Lecture 3_ Using Tools to Develop Supply Chain Strategies
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Transcript of Lecture 3_ Using Tools to Develop Supply Chain Strategies
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7/24/2019 Lecture 3_ Using Tools to Develop Supply Chain Strategies
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Lecture 3: Using tools to develop supply chain strategies
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1.2 Improving supply chain competencies
Feedback:
1. Analyse the problem - consists in examining the existing operations and processes in the supply chain as well as
identifying and prioritising the problems to be solved or improvements to be made.
2. Develop strategies and solutions - consists in identifying and evaluating potential strategies and solutions to the
analysed problems, and in developing an action plan.
3. Implement the plan - consists in implementing the action plan and collecting the relevant performance data.
4. Validate and check performance - consists in analysing the performance data to establish if the predicted
improvement was achieved, as well as in implementing corrective actions if necessary.
5. Integrate and document the improved process - consists, if the desired level of improvement is reached, in integrating
the operations, as well as documenting and monitoring the improved process.
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1.3 Improving SCM's key competencies
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1.4 The supply positioning model
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1.5 The supply positioning model
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1.6 Routine purchased items
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1.7 Leverage purchased items
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1.8 Bottleneck purchased items
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1.9 Strategic items
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1.10 Exercise
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1.11 The supply positioning model
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1.12 Developing strategies using the supply positioning model
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1.13 Matching exercise
Feedback:
Bottleneck: A: Pursuing the most reliable sources of supply & B: Holding high levels of contingency stock.
Strategic: C: Assessing supply options and identifying the suppliers that are the most attractive from the point of view of
meeting all of the business's long-term requirements & D: Careful forecasting of demand in order to minimise
inventories
Leverage: E: Small price differences seek long term contract with supplier & F: Use of demand forecasting to minimize
inventory
Routine: G: Reduce time and effort spent & H: Keep the purchasing process as simple as possible.
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1.14 Application of the model to inventory management
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1.15 Application of the model to inventory management
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1.16 Matching exercise - safety stock
Feedback:
Highest level - Bottleneck
High level - Routine
Relatively low level - Strategic
Lowest level - Leverage
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1.17 Matching exercise - monitoring
Feedback:
Highest level - Strategic
High level - Bottleneck
Relatively high level - Leverage
Lowest level - Routine
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1.18 Using the model
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1.19 Key points
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1.20 The supply positioning model
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1.21 Conclusion
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1.22 ITC's MLS-SCM
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1.23 The supply positioning model
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1.24 Thank you for completing the lecture