1、PwC Supply Chain Management Accelerating Cost Effectiveness PricewaterhouseCoopers 2 Supply Chain Management The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and cu
2、stomers.Today,the talk is of supply networks,parallel chains,enhanced concurrent activities,and“customer centric”with new information platforms and technology set to cut both inventory and lead-times throughout the delivery pipeline further.PricewaterhouseCoopers 3 Top Issues Facing SCM Professional
3、s In a recent quantitative survey,SCM professionals were asked a open-ended subjective question,“What are the three biggest issues facing you personally in developing your logistics strategy?”Source:AMR Research 2000 The top three responses were;Cost(21%),Systems Applications(20%)and Integration(19%
4、)21%20%18%14%13%13%12%12%11%0%5%10%15%20%25%CostSystems ApplicationIntegrationQualified AssociatesSupport ManagementE-BusinessOrganisation StructureGlobal ManagementFundingPricewaterhouseCoopers 4 SCM Benefits Manufacturer Distributors/Wholesalers Customers Suppliers Retailers Materials Flows Inform
5、ation Flows Cash Flows US companies expect to reap$3-400B of savings through a variety of benefits(3 5%of revenues)Source:PRTM PricewaterhouseCoopers 5 Move From Push To Pull Manufacturers Distributors/Wholesalers Customer Suppliers Retailers Manufacturers Distributors/Wholesalers Customer Suppliers
6、 Retailers Make what we sell,not sell what we make!PricewaterhouseCoopers 6 Move to Cross-Functional Business Processes Purchasing Manufacturing Distribution Install/Maintenance Sales Source Make Deliver Install Sell Order Fulfillment Available-to-Promise Sales&Operations Planning Department Perform
7、ance PricewaterhouseCoopers 7 Supply Chain Optimization Synchronized,Sequential Planning Forecasting Distribution Planning Manufacturing Planning Procurement Planning Supply Chain Optimization Synchronized,Concurrent Planning Demand Planning Distribution Planning Manufacturing Planning Procurement P
8、lanning PricewaterhouseCoopers 8 Purchasing Manufacturing Distribution Install/Maintenance Sales Cross-Functional Supply Chain Metrics Source Make Deliver Install Sell Perfect Order Process LSL USL LSL USL LSL USL LSL USL LSL USL PricewaterhouseCoopers 9 Sharing and Collaboration Manufacturer Distri
9、butors/Wholesalers Suppliers Retailers Synchronized Production Scheduling Collaborative Product Development Collaborative Demand Planning Collaborative Logistics Planning Transportation services Distribution center services PricewaterhouseCoopers 10 Full Value Procurement Objective Lowest total cost
10、 of ownership Quality meeting customer needs On-time delivery Acceptable supply risk Process efficiency Demand reduction Underpinned by procurement infrastructure excellence Purchase Price Acquisition Installation Maintenance Disposal Price is often just the tip of the iceberg!PricewaterhouseCoopers
11、 11 Strategic Souring Traditional Progressive Tactical Emphasis Acquisition Cost Focus Staff Function Cost Center Reactive Strategic Emphasis Total Cost Focus Profit Center Proactive Tactical Strategic Tactical Strategic Evolving Model of Procurement PricewaterhouseCoopers 12 Logistic and Transporta
12、tion Logistics accounts for 8-12%of sales.In 1998,it accounted for over 10%of the US GDP Logistic is one of the glues that holds the supply chain together.The techniques that most manufacturers employ to increase speed and reducing cost is outsourcing Average cost reductions from outsourcing is 32%T
13、he 3PL market has enjoyed explosive growth over the past 5 years.Most 3PLs have reported annual growth rate of 25-50%Source:industry week PricewaterhouseCoopers 13 Manufacturing Material .BOM PRT Customer order Document Work center Routing etc.Manufacturing managers view efficiency and flexibility a
14、s two objectives which must be balanced in order to arrive the lowest total cost World-class companies adopt strategies and tactics such as pull system,JIT replenishment,and cycle time reductions that enables a company to have lower levels of inventory while still driving reductions in production un
15、it cost Companies frequently underestimate the commitment required to achieve an effective quality improvement which result in operation cost increases.PricewaterhouseCoopers 14 Strategic Business Planning Forecasting and Planning hours days weeks months year+Operational Tactical Strategic Schedulin
16、g Rolling Forecast Demand Planning Manufacturing Planning Scheduling Distribution Planning Transportation Order Promise Source Make Move Store Sell PricewaterhouseCoopers 15 Top Issues Facing SCM Professionals e-Business is a relatively low priority,coming in sixth of the top issues facing SCM professionals.However,this does not reflect the impact that e-Business will have on Supply Chain Management Source:AMR Research 2000 e-Business will fundamentally change SCM 21%20%18%14%13%13%12%12%11%0%5%