Föreläsning 4 Flashcards
What are some challenges in supply chain that analytics are trying to solve?
difficult for different business to synchronize in real-time
want to make sure that it straight away goes to production, doesn’t sit around
stock-out or excess inventory because of poor scheduling
lack of flexibility (shipping from china to sweden it’s going to take a few weeks)
What are the three stages of supply chain analytics?
Obtain the right data
what data do i have access to
how do i have to treat this data (gdpr within EU)
do i have the relevant data? It’s about the quality of data
Define the data for analysis
come up with meaningful predictors based in the walls that the company has
how often should we refresh/update the data
how should we communicate the data
Discover the insights
speak with different people from the departments, talking to the people behind the data
can we see trends in the data without coming up with fairytales
what is IBP?
Integrated Business Planning. Disjointed planning processes are unfortunately standard practice for many organizations today. IBP enables and combines everything to a single process to balance the different objectives a company may have. Different departments might have different goals (financial has goal A and non-financial goal B), IBP brings the goals together. Gives greater visibility of the relationships. Delivers alignment between strategic goals and creates transparency between strategies.
what are some problems of traditional business planning processes?
lack of visibility between departments
disconnect between strategies
absence of a collaborative approach
What is the mantra recited in supply chain discussions?
right product, right place, right time, every time.
what are the main objectives of purchasing?
- ensuring a continuous flow of production
- acquiring goods or services at minimum cost (shein doesn’t really care about quality but that isn’t their goals either)
- optimum utilization of capital
- developing main and attenuate sources of supply
- timely delivery
- acquiring quality product
what is the purchasing procedure
- Purchase requisition (making a shopping list between the departments)
- decision of purchase (purchase head decides if its realistic etc)
- study of market conditions (cheapest but good enough quality, get an idea of price and availability of the product)
- selection of vendors (good having a broad portfolio to ensure resilience, incase one vendor goes bankrupt for example)
what is Centralized purchasing
Refers to buying and managing purchases from one location for all locations within an organization, hence the control by a central department of all the purchasing undertaken within an organization.In a large organization centralized purchasing is often located in the headquarters but his can alsobe run by a central location/distribution warehouse that feeds smaller warehouses and is then called hub and spoke system.
what is Decentralized purchasing?
Decentralized purchasing:
Refers to purchasing of materials by all departments and branches independently to fulfil theirindividual needs also called localized purchasing. Under decentralized purchasing, there is noone purchasing manager who has the right to purchase materials for all departments anddivisions.
What are the advantages of centralized purchasing
Centralised Purchasing
Volume purchasing – When an organization is able to purchase a single item in mass, vendors are often willing to provide a discount. Purchasing in mass to take advantage of discounts is called volume purchasing.
Warehouse – In order to take advantage of volumepricing, the organization purchases items in bulk.Vendors typically require the delivery of the items inmass. These bulk purchases are stored in the centralwarehouse until the items are requested by thedifferent sites/branches.
Save time in researching products – Individuals spendhours to research the products and to find best price.The purchasing department has resources to helpreduce the time to research products.
What are the advantages of decentralized purchasing
Materials can be purchased by each department locally as and when required.
No heavy investment is requiredinitially.
Purchase orders can be placedquickly.
The replacement of defectivematerials takes little time.
Understanding uniqueoperational requirem
What are the disadvantages of centralized purchasing
Extended procurement time – One problem that is commonly associated with centralizedpurchasing is the perception “it takes too long”.In reality, the purchasing department processesvendor requisitions typically within one day.
The creation and maintenance of a specialpurchasing department lead to higheradministration costs which small organizationsmay not be in a position to afford.
Centralized purchasing is not suitable for plantsor branches located at different places that arefar apart.
What are the disadvantages of decentralized purchasing
Organization losses the benefit of a bulkpurchase.
Specialized knowledge may be lacking inpurchasing staff.
There is a chance of over and under-purchasing of materials.
Fewer chances of effective control ofmaterials.
Lack of proper co-operation and co-ordination among various departments.
What are the three core components of Supply Chain Analytics?
- Data analytics: The process of examining datasets using specialized systems and software to draw conclusions about the information they contain. Within the supply chain, this requires collating and analyzing data from a series of complementary systems.
- Data visualization: The process of helping people under-stand the significance of data by placing it in a visual context. Patterns, trends and correlations that might go undetected in text-based data can be exposed and recognized more easily with data visualization.
- Technology platform: The underlying infrastructure — often including an analytics engine — that allows for the capture, storage, retrieval, aggregation, analysis, and reporting of all transactions taking place within the supply chain and with trading partners.
What are the two types of Supply Chain Analytics?
Historical analytics:
Uses past data on sales ratios, inventoryturnover, number of stockouts etc.
- Often referred to as business intelligencethey provide insight into pastperformance.
- Important but alone is not actionable
- Lacks forward-looking perspective
Advanced analytics:
- Allows to predict future trends and what will happen by leveraging organizational data
- Helps to answers questions such as what are the required stock levels needed to ensure business objectives are met or how to optimize revenue to determine the best (optimal) supply chain planning decisions
