SCM: Supply Chain Management ????????

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SCM Supply Chain Management ????????
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• mailto ckfarn_at_mgt.ncu.edu.tw
• http//www.mgt.ncu.edu.tw/ckfarn
• 2014.12 updated

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B2B EC ?????

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• ???Value generating
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• LSP Logistics Service Provider
• 3PL 3rd Party Logistics

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TSMC
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Intel
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Supplier
Focal
Customer
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???? Asset-based Service
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Supplier
Focal
Customer
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?? Arrangement, Non Asset
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?????????1

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Supplier
Focal
Buyer
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Supplier
Focal
Buyer
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• Disintermediation vs. Reintermediation
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??? Visibility

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• Focal?????
• Supplier???
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????? A ????? (MRO) B ???? eProcurement
????? C ???? D ????
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MRO Maintenance, Repair and Operations
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????

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• Dynamic pricing
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Marketplaces Direction of trade
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?????? eMarkets

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• Private market, private hub
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• Public exchange

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????2

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• ????5,??????????????7.5???

skip
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???? The Bullwhip Effect
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??????????
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Source Tom Mc Guffry, Electronic Commerce and
Value Chain Management, 1998
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• JIT Just-in-time
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????????

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Manufacturer
orders
Distributor
sell-through
Store
Store
Store
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• POS?????
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• Cross Docking
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• VMI Vendor Managed Inventory

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• Coupling OR uncoupling?
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???????

• ???? e-Procurement
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• ???? e-Forecast
• ???? e-Logistics
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• ???? e-Design collaboration
• ???? e-Quality
• ???? e-Billing, e-Payment, e-Financing
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????? eProcurement

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• ????(????? lead time)
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?????? 1

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• POS ???, QR, ???? (CR)
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Manufacturer
orders
Distributor
sell-through
Store
Store
Store
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?????????????

• Order-based operation
• Vendor-managed inventory (VMI)

Buyer
Planning Inventory mgmt Purchase
order Reception Warehousing
Seller
Inventory mgmt Warehousing Sales
order Delivery Planning
Buyer
Planning Inventory mgmt Purchase
order Reception Warehousing
Seller
Planning Inventory mgmt Warehousing Sales
order Delivery
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?????? 2

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• CPAR, CPFR

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CPFR ??????????

• 1990??, Wal-Mart ? Warner-Lambert ?????
• ????? VICS (Voluntary Interindustry Commerce
  Standards ) ??CPFR??
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Develop front-end agreement
Create joint business plan
Create sales forecast
Identify and resolve exceptions
Create order forecast
Identify and resolve exceptions
Order generation
Source www.cpfr.org
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What is CPFR?

• A business practice that combines the
  intelligence ofmultiple trading partners in the
  planning and fulfillmentof customer demand.
• CPFR links sales and Marketing best practices,
  such as category management, to supply chain
  planning and execution processes to increase
  availability while reducing inventory,
  transportation and logistics costs.
• 1. Collaborative Planning
• 2. Collaborative Forecasting
• 3. Collaborative Replenishment

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Business Process Model- Generic (1998) ????
CP
1. Frond-End Agreement
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2. Joint-Business Plan
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SF
CF
3. Create Sales Forecast
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4. Identify SF exception
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5. solve SF exception
OF
6. Create order Forecast
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POS??
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7. Identify OF exception
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8. solve OF exception
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CR
9. Order Generation
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CPFR reference model
CPFR 2004
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CPFR Tasks
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tasks 1 Collaboration Arrangement
1.?????????

• Collaboration Arrangement
• Sets the business goals for the relationship.
• Defines the scope of collaboration.
• Assigns roles, responsibilities, checkpoints and
  escalation procedures.

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tasks 2 Joint Business Plan

• Joint Business Plan
• Promotions.
• Inventory policy changes.
• Store opening/closing.
• Product introduction.

2.????????
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tasks 3 Sales Forecasting

• Sales Forecasting
• Projects consumer demand at the point of sale.

