Focus on : [supply-chain execution]

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Case 5
Brunswick Corporation Improving Supply-Chain
Results
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951702 ???

• What is the business value of SCM systems for
  Brunswick?

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The business value of SCM systems for Brunswick

• Get the product right
• Get the distribution right
• Shrink the period of order to delivery
• Be the best cost in the industries
• Raise sales volume
• Be global
• Increase the competitive advantage

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Get the product right

• Introduce the highest quality product with the
  most innovative technology and design at the best
  price, faster than the competition.

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Get the distribution right

• Distribute products through a model that benefits
  their partners dealers and distributors and
  provides world-class service to customers.

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Get the distribution right (cont.)

• Some of the efforts include
• By the different distribution channels to
  extensive marine parts and accessories to
  customers.
• By the ability of developing manufacture and
  distribution, let the product dispersion right.

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Shrink the period of order to delivery

• By exactly deal with the needs, supply and the
  use of product in the right place to decrease the
  period from order to delivery.

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Be the best cost in our industries

• Be the best cost manufacturer of products,
  develop and maintain low-cost manufacturing and
  continually improve productivity and efficiency.

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Raise sales volume

• Because decreasing the cost of manufacture and
  forecast and so on, the price of product will be
  lower and raise the sales volume.

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Be global

• To become the best price manufacturer in the
  product market, they use the abilities which
  produces from SCM to develops and maintains the
  process that improves the productivity and raise
  the efficiency unceasingly.

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Increase the competitive advantage

• By decreasing the cost and shrink the process of
  manufacturing product and so on, that can help
  business increase the competitive advantage.

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951623 ???

• Does the business value of SCM depend upon what
  type of business a company is in? Explain.

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Answer

• YES!
• 1.Implementing SCM matches the operational focus
  of the organization.
• 2.For manufacturing environments with
  well-defined final products and parts stand to
  gain the most profits.
• NO!
• - The services sector would be unlikely to adopt
  SCM since they lack a manufacturing process at
  all.

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The key to a successful SCM implementation is
that it matches the operational focus of the
organization.

• Use IT integrate Individual enterprises and
  operating process.
• Reduce waste and redundant
• Has a data warehouse that holds information such
  as inventory
• SCM can use the information to arrange the
  operating schedule.
• Standard business process

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For manufacturing environments with well-defined
final products and parts stand to gain the most
profits

• If there are no well-defined final products and
  parts stand , it will have
• (1) uncertainty of demand (such as amount)
• Inaccurate demand forecasts cause the
  accumulation of stock or out of stock
• (2) the uncertainty of manufacturing (such as
  yield, machine crashes, transport reliability)
• Delivery delay
• (3)uncertainly of supply
• Delivery delay

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Example Wal-Mart

• Wal-Mart exclusively used SCM to increase its
  projected growth rate.
• Manage their demand and supply in accurate manner

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Example Wal-Mart (cont.)

• RFID
• Can reduce the global retails labor costs 40
  50, and reduced the inventory volume of 10
  30.
• Wal-Mart's profit will increase by 38 percent,
  and its productivity higher than the industry
  more than 40 percent.

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Example Wal-Mart (cont.)

• Advanced satellite communications network
• Get the sales information immediately.
• A short number of hours to complete "fill orders
  - a summary of all branch orders - send orders.
• Benefit
• Improve the capacity of inventory replenishment.
• Speed up the checking out time and recording of
  transaction.

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Organizations in the services sector would be
unlikely to adopt SCM

• Because they lack a manufacturing process.
• To the service industry ,services cannot be
  inventoried.
• So they cannot to forecast the inventory.

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Organizations in the services sector would be
unlikely to adopt SCM (cont.)

• uncertainty of service quality
• services are created and delivered at the same
  time.
• Service rate and service quality cannot measure
  and store with digital.

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For example

• Drivers
• Drivers cannot forecast when customers need their
  service.
• Divers cannot use SCM to forecast the revenue at
  next month.

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For example (cont.)

• Barbers
• They dont know when customers want to have the
  haircut.
• They cannot measure the service quality with
  digital , so that they cannot use SCM to forecast.

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951620 ???

