Slide 1Change in ParadigmExample: Automotive RelationshipsSupplier CollaborationMajor Business TransformationsRecipe for Competitive AdvantageSlide 7Barriers to Supply Chain IntegrationHorizontal OrganizationsGetting startedKPI’s in the Supply ChainPurpose of BenchmarkingSlide 13Slide 14Slide 15Business Administration 331Supply Chain ManagementChapters 11-12Dr. John E. BellAssociate Professor of Supply Chain Mgt.343 Stokely Management [email protected] in ParadigmTraditional View of CompetitionIndividual businesses compete as stand alone entities. New Paradigm of CompetitionSupply chains compete with one another.Requirements for success1. Collective strategy development2. Win-win thinking3. Open communicationExample: Automotive RelationshipsSource: http://www.autolinedetroit.tv/journal-wp-content/uploads/2009/05/2009-wri-news-release-09-25-092.pdfSupplier CollaborationSource: http://www.autolinedetroit.tv/journal-wp-content/uploads/2009/05/2009-wri-news-release-09-25-092.pdfWhy collaborate with suppliers?What are the consequences?Major Business TransformationsRecipe for Competitive Advantage•Concept-based continual learning in addition to experience•Internal and external relationships •Information visibility to maximize communication and effectiveness.•Integrate demand and supply as tightly as possible.Goal: Quickly respond to market changes effectively and efficiently - producing what your customers want when they want it6https://www.youtube.com/watch?v=S_yMW2b0kNkConventional Organization Structure also called traditional, functional, vertical, silo Chapter 12:Barriers to Supply Chain ImprovementCore organizational objective: Generate orders and fulfill those orders without regard to costThe cost of an order moving through the pipeline is not visible!Barriers to Supply Chain IntegrationPeople are interested in protecting and growing their own function.Horizontal OrganizationsCore organizational objective: Link demand and supply through Demand Supply Integration (DSI).Distinguishing characteristics of horizontal, market-facing organizations:• Organized around processes• Flat and de-layered• Built upon multi-functional teams• Guided by market-based performance metrics–Key Performance Indicators–BenchmarkingGetting startedOBJECTIVE PROCESS/ DRIVER MEASURE (KPI) Better Cost Customer retentionFaster Relationships End-to-end pipeline timeCheaper Service Quality Total Cost-to-serveCloser Time Perfect Order Achievement What gets measured, gets managed…KPI’s in the Supply Chain•To answer the question, “Are we competitive?”•To establish the ground for creative breakthroughs and move away from tradition•To provide externally-oriented performance input that is forward looking as opposed to financially-oriented historical input•Three types: Internal, Competitive, Best in Class/ProcessPurpose of BenchmarkingCategory Number of Times Reporting Highest Perceived PerformanceDo Not Benchmark 15Limited Benchmarking 15Extensive Benchmarking 2You plan to sell products over the internet and become the world’s best at providing in-home delivery services. Which type of benchmarking makes most sense?A. InternalB. CompetitiveC. Best in Class (or Process)13Discussion QuestionYou are a divisional inventory manager at a company that has grown through the acquisition of 20 different smaller firms. You are completing an initial assessment of your inventory management principles. Which type benchmarking makes most sense?A. InternalB. CompetitiveC. Process14Discussion QuestionYour firm has decided to expand globally by adding the UK to your delivery area. You are attempting to decide what services will make you successful in this market. Which type benchmarking makes most sense?A. InternalB. CompetitiveC. Process15Discussion
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