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SCMMS2 (Subject) / Strategic Alignment (Lesson)
- What is "Spotlight optimization"? Within the own Business, Looking at the goals of various functions such as Marketing, Manufacturing, Engineering, R&D Finding the Overlap Conclude demand chain implications
- Describe the integrated chain mindset Between businesses, integration Forecast sharing Providing actual demand information updating current channel stocks dynamic quoting of available capacity sharing of production and shipment schedules giving visibility over promotion planning activities product life cycle information, ramp-up, ramp-down
- Describe the collaborative demand chain mindset Among Partners, Collaboration Companies work together as one with common objectives Not only sharing information, but also knowledge, risk and profits Starting collaboration generates greater focus to benefit: time-to market, time-to-volume, time-to-profitability
- Describe the synchronized demand chain mindset Across members, Synchronization Full life-cycle cooperation: Joint production planning, design and supply chain execution Fully synchronized replenishment and order fulfillment Holistic process management of physical, information and financial flows across all demand chain players
- How can a supply chain be systematically analyzed? Look at : Overall business context Chain configuration and players involved Various network flows: Physical, information and financial Sources of uncertainty and variability Metrics, incentives and values System dynamics
- How do functional and innovative products differ? Functional : Predictable nature of demand Life cycle > 2 years 5%-20% contribution margin (deckungsbeitrag) low Production variety 10% Average margin Stockoutrate 1%-2% 0% average markdown at end of season Leadtime required for made-to-order products 6 months - 1year Innovative Products Unpredictable nature of demand Life cycle ~3months to 1 year 20%-60% Contribution margin (deckungsbeitrag) high product variety 40% to 100% average margin 10%-40% stockoutrate 10%-25% average forced end-of-season markdown Leadtime required for made-to-order products 1day - 2 weeks
- What are the differences of a physically efficient and a market-responsive chain? Differ in Primary objectives, lead-time focus, approach in choosing suppliers, manufacturing focus, inventory strategy, product-design strategy Physically efficient chain : Supply predictable demand, efficient at the lowest possible cost shorten lead time as long as it doesnt increase cost select suppliers primarily for cost and quality maintain high average utilization generate high turns and minimize inventory throughout the chain maximize performance cost and minimize cost Market-responsive supply chain: respond quickly to unpredictable demand in order to minimize stockouts, forced markdowns and obsolete inventory invest aggressively in ways to reduce lead time select suppliers primarily for speed, flexibility and quality deploy excess buffer capacity deploy significant buffer stocks of parts or finished goods use a modular design in order to postpone product differentiation for as long as possible
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