• How does Brunswicks approach to SCM differ from
  that of the other companies explored in this
  chapter?
• Is one approach superior to all others?
• Why or why not?

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Brunswick

• Getting a better grip on the data they generate
  to control its supply chain.

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Brunswick (cont.)

• How to use?
• - Used informatica corporations data
• integration and business - intelligence
• tools.
• - Has a data warehouse that holds
• information pulled from a wide range of
  
• enterprise systems.

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Brunswick (cont.)

• Benefit
• - Can better manage sourcing and
• procurement across its supply chain.

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IBM

• IBM created Configure-to-order
• system for its personal systems
• division.

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IBM (cont.)

• How to use?
• - A customer in Europe can configure a
• personal computer on IBMs website and
• get real-time availability and order
• confirmation.

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IBM (cont.)

• Places an order in Europe
• Order travels to IBMs systems
• located in world
• ?Fulfillment engine
• ?E-commerce engine
• ?ERP production management systems
• ?Sales reporting system
• ?Product database

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IBM (cont.)

• 3. back to the customers browser
• Benefit
• - Can integrate with the data in
• everywhere.
• - Customer can get information
• immediately.

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Dell inc.

• Installed a industrialstrength B2B integration
  software to integrate 18 different software.

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Dell inc. (cont.)

• How to use?
• - A business customer pulls product
• information from Dells server into the
• customers purchasing system, which
• creates an electronic requesting.

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Dell inc. (cont.)

• Benefit
• Reduce order time
• Reduce procurement process errors
• Reduce the cost of processing each order
• Build links to 40 its bigger customers, allowing
  a customer purchase easily.

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Syntellects Online Transaction processing

• Provide service between customers
• and cable companies.

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Syntellects Online Transaction processing (cont.)

• How to use?
• - Cable TV viewers can select
• pay-per-view events offered by their
• cable companies using the phone or the
• World Wide Web.

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Syntellects Online Transaction processing (cont.)

• The order is captured by syntellects interactive
  voice response system or web server.
• Transported to syntellect database application
  server.

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Syntellects Online Transaction processing (cont.)

• Updated sales database, and the approved order is
  relayed back to the cable companies video server.
• Cable companies transmits the video to the
  customers.

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Syntellects Online Transaction processing (cont.)

• Benefit
• Instead of paying for a year and so many views
  that will not to watch, customer can choose the
  view he want and pay for it.
• Can reduce customer costs.
• Can profit Synellect and cable companies.

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Baker Tanks

• Used salesfore.com solution
• Moved from a paper-based system to a Web-based
  system.
• Eliminating the step of transferring information
  from paper documents to the database.

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Baker Tanks (cont.)

• How to use?
• Sales all have each PDA.
• Every PDA can link to salesforce.com for customer
  contact information, sales history and anecdotal
  notes.
• Sales can e-mail responses to customers more
  promptly.

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Baker Tanks (cont.)

• Benefit
• Communicating better with customers.
• Our salespeople have become more productive.

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Is one approach superior to all others? why or
why not?

• Yes
• Can better manage sourcing and procurement across
  its supply chain.
• No
• Because Brunswick didnt have a perfect
  customer-oriented service like other companies.

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951736 ???

• Describe what the IS/IT in the real case is all
  about?
• supply-chain management system

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What is SCMS?
Supply Chain Management aims to manage the
entire supply chain in the premise of meet
customer, for example, from the procurement,
materials management, production, distribution,
marketing to consumers.
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Goal

• Reducing overall system operating costs. 
• The cost of shared information. 
• To improve their overall competitive advantage,
  developed into a large-scale virtual enterprise. 

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Goal (cont.)

• By information technology, make information
  format standardization, operational efficiency,
  and eliminate unnecessary complexity of
  operations, supply operations and timely delivery
  response to consumer demand.

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While functionality in such systems can often be
broad it commonly includes

• Customer requirement processing
• Purchase order processing
• Inventory management
• Goods receipt and Warehouse management
• Supplier Management/Sourcing

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What does supply chain management software
development now?

• Supply chain management software is possibly the
  most fractured group of software applications on
  the planet.
• No vendor has a complete package that is right
  for every company
•  
• Many companies decide to go with targeted best of
  breed products instead

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951602 ???

