路西法第一季剧情:supply chain

On-shelf Availability
On-shelf availability is quite simply providing the desired product in saleable condition when and where the customer wants it. In practice it is a complicated process with many interdependent factors throughout the whole supply chain.
Availability is an industry issue that affects both retailers and manufacturers alike. ECR UK estimates that business loses the equivalent of £2.4 billion annually, or nearly 2 weeks’ expenditure for the average UK household*.
This figure only takes into consideration the 9% who do not purchase anything when faced with an out-of-stock (ECR Europe 2003), and so the true picture could therefore be even higher, because shoppers also react by buying products elsewhere, postponing purchases, buying alternative sizes or moving their entire basket elsewhere.
In this context, it is important to understand the elements in the modern supply chain to see how they must interact to ensure availability.
The Modern Supply Chain

Source: IGD Research
Availability is seen to reduce as product moves through the supply-chain. Even if manufacturers  succeed in providing 97-98% availability to the retailer’s Distribution Centre (DC), and the DC’s get 95% delivered into the store, by the time the product actually reaches the shelf, it is possible for availability to have dropped to 90% on certain product lines.
“Hot spots” where availability can be particularly affected will include the following areas:
Data accuracy – replenishment calculation errors, ordering errors, inventory mis-alignment at store and DC. Physical accuracy - delivery discrepancies to the retailer DC, pick discrepancies at the retailer DC, in-store execution.
In-store execution in particular is a key area of focus for retailers, as it is not uncommon for large quantities of stock to be left in the back-of-store storage areas. There are many reasons for this, but availability of sufficient replenishment staff, back-of-store warehouse management, fixture space, pack-sizes, and easy-to-use packaging will be among the most important elements in stopping a product getting to the shelf in a timely manner.
Collaborative Working
As a result of these challenges, and concerns over customers’ decreasing retailer loyalty, retailers and suppliers are increasingly working together collaboratively to improve availability throughout the supply chain, and satisfy customer needs. The ECR movement has been researching availability at an industry level to provide direction, benchmarking and best practise case studies.
In 2003 ECR Europe research identified seven critical levers to affect out-of-stocks. These levers are directly related to the importance of more co-operation within the retail industry supply chain, and within its store trials out-of-stocks reduced by as much as 50%.
The 7 Improvement Levers

Source: ECR Europe 2003
ECR Europe concluded that one lever by itself will not lead to desired improvement. Only by the careful orchestration and integration of all seven will the expected on-shelf availability improvements be achieved.
Measurement and Management attention are the two prerequisite levers for this model and must always be present. ECR UK has addressed these by providing a common Industry measure through its quarterly on-shelf availability survey.
Launched by the ECR UK Availability workgroup in 2004 the survey measures on-shelf availability of 200 core lines from the customer’s perspective. 350 stores between 15,000 and 50,000sqft are surveyed nationally across seven leading retailers.
Management attention is galvanised through internal and collaborative reviews between retailers and suppliers. With key messages disseminated throughout the Industry in press releases containing the results, media articles and conference presentations by the workgroup and its co-chairs.
To learn more about ECR, ECR UK Availability Survey with results and to access availability case studies examples visit ECRhere.
As the retailing environment becomes more competitive and consumers become ever more demanding, improving availability will continue to be essential. Companies will need to work together through the complete supply chain in order to maximise sales, retain customers and deliver the required in-store experience every visit.
* Figures based on ECR UK Availability survey during


Supply chain management
There are multiple definitions found for supply chains in literature. According to the Supply Chain Council (http://www.supply-chain.org), a definition of a supply chain is: "The supply chain – a term now commonly used internationally – encompasses every effort involved in producing and delivering a final product or service, from the supplier‘s supplier to the customer‘s customer". The series of companies (actors) that interact for this producing and delivering is what will be called supply chain here. The actors are connected through the flow of products, the flow of information and the flow of money. Another definition is given by D. Simchi-Levi, E. Simchi-Levi and Kaminsky, who state that supply chains are flexible, dynamic and complex networks of organizations [Simchi-Levi et al., 2003].
The reason for the existence of supply chains is that there are very few companies that can produce end products for end-customers from raw materials on their own, without the assistance of other organizations. The company that produces the raw material is often not the same company that sells the end products to the end-customer. In order to provide end products to the end-customers, a network of actors is involved in activities (as purchasing, transforming and distribution) to produce products and/or services (Stevens, 1989; Lee & Billington, 1995; Swaminathan, Smith & Sadeh, 1996; Cooper et al., 1997). All of these actors add value to the end product (Lummus, 1999). The series of companies that interact to produce end products, and to contribute to the value of end products, is what will be called a supply chain in the context of the games on this site.

