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The Triple-A Supply Chain
The Triple-A Supply Chain
The Triple-A Supply Chain
Outline of discussion
Introduction
Perils of efficiency
Fostering agility
Adapting your SC
Creating the right alignment
7-Eleven Japan’s three aces
Conclusion
Three A’s
Agile
React speedily to sudden changes in demand & supply
Adaptable
Adapt supply networks when markets or strategies change
Aligned
Align interest of SC partners with their own
Perils of efficiency
Focus on economies of scale
Inability to respond quickly to changes
Discounts
New product launch
Cannot adapt to change in market structures
Lucent’s Electronic Switching Systems
Agile chains
Both quick & cost efficient
‘…big price for disregarding agility’
Compaq
Exemplary chains
H&M, Mango, Zara
Better quipped to recover from sudden shocks
Dell vs. Compaq, Apple & Gateway
Nokia vs. Ericsson
Fostering agility
Rules of thumb
Share real time data with partners
Collaborate with suppliers and partners
Postponement
Keep small inventory of inexpensive, non-bulky materials
Build dependable logistics system by 3 PL collaborations
Have contingency plans
Adapting your supply chain
Identify structural shifts by capturing latest data & tracking key
patterns
HP ink-jet printers supply chain
New products or new markets
More than one supply chain
Cisco
Gap
Defining appropriate markets
Level of technology
Stage of PLC
Toyota
Adapting your supply chain
Spot changes/ future patterns
Track economic changes, specially in developing countries
Decipher needs of ultimate customers to avoid bullwhip effect
Change supply networks
Develop new suppliers to complement existing ones
DFS (commonality, postponement and standardization)
Creating the right alignment
Problem of misalignment
Cisco supply chain
Why VMI has not reduced costs?
Aligning interests
Redefine terms of relationship to share risks, costs & rewards
Align information
Align identities
Align incentives
Predict possible behavior of partners
RR Donnelley
Saturn service parts chain
Supply chain of 7-Eleven Japan
Competitive strategy
Micro-matching supply and demand
Replenishment cycle time less than 12 hours for fresh & fast-food (3
times a day delivery for rice dishes)
Supply chain design
Rapid replenishment for responsiveness
Transportation