Why Supply Chain Management Strategy?

Supply Chain Management Strategy is the capstone course of the Supply Chain Management
Specialization. We are going to use the learnings in the prior courses and apply them to a realistic Supply
Chain problem.

An Introduction to SCM Strategy

In this introductory Supply Chain Management Strategy course, I will take you on a journey to this
fascinating aspect of the supply chain, which is to use the capabilities of a firm's supply chain to execute
their overall firm strategy. Please note that the idea for this course is to introduce learners to the art and
science of supply chain management. While I am covered the material to complete this capstone in the
first four courses, this course is not meant to be exhaustive nor should you expect to be an expert upon
completion. But my goal is to show the major pieces of SCM Strategy in a fun manner and hopefully this
will encourage you to learn more.

What topics will you cover?

We will use the learning from the preceding four courses and apply it to a real-life Supply Chain problem:

Logistics

Operations

Planning

Sourcing

What will I be able to do upon completing this course?

Perform an analysis of Logistics, Operations, Planning, and Sourcing

Recommend areas of improvement for Logistics, Operations, Planning, and Sourcing

Streamline and synchronize firm strategy with SCM strategy.

Who is this course for?

This introductory course is designed for three general audiences. While this is not an exhaustive list, you
should be able to see yourself in one of these three groups:
Those of you who are exploring a career in Supply Chain Management, but lack any background. This
course will provide you with a general overview of the field of operations.

Those of you who are working with people in supply chain management and want to understand their
daily challenges better.

Those of you who are fascinated by how to obtain the basic inputs for your organization which are then
further transformed into finished products and services.

What do I need to start?

This is an introductory course designed to provide you with a start on your learning journey in sourcing.
As such, you do not need to have any background in sourcing, but it would be beneficial if you had a
basic understanding of:

General business concepts

You should be familiar with the topics covered in the previous courses of this specialization.

Assignment 1

We have to look at the different factors involved in the supply chain:

Logistics: maybe our distribution network is sub-optimal, maybe we're keeping too many warehouses, or
maybe they aren't located in the most convenient places (probably were at some point, but distribution
changed).

Operations: maybe our operation isn't running smooth, and we still have many sources of waste in the
entire process.

Planning: maybe our forecasts aren't very accurate, maybe we need to re-evaluate the method we're
using or the approach we're taking on certain trends and seasonality.

Sourcing: maybe we need to re-evaluate decisions taken in the past about outsourcing or in-sourcing,
maybe there are better suppliers (or ways to do it ourselves) in the market that weren't available years
ago.

Y Y analysis, of lean six sigma methods, find the root cause

Y do sales people require more money, y are sales people managing the logistics too

Y are we even managing the equipment. are we managing the logistics, why are our equipment close to
them

stop renting offices, give it to third party , let them manage, we pay our sales representattives more
incntive to increase the sales volume

make sterealisation in hose , do not hire someone to make stearailisation for us, every week we will save
on logistics

1)In our effort to save 2.3% worth of revenue, we could study the company's supply chain process and
identify the unsprung mass which can be eliminated. The manufacturing department could adopt the JIT
process if posible, reduce the inventory, standardise the sales representative process, improvise the
logistics problem. Check for processes like sterialization to be undertaken into the responsibility of the
manufacturing company.

1)In our effort to save 2.3% worth of revenue, here it seems that we are not matching supply with
demand. Our forecasts are not as good as they should be. We should first target the forecast department
to be improved.

2)Secondly, we are doing the transport and logisticss of our product. We need to study the pros and cons
of bearing the logisctics at our end or hiring a 3rd party logistics firm

3) Thirdly, the Sales Representative's comission adds up directly into the cost price of the product. We
can come up with a better standardise solution between the sales representatives, the Surgeons, the
Manufacturers.

4) The customer could form a big group of hospitals so that the order quantity is collectively increased.

So we should first upgrade our forecast methods. May be we should apply different forecast methods on
the previous data and find the best possible solution.
1) What do you want to change?

-I would like to change the in-house inventory management system. The manufacturers should not
consider the handling of the equipment and should hire the 3PL firm. This would help fix a constant price
for the equipment handling and would potentially add up to the saving. The 3PL would be responsible
for the logistics of the products, the manufacturer thus can use these resources to some other
department.

-The number of warehouse locations might be increased depending upon the decision of the 3PL firm.

