Supply Chain Design

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What is Supply Chain Design? Meaning.

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.

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Expert Tips Advanced insights about Supply Chain Design. Here you will find professional advices by experts. Three Dimensions of Supply Chain Strategies Supply Chain Strategy, Supply Chain Design A supply chain strategy generally consists of three dimensions that need to be taken into account when establishing an e...

Information Sources Various sources of information regarding Supply Chain Design. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Supply Chain Management: Processes and Types Supply Chain Management This presentation elaborates on various Supply Chain Management processes and types. The presentation includes the follo... Information, Information Flows and Information Technology in Supply Chains Master Model of Supply Chain Excellence, Supply Chain Software Categories, Supply Chain Information Systems This presentation elaborates on the role of information in supply chain management. The presentation includes the follow... Enterprise Resource Planning (ERP): An IT Perspective Enterprise Resource Planning, Supply Chain Management, Information Technology, IT ERP ERP in-depth This presentation provides a technical view towards Enterprise Resource Planning (ERP) and includes the fo... Introduction Into Enterprise Resource Planning (ERP) Enterprise Resource Planning, Supply Chain Management This presentation provides an introduction into Enterprise Resource Planning and includes the following sections: 1. Wh... Supply Chain Sustainability Triple Bottom Line, Supply Chain Management Sustainability in supply chains, including the following sections: 1. Overview 2. What is demand chain? 3. The supply... How to Design and Build Sustainable Supply Chains Sustainability, Supply Chain Management The presentation elaborates on ways to develop sustainable supply chains. The presentation includes the following sectio... Introduction to Supply Chain Management Supply Chain Management, Supply Chain Design While Porter’s value chain is a firm-level supply chain, this presentation describes supply chain management in a global... Introduction to (Sustainable) Value Chain Analysis Initial Understanding Value Chain Analysis Value Chain Analysis involves analyzing three things to identify improvement areas / projects: 1. Material Flow - The f... Supply Chain Management Performance Measurement & Metrics Supply Chain Management, Performance Management, SCOR Model, Balanced Scorecard Presentation about Supply Chain Management and its Performance Metrics. The presentation includes the following sections... Achieving Strategic Fit - Supply Chain Strategy Supply Chain Strategy, Supply Chain Design Presentation aims to explain how companies can achieve strategic fit through their supply chain strategy. The following ...

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