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1、IS YOUR SUPPLY CHAIN COMPETITIVE? HOW DO YOU KNOW?BLAIR R WILLIAMS Professor and Director, Polytechnic University. Brooklyn, New York 718-260-3835天马行空官方博客：http:/ ；QQ:1318241189；QQ群：175569632OBJECTIVES AND OUTLINEOBJECTIVE: TO HELP YOU DETERMINE IF YOUR COMPANY HAS A COMPETITIVE SUPPLY CHAIN. OUTLIN
2、E:uELEMENTS OF A SUPPLY CHAINuSCOR MODEL AND METRICSuBENCHMARKING uIMPLICATIONS u BEST PRACTICESuINFORMATION SOURCES天马行空官方博客：http:/ ；QQ:1318241189；QQ群：175569632DEFINITION OF A SUPPLY CHAINuA SUPPLY CHAIN COVERS THE FLOW OF MATERIALS, INFORMATION AND CASH ACROSS THE ENTIRE ENTERPRISEuSUPPLY CHAIN MAN
3、AGEMENT IS THE INTEGRATED PROCESS OF PLANNING, SOURCING, MAKING AND DELIVERING PRODUCT, FROM RAW MATERIAL TO END CUSTOMERELEMENTS -SUPPLY CHAIN MANAGEMENT PLAN-SOURCE-MAKE-DELIVER-MEASURESUPPLY CHAIN INFRASTRUCTURE TRANSFER OF INFORMATION, MATERIALS AND CASHDEMAND MANAGEMENT CUSTOMER ORDER MANAGEMEN
4、T PROCESS FORECASTING CUSTOMER PARTNERSHIPSSOURCINGSELECTING, QUALIFYING, PARTNERING, MEASURING AND PROVIDING FEEDBACK TO KEY SUPPLIERSELEMENTS OF SUPPLY CHAIN MANAGEMENT PLAN-SOURCE-MAKE-DELIVERuSUPPLY OR MANUFACTURING PROCESSFACTORY SCHEDULINGINVENTORY MANAGEMENTLEAD TIME REDUCTIONuLOGISTICAL PROC
5、ESSTRANSPORTATION, WAREHOUSING, DISTRIBUTION, DELIVERYuGLOBAL PERFOMANCE MEASUREMENTS - SCORSUPPLY CHAIN COUNCIL (SCC)uSCC IS AN INTERNATIONAL PROFESSIONAL BODY FOR SUPPLY CHAIN MANAGEMENT (SCM) SYSTEMS AND PRACTICESuDEVELOPED AND ENDORSED THE SCOR (SUPPLY CHAIN OPERATIONS REFERENCE MODEL) AS A CROS
6、S INDUSTRY STANDARD FOR SCMSPECIAL INDUSTRY GROUPSAEROSPACE AND DEFENCECOMPUTERS & ELECTRONICS EQUIPMENTPHARMACEUTICALS & CHEMICALSUTILITIES - TELECOMMUNICATIONSRETAIL - CONSUMER PACKAGED GOODSDEFENSE AND INDUSTRIALSEMICONDUCTORSSCOR MODELuBUSINESS PROCESS REENINEERINGAS IS TO TO BEuMETRICS uBENCHMA
7、RKINGuIMPLICATIONSuBEST PRACTICE ANALYSISuPROCESS REFERENCE MODELBASED ON BEST IN CLASS RESULTSCHARACTERIZE MANAGEMENT PRACTICESIDENTIFY SOFTWARE SOLUTIONSLEVEL I METRICSuDELIVERY PERFORMANCEuPERFECT ORDER FULFILLMENTuPRODUCTION FLEXIBILITYuTOTAL SUPPLY CHAIN MANAGEMENT COSTuMATERIAL ACQUISITION COS
8、TuCASH TO CASH CYCLE TIMEuTOTAL INVENTORY DAYS OF SUPPLYuASSET TURNSLEVEL I METRICSuDELIVERY PERFORMANCE - %THE PERCENTAGE OF ORDERS THAT ARE FULFILLED ON OR BEFORE THE CUSTOMERS REQUESTED DATELEVEL I METRICSuPERFECT ORDER FULFILLMENT - %DELIVERED COMPLETE WITH ALL ITEMS ON THE ORDER IN THE QUANTITY
