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    Unit - V

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    d Vaishnavi OsmaniaUniversity
    This document discusses key aspects of supply chain management including network design, the role of distribution, and the importance of human resources. It covers factors that influence distribution network design such as customer needs, costs, and options for network structures. Human resource development is important for improving supply chain manager skills and abilities at both the individual and organizational levels. Developing competent, motivated individuals and organizations is critical for effective supply chain performance.

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    Unit - V

    Uploaded by

    d Vaishnavi OsmaniaUniversity
    12 views28 pages
    This document discusses key aspects of supply chain management including network design, the role of distribution, and the importance of human resources. It covers factors that influence distribution network design such as customer needs, costs, and options for network structures. Human resource development is important for improving supply chain manager skills and abilities at both the individual and organizational levels. Developing competent, motivated individuals and organizations is critical for effective supply chain performance.

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    This document discusses key aspects of supply chain management including network design, the role of distribution, and the importance of human resources. It covers factors that influence distribution network design such as customer needs, costs, and options for network structures. Human resource development is important for improving supply chain manager skills and abilities at both the individual and organizational levels. Developing competent, motivated individuals and organizations is critical for effective supply chain performance.

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    Download as ppt, pdf, or txt
    12 views28 pages

    Unit - V

    Uploaded by

    d Vaishnavi OsmaniaUniversity
    This document discusses key aspects of supply chain management including network design, the role of distribution, and the importance of human resources. It covers factors that influence distribution network design such as customer needs, costs, and options for network structures. Human resource development is important for improving supply chain manager skills and abilities at both the individual and organizational levels. Developing competent, motivated individuals and organizations is critical for effective supply chain performance.

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    • SUPPLY CHAIN MANAGEMENT

    • Unit - V:
    • Key Operation Aspects in Supply Chain Supply
    chain Network Design, Distribution network in
    Supply Chains, Channel design, Factors influence
    design, role and importance of Distributors in SCM,
    Role of Human Resources in SCM. Issues in
    Workforce Management and Relationship
    Management with suppliers, Customers and
    employees, linkage between HRM and SCM.
    Network design in a
    supply chain
    The role of distribution
    in the supply chain
    • Distribution: the steps taken to move and store
    a product from the supplier stage to the
    customer stage in a supply chain
    • Distribution directly affects cost and the
    customer experience and therefore drives
    profitability
    • Choice of distribution network can achieve
    supply chain objectives from low cost to high
    responsiveness
    • Examples: Wal-Mart, Dell, Proctor & Gamble,
    Grainger
    Factors influencing
    distribution network design

    • Distribution network performance evaluated


    along two dimensions at the highest level:
    – Customer needs that are met
    – Cost of meeting customer needs
    • Distribution network design options must
    therefore be compared according to their
    impact on customer service and the cost to
    provide this level of service
    Factors influencing
    distribution network design

    • Elements of customer service influenced by


    network structure:
    – Response time
    – Product variety
    – Product availability
    – Customer experience
    – Order visibility
    – Returnability
    Factors influencing
    distribution network design

    • Supply chain costs affected by network


    structure:
    – Inventories
    – Transportation
    – Facilities and handling
    – Information
    Design options for a
    distribution network

    • Manufacturer storage with direct shipping


    • Manufacturer storage with direct shipping and
    in-transit merge
    • Distributor storage with carrier delivery
    • Distributor storage with last mile delivery
    • Manufacturer or distributor storage with
    consumer pickup
    • Retail storage with consumer pickup
    • Selecting a distribution network design
    Manufacturer storage with
    direct shipping

    Manufacturer

    Retailer

    Customers

    Product Flow
    Information Flow
    In-transit merge network
    Factories

    Retailer In-transit merge by


    carrier

    Customers

    Product
    Flow
    Information
    Flow
    Distributor storage with
    last mile delivery

    Factories

    Distributor/Retailer
    Warehouse

    Customers

    Product
    Flow
    Information
    Flow
    Manufacturer or distributor storage with
    customer pickup
    Factories

