATEGICPROCUREMENTISSUESBENCHMARKINGANDBESTPRACTICESCASH–to–CASHCYCLETIME(8/2000)DAYSBICAver MedianPharmasandChemical31.3 120.2 96.8ElectronicEquipment31.6 116.3 103.1Telecommunications19.490.5 85.8CASH–to–CASHCYCLETIME-DAYSRANGE––20to120days(2to4timeswithinIndustryGroups)IMPLICATIONS––50%TO75%OFWORKINGCAPITALBECOMESAVAILABLETOCOMPANIESTOINVESTCASH–to–CASHCYCLETIME-DAYSBESTPRACTICESCASH-RELEASEAGREEMENTFORBLANKETORDERSTHIRDPARTYRECONCILIATIONANDPAYMENTOFRECEIVABLESABILITYTOMAINTAINLOWERINVENTORYLEVELSBENCHMARKINGANDBESTPRACTICESINVENTORYDAYSOFSUPPLY(BIC&Median’96,Av.’98)DAYSBICAverMedianPharmasandChemical102 120160Chemical375460Computers313876ConsumerPackagedGoods72DefenseandIndustrial558085ElectronicEquipment3177Semiconductors4976Telecommunications50 80 95INVENTORYDAYSOFSUPPLY-DAYSRANGE––20to120days(3to4timeswithinIndustryGroups)IMPLICATIONSFORA1BILLION$CO.,WITHCOGSOF500MILLION,DIFFERENCEOF50DAYSIS$100MILLION!SUPPLIERSSELECTEDONTOTALCOSTOFOWNERSHIP(TCO),NOTJUSTPURCHASEPRICEINVENTORYDAYSOFSUPPLY-DAYSBESTPRACTICESAUTOREPLENISHMENT––Ex.VMIVISIBILITYOFDEMANDTOALLKEYPARTICIPANTSINSUP