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UH SCM 3301 - Chapter 13~Supply Chain Process Integration

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Current Lecture Lecture 18Chapter 13- Supply Chain Process IntegrationSCM 3301 1st EditionCurrent Lecture Lecture 18Facility Location Techniques- Weighted Factor Rating Modelo Access to markets, labor issues, access to suppliers, utility availability (costs), QOL, right-to-work, land, etc.o Criteria are weightedo Criteria are measuredo Multiply the measures by the weights- Break-Even Modelo When fixed and variable costs can be determined- Both Qualitative and Quantitative measures should be consideredTrends in Facility Location- Business Clusterso Research parks and special economic/industrial zoneso Interconnected companies in a particular field (co-location). Variant ofJIT Supplier Co-Location.- Sustainable Developmento Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.Chapter 13- Supply Chain Process IntegrationWhy is Integration Important?- Process Integration: Sharing information and coordinating resources to jointly manage a process.- Integration requires communication and cooperation from a variety of partners throughout the supply chain.- The world-class companies leverage cost and performance throughout the supply chain.o Tier 1 and Tier 2 Supplierso Tier 1 and Tier 2 CustomersSCM 3301 1st EditionSCM 3301 1st Edition***Figure on Exam 3, know the first set of arrows VERY well.The SCM Integration Model1. Identify Critical Supply Chain Trading Partnersa. These are key partners who will eventually enable the successful sale and delivery of end products to end customers (Supplier Evaluation and Development).2. Review and Establish Supply Chain Strategiesa. Porter’s Generic Strategies: Cost or Differentiation3. Align Supply Chain Strategies with Key Supply Chain Process Objectivesa. If a firm differentiates itself based on quality, then the key supply chain process objectives must align with the strategic objective.4. Develop Internal Performance Measures for Key Process Effectivenessa. Procedures and metrics must be in place to measure performance.5. Assess and Improve Internal Integration of Key Supply Chain Processesa. Measure and improve the key processes 6. Develop Supply Chain Performance Measures for the Key Processesa. Develop external performance measures to monitor links with key trading partners.7. Assess and Improve External Process Integration and Supply Chain Performancea. Rationalize poor performing suppliers, help improve better suppliers8. Extend Process Integration to Second-Tier Supply Chain Partners9. Re-evaluate the Integration Model AnnuallyThe Eight Key Supply Chain Business Processes Customer Relationship Management Customer Service Management Demand Management Order Fulfillment Manufacturing Flow Management Supplier Relationship Management Product Development and Commercialization Returns


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