Murty department of industrial and operations engineering university of michigan ann arbor, mi 481092117, usa. A portfolio management approach to supply chain risk management. Mar 20, 2020 supply chain management in supply chain education context is then the planning, implementing and controlling the networks. Write and implement your supply chain plan using these simple steps. Hau lee stanford supply chain forum call it distribution or logistics or supply chain management. Supply chain design is being used to match the supply and demand under uncertainty by positioning and managing inventory. We understand the nuances of supply chain management both for business customers and consumers and we leverage this knowledge so you can strategically optimize. An scp suite sits on top of a transactional system to provide planning, whatif scenario analysis capabilities and realtime demand commitments. That means your supply chain operations add new sources of business value and competitive capabilities at every stage of the supply chain. Configuring and managing strategic supplier portfolios. A portfolio approach to supply chain design supply chain. When one part of this network is exposed to risk, all parts are vulnerable to disruption.
Supply chain supply chain visibility benefits supply chain visibility example supply chain visibility importance supply chain visibility pdf supply chain visibility software supply chain visibility solutions supply chain visibility tools what is supply chain visibility quizletmapping makes it easier to identify patterns and understand your data. A practical application of supply chain management principles. Forecasting for supply chain and portfolio management. Supply positioning most purchasing professionals will be familiar with purchasing portfolio analysis, using, for example, kraljics purchasing portfolio matrix 1983, which plots profit potential against supply vulnerability figure 1. A supply chain is a network of people, organizations, and activities that move a product from a supplier to a final customer. Amazon supply chain portfolio essay sample is american based multinational electronic commerce company. As you read this book your mind will be challenged to try new ideas and even refine some of the concepts described. Oracle provides the most complete suite of supply chain applications, oracle supply chain management is comprised of.
For example, in the united states, we are dedicated to developing and promoting successful partnerships with woman and minorityowned businesses and small businesses. The case study here on hps inkjet printer supply chain spotlights a successful portfolio approach in action. How to select strategic suppliers using portfolio analysis. Apr 17, 2019 the kraljic matrix portfolio purchasing model was developed by peter kraljic in the year 1983 and the model could be used to analyze the purchasing portfolio of a company. A supply chain is a collection of suppliers required to create one specific product for a company. Analysing the procurement portfolio and developing a.
Supply chain management in supply chain education context is then the planning, implementing and controlling the networks. Supply chain disruptions have a significant impact on company business and financial performance 2. Portfolio analysis blc 30405 procurement management. Examples here include buyback contracts, see pasternack 14, revenue sharing contracts, see cachon and. As one example, one auto manufacturer has 12 thousand suppliers, 70 plants. Supply chain management template excel is useful to manage the inventories, purchasing, the management of the stocks. This article starts from the financial innovation service product fundamental mode of supply chain finance, explores the risk of supply chain finance for the purpose to establish the fundamental statistical. Next, we develop hypotheses related to how firms utilize their supply chains to achieve strategic goals. Application of kraljics purchasing portfolio matrix in.
This also lays the foundation for greater operational effectiveness of the entire. Forecasting for supply chain and portfolio management katta g. Jul 31, 2017 supply chain management template excel is useful to manage the inventories, purchasing, the management of the stocks. An overview of supply chain concepts and examples from the.
Feb 28, 2017 the kraljic matrix is one of the most effective ways to deliver accurate supplier segmentation. Complete portfolio of supply chain solutions an industry leader, transpak consistently creates new supply chain management solutions to proactively respond to market change. Supply chain management affects product and service quality, delivery, costs, the customer experience and ultimately, profitability. In section 2, we introduce the supply chain design model under static conditions and discuss the implications of monopoly downstream or monopsony upstream. Apr 16, 2020 the most popular product configurations should be available in finishedgoods inventory, managed under an efficient or a continuousflow supply chain model. The kraljic matrix is one of the most effective ways to deliver accurate supplier segmentation. A supply chain disruption is any sudden change or crisisbe it local or globalthat negatively impacts that process. Another important attribute of supply chain management is the flow of material, information, and finance these are thing that can be found in lean manufacturing and six sigma project too. Collected papers from 2003 to 2014 are analyzed and classified, first, according to the characteristics of the problem they deal with, secondly, according to the approach they propose, and thirdly, according to the techniques they use.
Supply chain management is the management of all the activities from purchasing of raw materials and stocking them out till it sold to the end customers. The purpose of analysing the procurement portfolio is to develop a full and comprehensive picture procurement profile of the procurement needs of the organisation. You can think of supply chains as a series of interconnected parts like, well, a chain. A revised supply chain risk management portfolio management framework is developed and an agency theory approach is employed to derive a number of propositions concerning effective supply chain risk management. Supply chain management definitions supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. The matrix duly facilitates the company gains a crucial insight into the working methods of the purchasing department and how they spend their time on the purchasing and evaluation of the. The matrix duly facilitates the company gains a crucial insight into the working methods of the purchasing department and how they spend their time on the purchasing and evaluation of the various produc. Companies source product from suppliers, who might source materials or components from others, who in turn might source from others.
