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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?10/5/20221 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOOverview What are supply chainA Generic Supply ChainPr

2、oduct disposalConsumptionMotherearthExtractorsminersharvestersConverters(suppliers)OriginalequipmentmanufacturersDistributorsRetailersConsumers MaterialInformationCash (Hines, 2004)10/5/20222 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOA Generic Supply ChainProduct An Automotive Supply Chain

3、 Example(Childerhouse, 2002)10/5/20223 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOAn Automotive Supply Chain ExaA NZ Supply Chain Example10/5/20224 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOA NZ Supply Chain Example10/2/“The management of upstream and downstream relationships with

4、 suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole ”(Christopher, 1998)Supply Chain Management (SCM) Definition10/5/20225 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO“The management of upstream anServiceleaderCost andservice leaderCommodit

5、ymarketCostleaderLoHiHiLoProductivity advantageValue advantage(Christopher, 1998) Tailored services Reliability Responsiveness Capacity utilization Asset turn Co-markership/ schedule integrationSCM and Competitive Advantage10/5/20226 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOServiceCost an

6、dCommodityCostLoIntegration is a well recognised goal of supply chain managementIntegrated supply chains provide superior value to consumersA truly integrated supply chain is seamless withall players thinking and acting as one Integration involves the removal of internal boundaries within a company

7、and interface boundaries between companiesProcess boundariesHuman/ social boundariesSupply Chain Integration10/5/20227 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOIntegration is a well recognisA Rowing Analogy10/5/20228 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOA Rowing Analogy10/2

8、/20228 TH“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)10

9、/5/20229 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO“The most common situation is “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 In

10、focratic structure Knowledge hoarding(Bowersox et al, 2002)Internal Integration Barriers10/5/202210 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO“Managers do not attempt to inStage one: baselineStage two: functional integrationStage three: internal integrationStage four: external integrationM

11、anufacturingmanagementStages of Supply Chain IntegrationPurchasingMaterialcontrolProductionSalesDistributionMaterialsmanagementDistributionMaterialsmanagementManufacturingmanagementDistributionMaterialsmanagementManufacturingmanagementDistribution(Stevens, 1989)10/5/202211 THE UNIVERSITY OF WAIKATO

12、TE WHARE WANANGA O WAIKATOStage one: baselineManufacturiPresentation 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?10/5/202212 THE UNIVERSITY OF WAIKATO TE WHARE W

13、ANANGA O WAIKATOPresentation Progress What areOrganizations 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 10/5/202213 THE UNIVERSITY OF WAIKATO TE

14、WHARE WANANGA O WAIKATOOrganizations Studied 28 supplIntegration Maturity Results(Childerhouse, 2002)Direction of integration maturity10/5/202214 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOIntegration Maturity Results(C(Childerhouse, 2002)Individual Integration Maturity Results10/5/202215 T

15、HE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO(Childerhouse, 2002)Individual(Adapted from Childerhouse, 2002)Individual Integration Maturity Results: NZ10/5/202216 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO(Adapted from Childerhouse, 20Three Steps to Supply Chain Integration(Towill et

16、 al., 2002)Put your own house in order firstThen help your supplier to integrate with youFinally persuade your customers of the need for integration10/5/202217 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOThree Steps to Supply Chain In12 Rules for Simplified Material FlowOnly make products wh

17、ich can be quickly despatched and invoiced to customersOnly make in one time bucket those components needed for assembly in the nextStreamline material flow and minimise throughput time, i.e. compress all lead timesUse the shortest planning period/ run quantity which can be managed efficientlyOnly t

18、ake deliveries from suppliers in small batches as and when neededSynchronise “Time Buckets” throughout the supply chain(Towill, 1999)10/5/202218 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO12 Rules for Simplified Materi12 Rules for Simplified Material Flow(Towill, 1999)Form natural clusters

19、of products and design processes appropriateEliminate all uncertainties in all processesUnderstand, document, simplify and only then optimise (UDSO) the supply chainStreamline and make highly visible all information flows throughout the chainUse only proved simple but robust Decision Support Systems

20、The operational target is the seamless supply chain, “think and act as one”10/5/202219 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO12 Rules for Simplified MateriAverage Adherence to the 12 Simplicity Rules(Childerhouse and Towill, 2003)10/5/202220 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O

21、 WAIKATOAverage Adherence to the 12 SiCorrelation Between Simplicity and Integration(Childerhouse et al., 2004)10/5/202221 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOCorrelation Between SimplicityConcluding Remarks Supply chains are complex networks driven by consumer demands Supply chain i

22、ntegration is the removal of internal and external boundaries so that all players think and act as one Most supply chains are not well integrated in practice Managers can increase their level of integration by following the three steps and by adhering to the 12 simplicity rules10/5/202222 THE UNIVER

23、SITY OF WAIKATO TE WHARE WANANGA O WAIKATOConcluding Remarks Supply chaiImplications for Practice You are not alone if you are struggling with the concepts of supply chain management Most supply chain problems can not be solved by IT software or large capital investments alone Supply chain managemen

24、t requires a change in mindset from adversarial to collaboration Consider the 12 rules next time you tackle a supply chain problem or want to enhance supply chain performance 10/5/202223 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOImplications for Practice You Implications for Further Resear

25、chCurrently looking for willing industrial partners to investigate: How well integrated are New Zealand supply chains? What barriers slow supply chain management adoption in New Zealand? Which of the 12 rules are most useful in New Zealand? 10/5/202224 THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATOImplications for Further Resea“No organisation is an island upon itself,but a piece of a supply chain, part of the continent.When the bell tolls for the supply chain it tolls for them,because they are part of that