• What are the advantages and disadvantages of the
  supply-chain management system ?

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Advantage(1)
1.Reduce the amount of inventory. This is the
practice known as just-in-time manufacturing,
and it allows companies to reduce the amount
of inventory that they keep. 2.Can cut costs
substantially. You no longer need to pay to
produce and store excess goods.
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Advantage(2)

• 3.For supplier, reducing the uncertain
• problem about sales and customer
• demand.
• 4.Reducing the cost of administration and
• process integrate.

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Advantage(3)

• 5.Integrate the product and process development
• 6.Increase sales amount
• Squeeze out costs and use efficient and effective
  supply chains to bump up sales

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Disadvantage(1)

• Flexibility
• A long way to go for many companies and
  their supply chain partners before that level of
  supply chain flexibility can be achieved.

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Disadvantage(2)

• Incorrect information
• Inter-related companies could have the
  problem of sharing incorrect information due to
  lack of mutual trust or fear of control.

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Disadvantage(3)

• Congestion of stock
• To allow other companies take control of
  their inventory, there may have some risks about
  the supplier's own inventory to plug downstream.

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Disadvantage(4)

• Wrong estimate
• EX
• People bought more of the SCM
  applications than they should have, says Steve
  Banker, an ARC analyst.

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932641 ???

• How does the supply-chain management system
  change the way new business operate now?
• (compare it with the traditional / conventional
  method, if there is any. )

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Building the system
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Controlling the system
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Effect
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Conclusion
?Relationship Integration Squeeze out costs
and use efficient and effective supply chains to
bump up sales. ? Visibility It can better
manage sourcing and procurement across its supply
chain.
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Conclusion (cont.)
?Optimizing revenue Controlling supply chain
can affect both the bottom and top lines .
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951755 ???

• Besides those mentioned in the case, what other
  ways can a business realize more business
  benefits from the supply-chain management
  system ?

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Focus onthe back end of the supply-chain
?Way Design an integrated database. This
database can provide information for all system,
include SCM system, at the back end of the
supply-chain.
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Focus onthe back end of the supply-chain (cont.)
?Benefits Because all systems are use the same
database, it dont need time to convert data from
one database to another, systems can use the data
directly. Hence, the data flowing between these
systems can be more consistent and timely.
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Focus onthe back end of the supply-chain (cont.)
?Way Combine SCM system with PRM (Partner
Relationship Management) system. PRM system can
help business obtain and retain the
distribution/transportation partner. Keep good
relationship and communication with partners that
can strengthen the businesss products and
service.
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Focus onthe back end of the supply-chain (cont.)
?Benefits Long-term cooperation with particular
partner would give the quality assurance and
dont need to spend another convert cost. Even
more business can ask to decrease the
distribution cost.
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Focus onthe front end of the supply-chain

• ?Way
• Integrate the information generated from
  supply-chain planning software and CRM system.
• Supply-chain planning software can decide which
  products to build based on forecast.
• CRM system can analyze what the customer like
  based on the customers profile and purchase
  records.
• Combine these two information to make forecast
  and decision more accurate and appropriate.

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Focus onthe front end of the supply-chain
(cont.)
?Benefits More accurate the forecasts and
decisions are, the customers will like more the
products that businesses build and buy more. So
the profit increase.
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Focus onthe front end of the supply-chain
(cont.)

• ?Way
• Use the B2B (business-to business) integration
  software .
• For example, E-procurement can pull product
  information directly to customer, it creates
  electronic order.
• After the order is approved online by the
  customer, a computer-generated purchase order
  shoots back to business and supplier.

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Focus onthe front end of the supply-chain
(cont.)
?Benefits It would decrease the process
cost. Electronic order can deliver over Internet,
so the whole process time can be shortened.
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Focus on supply-chain execution software

• ?Way
• Add a tracking function for transportation
  management.
• Customers (retailers or wholesalers) can know
  where the products have been.
• Businesses can monitor the transportation of the
  products on time and correctly.

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Focus on supply-chain execution software
(cont.)
?Benefits Increasing the dependency of customer
and the efficiency of transportation.
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951712 ???

