Service Excellence in Supply Chain

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Service Excellence in Supply Chain

 Supply chain excellence

 Service excellence in supply chain
 Core tenets of achieving supply chain excellence
 Six drivers for achieving supply chain excellence
 How do you improve service level in supply chain ?
 How do you maintain service level in supply chain ?

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Service Excellence in Supply Chain

 The goal of Service Level Optimization

 Why is service supply chain important ?
 How are service supply chain different than
product supply chain ?
 What is the relationship between service and
inventory levels ?
 Does supply chain apply to services?

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Supply chain excellence

Based on experience gained during a case study of

balance sheet patterns for 2,000 companies, it is
believed that supply chain excellence is defined both
• By improving year-over-year financial
performance versus a peer group and
• By outperforming the industry on a portfolio of
metrics that correlate closely to market
capitalization.

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Service excellence in supply chain

“ Getting the right things to the right place, in the

right quantities, at the right time and at the desired
quality, the first time, while minimizing waste and
being open to embrace change.”

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Core tenets of achieving supply chain
excellence

• Embrace customer centricity

• Differentiate service through segmented supply
chains
• Design for business agility
• Drive end-to-end synchronization
• Leverage advanced optimization

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Six drivers for achieving supply chain
excellence

These six drivers are as

• Facilities,
• Inventory,
• Transportation,
• Information,
• Sourcing and
• Pricing.

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How do you improve service level in supply
chain?

Increase supply chain efficiency

• By automating your supply chain management
processes you can improve efficiency and raise the
bar in terms of your productivity and service levels.
• Introducing new technologies to speed up simple
tasks will improve productivity, but also bring a
level of consistency to your operations.

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How do you maintain service level in
supply chain ?
• By managing the supply chain, companies can cut
excess costs and deliver products to the consumer
faster.
• This is done by keeping tighter control of internal
inventories, internal production, distribution, sales,
and the inventories of company vendors.

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The goal of Service Level Optimization

• The goal of Service Level Optimization is to select

the optimal service level for each finished good
within a user-defined product set at a customer-
facing site to achieve a specific objective.
• The objectives and corresponding constraints are as
follows:
• Objectives.
• Constraints.
• Minimize Cost.

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Why is service supply chain important ?

• The service supply chain is the part of the supply

chain dedicated to providing service on products.
• It addresses the supply of parts, materials,
personnel and services needed to provide timely and
effective product service, such as repair and
maintenance

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How are service supply chain different
than product supply chain ?

• Specifically in the manufacturing industry, supply

chain design requires a great deal of focus on
physical product and a broader supplier base.
• Service firms, on the other hand, typically have
little need for physical inputs other than office
supplies, and often work with a much smaller group
of suppliers

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What is the relationship between service
and inventory levels ?

• Service levels measure the number of people that a

business has on hand to interact with customers
and sell them products when they come into a
store.
• Inventory levels measure the amount of supplies or
the number of products that a business has on hand
to actually sell to customers.

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Does supply chain apply to services?

• Within each organization, such as a manufacturer,

the supply chain includes all functions involved in
receiving and filling a customer request.
• These functions include, but are not limited to,
• New product development, Marketing,
• Operations, Distribution,
• Finance, and Customer service.”

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