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1、Supply Chain Management:Basics to E- BusinessLarry Lapide, AMR ResearchVice President of Research Operations, Business ApplicationsAgendaWhatsDrivingtheSupply Chain ande-BusinessExcitement?OverviewofSupplyChainManagement(SCM)andTechnologyOverviewofSCMIssuesSCMand e-BusinessPracticesConclusionsManufa

2、cturersWholesaleDistributorsSuppliersCustomersInformationFlowsGoodsFlowRetailersTheTraditionalSupply ChainManufacturersWholesaleDistributorsSuppliersCustomersInformationFlowsGoodsFlowFutureInternet-Connected SupplyChainSupplier ExchangesCustomer ExchangesLogisticsExchangesContract ManufacturersLogis

3、tics ProvidersVirtual ManufacturersRetailersAPSand e-businesstechnologysupportsbest SCMpracticesSCMwillallowUScompaniestoreapof$300Bto$400Bofsavings (1997:GDP $8.1T )3%to5%ofrevenue savingsfor bestSCM companies*50%reduction in cash-to-cashcycle*17%improvementinmeetingcustomerdeliverydates*Source: PR

4、TMIntegratedSupplyChainBenchmarking Study,1997MRPSCMAPSand e-businessEvolutionofSCM Technology*Source: PRTMIntegratedSupplyChainBenchmarking Study,1997Typical QuantifiedBenefitsfromIntegrated theSupplyChainDelivery Performance16%-28% ImprovementInventory Reduction25%-60% ImprovementFulfillment Cycle

5、 Time30%-50% ImprovementForecast Accuracy25%-80% ImprovementOverall Productivity10%-16% ImprovementLower Supply-Chain Costs25%-50% ImprovementFill Rates20%-30% ImprovementImproved Capacity Realization10%-20% ImprovementEnterprise functionalsiloswithconflictinggoalsPurchasingManufacturingDistribution

6、CustomerService/SalesFewchange-oversStableschedulesLong runlengthsHigh inventoriesHigh servicelevelsRegionalstocksSOURCEMAKEDELIVERSELL Lowpur-chase priceMultiplevendorsLowinvent-oriesLowtrans-portationOverviewofSCM-IssuesInternalIntegrationandExternalCollaborationAreTheUnderlyingIssuesLegacyApplica

7、tions Do NotAlignWith DesiredInternalBusinessProcessesEDIIsPrevalent,MostlyFor ConnectingLarger SuppliersCompaniesAre FocusedonInternalIntegration, WithAnEye TowardsThe ExternalFindings:SupplyChainCouncil/AMRDiscreteManufacturingFocusGroupCycleTime ReductionsMoveManufacturers TowardsSupplierSynchron

8、izationManufacturerWholesale DistributorsConsumersMulti-tierSuppliersRetailersSCMWillReduceVolatilityTimeSalesSalesTimeSalesTimeSalesTimeBull Whip EffectSCMdealslargelywith cross-functionaland inter-enterprisebusinessprocesses to speed product, information andfund flows up anddown asupply chainManuf

9、acturerDistributors/WholesalersConsumersSuppliersRetailersGoodsFlowsInformationFlowsFundsFlowsOverviewofSCMSCMBusinessProcessesTechnology helps enablea varietyofSCM business processesPush to pullProcess orientationOptimizationPostponementMore frequent planningCollaborationMove frompushtopull manufac

10、turingManufacturersDistributors/WholesalersConsumersSuppliersRetailersManufacturersDistributors/ WholesalersConsumersSuppliersRetailersMake whatwewillsell,notsellwhat we willmake!SCMand e-BusinessPracticesPurchasingManufacturingDistributionCustomer Service /SalesAvailable-to-Promise (ATP) Capable-to

11、-Promise (CTP)Move fromfunctionalsilostoprocess-oriented business processes(e.g.,order-to-cash,cash-to-cash)Integrated Sales and Operations Planning (S&OP)SOURCEMAKEDELIVERSELLSCMand e-BusinessPracticesOptimizationofall supplychainactivitiesSupply Chain OptimizationSynchronized, Concurrent PlanningD

12、emandPlanningDistributionPlanningManufacturing PlanningProcurementPlanningSynchronized, SequentialPlanningForecastingDistributionPlanningManufacturing PlanningProcurementPlanningSCMand e-BusinessPracticesPostponementMove to MTO,ATOand CTOfrom MTSFront-endAPS suitessupportATP/CTPProduct configuration

13、Back-endintegrationtotransactionsystemsInternationalTradeLogisticsWarehouseManagementAdvancedPlanningSchedulingCustomerRelationshipManagementLogisticsManufacturingMaterialsManagementAccountingHumanResourcesERPEAISCMand e-BusinessPracticesSCMMore frequent planning means responsivetochangingcustomerne

14、edswhiledecreasinginventoriesTimeTimeAverageSupplyAverageSupplyPlanningCyclePlanningCycleSCMand e-BusinessPracticese-Business willenable supplychaincollaboration among tradingpartnersManufacturerDistributors/WholesalersSuppliersRetailersCollaborative Demand PlanningCollaborative Logistics PlanningTr

15、ansportation servicesDistribution center servicesSynchronized Production SchedulingCollaborative Product DevelopmentSCMand e-BusinessPracticesLogisticsProvidersConclusionsE-business technologywilltear downthe walls insidecompaniesWill alsoallowcompanies to do joint planning andscheduling withtheirsupplierssuppliersand customerscustomersTheInternetwillhelp fostertherapidgrowth of dynamicsupply chain tradingcommunitiesConclus

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