    Retailer Cross Dock DC

    Pickup Sites

    Customers

    Customer Flow
    Product Flow
    Information Flow
    Factors Influencing Network Design
    Decisions
    • Strategic – Cost vs. Responsiveness
    ex) Apparel producers, Convenience stores, Discount stores
    • Technological
    – Economies of scale  few high-capacity locations
    ex) Manufacturer of computer chips
    – Lower fixed costs  many local facilities
    ex) Bottling plants for Coca-Cola
    • Macroeconomic
    – Tariffs, Tax incentives, Exchange rate and Demand risk
    • Political
    Factors Influencing Network Design
    Decisions (continued)
     Infrastructure
    – availability of sites & labor
    – proximity to transportation terminals, rail service, airports and seaports
    – highway access, congestion, local utilities
     Competitive – Close vs. Far
    ex) Retail stores in a mall, Supermarkets
     Logistics and facility costs
    A Framework for Global Site Location
    Competitive STRATEGY GLOBAL COMPETITION
    PHASE I
    Supply Chain
    INTERNAL CONSTRAINTS Strategy TARIFFS AND TAX
    Capital, growth strategy, INCENTIVES
    existing network

    PRODUCTION TECHNOLOGIES REGIONAL DEMAND


    Cost, Scale/Scope impact, support PHASE II Size, growth, homogeneity,
    required, flexibility
    Regional Facility local specifications
    Configuration
    COMPETITIVE
    ENVIRONMENT POLITICAL, EXCHANGE
    RATE AND DEMAND RISK

    PHASE III
    Desirable Sites AVAILABLE
    INFRASTRUCTURE
    PRODUCTION METHODS
    Skill needs, response time

    FACTOR COSTS PHASE IV LOGISTICS COSTS


    Labor, materials, site specific Location Choices Transport, inventory, coordination
    Network Optimization Models
    • Allocating demand to production facilities
    • Locating facilities and allocating capacity
    Key Costs:

    •Fixed facility cost


    •Transportation cost
    •Production cost
    •Inventory cost
    •Coordination cost

    Which plants to establish? How to configure the network?


    Improving the skills & abilities of supply
    chain managers
    through human resource development
    Why human resource
    development?
    ■ HRD is the framework for helping staff
    develop their personal and organizational
    skills, knowledge and abilities.
    ■ Primary focus of HRD is to develop the most
    superior workforce so that the organization
    and individual staff can accomplish their work
    goals to serve their customers.
    Human resource development:
    basic framework
    Target
    interventions
    at both
    the individual
    &
    organization
    to strengthen
    the whole
    system!
    Why is HRD important for supply chains?
    • Human Resource Development directly
    impacts individual and organizational supply
    chain performance.
    ↑ Increased individual & organizational
    performance
    ↑ More effective supply chains
    ↑ Increased product availability
    ↑ Improved health outcomes
    • Human Resources are the fuel to the
    supply chain- PEOPLE are needed in
    every technical domain of the supply chain
    as seen here. Their expertise as
    individuals and strength together as
    organizations really do drive the success
    of a system.
    What do INDIVIDUALS need to complete their
    supply chain jobs?

    • Knowledge & Skills


    • Access to information
    • Tools
    • Motivation
    • Capacity
    Individuals need knowledge & skills
    • Supportive supervision
    • Coaching & Mentoring
    • Pre-Service Education
    • In-service training coupled with on-the-job
    training
    What do ORGANIZATIONS need to
    complete their supply chain jobs?

    • Direction
    • Competence
    • Opportunity
    • Motivation
    Organizations need Direction

    • Define and reinforce the mission of the


    organization
    • Prioritize and communicate priorities
    • Focus on fewer achievable objectives
    • Define measures of success
    Organizations need competence
     Identify organizational goals & priorities
     Share decision making (national, local)
     Benchmark/measure organizational
    performance
     Maintain effective communication channels
    throughout the organization
    Future for HRD in SCM
    • Six Rights!
    • The right INDIVIDUALS & ORGANIZATIONS in the
    right quantity, with the right skills, in the right place,
    at the right time, at the right cost.
    • Individuals
    • Move toward sustainable capacity building activities
    that address not only knowledge but tools,
    motivation, etc.
    • Organizations
    • Supply Chain Management Units
    • Outsourcing functions & move toward management
    THANK YOU

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