您的供應鏈是否是競爭的

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)BICAverMedianPharmasandChemical98.9 78.4 91.9Computers82.8 56.4 58.8ElectronicEquipment97.4 67.6 74.2Telecommunications94.8 63.4 72.6DELIVERYPERFORMANCETOREQUEST%RANGE–62%TO98%(20to30%pointsperIndustryGroup)IMPLICATIONSMOSTFUNDAMENTALMEASUREMENTOFCUSTOMERSATISFACTIONINDICATESHOWWELLTHESUPPLYCHAINISCONFIGURED&INTEGRATEDDELIVERYPERFORMANCETOREQUEST%BESTPRACTICESORDERTRACKINGSYSTEMSTOCOMPAREREQUESTEDVSACTUALDATESATLINEITEMLEVELDEMANDVISIBILITYTOSUPPLIERSCONSOLIDATION,PACKINGANDDELIVERYOUTSOURCED.DELIVERYDIRECTLYTOCUSTOMERPOINTOFUSEONLINEATPANDORDERSTATUSAVAILTOCUSTOMERBENCHMARKINGANDBESTPRACTICESUPSIDEPRODUCTIONFLEXIBILITY(8/2000)DAYSBICAverMedianUPSIDEPRODUCTIONFLEXIBILITYDaysRANGE––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$10MILLION(1%)PERYEARINMATERIALBUYINGCOSTS–PURCHASING,QUALITYANDDEVELOPMENTMATERIALACQUISITIONCOST%OFREVENUEBESTPRACTICES–SUPPLIERPARTNERSHIPSKEYSUPPLIERSONPRODUCTDEVELOPMENTTEAMSCERTIFIEDSUPPLIERSDELIVERATPOINTOFUSECOMMODITYTEAMSFOCUSONSTRATEGICPROCUREMENTISSUESBENCHMARKINGANDBESTPRACTICESCASH––to–CASHCYCLETIME(8/2000)DAYSBICAverMedianComputers27.562.1 51.5Semiconductors49.4110.3 104.5CASH––to–CASHCYCLETIME-DAYSRANGE–20to120days(2to4timeswithinIndustryGroups)IMPLICATIONS––50%TO75%OFWORKINGCAPITALBECOMESAVAILABLETOCOMPANIESTOINVESTCASH––to–CASHCYCLETIME-DAYSBESTPRACTICESCASH-RELEASEAGREEMENTFORBLANKETORDERSTHIRDPARTYRECONCILIATIONANDPAYMENTOFRECEIVABLESABILITYTOMAINTAINLOWERINVENTORYLEVELSBENCHMARKINGANDBESTPRACTICESINVENTORYDAYSOFSUPPLY(BIC&Median’96,Av.’98)DAYSBICAverMedianPharmasandChemical102 120 160Chemical37 54 60Computers313876ConsumerPackagedGoods72DefenseandIndustrial558085ElectronicEquipment3177Semiconductors4976Telecommunications508095INVENTORYDAYSOFSUPPLY-DAYSRANGE––20to120days(3to4timeswithinIndustryGroups)IMPLICATIONSFORA1BILLION$CO.,WITHCOGSOF500MILLION,DIFFERENCEOF50DAYSIS$100MILLION!SUPPLIERSSELECTEDONTOTALCOSTOFOWNERSHIP(TCO),NOTJUSTPURCHASEPRICEINVENTORYDAYSOFSUPPLY-DAYSBESTPRACTICESAUTOREPLENISHMENT––Ex.VMIVISIBILITYOFDEMANDTOALLKEYP