Supply chain design is the process by which a company structures and manages the supply chain in order to identify the right balance between inventory, transportation, and manufacturing cost. With 2 5 million titles it became the earths biggest bookstore offer web users the entire selection of. Supply chain management scm definition investopedia. Whether youre studying supply chain management or need a refresher for work, the concepts are always valuable. The kraljic matrix portfolio purchasing model explained in. Write and implement your supply chain plan using these simple. The supply chains of large corporations involve hundreds of facilities retailers, distributors, plants and suppliers that are globally distributed and involve thousands of parts and products.
A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Introduction to supplychain optimization 1 overview supply chains. One of the most widely used tools in procurement is portfolio analysis, based on the work of peter kraljic. The kraljic matrix portfolio purchasing model explained in detail. Companies with mature supply chain and risk management processes are more resilient to disruptions than those with immature processes 3. Kharlamov department of management, economics and industrial engineering, university of aveiro, campus of santiago, 3810193 aveiro, portugal email. The kraljic matrix portfolio purchasing model was developed by peter kraljic in the year 1983 and the model could be used to analyze the purchasing portfolio of a company. As recently as 2017 a typical supply chain accessed 50 times more data than just five years earlier. In this thesis, a portfolio approach for riskhedging supply chains in. Leverage hybrid cloud and apply ai and blockchain capabilities to build smarter supply chain that deepen competitive advantage by helping you mitigate disruptions and deliver better business outcomes. We define a supply chain as a network including the procurement of raw materials, processing of intermediate and finished products, customization of the product for local market needs, and distribution of the product to customers. With different emphases most definitions of supply chain management, efficient consumer response and vertical marketing systems agree on the vertical cooperation aspect within the value chain e. A portfolio management approach to supply chain risk. Portfolio analysis is a tool to structure and segment the supply base, and is used as a means of classifying suppliers into one of four types.
Write and implement your supply chain plan using these. Supply chain management template excel excel templates. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. The supply chain, like business itself, is a vast and complicated network. Starbucks as an example of the value chain model the concept of value chain helps to understand and segregate the useful which help in gaining a competitive edge and wasteful activities which hamper market lead accompanying each step during the product development process. Chevron also seeks to build and maintain a supply chain that reflects how deeply we value diversity. The financial goals of a company, and how a company hopes to achieve these goals, will influence all aspects of the supply chain strategy.
Supply chain planning scp is the forwardlooking process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand. An overview of supply chain concepts and examples from. When analysing supply risk the following key risk factors need to be analysed for. While supply chain finance terminology is a complex issue, supply chain finance is only a subset of trade finance, which also includes letters of credit, collection of bills, bank guarantees, trade loans and trade credit on open account transactions, where the buyer is simply given a period of time to pay for the goods and services supplied.
The resulting cloudbased capabilities help propel your business toward transforming your business operating model to one of demanddriven operational excellence. Integrating scm and erp solutions into one cloudbased enterprise architecture opens up a new world of insight into business and supply chain operations, from managing supplier risk to shaping and responding to customer buying behaviors. The objective is to categorise every procurement or family of procurements into one. Have all parties involved in the supply chain define the benefits and disadvantages of the current supply chain and determine exactly how change will improve it. The most popular product configurations should be available in finishedgoods inventory, managed under an efficient or a continuousflow supply chain model. Whats really needed is a portfolio of supply chains that at once enables you to be cost. Risk and evaluation meilin zhang internation business and management shanghai university,shanghai,china,200444 email. For example, the initial stage emplo ys push strategies while the. Gelderman is associate professor of marketing and purchasing management at the open university of the netherlands in the netherlands. Supply chain management is the management of all the activities from purchasing of raw materials and. A sample professional portfolio is attached and should demonstrate an.
Supply chain management supply chain management managing complex and dynamic supply and demand networks. Supply chain management scm is the active streamlining of a business supplyside activities to maximize customer value and gain a competitive advantage in the. A business model for programme managing the supply chain. Although the kraljic matrix may appear simple to many procurement professionals, it is often. For example, wells 2010 presents a portfolio management process adopted by the federal aviation administration to centralize management of operations. Starbucks as an example of the value chain model supply. We then develop a model based on the principles of. The objective is to categorise every procurement or family of procurements into one of four categories. This paper describes emerging concepts for product and process design that include a supply chain perspective. Introduction to supply chain optimization 1 overview supply chains. The support and vision of senior management is paramount. Effective and efficient management of the supply chain portfolio is widely regarded as.
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