-Utilize the existing Hospital storage to keep the basic required equipment inventory.

-RFIG Tracing : Use of technology in tracking/traceability of equipment.

2) What do you think the changes would improve?

- Firstly, the 3PL firm would be responsible to provide a full fist solution to the tight schedule. Hiring the
3PL firm will ease up the resources of the Manufacturing firm, thus can utilize the free up resources into
different other projects. There is a chance of better price negotiation with the 3PL firm.

-Increasing the number of warehouse locations will improve the lead time and product availability. As
this is related to hospitals, it is of utmost importance that there is no product shortage.

-Using the existing Hospital storage will add up to the availability of the product. This would ensure that
the Hospital will be handling this section.

-Using advanced technologies in RFIG Tags would speed up the process of tracking.

- Also, reduce the touch down of the product and try to deliver the product with a minimum possible
touch down and wait times.

3) How do you think the improvements will result in positive financial outcomes?

- The hiring of 3PL logistics firm would save the cost of inventory and logistics with better negotiations.

-The reduction in touchdowns would help reduce hiring new offices and places of storage.
Assighnment week 3

managing inventory in the field, aka trunk stock, is an especially challenging and costly aspect of medical
device sales. While it is generally considered part of supply chain logistics, the field reps can play a
critical role in inventory management.

Considering the high cost of some of these innovative medtech devices, the savings are substantial when
inventory can be tracked end-to-end and no device falls through the proverbial cracks.

Not to mention, if a physician runs low on your device it’s an excellent opening for the competition. That
sort of blind spot can quickly erode at market share and the bottom line.

For medical device manufacturers, knowing what is in each sales rep’s trunk stock is an elusive and
usually impossible goal. Not knowing what assets are in the field has significant ripple effects throughout
the entire business and definitely hurts effective asset utilization.

Trunk stock is a necessity among service, sales and repair professionals, but many fail to understand its
significance to a company’s profit margins. Trunk stock refers to the inventory professionals must keep
on hand when making calls in the field, and that is why effective spare parts inventory management is a
must.

For example, high-tech electronics’ repair professionals may need to keep extra spare parts with them to
facilitate rapid repair or replacement. However, maintaining spare parts inventory management when
dealing with trunk stock comes with both opportunities and challenges, and you need to know
understand what they mean for your company’s profit margins.
Trunk Stock Benefits

Trunk stock helps your customer service representatives and technicians keep your customers happy and
satisfied. It is the mobile inventory that was historically kept in the “trunk” of service professionals’
vehicles. Nowadays it’s not uncommon for technicians to keep stock in vans or small trucks. Maintaining
a supply of trunk stock also offers the following benefits:

Trunk stock increases visibility in the field. Field techs may need hundreds of different spare parts over
the course of a day, and going between a customer’s home and the office on each call is a waste of
resources. In fact, service professionals can see exactly what they do and do not have on hand. So, they
can reorder spare parts and restock the “trunk” as needed.

Trunk stock reduces downtime. When a technician or device professional needs a part, it needs to be
immediately accessible. If trunk stock is missing something, it could lead to additional downtime for
customers and lousy revenue when considering labor costs.

What Can You Do To Improve Trunk Stock Spare Parts Inventory Management?

The solution to the nightmare conundrum of whether to use trunk stock or not lies in working with a
third-party service provider, such as Flash Global, a company that readily provides OEM-authorized spare
parts and manages that inventory through forward stocking locations (FSLs). This keeps the inventory
closer to the end-user, while eliminating the challenges of traditional trunk stock management or lack
thereof.

Since the FSL manages the inventory, your organization can take advantage of the following benefits:

Reduced costs – The FSL effectively reduces the costs of inventory management by eliminating over- or
under-stocking of the parts needed to continue providing timely service to your customers.

Increased visibility – Having a third-party provider manage the process increases the visibility into spare
parts inventory. Since inventory is managed externally, the outside party has a vested interest in keeping
a stringent account of which spare parts are available or not available, reducing errors in purchase orders
and promoting compliance with applicable statutes governing the type of spare parts used.

Decreased theft – The stock room is controlled completely, only allowing access to authorized
professionals and keeping spare parts from becoming shrink statistics.
Less risk to climate-sensitive parts, such as electronics. Extreme temperature changes or moisture can
damage sensitive equipment, so third-party management keeps most inventory in a climate-controlled,
secure environment.