Slide 1Slide 2Horizontal Process IntegrationA Continuum of Supply Chain RelationshipsA Portfolio of Supply Chain RelationshipPutting it all togetherCardinal Health ValueLink ProgramBusiness Administration 331Supply Chain ManagementChapter 7Dr. John E. BellAssociate Professor of Supply Chain Management 343 Stokely Management [email protected] firms have invested significant amounts of money in information systems in the last 20 years, yet they find they still are not able to share data across functions or with customers and suppliers. Why?2Discussion QuestionHorizontal Process Integration3TestingWarehousing/Kitting Supply Base ManagementInbound LogisticsOutbound LogisticsDistribution / Product SupportManage key processes “horizontally” across the supply chain to optimize effectiveness and efficiency Raw MaterialsEnd CustomerRelationship ManagementInformation Technologyhttps://www.youtube.com/watch?v=FrZVr6WL-go• Increasing Formality• Increasing Effort• Increasing ImpactTransactional Structures–High number of relationships–Price dominated–Little interaction, short duration –Motivate desired behavior through reward & punishmentContracting/Outsourcing–Low number of relationships–Joint problem solving–Aligned objectives–Motivate desired behavior through info sharingStrategic Partnerships–Exclusive partner base–Mutual dependency –Shared goals/objectives–Close interaction over long termA Continuum of Supply Chain RelationshipsA Portfolio of Supply Chain RelationshipCaptive BuyerCaptive BuyerStrategic PartnershipStrategic PartnershipMarket ExchangeMarket ExchangeCaptive SupplierCaptive Supplier5Supplier’s Specific InvestmentBuyer’s Specific Investment•Combining IT systems capability and appropriate relationships to reduce order cycle times for delivery of the right product to satisfy demand •Substitute information for inventory•Companies have developed systems that employ these principles under the banner of Quick ResponsePutting it all togetherManufacturersCardinalOther SuppliersDistributorSatelliteCentral ReceivingO.R.HOSPITALFloor StationSupplyCartsCardinal Health ValueLink ProgramUses integrated information management to deliver products to hospitals on a JIT (“just-in-time”) basis, in ready to use packages, for specified user
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