Supply_Chain

Supply Chain Management



“Supply chain integration really begins with the goal

of satisfying consumer demand.”

“This fundamental belief impacts everything we do

in the supply chain—from the sourcing of raw materials

all the way to the sale of the finished products.”









Francis, J. Quinn, “Building a Seamless World-Class Supply Chain,”

Supply Chain Yearbook 2000, pp. 43-44.

Supply Chain Management



How can we take cycle time out of the process?

How do we use the supply chain as a competitive weapons?

How can we become more agile?

How do we add value to our brand initiatives?









Francis, J. Quinn, “Building a Seamless World-Class Supply Chain,”

Supply Chain Yearbook 2000, pp. 43-44.

“Inventory”

The Root of Most Supply Chain Evil

• North American Automobile Supply Chain $123 billion

– 60% in showrooms $74 billion



• Total Supply Chain WIP in North America $49 billion

– $17 billion at assemblers

– $11 billion at tier one suppliers

– $21 billion at suppliers further back in the chain

• Based on 11% cost of capital

– $740 carrying cost on every new vehicle sold

• $430 at the front end

• $310 at the back end





Source: Goldman Sachs Investment Research

Supply Chain Management

Strategic Sourcing Management







Supplier Evaluation & Selection

"Third Party Logistics ( 3PL), is the function by which



the owner of goods (The Client Company) outsources



various elements of the supply chain to one 3PL



company that can perform the management function of



the clients inbound freight, customs, warehousing, order



fulfillment, distribution, and outbound freight to the



clients customers."

Supply Chain Management



Logistics

Organizational Structure

Number of Carriers

Contract Basis

Computer Interface with Carriers



Pick-up and Delivery on a Scheduled Basis



Efficient and Standardized Materials Handling

Supply Chain Management







Material Components SUB Assembly Assembly Distribution

Supplier Supplier

Supplier



Supplier Supplier OEM DEALERS

Supplier



Supplier Supplier

Supply Chain Management







Logistics Provider/Mfg



Customer Customer

Supplier Logistics



T E C H N O L O G Y