Supply Chain Design

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Description of Supply Chain Design. Explanation.


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Definition Supply Chain Design. Description.

Supply Chain Design involves the determination of how to structure a supply chain. Design decisions include the selection of partners, the location and capacity of warehouse and production facilities (reduce Bullwhip Effect), the products, the modes of transportation, and supporting information systems.

Four Levels of Supply Chain Improvement

According to Charles C. Poirier and Michael J. Bauer (E-supply chain), a supply chain improvement may occur at 4 levels:

  1. Sourcing and Logistics — The driver is the Vice President of Supply or Sourcing, who focuses on project logistics, inventory and order fulfillment, organized by team and function.
  2. Internal Excellence — The drivers are the Supply Chain Leader (COO) and the Chief Information Officer. The focus is system improvement and process redesign. The tools are best practices, benchmarks and activity-based costing.
  3. Network Construction — The primary drivers are the business unit leaders. Their focus is on forecasting, planning and inter-enterprise. The tools are database mining, electronic commerce and metrics.
  4. Industry Leadership — The drivers are the CEO and the management team. They focus on the network and the consumer. Their tools are virtual information systems, the intranet and the Internet.

Reducing Supply Chain Cost

The AIM & DRIVE method is a system for reducing costs by working with your entire supply chain while improving quality and delighting your end customers. The steps are:

  1. “Agreeing” to manage costs with a supply-chain approach.
  2. “Identifying” where you are incurring costs and which costs you can lower by working cooperatively with your suppliers.
  3. “Measuring” second- and third-level costs.
  4. "Defining” your mutual chief cost drivers and your strategic options.
  5. “Reducing,” altering or removing the operations that create those costs.
  6. “Implementing” your action plan.
  7. “Verifying” the plan by monitoring the costs.
  8. “Eternally” refining your cost structure and sharpening your processes.

Source: Jimmy Anklesaria, Supply Chain Cost Management.

Supply Chain Design Forum
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  How is Customer Service Affected by the Structure of a Supply Chain?
In what ways are the various components of customer services affected by the structure of a supply chain distribution network? Thanks for your ideas to get me started with an answer....
  Supply Chain Intelligence and Supply Chain Analytics
Probert and O’Regan (2002) discuss the purposes of Supply Chain Intelligence (SPI) in organizations. According to them, supply chain intelligence builds upon data obtained through ERP and SCM applications that automatize, systematize and integrate p...
  Supply Chain Intelligence Architectures
Just as in companies use business intelligence to improve their business performance or productivity, they can also improve their supply chain management processes through supply chain intelligence (SCI). SCI actually refers to business intelligence ...
  The Air Cargo Supply Chain
When a demand on one place is supplied from another place with air transport as the main transport mode, an air cargo supply chain will be compiled. Air transport is relatively expensive, but often the fastest mode of transport available to cover med...
  Triple-A Supply Chain for Successful Supply Chain Management
Many companies have a strategic focus on finding ways to continuously improve their supply chains. In such SCM, there are usually two main incentives that companies are emphasizing:
I. Speed, especially when the economy is booming and dem...
  Location Theory of Weber
What is the location theory of business by Max Weber? Describe the theory of location given by Max Weber....
  The Need for a Collaborative Relationship in Supply Chain Design
When designing a supply chain to develop continuously, there must be some collaborative type of relationship which in the end will bring in mutualism and symbiosis to both parties and long lasting relationships.
The element of customisation is n...
  (s, S) Inventory Policy
The (s, S) inventory policy works as follows: if the inventory position (outstanding orders + on-hand inventory - backorders) falls to or below the reorder point (s), then an order is placed so as to increase the inventory position to the target inve...
  The 8 Key Supply Chain Processes
To design a supply chain, we need to integrate 8 key processes:
1. Demand planning responsiveness.
2. Customer relationship collaboration.
3. Order fulfilment.
4. Product development launch.
5. Manufacturing customization.
  Main Steps in Designing a Supply Chain
What are the basic steps for designing a supply chain?
Thanks for your help......

Supply Chain Design Special Interest Group

Special Interest Group


Best Practices - Supply Chain Design Premium

Expert Tips - Supply Chain Design Premium

Three Dimensions of Supply Chain Strategies

A supply chain strategy generally consists of three dimensions that need to be taken into account when establishing an efficient supply chain strategy...
Usage (application): Supply Chain Strategy, Supply Chain Design

Resources - Supply Chain Design Premium

Supply Chain Management: Processes and Types

This presentation elaborates on various Supply Chain Management processes and types. The presentation includes the following sections:
1. Essenti...
Usage (application): Supply Chain Management

Information, Information Flows and Information Technology in Supply Chains

This presentation elaborates on the role of information in supply chain management. The presentation includes the following sections:
1. Learning...
Usage (application): Master Model of Supply Chain Excellence, Supply Chain Software Categories, Supply Chain Information Systems

Supply Chain Sustainability

Sustainability in supply chains, including the following sections:
1. Overview
2. What is demand chain?
3. The supply chain sequence Usage (application): Triple Bottom Line, Supply Chain Management

How to Design and Build Sustainable Supply Chains

The presentation elaborates on ways to develop sustainable supply chains. The presentation includes the following sections:
1. Definitions
Usage (application): Sustainability, Supply Chain Management

Introduction to Supply Chain Management

While Porter’s value chain is a firm-level supply chain, this presentation describes supply chain management in a global context. The presentation inc...
Usage (application): Supply Chain Management, Supply Chain Design

Introduction to (Sustainable) Value Chain Analysis

Value Chain Analysis involves analyzing three things to identify improvement areas / projects:
1. Material Flow - The flow of materials (ideally ...
Usage (application): Initial Understanding Value Chain Analysis

Enterprise Resource Planning (ERP): An IT Perspective

ERP in-depth
This presentation provides a technical view towards Enterprise Resource Planning (ERP) and includes the following sections:
1. ...
Usage (application): Enterprise Resource Planning, Supply Chain Management, Information Technology, IT ERP

Introduction Into Enterprise Resource Planning (ERP)

This presentation provides an introduction into Enterprise Resource Planning and includes the following sections:
1. What is ERP?
2. Major r...
Usage (application): Enterprise Resource Planning, Supply Chain Management

Supply Chain Management Performance Measurement & Metrics

Presentation about Supply Chain Management and its Performance Metrics. The presentation includes the following sections
1. Introduction
2. ...
Usage (application): Supply Chain Management, Performance Management, SCOR Model, Balanced Scorecard

Achieving Strategic Fit - Supply Chain Strategy

Presentation aims to explain how companies can achieve strategic fit through their supply chain strategy. The following sections are included:
Usage (application): Supply Chain Strategy, Supply Chain Design


Supply Chain Design


Supply Chain Design


Supply Chain Design


Supply Chain Design

Compare with: Value Chain  |  3rd Party Logistics (3PL)  |  Vendor Managed Inventory  |  Cross-Docking  |  Design Thinking

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