Supply Chain Overview Supply Chain Metrics California Computer

Supply Chain Overview • Supply Chain Metrics – California Computer manufacturer • Cost per Placement – Indiana Component plant of auto manufacturer • Inventory – Inventory Turns • Annual Sales at Inventory Cost/Value of Inventory

Customer Service • • • Line Item Fill Rate Order Fill Rate On-Time delivery Order cycle time Invoice Accuracy ….

Information to Customers • Provide accurate information of delivery • Get it there on time • Provide up-to-date information in exceptions • Preferably in advance

Information Internally • Accurate and timely information easy to retrieve • Short planning cycles • Short forecast accurate forecasts

Manage Variability • Identify it • Eliminate it • Hedge against it

Don’t Cover Up • • Don’t hide behind unnecessary inventory Why is it there? Is it necessary? Is it the right amount?

Understand the Cost of Inventory • • • Cost of Capital Return on Assets Obsolescence Damage and Shrinkage Capital investments Location

Product Design • Postpone differentiation

Communicate • Know your customers’ customers • Inform your suppliers’ suppliers

Coordinate • Expediting costs money • Avoid “hurry-up and wait”

Minimize Total Cost • • • Freight Inventory Order processing Packaging Handling ….