Structured decision making process
Problem Definition - Identify problem clearly and concisely
Gather Data - Collect problem related data (who, where, what. when, how & why)
Detail possible solutions - Generate possible solution
Evaluate solution - Test the solution (is it feasible)
Select Solution - Best solution that meets the needs of the business
Implement Solution - If solution solves the problem, the decision made was correct
Robust Information systems are critical in supporting the flow of materials & services from supplier to customer – ERP system necessary (Oracle, SAP, and Microsoft Dynamics) for information to flow seamlessly through all departments.
ERP systems allow the integration of all departments providing easy access to business information.
Supply chain viewed as 4 interrelated components. The implementation of an ERP system can perform all task below -
Distribution
and deliveryWarehouse and Inventory
Manufacture
and assemblySourcing and Procurement
Distribution
and deliveryWarehouse and Inventory
Manufacture
and assemblySourcing and Procurement
CRM improvement to increase customer loyalty and retention – Decrease competitive rivalry power
Facilities strategies
Location strategies (centralized – efficient or decentralized – effective)
Capacity (single product focus or functional strategy – ABC Limited multiple product production capacity)
Inventory strategies
Low inventory - efficient or high inventory – effective
Cycle of inventory
Production cycle
Safety stock
Transport strategies
Delivery direct to customer – effective or third party distributer – cheaper and efficient
Segment customers by service needs (what fertilizer is most needed around each distribution center)
Information strategies
Push (displaying information - efficient) vs pull (requesting information - effective) information strategies
Supply Chain Planning and Supply Chain Execution – Factors affecting information flow speed
Supply Chain Management Success Factors
Make the sale to suppliers
Wean employees off traditional business practices
Ensure the SCM system support the organizational goals
Deploy in incremental phases and measure and communicate success
Be future