1. Business Processes in Logistics and Supply Chain Management (Part II)
Online course
University of Colorado Denver

2. Order Fulfillment Process
To design a network and a process that permits a firm to meet customer requests while minimizing the total delivered cost
A key process in managing the supply chain and is the first step in providing customer service

3. Issues Associated with Order Fulfillment
Reorder cycle time
Efficiency of order fulfillment process
Lateness
Lead time
Severity
Responsiveness
Fulfillment software vs service

4. Manufacturing Flow Management Process
To obtain, implement, and manage manufacturing flexibility in the supply chain and to move products through the plants
To make a variety of products in a timely manner at the lowest possible cost and respond to changes in demand

5. Issues Associated with Manufacturing Flow Management
Distribution
Outsourcing and partnerships
Transportation
Inventory
Warehousing
Measuring performance
Profitable vs unprofitable

6. Product Development and Commercialization Process
To provide structure for developing and bringing to market new products jointly with customers and suppliers
To coordinate the efficient flow of new products across the supply chain and assist supply chain members with the ramp-up of manufacturing, logistics, marketing and other related activities to support the commercialization of the product

7. Issues Associated with Product Development and Commercialization
Technology to accelerate the process
System innovation to improve the process
Global resource management and knowledge integration
Project management for flawless execution

8. Returns Management Process
To manage the reverse product flow efficiently within the firm and across key members of the supply chain
To identify opportunities to reduce unwanted returns
To control reusable assets such as containers.

9. Issues Associated with Returns Management
Technology to support return management
Oracle Retail Returns Management
Management challenge of reverse logistics
Monitor the entire flow of request
Respond quickly and efficiently to any customer or supplier request
Track improvement actions
Anticipate future incidents and avoid recurring problems

10. Case Study : IBM’s Global Supply Chain System
“Supply chain was about cost-cutting and functional excellence within the business units,” says Patrice Knight, IBM’s vice president for business transformation and strategy, which is part of an organization created in 2002 called Integrated Supply Chain. “There were no common processes, let alone client-facing processes. That has all changed.”

11. IBM’s Strategy
To span the company, its suppliers and partners, and then tied it all together with shared measurements to ensure success at both the business unit and IBM level.
To integrate end-to-end across the company and with key partners, suppliers and customers–can respond with flexibility and speed to any customer demand, market opportunity or external threat

12. Key Goals of IBM Integrated Global Supply Chain
To measure success in customer satisfaction and creation of shareholder value
To build competitive advantage in productivity, efficiency, cost, quality, responsiveness and cash management
To deliver a “superior end-to-end customer experience”
To execute with speed and urgency through simplified processes
To demonstrate IBM’s leadership in “e-business on demand” while being recognized as the industry’s supply-chain leader
To develop employee skills under the auspices of an integrated team

13. How did research help IBM ?
To set up center for On Demand Supply Chain Research and Partners with three universities
To extend research through computing Grid to conduct joint applied research and teaching

14. The Outcomes
96 percent of purchasing transactions became “hands-free,” saving more than $430m in 2002
Connected up with some 33,000 suppliers via the internet
Reduced the time for contract writing from between six and 12 months to just 30 days

15. Discuss the following questions:
What problems do IBM address? How does integrated global supply chain initiative help solve these problems?
What issues and challenges do global supply chain strategy present? What can be done to address these issues?
What are the business as well as the technology issues that should be addressed when IBM integrated global supply chain?