Question 9 Flashcards
Logical supply chain map
Focuses on the flow of materials, information, and financial transactions within the supply chain. It emphasises the relationships and interactions between different entities involved in the supply chain processes.
Information collected and shown in a logical map
Money flow
- Up towards suppliers we have our costs.
- Down towards the customer we have our profits.
Information flow
- Information from our suppliers goes downstream to us.
- We send feedback up to our suppliers, but our customers also send feedback upstream to us.
Product flow
- Flows downstream towards customers.
- In we have returns the products flow upstream.
Totals in terms of volume, time, cost and revenues are shown.
Purpose and use of a logical map
Purpose: To visualise various flows (material, money and information) and process relationships through the network. To give an overview of the SC and its complexity.
Use: To structure complex information to communicate the SC situation:
- Managing flows
- Process optimisation
- Understanding dependencies
Geographical (geo) map
Emphasises the physical locations and transportation routes involved in the supply chain. It focuses on the logistics of the supply chain components.
Information collected and shown in a geo map
Geographical location of:
- Suppliers
- Customers
- Our nodes (warehouse, DC, factories etc.)
For suppliers we display volume information and cost information (TCO)
For inventories we display volume and costs
For a manufacturing or assembly node we display volumes and cost
For customers we also display volume and revenue
Purpose and use of a geo map
Purpose: To visualise the physical flow of goods through the supply chain network, and the physical locations of facilities and transportation routes.
Use: To identify optimisation opportunities.
- Logistics planning
- Transportation optimisation
- Physical distribution networks
Key differences between the two maps - why use both?
- Focus: processes and relationships versus physical locations and transportation routes
- Detail: material, money and information flow versus logistical detail (material flow)
- Use: managing flows versus managing logistics
Enable effective and efficient supply chain management by addressing both operational processes and logistical challenges
Key SC KPIs
- Cash-to-cash (C2C) cycle time
- Perfect order fulfilment
- On-time, in-full
- Inventory days of supply (IDOS)
- Inventory turns
Cash-to-cash (C2C) cycle time
The time between the payment of the raw material from suppliers to the payment from the costumers you sell to
- The smaller amount of time the better
- If it is negative it is very good because then your costumer pays in advance before you even have received the things from the suppliers
C2C = DOS + receivables - payables
Perfect order fulfilment
A measure of an organizations ability to deliver a perfect order.
POF = number of perfect orders/total number of orders*100
On-time, in-full
A companies ability to deliver the right quantity at the right time
How many orders were delivered on time and in the right quantities
Inventory days of supply (IDOS)
A measure of how many days current inventory will last without replenishment
IDOS = Inventory on hand / Average daily usage
Inventory turns
The number of times that an inventory cycles, or turns over, during the year
Inventory turns = annual Cost of Goods Sold / Average inventory value
Supplier assessment methods
Three primary methods:
1. Supplier evaluation
2. Supplier rating
3. Supplier audit/visit
Differences between supplier auditing and rating
SEE MODEL