From this description, the image of a supply chain in general is provided. The actors are connected through the flow of products, flow of information and the flow of money. In the figure above, a general supply chain model is illustrated. The blocks represent the organizations/companies that handle the products and add value. The choice for the term supply chain is unfortunately because it leads to confusion. "Chains" evoke linear, unchanging, and powerless images. "Supply" feels pushy and reeks of mass production rather than mass customization. Better names like "demand network" or "customer driven webs" have been proposed. Yet, the name "supply chain" seems to have stuck (Johnson & Pyke, 2000). Strictly speaking, the supply chain is a network of multiple businesses and relationships (Lambert, Cooper & Pagh, 1998). The picture below gives a more accurate description of a demand network (Coyle et al., 1996).

The term supply chain management is relatively new in literature, appearing first in 1982 by Oliver and Webber. Supply chain management is viewed by many as a highly novel management concept, but comparison with earlier work reveals similarities. The fundamental assumptions, on which supply chain management rests, are significantly older (Cooper et al., 1997).
Supply chain systems were regarded as channels of distribution. From this perspective the focus of channel management was on making each firm in the distribution channel more efficient and productive. Each firm operated on its own, seeking to make the highest profits with little attention paid to its channel counterparts (Lancioni, 2000).
More recently, many manufacturers and retailers have embraced the concept of supply chain management to improve efficiency across the value chain (Tan, 2001). The original use of the term supply chain management emphasized a reduction in inventory both within and across firms, which the logistics manager was confronted with, but that initial perspective has been broadening (Keith & Webber, 1992).
Consequently, the competition is no longer between firms but between supply chains. The goals of the entire supply chain become the common objective of each firm. Cost and service improvements that were not achievable by individual firms, will now be attained by cooperating companies (Lancioni, 2000).
Distribution Supply Chain ManagementOpenPro offers business software solutions for every company looking for more value and more features from their ERP solutions. Since 1998 we have been delivering Web-based ERP software solutions to small and mid-sized companies, and international enterprises.
OpenPro supports most industries with a complete ERP software solution.  As a provider of manufacturing ERP software, OpenPro excels in its MES software and manufacturing inventory software.  The financial accounting software supports a closed loop financial flow, and offers government accounting software.
Another of the many business software solutions is a complete retail POS system, while distributors benefit from the supply chain management software.
Welcome to the distribution section of our ERP software solution. Please use the image map below to choose which area of our supply chain management software you would like to visit.

