Future Supply Chain

In: Business and Management

Submitted By huy237777
Words 12691
Pages 51
FuTure Supply Chain

Serving Consumers in a Sustainable Way

The Global Commerce initiative wishes to thank the following executives for providing their time, support and valuable insight into the future supply chain: alex Bajorinas, Capgemini Tony Borg, nestlé Bob Boucher, Colgate-palmolive Mark d’agostino, GS1uS luca D’ambrosio, reckitt Benckiser Stuart Dickson, GlaxoSmithKline priscilla Donegan, Capgemini Xavier Franco, Johnson & Johnson Massimo Frediani, nestlé Geoff Frodsham, loblaw Companies ltd Thierry Gueguen, Groupe Danone ruediger hagedorn, Global Commerce initiative loes heinemans, Capgemini Kees Jacobs, Capgemini Jeroen Janssen lok, Sara lee international peter Jordan, formerly Kraft Foods Bill lewis, SCa packaging luis Montenegro, British american Tobacco lara Moutin, unilever Oliver neubert, Freudenberg household products Ben pivar, Capgemini Jochen rackebrandt, Kraft Foods rich rapuano, Black & Decker Katrin recke, aiM/eCr europe Sabine ritter, Global Commerce initiative audrey rossman, procter & Gamble andreas ruthenschröer, MGl MeTrO Group logistics Gmbh Stephan Sielaff, Symrise Tony Spiliotopoulos, l’Oreal uS Tibor Szandtner, Capgemini Chrys Tarvin, Wal-Mart Stores, inc. ruud van der pluijm, royal ahold ingeborg Veelenturf, Kellogg europe Tony Vendrig, royal ahold ard Jan Vethman, Capgemini Olivier Vidal, l’Oreal Jos Visee, philips

as well as other members of the GCi Steering Group who have contributed to the report, Jesse van Muylwijck for his cartoons, and the Chicago and netherlands accelerated Solutions environment (aSe) facilitation teams from Capgemini for their support during the aSe events. Xavier Derycke, Carrefour roland Dachs, Crown europe

Co-Chairmen of the GCI Future Supply Chain Work Team

© May 2008 Global Commerce initiative, Capgemini. all rights reserved.

Foreword executive Summary…...

Similar Documents

Supply Chain of Future

...THE SUPPLY CHAIN OF THE FUTURE As once said by ‘Sir Charles Darwin’ that, “ it is not the strongest of the species that survive nor the most intelligent, but the one most responsive to change.” We knew that the markets and supply chains are always in a constant state of dynamic change and adaptation. However, we can observe that the rate of change has accelerated to such a point that, the business models that have served us well in the past may no longer work today and will, almost certainly, not work at all tomorrow. We have moved a long way from a business environment where the supplier held the power – say it for the ownership of resources, or technology and brands – to a situation where the customer, or even the consumer, is now in the driving seat of this era’s business environment. Where once it was a ‘seller’s market’, today it is a ‘buyer’s market’. At the same time, the prevailing marketing philosophy has changed from the idea of mass markets serviced by mass production to the idea of ‘markets-of-one’ serviced by mass customization. Even though this shift has been observable for some time, it has not reflected in such needy of thinking about supply chain design. The traditional supply chain business model which we knew from times was based around maximizing efficiencies, through the exploitation of the ‘economies of scale’. So, at that time, factories were designed to produce things in large volumes and to maximize the use of capacity.......

Words: 597 - Pages: 3

Supply Chain

...A – Supply Chain Strategy The supply chain strategy chosen for the power tool company is a long term partnering relationship with few suppliers. The long term vision of the company is to make quality products and constantly stay ahead of the competition with innovation. The best way to accomplish this strategic long term goal is to partner with key suppliers that operate using a strategy of long term thinking based on trust and transparency. Ray Kroc was one of the pioneers on forming partnerships with the management teams of his suppliers back in 1955 (Vitasek & Manrodt 2012). Ray Kroc defined the McDonald’s supply chain partnerships with his suppliers as a “system” with everyone working together to drive costs out of the supply chain. This philosophy has proved tried and true for over 50 years and is what makes McDonald’s the successful company it is today. By partnering with few suppliers and building trust between the two organizations the customer and supplier can work together to better understand the drivers of the supply chain costs. There are many advantages of using a long term partnering supply chain strategy over some of the other strategies adopted by other companies. One of the major advantages of partnering with few suppliers is that you are able to build strong relationships with your supply base and both the supplier and customer grow the business together. One of Ray Kroc’s famous quotes was, “none of us is as good as all of us.” (Vitasek &......

