Click to edit Master title style,Click to edit Master text styles,and check to see how the text wraps to a second line,Second level,Third level,Fourth level,Fifth level,*,*,Waikato Management School 2005 Research Seminar Series,Making Supply Chains Work For You,Dr Paul Childerhouse,11/17/2024,1,Overview,What are supply chains?,What is supply chain integration?,How well integrated are supply chains in practice?,How can managers increase the integration of their supply chains?,11/17/2024,2,A Generic Supply Chain,Product disposal,Consumption,Mother,earth,Extractors,miners,harvesters,Converters,(suppliers),Original,equipment,manufacturers,Distributors,Retailers,Consumers,Material,Information,Cash,(Hines,2004),11/17/2024,3,An Automotive Supply Chain Example,(Childerhouse,2002),11/17/2024,4,A NZ Supply Chain Example,11/17/2024,5,“,The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole,”,(Christopher,1998),Supply Chain Management(SCM)Definition,11/17/2024,6,Service,leader,Cost and,service leader,Commodity,market,Cost,leader,Lo,Hi,Hi,Lo,Productivity advantage,Value advantage,(Christopher,1998),Tailored services,Reliability,Responsiveness,Capacity utilization,Asset turn,Co-,markership,/schedule integration,SCM and Competitive Advantage,11/17/2024,7,Integration is a well recognised goal of supply chain management,Integrated supply chains provide superior value to consumers,A truly integrated supply chain is seamless with,all players thinking and acting as one,Integration involves the removal of internal boundaries within a company and interface boundaries between companies,Process boundaries,Human/social boundaries,Supply Chain Integration,11/17/2024,8,A Rowing Analogy,11/17/2024,9,“The most common situation is when a firm achieves only partial integration on the outbound side and on the inbound side.”,“managers report considerable difficulties in linking these two types of external collaboration into an enterprise wide process.”,The Great Divide,(Bowersox et al,2002),11/17/2024,10,“Managers do not attempt to integrate operations in a vacuum,It is important to recognise barriers that serve to inhibit process integration.”,Organization,Measurement and reward systems,Inventory leverage,Infocratic structure,Knowledge hoarding,(Bowersox et al,2002),Internal Integration Barriers,11/17/2024,11,Stage one:baseline,Stage two:functional integration,Stage three:internal integration,Stage four:external integration,Manufacturing,management,Stages of Supply Chain Integration,Purchasing,Material,control,Production,Sales,Distribution,Materials,management,Distribution,Materials,management,Manufacturing,management,Distribution,Materials,management,Manufacturing,management,Distribution,(Stevens,1989),11/17/2024,12,Presentation Progress,What are supply chains?,What is supply chain integration?,How well integrated are supply chains in practice?,How can managers increase the integration of their supply chains?,11/17/2024,13,Organizations Studied,28 supply chains,Collected over a seven year period,Via a supply chain diagnostics tool,43 product value streams studied,From the automotive,electronics,lighting,FMCG and dairy industries,11/17/2024,14,Integration Maturity Results,(Childerhouse,2002),Direction of integration maturity,11/17/2024,15,(Childerhouse,2002),Individual Integration Maturity Results,11/17/2024,16,(Adapted from Childerhouse,2002),Individual Integration Maturity Results:NZ,11/17/2024,17,Three Steps to Supply Chain Integration,(Towill et al.,2002),Put your own house in order first,Then help your supplier to integrate with you,Finally persuade your customers of the need for integration,11/17/2024,18,12 Rules for Simplified Material Flow,Only make products which can be quickly despatched and invoiced to customers,Only make in one time bucket those components needed for assembly in the next,Streamline material flow and minimise throughput time,press all lead times,Use the shortest planning period/run quantity which can be managed efficiently,Only take deliveries from suppliers in small batches as and when needed,Synchronise“Time Buckets”throughout the supply chain,(Towill,1999),11/17/2024,19,12 Rules for Simplified Material Flow,(Towill,1999),Form natural clusters of products and design processes appropriate,Eliminate all uncertainties in all processes,Understand,document,simplify and only then optimise(UDSO)the supply chain,Streamline and make highly visible all information flows throughout the chain,Use only proved simple but robust Decision Support Systems,The operational target is the seamless supply chain,“think and act as one”,11/17/2024,20,Average Adherence to the 12 Simplicity Rules,(Childerhouse and Towill,2003),11/17/2024,21,Correlation Between Simplicity and Integration,(Childerhouse et al.,2004),11/17/2024,22,Concluding Remarks,Supply chains are complex networks driven by consumer demands,Supply chain in