Presentation on Supply Chain performance

” . The supply chain is a network of organizations connected upstream and downstream in their processes and activities. with the ultimate goal of delivering value to the final customer.

By creating strategic fit……. .

inventory facilities transportation Supply Chain pricing information sourcing .

 More facilities-----more responsive and  Low facilities----high efficiency  More inventories----more responsive and  Low inventories----high efficiency  Faster transportation----high responsiveness and  Slower transportation----high efficiency .

This investment. who brings higher economies of scale or a higher level of aggregation of uncertainty.  Appropriate sourcing decisions raise supply chain profits by assigning supply chain functions to the right party. must be made based on the strategic position supported by the other drivers. however. The supply chain can then be structured to provide responsiveness to some customers while improving overall efficiency. Investing in information can vastly improve the supply chain performance on both dimensions. .  Pricing can be used to attract the right target customer segment. Differential pricing can be used to attract customers who value responsiveness as well as customers who want efficiency.

average production batch size. product variety. theoretical flow/cycle time of production. utilization. actual flow/cycle time.• • • • • • • • Facility-related metrics are : capacity. . processing/setup/down/idle time. flow time efficiency.

Average replenishment batch size. .  Products with more than a specified number of days of      inventory. Seasonal inventory. and Fraction of time out of stock. Average safety inventory.Inventory-related metrics are  Average inventory. Fill rate.

 Average incoming shipment size.  Average outbound transportation cost per shipment .  Average inbound transportation cost per shipment.  Average outbound transportation cost.Transportation-related metrics are  Average inbound transportation cost.  Average outbound shipment size.

 Seasonal factors.  forecast error.  variance from plan. .Information-related metrics are  Forecast horizon. and  ratio of demand variability to order variability.

 Range of purchase price.  Average purchase quantity.  Average purchase price. .Sourcing-related metrics are  Days payable outstanding. and  Supply lead time.  Fraction on-time deliveries.  Supply quality.

 Days sales outstanding.  Incremental variable cost per unit.  Incremental fixed cost per order.  Average sale price. and  Range of periodic sales. .Pricing-related metrics are  Profit margin.  Range of sale price.  Average order size.

 Increasing product variety.  Demanding customers.  Decreasing product life cycles.  Global competition .

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