Words: 9186 - Pages: 37

Supply Chain

...Assurance-of-supply strategies: | Designed to ensure that future supply needs are met with emphasis on quality and quantity. | | | | Competitive-edge strategies: | Designed to exploit market opportunities and organizational strengths to give the buying organization a significant competitive edge. | | | | Cost-reduction strategies: | Designed to reduce the laid-down cost of what is acquired, or the total cost of acquisition and use—life-cycle cost. | | | | Environmental-change strategies: | Designed to anticipate and recognize shifts in the total environment (economic, organizational, people, legal, governmental regulations and controls, and systems availability) to turn them to the long-term advantage of the buying organization. | | | | Levels of strategic planning: | (1) Corporate -- What business are we in? How will we allocate our resources among these businesses? (2) Business Unit – How will each particular business unit contribute to corporate strategy? (3) Function -- How will each functional area contribute to the business strategy and how will internal resources be allocated? | | | | Process quality control programs: | Use statistical control charts to monitor various production processes to isolate developing problems and make needed adjustments (corrections) before bad product is produced. | | | | Quality certification programs: | The supplier agrees to perform the agreed-upon quality tests and......

Words: 359 - Pages: 2

Supply Chain

...A systems perspective on supply chain measurements Stefan Holmberg The Authors | Stefan Holmberg, Division of Logistics, Lund University, Sweden Abstract | Both practitioners and research scientists have noted a number of problems regarding measurement activities during the past decade. The problems reported suggest that measurement activities are fragmented both within and across organizations. Expands on a systems perspective on supply chain measurements and describes how problems can be communicated, understood and managed by developing methods and tools for describing interrelationships within supply chains. Empirical evidence from a case study of a Swedish home furnishing business supply chain provides data suggesting that firms within a supply chain cannot simply be categorized as either having adopted systems thinking or not. Rather, both structured models indicating a high degree of systems thinking, and problems showing fragmentation, are present. A performance model, which is used to reflect the systemic structure of an underlying supply chain and a potential integrator, is introduced and suggested as the focus of future research initiatives within supply chain measurements. Article type: case study. Keywords: Supply chain, Measurement, Systems integration, Performance measurement. Content Indicators: Research Implications** Practice Implications** Originality** Readability** International Journal of Physical Distribution & Logistics......

Words: 8785 - Pages: 36

Supply Chain

...CURRENT CHALLENGES OF SUPPLY CHAIN MANAGEMENT Acknowledgement It is only because of the grace and mercy of great Almighty ALLAH that we are able to complete our report. Without His help, in no way we could complete it. We are highly indebted to honor Sir Shoaib Ishtiaq (Bahria University) for assigning us such an important and interesting report and for his valuable guidance in carrying out this research study which benefited during our course work in the university. We would also like to extend our gratitude towards the internet & books which helped us greatly. And on the other hand all those people who were directly and indirectly involved in the completion of this project. ABSTRACT Purpose : As the business environment becomes increasingly competitive, companies continuously look for ways to distinguish themselves from their competitors. Companies adapt different Supply Chain Management practices and philosophies to help them become competitive. However, they may face challenges that hinder attainment of the results sought. Here is the study of few challenges that supply chain management are facing in today’s world and some strategies propose to cope up with those challenges. Methods : Firstly the major challenges were search and then some strategies were purpose to cope up with those challenges of supply chain management by giving the examples of case study than how in past companies have faced those challenges and they were not able to handle...

Words: 8071 - Pages: 33

Supply Chain

...ADVANTAGE TECHNOLOGY NETWORKS PRACTICE PROCESS BALANCE PERFORMANCE SUPPLY CHAIN SUPPLY CHAIN THE &THE VS. HYPE REALITY 46 SUPPLY CHAIN MANAGEMENT REVIEW · SEPTEMBER/OCTOBER 2001 www.scmr.com The conventional wisdom is that competition in the future will not be company vs. company but supply chain vs. supply chain. But the reality is that instances of head-to-head supply chain competition will be limited. The more likely scenario will find companies competing— and winning—based on the capabilities they can assemble across their supply networks. By James B. Rice, Jr. and Richard M. Hoppe A n increasingly vocal and popular sentiment holds that the nature of competition in the future will not be between companies but rather between supply chains. If this does, in fact, represent the future, how will these chains actually compete against each other? And what can practitioners do now in anticipation of this future? In contemplating the much-ballyhooed supply chain vs. supply chain (SC vs. SC) proposition, we first sought examples of this competition in action. Yet for as many examples of SC vs. SC competition that we found, there were at least as many places where the model didn’t fit. On the one hand, we saw vivid examples where one company or a series of companies had designed supply networks to act with singular focus against other unique companies or groups of companies—for example, Brax, Perdue Farms, and Tyson Foods. Yet......