3.????????
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tasks 4 Order Planning/Forecasting

• Order Planning/Forecasting
• Determines future product ordering and delivery
  requirements base upon
• The sales forecast
• Inventory positions
• Transit lead times
• Other factors, Depending on relationship.

4.????????
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tasks 5 Order Generation

• Order Generation
• Transitions order forecasting to firm demand
  through an automated or release process.

5.??????
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tasks 6 Order fulfillment

• Order fulfillment
• The process of producing, packaging, shipping,
  delivering, and stocking products for customer
  purchase.

6.??????
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tasks 7 Exception Management

• Exception Management
• Evaluates planning and execution data against
  predefined tolerances and thresholds.
• Alerts collaboration participants to out-of-bound
  conditions.
• Provides an exception resolution process in which
  plans are adjusted or operational changes are
  made.

7.??????
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tasks 8 Performance Assessment

• Performance Assessment
• Use key metrics to
• Evaluate the achievement of business goals.
• Uncover trends.
• Develop alternative strategies.

8.????????
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CPFR ???
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Demand-Driven Supply Network
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CPFR ???1
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CPFR ???2
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CPFR ?????
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??????????
Factory PO
Factory PO 2W Lead Time
Asia Buying Office
Head Office
Factory PO
Receiving
ASN
US DC
Asia Warehouse Consolidation Yard
Asia Factory
Replenishment 5 Day Lead Time
Store
Inventory
Production
6W
6W
4W
4W
4W
Import Warehouse
Factory
On Water
Store
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Complete Supply Chain Visibility
Weekly Store Sales
Monthly Store Sales
Monthly DC Demand
Monthly DC Demand Forecast
Monthly DC Supply
Monthly DC On Hand Qty Day On Hand
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8 Inventory Turnover
Test Rite Logistics Operation Summary Period
August,05 August,06
8DC Inventory Yearly Turnover Rate
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Warehouse Inventory Reduction
Test Rite Logistics Operation Summary Period
August,05 August,06
Store Count 2500 2500 2200
Average In Stock 97.5 95.6 98.5
Average Turn/Year 10.5 9.6 8.8
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2006 Storage Business Performance
2005 2006
Retail Sales (USD) 31.4M 43.9M 39.80
Store Instock 92.16 95.17 3.26
Retail Turn 5.6 6.49 15.89
Net Margin 42.32 46.46 9.78
Avg Lead Time (day) 4.8 3.33 45.45
Order Fill Rate 89.73 95.13 6.00
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• Track and trace
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• ???????so what?
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• ????????Conditional Probability
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????

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• ???? store-and-forward
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• ???? value-added-logistics
• ?????????????
• ?????????????? 3PL

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• ???? LSP
• Logistics service provider
• ?????? 3PL
• 3rd party logistics
• ????????????
• ?????? 4PL
• 4th party logistics
• ?????????

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?????????????

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?????????
Source Steve Harmon (Kimberly-Clark), John
Fedorchak (Maersk), Global Logistics
Management How to Gain Visibility and Avoid
Errors, U Connect 2007.
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??
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???????????

• Average Global Bunker Prices increased 121 from
  2002 to 2006 YTD July, 29 year-on-year in 2006
  YTD July.
• Maersk Line spent close to 2 billions on ocean
  bunker in 2005.
• Additional 20 increase in bunker expense is
  expected in 2006 due to further fuel price hikes.

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• 2008?,???????
• 2009?,????80??
• 2010?1/2Q,????
• 2010?3/4Q,??????

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??????
102
????????

• Total U.S. volume in 2010 is expected to equate
  to 237,000 more TEUs per week
• Terminal capacity will be exceeded.
• More trucks will be required.
• Rail system will need additional cars, engines
  and trackage.
• Highway system will need to be expanded.
• More jobs will be created.

Source Steve Harmon (Kimberly-Clark), John
Fedorchak (Maersk), Global Logistics
Management How to Gain Visibility and Avoid
Errors, U Connect 2007.
103
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• VMI Vendor Managed Inventory
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• DSD Direct Store Delivery