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ALIGNING SUPPLY CHAIN

STRATEGIES WITH PRODUCT


UNCERTAINTIES

PREPARED BY
AKSHAY
EDWIN
ALVIN
a.Aligning supply chain strategies
b.Supply Chain Strategies in the
Modern Era

c.Setting Up a Right Supply Chain


Strategy to Match Product
Uncertainty
a)Refine the supply chain strategy and segmentation: This involves defining or
refining your supply chain strategy to drive segmentation and make key trade-offs
around cost, speed and service.

b)Link supply chain segmentation attributes to functional capabilities: This


involves creating linkages between cost, speed and service attributes and core
functional capabilities.

C) Align internal stakeholders to execute processes: This involves supply


management leadership communication and collaboration to align internal
stakeholders on the specific processes, actions and appropriate metrics necessary
to successfully execute and deliver value.

D) Align external stakeholders on processes and actions to execute and


deliver value: This also requires leadership engagement to ensure that suppliers
are clear on, and aligned with, the actions and performance expectations necessary
to support cost, speed and service attributes.

E) Keep refreshing the strategy and alignment process: Most companies have
strategic planning cycles of one to three years, but we have seen companies that
literally go decades without re-aligning their supply chain strategy. Put your supply
chain strategy on the same schedule as the rest of your planning.
a) Optimize product designs and product management for supply,
manufacturing, and sustainability to accelerate profitable innovation:
Innovation is crucial for being one step ahead of the competition. But
innovation doesn’t exist in a vacuum. To be successful, products must be
manufactured at the right cost, place, and time. Decisions made in the early
cycles of product development can make or break the product. Designs must
be optimized for supply, manufacturability, and supply chain operations. All
true costs to deliver must be accurately captured and analysed to maintain
balance across the end-to-end business.

b) Ensure a reliable and predictable supply: Without reliable supply to


customer-facing stakeholders to meet agreed-upon service levels, a
manufacturer will tend to hold inventory buffers to ensure meeting customer
service levels. This costs the business and, even worse, may mean the wrong
products are at the wrong place at the wrong time, resulting in supply
shortfalls. Working on continuous improvement and operational excellence
strategies is a foundation for successful end-to-end supply chain operations

c). Build an adaptive and agile supply chain with rapid planning and
integrated execution: Once executives are able to better understand and
shape demand and risk, they need to adapt their supply chains to changing
market opportunities and events. Companies must deploy dynamic planning
capabilities and continually fine-tune operations to ensure responsive agility to
meet changing demand.
Products which have different
characteristics may face different
demand and supply uncertainties.
So , how can weidentify?

The Uncertainty Framework


a.Efficient Supply Chains (Cutting costs as much as possible)
Maximizing cost efficiencies on cross transmission of informationin
the supply chain by refusing non-value added actions, reaching a
scale economy, and using optimization techniques, etc.

b. Risk-Hedging Supply Chains


Pooling and sharing resources in a supply chain to diversify risksin
supply disruption.

c. Responsive Supply Chains


Being responsive and flexible to the changing and diverse needsof
consumers
Build-to-order and mass customization models

d. Agile Supply Chains


A combination of responsive to consumer needs andrisk
diversification
a. Functional products with stable supplyprocesses
For products which have both low demand and supplyuncertainties,
efficiency is the only competitive advantage and costs and
information coordination are two elements of efficiency.

b. Functional products with evolving supplyprocesses


Those products which have low demand uncertainty but a high
supply uncertainty, represent a high risks in supply chain, so a Risk-
hedging supply chain can contribute to reduce therisks.

c. Innovative products with stable supplyprocesses


With a highly unpredictable demand and short product lifecycle,
excessive inventory can cause a significant storage cost.

d. Innovative products with evolving supplyprocesses


Products with both high demand and supply uncertainties should
reduce the uncertainties from two sides. The Agile supplychains are
the best choice!
THANK
YOU