Words: 5310 - Pages: 22

Conclusion and Future Model for Supply Chain - Toyota

...Conclusions and Future Model The auto industry has been a global business for a long time. The last few years how much a problem in just one of those regions, however, can affect everyone in the industry. When assessing the strengths and the weaknesses the most prevalent issues arise around demand for the product and external factors. Demand Risk Demand risk is the downstream equivalent of supply risk and is present on the demand/outbound side of the supply chain. It may be due to an unexpected increase or decrease in customer demand that leads to a mismatch between the firm’s forecast and actual demand. Increase in customer demand leads to depletion of safety stocks, resulting in stock-outs, back orders, and the need to expedite. A fall in customer demand leads to increased costs of holding inventory and, inevitably, price reductions. Other sources of demand risk are dependence on a single customer, customer solvency, and failure of the distribution logistics service provider. External Factors To deal with the large scale disruptions of global auto supply chains caused by the external environment, three critical avenues are open to automotive OEM’s are: 1. Challenging suppliers to develop disaster plans so that they can make provisions to move to alternate sites for production, in the event that they are unable to produce product at their main plant. 2. Eliminating sole-source suppliers, and developing the capabilities of additional companies. Having one......

Words: 528 - Pages: 3

Supply Chain

...Homework  #4  Supply  Chain                          Selina  Engel,  CM  3323       Discussion  Questions  Chapter  10       1. What   is   the   bullwhip   effect   and   how   does   it   relate   to   lack   of   coordination   in   a   supply  chain?       The  bullwhip  effect  is  a  phenomenon  that  fluctuation  in  orders  increases  as  one   moves   up   the   supply   chain   from   retailers   to   wholesalers   to   manufacturers   to   suppliers.  The  bullwhip  effect  relates  directly  to  the  lack  of  coordination  (demand   information   flows)   within   the   supply   chain.   Each   supply   chain   member   has   a   different   idea   of   what   demand   is,   and   the   demand   estimates   are   distorted   and   exaggerated  as  the  supply  chain  partner  is  distanced  from  the  customer.       2. What  is  the  impact  of  lack  of  coordination  on  the  performance  of  a  supply  chain?         The  impact  of  lack  of  coordination  is  degradation  of  responsiveness  and ......

Words: 2638 - Pages: 11

Supply Chain

...2014 BOOK: SUPPLY CHAIN MANAGEMENT AUTHORS:- * PROF. N.H. MULLICK * PROF. MOHD. ALTAF KHAN BOOK REVIEW:- Prof. Mullick and Prof. Khan has written this book with an objective to present a well-documented theory on supply chain management. Supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm, and those where each channel member operates independently. There are four major decision areas in supply chain management which are location, production, inventory and transportation and there are both operational elements in each of these decision areas .In essence, supply chain management integrates supply and demand management within and across companies. Supply chain is one way to implement Quick Response Manufacturing (QRM) and which is quite similar to Just In Time (JIT) concept. Supply chain integration reference model has four major components :- * Business process models * Material flow logistics model * Information model * Decision process model The main emphasis of book lies in explaining that Supply chain management is an integrated system of......

Words: 1289 - Pages: 6

Supply Chain

...Supply Chain Management Raymont Curry ISCOM/370 July 11, 2001 Instructor: Kathryn Kendall Supply Chain Management Supply chain management is a combination of several things that improves the way an organization locates the necessary components that is needed to make a product or service and deliver that product or service to their customers. The components of a supply chain management are as follows; a plan that an organization needs is the strategy for managing all the resources that go toward meeting the demand for their product or service. Next is the source that organizations must choose the suppliers to deliver the goods and services that are needed to create their product. The make is the manufacturing step; these are the activities necessary for production, testing, packaging and preparation for delivery. The deliver, also known as the logistics is where the organization coordinates the receipt of orders from customers. The last component is the return, which is created to be a responsive and flexible network for receiving defective and excess products back from the customers. Dell Incorporated spearheaded the Direct Model concept of selling personal computers to the customer. Dell sells its computer systems directly to the end customer, bypassing distributors and retails. The organization’s supply chain consists of only three stages, the suppliers, the manufacturer and the end user. Having direct contact with the customer allows Dell to be...

