Supply Chain Design

Knowledge Center

   

Description of Supply Chain Design. Explanation.

Contents

Premium

 

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 Special Interest Group


Special Interest Group (421 members)


Supply Chain Design Forum  

Recent topics

  The 8 Key Supply Chain Processes
To design a supply chain, we need to integrate 8 key process...
     
 
  Main Steps in Designing a Supply Chain
What are the basic steps for designing a supply chain?
...
     
 
  The Air Cargo Supply Chain
When a demand on one place is supplied from another place wi...
     
 
  Triple-A Supply Chain for Successful Supply Chain Management
Many companies have a strategic focus on finding ways to con...
     
 
  How is Customer Service Affected by the Structure of a Supply Chain?
In what ways are the various components of customer services...
     
 
  Supply Chain Intelligence and Supply Chain Analytics
Probert and O’Regan (2002) discuss the purposes of Supply C...
     
 
  Location Theory of Weber
What is the location theory of business by Max Weber? Descri...
     
 
  Types of Supply Chain Management Networks
What are the types of supply chain networks? I ask this beca...
     
 
  Supply Chain Intelligence Architectures
Just as in companies use business intelligence to improve th...
     
 
  (s, S) Inventory Policy
The (s, S) inventory policy works as follows: if the invento...
     
 
  The Need for a Collaborative Relationship in Supply Chain Design
When designing a supply chain to develop continuously, there...
     
 

Best Practices - Supply Chain Design

Expert Tips - Supply Chain Design
 

Three Dimensions of Supply Chain Strategies

Supply Chain Strategy, Supply Chain Design...
 
 

Resources - Supply Chain Design

Supply Chain Management: Processes and Types

Supply Chain Management...
 

Information, Information Flows and Information Technology in Supply Chains

Master Model of Supply Chain Excellence, Supply Chain Software Categories, Supply Chain Information Systems...
 

Supply Chain Sustainability

Triple Bottom Line, Supply Chain Management...
 

How to Design and Build Sustainable Supply Chains

Sustainability, Supply Chain Management...
 

Introduction to Supply Chain Management

Supply Chain Management, Supply Chain Design...
 

Introduction to (Sustainable) Value Chain Analysis

Initial Understanding Value Chain Analysis...
 

Enterprise Resource Planning (ERP): An IT Perspective

Enterprise Resource Planning, Supply Chain Management, Information Technology, IT ERP...
 

Introduction Into Enterprise Resource Planning (ERP)

Enterprise Resource Planning, Supply Chain Management...
 

Supply Chain Management Performance Measurement & Metrics

Supply Chain Management, Performance Management, SCOR Model, Balanced Scorecard...
 

Achieving Strategic Fit - Supply Chain Strategy

Supply Chain Strategy, Supply Chain Design...
 
 

News about Supply Chain Design


     
 

Videos about Supply Chain Design


     
 

Presentations about Supply Chain Design


     
 

Books about Supply Chain Design


     
 

More about Supply Chain Design


     

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

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Strategy  |  Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Supply Chain Design summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.0 - Last updated: 22-2-2019. All names ™ of their owners.