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outsource processes where the pany lags in expertise of efficiency. ? Develop an outsourcing strategy that reflects the corporate vision. ? Work with trusted outsourcers, yet clearly municate expectations in original contracts. ? Define requirements and expectations in terms of outes, not tasks or activities. ? Link outsourcer pensation to outsourcer performance. ? Integrate thirdparty outsourcing goals, objectives and resource requirements into the supply chain strategic plan. 37 ? The list of activities included in the definitions of supply chain are broader than the scope of the supply chain executive’s responsibilities. ? Supply chain responsibilities are shared in most anizations. Most notably, supply chain executives are not responsible for manufacturing and customerfacing sales activities. ? Companies with shared responsibilities for supply chain management require flexible anizational structures to facilitate munication among supply chain executives to foster optimization of the total supply chain. ? On a limited basis, suppliers are looking to their own suppliers, customers and other third parties to help fill resource and skill deficiencies. ? Third party relationships are expected to grow as the outsourcing trend increases. Key Findings Supply Chain Management 38 ? Develop key performance measurers which span the entire supply chain (including vendors 。Automotive Best Practices Forum Supply Chain Management 0 WELCOME! Today’s meeting will focus on the results of the Supply Chain Management Assessment, pleted by 22 automotive supplier executives and 3 vehicle manufacturer executives. Introduction 1 Table of Contents Introduction 4 13 Supply Chain Management 14 21 Definitions and Strategy 22 32 Understanding Expectations 33 38 Supply Chain Management 39 47 Performance Measurement 48 55 Technology Solutions 56 60 SCM Opportunities 61 72 Page Number 2 Industry Forces and Issues Introduction The automotive supply chain is going through a period of unprecedented change in order to meet increasing consumer expectations with regard to price, delivery, and product customization. The managing of the supply chain pipeline is therefore faced with a number of key issues including。 ? Elevating supply chain management as a critical success factor to achieving petitive advantage ? Aligning the anizational structure to support global supply chain management ? Establishing a process oriented, functionally integrated supply chain ? Forecasting the impact of changing global markets on supply chain costs and capabilities ? Defining key performance indicators and measuring supply chain performance ? Understanding, selecting and integrating supply chain management enabling technology ? Anticipating and responding to the impact of supplier consolidations ? Anticipating and responding to the impact of OEM consolidations ? Defining and tracking total supply chain costs 3 Introduction ? Define supply chain management and its ponents ? Understand the elements of a supply chain strategy ? Position the role of a supply chain executive ? Identify the elements of supply chain management ? Understand the role of information technology applications ? Identify how to utilize performance measures in the supply chain process ? Understand how to use best practices and benchmarking in support of supply chain management ? Understand role of customers, suppliers, and third parties for collaborative support. Today’s Objectives 4 The integrated supply chain concept has gone through three distinct phases... ?“ Push” era focused on distribution of finished goods ? Managed WIP, raw materials, and finished goods as separate functions ? Mgmt required production to be balanced with customer requirements Phase I 19601975 ? Importance realized in integrating operations within the enterprise ? Computer horsepower applied to manage material flow ?Companies began to migrate from “inventory push” to a “customer pull” channel Phase II 19751990 ? Significant productivity increases could only be realized through managing relationships, information and material flow across enterprise borders ?Recognized the “delivery of enhanced customers and economic value through the synchronized management of the flow of physical goods and associated information from sourcing to consumption” Phase III late 80’s present Source: Bernard LaLonde, professor emeritus of logistics at Ohio State University History of SCM SCM Overview 5 The following represent some of the other initiatives which have either helped develop or have been spawned from the SCM movement Agile Manufacturing Efficient Consumer Response Total Quality Management Directives Channel Management Shared Services Constraint Based Scheduling Channel Integration Value Chain (extended) Flow Replenishment/ Fluid Distribution Distribution Resource Planning Vendor Managed Inventory Theory of Constraints Change Based Strategy Vendor Managed Inventory (VMI) Flexible Manufacturing Time based mfg. /logistics Continuous Replenishment Planning (CRP) Quick Response (QR) Reverse Flow Logistics Theory of Constraints Synchronous Manufacturing Justintime (JIT) Third Party Logistics (3PL) Flexible Distribution Category Management Continuous Replenishment Planning SCM Related Concepts SCM Overview Justintime (JIT) Total Quality Management Synchronous Manufacturing Theory of Constraints 6 Value Complexity Functional “Silos” Virtual Extended Chains Integrated Internal Supply Chain Integrated External Supply Chain Select Vendor/Customer Collaboration Selected Crossfunctional