Distribution Supply Chain Feature Highlights
Improve supplier performance through comprehensive supply chain management software reporting
First fully web designed ERP software solution that gives everyone access to decision information.
Increase client satisfaction by establishing and monitoring on-time delivery plan.
Just in time processing to reduce unneeded inventory and receive a faster response to the customer.
Full circle Returns processing, including integration with manufacturing inventory software.
Improve market knowledge and strategic decision-making through comprehensive real-time sales performance.
Built in Customer Relationship Management (CRM) to keep customer the status of order processing.
OpenPro ERP software provides wholesalers and distributors with  enterprise-wide business software solutions to maximize control over operations and inventory and better service customers. It‘s ideal for operations that need quick order entry procedures, visibility of operation from the order entry screen, and extensive lot and serial tracking capabilities. In addition to extensive shipping and multi-warehousing management capabilities.OpenPro offers an array of those features most sought by wholesalers and distributors in supply chain management software.
These include the ability to handle multiple pricing and discount levels, comprehensive sales history reporting, complete multi-tier commission tracking,  as well as support for fractional pricing and choice of inventory control methods. In addition, inventory tracking is greatly facilitated through Web-based ordering and the software‘s ability to accommodate bar code readers. The system is seamlessly integrated with our retail POS system.
Since OpenPro is a real time, integrated system with complete financial accounting software, all information regarding purchase orders, sales orders, credit limits and inventory status is always through real time processing.
6. Models of Business Organization
DE + IA (IS 243) - 6 February 2006
Copyright © 2006 Robert J. Glushko
Plan for this Month
4 more "foundation" class meetings to make a systematic tour of models and patterns from the three levels of the Model Matrix
Reinforcing the distinction between conceptual models and physical ones
Will also apply the c/p distinction to system architectures - SOAs and Web Services
After President‘s Day Holiday (2/20) we start Document Engineering methods and case studies
Plan for Today‘s Class
Business Organization Patterns
The "Buy Side" and "Sell Side"
Supply Chains
SCOR
A Taxonomy of Patterns
Four types of patterns are described in Chapter 4 of the Document Engineering book
Business Organization
Business Process
Business Information
Business Architecture
We can apply the PHYSICAL - CONCEPTUAL distinction with each of these pattern perspectives
Business Organization Patterns
Organization charts, facilities maps
"Organization of business unit" patterns
Business Models
Business Model Patterns
This is interactive athttp://process.mit.edu/Info/eModels.asp

"Component" Business Models
Emerging pattern of business organization is sometimes called the "component" business model in which business functions are specialized and modularized
Core competencies -- functions or capabilities that are most efficient, optimized, or that provide the most competitive advantage
Outsourcing -- having external service providers perform some activity formerly carried out by a functional organization -- is facilitated by componentization
Big Questions about Business Organization
What‘s the relationship between business model patterns and an enterprise‘s physical organization and technology?
What is the relationship between organizational patterns and business models?
Is any model of organization more natural than another? How is a "company of 1" organized? Is there a natural size to an organization or enterprise?
Patterns in Enterprise "Eco-systems"
"Buy Side" Patterns
"Sell Side" Patterns
Patterns "in the Middle"
What Businesses Do on the "Buy Side" of the Value Chain
Deal with suppliers (the businesses they buy from)
Procurement is thesimplest business pattern; one buyer buys something from one seller
Direct vs Indirect Procurement
Sourcing and Supplier Management – selecting suppliers, measuring and optimizing how they perform
Indirect Procurement
Things your buy that don‘t go into your products but are needed to run your business; often treated as "overhead"
Large number of low-value transactions
Conducted on ad hoc schedule by employees not trained in purchasing
Direct Procurement
Things you buy that go into the things you make
Smaller number of large value transactions
Much more complex business processes than for indirect procurement
Supplier selection decisions – "Sourcing" – are rarely made only on price, and often long-term contracts
Conducted on regular schedule by procurement specialists
Benefits of Automating Procurement
Reduced cycle time in purchasing and fulfillment
Reduced inventory
Reduced administrative costs
Elimination of maverick purchasing
MORE STRATEGIC BENEFITS SUCH AS ...
What Businesses Do on the "Sell Side" of the Value Chain
Deal with customers (the businesses or individuals they sell to)
Order Management and Fulfillment – offering product catalogs, taking orders, filling them as promised
Channel Management – working with distributors, retailers, other partners
Customer Relationship Management – marketing, sales, customer service, field support
What Businesses Do For Themselves
Dealing with themselves – internal or enterprise functions
Design and Engineering – figuring out how to make their stuff, increasingly by collaborating with people who make the materials and components
Manufacturing – actually making the stuff, increasingly by collaborating with people who are "downstream" toward the customer ("channel assembly")
Human Resources, Finance, MIS – assembling and taking care of the people who do everything else
Information Systems – designing, deploying, supporting computing and communications infrastructure
What Businesses Do that Spans the Value Chain
Activities that involve both the sell-side and the buy-side
The Supply Chain connects the Buy Side to the Sell Side, but the emphasis is more often on the Buy Side
Likewise, the Demand Chain is just the view of the information flowing up the Supply Chain in the opposite direction
Logistics – moving the stuff around on the way into and out of the company and keeping track of how much there is of it and where it is while in transit
The Supply Chain
A supply chain is an aggregated and end-to-end view of the buy-side and sell-side relationships of an enterprise
A supply chain is the network of facilities and distribution capabilities an enterprise uses to:
"Source" (or "procure") raw materials (chemicals, ores, grains, ...) or components
Transform the materials or assemble the components into products
Deliver the products to customers (indirectly through distributors or stores or directly to the purchaser)
Supply Chain - Physical Model