9、 REQUESTEDDELIVERED ON TIME TO CUSTOMERS REQUEST DATEDELIVERED IN PERFECT CONDITION WITH THE CORRECT CONFIGURATION AND COMPLETE & ACCURATE DOCUMENTATIONLEVEL I METRICSuPRODUCTION FLEXIBILITY - DAYSTHE NUMBER OF DAYS REQUIRED TO ACHIEVE AN UNPLANNED, SUSTAINABLE 20% INCREASE IN PRODUCTIONLEVEL I METR
10、ICSuTOTAL SUPPLY CHAIN MANAGEMENT COST - $sSUM OF COSTS OF:ORDER MANAGEMENTMATERIALS ACQUISITIONINVENTORY CARRYINGSUPPLY CHAIN - FINANCE, PLANNING AND MIS LEVEL I METRICSuMATERIAL ACQUISITION COST - $sSUM OF COSTS TO MANAGE: COMMODITY MANAGEMENT & PLANNINGSUPPLIER QUALITY ENGG. INBOUND FREIGHT & DUT
11、IES RECEIVING AND MATERIAL STORAGE INCOMING INSPECTION MATERIAL PROCESS ENGG. & TOOLINGLEVEL I METRICSuCASH TO CASH CYCLE TIME - DAYS THE NUMBER OF DAYS BETWEEN PAYING FOR RAW MATERIALS AND GETTING PAID FOR PRODUCT, AS CALCULATED BY:INVENTORY DAYS OF SUPPLY PLUS DAYS OF SALES OUTSTANDING (RECEIVABLE
12、S) MINUS AVERAGE PAYMENT PERIOD FOR MATERIAL (PAYABLES)C to CC TIME = INV DAYS + DAYS REC DAYS PAYLEVEL I METRICSuTOTAL INVENTORY DAYS OF SUPPLY(THE AVERAGE COST OF INVENTORY DIVIDED BY THE COST OF GOODS SOLD) TIMES 365TOTAL INVENTORY DAYS SUPPLY= INVENTORY x 365 COGSLEVEL I METRICSuASSET TURNS NUMB
13、ERTOTAL REVENUE DIVIDED BY TOTAL ASSETS = TOTAL REVENUETOTAL ASSETSBENCHMARKING AND BEST PRACTICESuDELIVERY PERFORMANCE TO REQUEST % (8/2000)BIC Aver MedianPharmas and Chemical98.978.491.9Computers82.856.458.8Consumer Packaged Goods98.472.384.4Defense and Industrial98.069.471.7Electronic Equipment97
14、.467.674.2Semiconductors84.562.064.8Telecommunications94.863.472.6DELIVERY PERFORMANCE TO REQUEST %uRANGE 62% TO 98% ( 20 to 30 % points per Industry Group)uIMPLICATIONS MOST FUNDAMENTAL MEASUREMENT OF CUSTOMER SATISFACTIONINDICATES HOW WELL THE SUPPLY CHAIN IS CONFIGURED & INTEGRATEDDELIVERY PERFOR
15、MANCE TO REQUEST %uBEST PRACTICESORDER TRACKING SYSTEMS TO COMPARE REQUESTED VS ACTUAL DATES AT LINE ITEM LEVELDEMAND VISIBILITY TO SUPPLIERSCONSOLIDATION, PACKING AND DELIVERY OUTSOURCED. DELIVERY DIRECTLY TO CUSTOMER POINT OF USEON LINE ATP AND ORDER STATUS AVAIL TO CUSTOMERBENCHMARKING AND BEST PRACTICESuUPSIDE PRODUCTION FLEXIBILITY (8/2000) DAYS BICAverMedianPharmas and Chemical18.4229.3 120 Computers9.753.438.5Consumer Packaged Goods9.4144.8 60.0Defense and Industrial16.796.136.0Electronic Equipment9.073.360.0Semiconductors30.0188.5 175.0Telecommunications9.641.730.0UPSIDE PRODUCTION FL