Words: 750 - Pages: 3

Supply Chain

...International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been......

Words: 6133 - Pages: 25

Supply Chain

...Supply Chain Design Paper Operations of Management/OPS-571 Andres Carrillo September 14, 2015 Introduction Riordan Manufacturing is a global plastics manufacturer of beverage containers, parts, and fan parts. The organization provides products for automotive parts manufacturers, aircraft manufacturers, the Department of Defense, and appliance manufacturers. The company was initially founded as Riordan Plastics, Inc. in 1991. Riordan’s focus was on research and development and licensing of its existing patents. The organization purchased a fan manufacturing plant in 1992. Currently, the company operates a plastic beverage containers’ plant in Georgia, and the plastic fan parts are produced in China. Riordan maintains revenue of $1 billion. The team will focus on all manufacturing aspects of the electric fans in China. The team will also discuss Riordan’s strategies, process flow, supply chain efficiency, lean production, etc. Manufacturing Strategy Riordan uses the level manufacturing strategy for production planning. This strategy is evidence that Riordan continuously manufactures its goods equal to the average demand for the goods. The scheduling is set for the same quantity as the production based on the total demand for the goods. The benefits of using the level strategy are “to maintain a stable workforce working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales. Employees benefit......

Words: 1396 - Pages: 6

Supply Chain

...The effect of strategy on the use of supply chain management tools – exploratory survey in the Hungarian automotive industry István Jenei1, Krisztina Demeter2, Andrea Gelei3 Budapest University of Economic Sciences and Public Administration, Hungary Abstract Supply chain management (SCM) usually goes beyond company boarders. Cooperating parties are required, who decide to work together. The way how this cooperation evolves depends on the strategies and practices of the parties. In this paper we examine the connection between strategies and SCM practices. Our objective is to analyze how strategy determine the SCM tools used among supply chain parties. The analysis is based on 17 interviews within two supply chains from the Hungarian automotive industry, where supply chains are defined through the car makers (Audi, Suzuki) as focal companies. Our results support the proposition that the connection between strategy and supply chain tools (configurations and practices) is very strong. It is underlined with not only the comparison of the two supply chains but can also be detected in the strategic change at one of the focal companies which resulted in supply chain changes, as well. Besides the main objective a detailed view is provided about the past, present and future of the Hungarian automotive industry. Keywords: Supply chain, supply chain management, strategy, automotive industry, Hungary Introduction content of strategy is required to operate......

Words: 7204 - Pages: 29

Supply Chain

...Link¨ping Studies in Science and Technology. Dissertations o No. 1105 Supply chain optimization in the forest industry Helene Gunnarsson Division of Optimization Department of Mathematics Link¨pings universitet, SE-581 83 Link¨ping, Sweden o o ISBN 978-91-85831-85-2 ISSN 0345-7524 Copyright c 2007 Helene Gunnarsson unless otherwise noted ISBN 978-91-85831-85-2 ISSN 0345-7524 Printed by LiU-Tryck, Link¨ping, Sweden 2007 o Acknowledgements First of all, I would like to give special thanks to my supervisor Mikael R¨nnqvist o for giving support, inspiration and guidance. Your positive attitude and enthusiasm have meant much to me. I would also like to thank my co-supervisor Jan Lundgren for your support, encouragement and guidance in writing. Thanks to Dick Carlsson at S¨dra Cell AB for very good cooperation and friendo ship. I am grateful to Torbj¨rn Larsson, for always taken time for discussions cono cerning both research and teaching. I appreciate my friendship with Maud G¨the-Lundgren. o Thanks to Mathias Henningsson for good cooperation in teaching and J¨rgen o Blomvall for helping me with computer problems. Thanks to Kaj Holmberg for interesting discussions about decomposition methods. Thanks to Oleg Burdakov and Sven Erlander for encouragement. The group of PhD students has been important for me. Thanks to Maria Daneva, Elina R¨nnberg, Per-˚ke Andersson and Kristian Lundberg for supo A porting me and for all fun discussions. Thanks also to my former colleagues,......

Words: 10305 - Pages: 42

Supply Chain

...Integrated Supply Chain Management for Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org All rights reserved IMA Publication Number 00352 ISBN 0-86641-282-4 Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort. Copyright © 1999 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT Implementing Integrated Supply Chain Management for Competitive Advantage TABLE OF CONTENTS I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 II. Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 III. Defining Integrated......

Words: 13000 - Pages: 52