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considerably across the supply chain, even when customer demand for specific products does not vary greatly.? Demand is not the only source of uncertainty:– Lead times– Yields– Transportation times– Natural Disasters– Component Availability? Recent trends such as lean manufacturing, outsourcing, and offshoring that focus on reduction increase risks significantly.169。CopyrightSupply Chain VariabilityVolumesTimeSource: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998ActualConsumerDemandRetailer Warehouseto ShopRetailer OrdersProduction PlanManufacturer Forecastof Sales169。CopyrightWhat Management Gets...VolumesTimeSource: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998ConsumerDemandProduction Plan169。CopyrightWhat Management Wants…VolumesTimeSource: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998ConsumerDemandProduction Plan169。CopyrightDealing with Uncertainty? Pull Systems? Risk Pooling? Centralization? Postponement? Strategic Alliances? Collaborative Forecasting169。Copyright Why Supply Chain Management?169。CopyrightSupply Chain:the Magnitude? In 1998, American panies spent $898 billion in supplyrelated activities (or % of gross domestic product).–Transportation 58%–Inventory 38%–Management 4%? Third party logistics services grew in 1998 by 15% to nearly $40 billion169。CopyrightSupply Chain:the Magnitude? It is estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics strategies.– A typical box of cereal spends more than three months getting from factory to supermarket.– A typical new car spends 15 days traveling from the factory to the dealership, although actual travel time is 5 days.169。CopyrightSupply Chain: The Magnitude– Compaq puter estimates it lost $500 million to $1 billion in sales in 1995 because its laptops and desktops were not available when and where customers were ready to buy them.– Boeing aircraft, one of America39。s leading capital goods producers, was forced to announce write downs of $ billion in October 1997, due to “Raw material shortages, internal and supplier parts shortages…”. Many opportunities exist to cut costs in the supply chain!169。CopyrightSupply Chain: The Potential? Procter Gamble estimates that it saved retail customers $65 million through logistics gains over the past 18 months.? “According to PG, the essence of its approach lies in manufacturers and suppliers working closely together …. jointly creating business plans to eliminate the source of wasteful practices across the entire supply chain”. (Journal of business strategy, Oct./Nov. 1997)169。CopyrightSupply Chain:the Potential? In 10 years, WalMart transformed itself by changing its logistics system. It has the highest sales per square foot, inventory turnover and operating profit of any discount retailer.? Dell Computer has outperformed the petition in terms of shareholder value growth over the eight years period, 19881996, by over 3,000% using–Direct business model–Buildtoorder strategy.169。CopyrightWhat’s New?? Global petition? Shorter product life cycle? New, lowcost distribution channels? More powerful wellinformed customers? Inter and EBusiness strategies169。Copyright Key Issues? Issues span–Strategic–Tactical–Operational? What are the tradeoffs and issues?–Distribution Network Configuration–Inventory control–Supply Contracts–Distribution Strategies–Integration and Partnerships–Procurement Strategies and Outsourcing–Product Design–Information Technology演講完畢,謝謝觀