Supply Chain - Conceptual Model

Apple Computer‘s Supply Chain Nightmare
In the mid 1990s Apple was selling lots of computers but losing billions of dollars
It was great at designing products but poor at predicting and measuring demand for them, so it was constantly out of stock on the hottest sellers and overloaded with inventory for everything else
Its supply chain was seriously dysfunctional – PowerBooks were assembled in Ireland from components manufactured in Asia, and many of the finished PowerBooks were then being sent back to Asia
Fixing the Apple Computer Supply Chain
Steve Jobs returned to Apple in 1997 and made streamlining the product architecture and supply chain top priorities
15 models cut to 4 models that were much more modular in design to allow more product choices without as much supply chain and manufacturing complexity
Internet "Apple Store" set up to enable schools and consumers to order configured products built to order
Outsourcing of manufacturing for motherboards and "channel assembly" initiated to get products built quicker and closer to customers
Number of suppliers reduced significantly
More information sharing of forecasts with suppliers
Attacking Supply Chain Problems
Supply chain problems primarily result from poor visibility and lack of collaboration
The visibility problem can be attacked by the use of technologies and strategies that speed information flow across the chain or that allow more information to be shared in controlled ways
Design Goals for Supply Chains
Especially for direct goods that are inputs to manufacturing processes, the things that businesses buy need to get to specified places at specified times in specified quantities according to manufacturing plans and sales forecasts.
The right stuff in the right amount at the right time in the right place
Get as close to zero inventory THAT YOU OWN without ever losing a sale or having to shut down the assembly line
Supply Chain Design [1]
Your business model and strategy sets the framework for design of the supply chain
Supply chain structures (like the number of suppliers and distributors) are shaped by industry characteristics and product architectures
Supply chains reflect many interconnected decisions about allocation of materials, production, and distribution responsibilities
Supply Chain Design [2]
Location of manufacturing facilities and how to transport materials and goods to and from them
Location ofsuppliers anddistributors with respect to manufacturing facilities
How many distributors and other intermediaries between the manufacturer and customers (0 or more)?
How much inventory to maintain at each stage
How visible are secondary tiers (suppliers of suppliers (of suppliers...))?
Supply Chain Operations Reference Model (SCOR)
The Supply Chain Council was established in 1996 to develop a standard process reference model for communicating supply-chain management practices across companies called SCOR that:
provides a common supply-chain framework with standard terminology
defines common metrics with associated benchmarks and best practices
serves as a common model for evaluating, positioning, and implementing supply-chain application software
Put another way, SCOR is designed to provide discipline and advice to a firm trying to answer questions about its supply chain design
Process Reference Model (Buzzword Unification)

The SCOR Model

Five essential supply chain processes (Plan, Source, Make, Deliver, Return)
Different supply chain models for different industries and partner configurations can be created from the same standard process vocabulary
SCOR Model Decomposition [1]

SCOR Model Decomposition [2]

What We Learn From SCOR
Note that my"generic supply chain" is a structural view that doesn‘t show the planning and return processes, so the reference model has already added to our understanding of supply chains
Every firm in a supply chain has the same problems to solve
Every process is a customer of the previous one and a supplier to the next
The model also distinguishes three patterns for "making" things: make-to-stock, make-to-order, engineer-to-order
Assignment: Pattern "Scavenger Hunt"
Familiarize yourself with FEA, MIT Process Library, RosettaNet, Cover Pages, OASIS, UBL
15 short-answer questions about each resource, and some that compare and contrast them
All of the resources are also assigned readings
Due Friday Feb 17