Supply Chain Doctors The Supply Chain Doctors Supply Chain Management Kimball Bullington, Ph.D.

Supply Chain Doctors 18 Supply Chain Management Introduction Planning Sourcing Making Warehousing Transporting Sharpening the Saw

Supply Chain Doctors Introduction  Kimball Bullington, Ph.D. Ph.D. in industrial engineering Registered professional engineer (Alabama – IE) ASQ Certified Six Sigma Black Belt ISM Certified Supply Management Professional Associate Professor of Management 20+ years experience in operations

Supply Chain Doctors Evolution of Supply Chain Management  Military logistics  Henry Ford  Toyota

Supply Chain Doctors Evolution of Supply Chain Management  Military logistics Alexander Napoleon U.S. Army – Berlin Airlift

Supply Chain Doctors Evolution of Supply Chain Management  Henry Ford Simple product line Vertical integration Focused on waste elimination

Supply Chain Doctors Evolution of Supply Chain Management  Toyota  More complex product lines  Vertically dis-integrated  Focused on waste elimination

Supply Chain Doctors Supply Chain A supply chain consists of all stages involved, directly or indirectly in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Chopra and Meindl

Supply Chain Doctors Customers, demand centers sinks Inventory & warehousing costs Supply Sources: plants vendors ports Regional Warehouses: stocking points Field Warehouses: stocking points Production/ purchase costs Inventory & warehousing costs Transportation costs Transportation costs Conceptual Supply Chain (Web)

Supply Chain Doctors Manufacturing Products Warehousing Goods Acquiring Raw Materials Selling to Customers Planning and Communicating Distribution Supply Chain Management

Supply Chain Doctors Why should we care about SCM? Supplied materials represent about 50% of cost of sales for manufactured products. You can’t sell what you don’t have. It represents the largest opportunity for adding value in many companies.

Supply Chain Doctors Success Examples Wal-Mart years Sales increased by 32% Inventory value increased by only 13%. Their information system and distribution techniques allow them to use inventory management as a competitive advantage.

Supply Chain Doctors Success Examples Dell Inc. has created customized web pages for its top 30 suppliers. From the web page, each supplier has access to Dell’s demand forecasts, customer purchase data, defect rates, engineering changes and product enhancements. This improved info flow allows suppliers to more easily match production to demand, thereby reducing supply chain inventory.

Supply Chain Doctors The Supply Chain Doctors Five Categories of Supply Operations (SCOR – Supply Chain Operations Reference) Plan Demand forecasting Product Pricing Inventory Mgt. Make Product Design Production Scheduling Facility Mgt. Deliver Order Management Delivery Scheduling Source Identify Resources Procurement Return Reverse Logistics Repair Operations