Supply Chain Management Insights
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ScribdTranslationsSupply Chain Management Insights
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ScribdTranslationsCase study: SUPPLYCHAIN
MERAZGA Ines Maissa
L3 G (CCA)
The Supply Chain Management
A contribution from logistics -> Better integration of operations + improvement
coordination and planning in the operating mode + efficiency gain of
transport.
Logistics costs in developed countries: 10.13% of GDP.
Optimization of the logistics chain -> Productivity gain -> Optimization of networks
supply and distribution / optimization of production capacities /
Reduction of delays / Customer satisfaction / Synchronization between the different stages
from the chain / Better competition management / Reduction of impacts
environmental / Risk control (delay/stockouts).
1/ The logistics:
Logistics cost in a company = 20% of the cost price (when there are no unforeseen events).
Sources of additional cost:
Leviers de croissance-> Qualité service + personnalisaton produits + fidélisaton clients /
Reduction of time-to-market / Reactivity and flexibility to respond to demand (without
retard, neither surcharge) / Logistics outsourcing to broaden the area of influence / Mastering the
international flows to win the big Export.
Productivity levers -> Reduceyour logistics costs / stock rotation (increase
cash flows) / Improve visibility (helps reduce uncertainties about demand) /
Logistics collaboration + implementation of ICT / Shared warehouses and transport
(reduce logistics costs and GHG emissions).
2/ Internet logistics and external logistics:
Existence of new conditions regarding consumption related to clients: to be
serve anywhere and anytime / benefit from competitive prices / express oneself
difference / consume safely / consumption in respect of
the environment / etc.
Logistics = Function adjustment between offer and request.
It allows the management of 2 complementary flows: one PULLED by downstream logistics.
(customer orders) and the other PUSHED by upstream logistics (factory).
Le flux aval commande l’amont (logique d’une stratégie de distributon) : lorsque le
The trigger for the industrial production process is a customer's order.
Tight flow organization whose objective is to provide a product corresponding to
the customer's order at the moment when he wishes it.
Most common production strategies: Make-to-stock / Assembly to
made to order.
3/ From fragmented logistics to the Supply Chain:
The logistics at cross of the decades
Until the 1960s - Period of fragmented logistics: Fragmentation of operations,
independence of poles, no optimization, several planning issued.
Until the 1980s - Period of integrated logistics.
Logistics = Supply function: Product going from factories to the market.
However, the emergence of the logistic function began around the: process of
management of supplies and production + distribution process
physics -> 1 single forecast issued, beginning of resource optimization and
process.
From the 1990s - Period of global logistics.
Logistics = Function of adjustment between supply and demand: adjustment of flows through the
demand and driven by forecasts.
Factors that led to this movement: emergence of ICT + market saturation + free
exchanges (emergence of regional markets) + Industrialization of transport + search for
new sourcing.
Currently – Function of anticipation and integration: Differentiation by costs,
services, efficiency of organizations.
Big Data -> Large multi-criteria database, automatically fed, that can
to be studied in real time to be able to optimize added value + identify areas
of improvement.
Dynamic optimization of deliveries: monitoring + real-time optimization of
deliveries thanks to the location data of the different devices, and thus be able to
redirect. This has a positive impact on transportation costs.
Supply management: Thanks to the numerous information, software
Sophisticated mathematics are developed to make the right decision at the right time.
moment.
Demand-based Supply Chain: Combined Data Analysis
(fournisseurs/réseaux sociaux/..) permet de s’adapter aux changements de demande
faster and better (=Reduction of stocks + better
performance).
Virtual organization (e.g., McDonald's/Nike/Reebok) -> most operations are subcontracted
contracts + sales through chains. Relies on a very networked computing.
developed between the partners.
4/ Organization by process:
Based on reasoning about the variation of flows of products and services destined for
of the client.
The process is a set of dependent or independent activities that allow
to obtain input elements in a sorted manner, adding value to it
element.
Different families of processes: Operational processes (different meters) / Processes
continuous improvement (quality assurance) / managerial process (management and
piloting + strategy) /Service process(support).
The process approach requires 3 steps:
Understand the process – Identification of processes + formalization of processes
Mastering the process - Identification of dysfunctions mainly. It
Efficiency / profitability / Continuous measurement of costs and gains.
Optimize the process
The process analysis = Process improvement -> eliminate 'useless' actions
to simplify it. To do this -> Analyze the different operations to
remove/combine/permutate.
Example:
5/ Project-based organization:
Entreprises construites sous le modèle pyramidale, centralisée, hiérarchisé -> Essaie
to evolve on a model of organization and management 'by project'. This suggests
multiple paradigms:
Concurrent engineering: Mobilization of all experts to improve the
decision-making at different stages thanks to broader perspectives +
Overlap of production phases (extension of phases, but reduction
of the deadline + anticipate problems before making irreversible decisions).
The "Task Force" / Dedicated Team: Temporarily gather around a project,
professionals with different roles and responsibilities.
The matrix organization: the manager selects the people he needs for a project.
they will only dedicate a few days or a few hours per week,
while taking on a part of their daily work.
Several challenges for this 'project-based' organization -> Reduction of time and costs + Better
knowledge + mutual recognition + increased internal mobility + new motivation lever
+ Source d’apprentssage collectf + Opportunités d’apprentssage individuel.
Distinction between Process and project:
6/ Bullwhip Effect:
An increase in demand of 8.2% at the retail level will experience a distortion, and will be
received at 40% for the manufacturer, a few weeks after this increase.
The causes of this effect:
1 - Lack of communication between the links + forecasts based on orders in
but not on actual customer orders (forecast model that reacts too much to
a fluctuation of the request).
2 - Batch size: Organizations order in batches, generating an amplification effect.
3 - Price Variation: Promotions/discounts modify consumer behavior
(Purchases no reflect more theirs needs immediate.
4 - Strategic maneuver: Order cancellation + forward purchase -> Can lead to
to the Bullwhip effect.
Facing this effect:
1 - Sharing of information (thanks to appropriate information systems).
Objectf à terme : Remplacer les stocks par l’informaton entre les maillons.
2 - Limit price fluctuation (Ex: Wal-Mart: 'Everyday Low Prices' initiative).
3 - Other solutions: Continuous replenishment + reduction of lot sizes + reduction
number of links in the chain.