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    Question Answers: by Adekunle Kehinde

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    kunkenid
    The document discusses several supply chain management concepts in 5 sections: 1. It defines and explains the bullwhip effect, where demand variability increases further up the supply chain away from customers. 2. It discusses the importance of high inventory velocity and information velocity for profitability and supply chain predictability. 3. It describes strategic partnering as formal alliances between companies to maximize benefits through shared risks, costs, and utilizing each other's strengths. 4. It outlines how e-business impacts supply chains through faster information sharing, procurement, collaboration, and reduced costs from less inventory and documentation. 5. It defines CPFR as collaborative planning between suppliers and retailers for continuous inventory updates

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    Question Answers: by Adekunle Kehinde

    Uploaded by

    kunkenid
    26 views21 pages
    The document discusses several supply chain management concepts in 5 sections: 1. It defines and explains the bullwhip effect, where demand variability increases further up the supply chain away from customers. 2. It discusses the importance of high inventory velocity and information velocity for profitability and supply chain predictability. 3. It describes strategic partnering as formal alliances between companies to maximize benefits through shared risks, costs, and utilizing each other's strengths. 4. It outlines how e-business impacts supply chains through faster information sharing, procurement, collaboration, and reduced costs from less inventory and documentation. 5. It defines CPFR as collaborative planning between suppliers and retailers for continuous inventory updates

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    LGW 3 ppt

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    The document discusses several supply chain management concepts in 5 sections: 1. It defines and explains the bullwhip effect, where demand variability increases further up the supply chain away from customers. 2. It discusses the importance of high inventory velocity and information velocity for profitability and supply chain predictability. 3. It describes strategic partnering as formal alliances between companies to maximize benefits through shared risks, costs, and utilizing each other's strengths. 4. It outlines how e-business impacts supply chains through faster information sharing, procurement, collaboration, and reduced costs from less inventory and documentation. 5. It defines CPFR as collaborative planning between suppliers and retailers for continuous inventory updates

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    26 views21 pages

    Question Answers: by Adekunle Kehinde

    Uploaded by

    kunkenid
    The document discusses several supply chain management concepts in 5 sections: 1. It defines and explains the bullwhip effect, where demand variability increases further up the supply chain away from customers. 2. It discusses the importance of high inventory velocity and information velocity for profitability and supply chain predictability. 3. It describes strategic partnering as formal alliances between companies to maximize benefits through shared risks, costs, and utilizing each other's strengths. 4. It outlines how e-business impacts supply chains through faster information sharing, procurement, collaboration, and reduced costs from less inventory and documentation. 5. It defines CPFR as collaborative planning between suppliers and retailers for continuous inventory updates

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Question Answers

    1 2
    3
    4
    5 By Adekunle Kehinde
    Wang Yi
    The Bullwhip Effect

    1 2
    3

    4
    Question
    1
    5
    Bullwhip Effect (1)

    • Phenomenon: the variation of demand


    increases up the supply chain from
    customer to supplier.
    • The further away a company from the end
    customer, the larger is this variation.
    • E.g: Manufacturer—— lowest variation of
    demand.
    3rd tier——largest variation of demand
    Bullwhip Effect (2)

    Reasons of occurrence:
    • Lead time of information and material
    • Batch ordering
    • Price fluctuation
    • Demand forecast based on orders of
    the next tier or historical record
    Bullwhip effect (3)

    Ways of overcoming it
    • Plan to reduce lead time of information and
    material (e.g JIT )
    • Decrease variability of prices.
    • Cooperation with supplier on issues of
    demand and capacity.
    Customer/retailer Distributor Manufacturer

    • Demand surge • extended lead- • insufficient raw


    & oscillation time, false materials,
    increase in insufficient
    demand capacity,
    extended lead
    time
    Inventory velocity & Information velocity

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    3

    4
    Question
    2
    5
    Inventory velocity

    • The speed at which business can moves its


    stock.
    • IV = cost of goods sold
    Average inventory for the period

    “Inventory velocity is one of a handful of key


    performance measures we watch very closely. It
    focuses us on working with our suppliers to keep
    reducing inventory and increasing speed.”…Michael
    Dell
    Information velocity

    The speed of information flow about a


    product in a market…wiktionary
    These importance of these 2 velocities are:
    • It helps in determining / improving
    profitability
    • Helps in determining / improving ROI
    • Helps in eradicating obsolete products in
    the warehouse
    • It provides more predictable supply chain
    Strategic Partnering

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    3

    4
    Question
    3
    5
    Strategic Partnering (1)

    • An formal alliance between two


    commercial enterprises
    • Formalize by contrast and form a legal
    partnership
    • Maximize benefits of operation by utilize
    other company’s strengths to make both
    stronger
    Strategic Partnering (2)

    Aims:
    • Take a long-term perspective on needs,
    costs and solutions.
    • Involve shared risks, costs and rewards.
    • Have agreed problem resolution methods.
    • Have join governance arrangements.
    • Be capable of change and development.
    E-business

    1 2
    3

    4
    Question
    4
    5
    E-business

    E-
    commerc
    e

    E-
    business
    E- E-
    collabora procurem
    tion ent
    Impacts on SC
    • It helps supply chain network partners to identify &
    respond quickly to changing customer demand
    over the internet
    • It allows companies to use internet for procuring
    direct or indirect materials
    • It helps companies build more value added
    services
    • Less documentation & human contact
    • Replaces inventory with information
    – Reduces logistics & inventory cost
    More impacts
    • Fast payment channel
    • It gives competitive advantage by sharing
    the same database system
    • It allows monitoring of demand in real-time
    • Boost efficiency
    • Reduce bullwhip effect
    Effects on Macro-economy

    • Improves/reduces monetary value


    – Less inflation, more stable economic output,
    shareholder value
    • It reduces product price
    – Globalization, logistics costs, production
    volatility
    • Labor savings
    – Increase unemployment
    CPFR

    1 2
    3

    4
    Question
    5
    5
    CPFR

    • CPFR: Collaborative Planning, Forecasting and


    Replenishment
    • Enhance supply chain integration
    • Shared information between suppliers and retailer
    • Seek cooperative management of inventory
    through joint visibility and replenishment of
    products
    • Increase efficiency, update inventory continuously
    and decrease expenditures
    5 4
    3 Thanks for attention
    Any question?
    2

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