• Do some searches from the Web and provide some
  historical background about the supply-chain
  management system ?

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Supply-chain Management
Historical Background Six major development can
be observed in the evolution of supply chain
management (SCM). 1. Creation Era 2.
Integration Era 3. Globalization Era 4.
Specialization Era -- Phase One Outsourced
Manufacturing and Distribution 5. Specialization
Era -- Phase Two -- Supply Chain Management as a
Service 6. Supply Chain Management 2.0 (SCM 2.0)
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Supply-chain Management (cont.)
Historical Background 1. Creation Era The
term supply chain management was first coined by
an American industry consultant in the early
1980s.
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Supply-chain Management (cont.)
Historical Background 2. Integration Era
This era of supply chain management was
highlighted with the development of Electronic
Data Interchange (EDI) systems in the 1960s and
developed through the 1990s by the introduction
of Enterprise Resource Planning (ERP) systems.
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Supply-chain Management (cont.)
Historical Background 3. Globalization Era
The third movement of supply chain management
development, globalization era, can be
characterized by the attention towards global
systems of supplier relations and the expansion
of supply chain over national boundaries and into
other continents.
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Supply-chain Management (cont.)
Historical Background 4. Specialization Era --
Phase One Outsourced Manufacturing and
Distribution In the 1990s industries began
to focus on core competencies and adopted a
specialization model.
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Supply-chain Management (cont.)
Historical Background 5. Specialization Era --
Phase Two -- Supply Chain Management as a
Service Specialization within the supply
chain began in the 1980s with the inception of
transportation brokerages, warehouse management,
and non asset based carriers and has matured
beyond transportation and logistics into aspects
of supply planning, collaboration, execution and
performance management.
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Supply-chain Management (cont.)
Historical Background 6. Supply Chain
Management 2.0 (SCM 2.0) Building off of
globalization and specialization, SCM 2.0 has
been coined to describe both the changes within
the supply chain itself as well as the evolution
of the processes, methods and tools that manage
it in this new era.
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Supply-chain Management
Now SCM contain two parts 1.Supply Chain
Execution Address particular segments along
the supply chain. Like warehouse management and
transportation management. 2. Supply Chain
Planning Helps company decide which products
to build and when, based on forecast, orders,
capacity, and resource.
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951637 ???

• Describe who else may find the supply-chain
  management system useful.
• Give at least 5 examples. And, why you think
  so?

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Example 1

• A Taiwans OEM printer
• manufacturer.
• They cooperate with the world's
• leading brands of printer
• manufacturer.

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Example 1 AVISION

• Background
• Since 1991
• World famous brand partners
• (Printer Company)
• Xerox (Fuji Xerox)
• Lexmark
• Fujitsu
• Pentax

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Example 1 AVISION
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Example 1 (cont.) AVISION
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Example 2

• The company is the fourth
• largest supplier of LCD panels
• in the world.

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Example 2 Chi Mei Optoelectronics

• Background
• Since 1998
• Main production
• LCD panel
• Television

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Example 2 Chi Mei Optoelectronics
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Example 2 Chi Mei Optoelectronics
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Example 3

• The company is Europes leading
• home improvement retail group.
• They are also the third largest
• group in the world.

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Example 3 Kingfisher PLC

• Background
• Since 1998
• With leading market positions in the UK, France,
  Poland, Turkey and China.
  
• Main retail brands like BQ.

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Example 3 Kingfisher PLC
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Example 4

• The company is a manufacturer
• of digital camera.

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Example 4 Premier
Background Since 1974(main product
camera) Premier Technology Group is the foremost
provider of joint-design, joint-development,
manufacturing, assembly and after-sales services
to global Computer, Communication and
Consumer-electronics ("3C") leaders.
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Example 4 Premier
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Example 5

• They are one of the worlds leading
• providers of semiconductor
• manufacturing services.
• And they pride themselves as a
• leader in offering a comprehensive
• range of advanced IC packaging.

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Example 5 ASE GROUP
Background Since 1984 Advanced Semiconductor
Engineering Inc. (ASE Inc.)
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Example 5 ASE GROUP