Supply Chain Management Principles and Strategies

1. Manajemen Rantai Pasok (Supply Chain Management) TKI- 460 (2 SKS) Oleh : Ir. Nofi Erni, MM Jurusan Teknik Industri Universitas Indonusa Esa Unggul

2. Pustaka Course Textbook: Simchi-Levi, D., P. Kaminsky, and E. Simchi-Levi., 2003. Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies , 2 nd ed., McGraw-Hill, References: Vollmann, T.E., W.L. Berry, D.C. 2005. Whybark & F.R. Jacobs, Manufacturing Planning & Control for Supply Chain Management , 5 th ed., McGraw-Hill, New York Frazelle EH. 2001. Supply Chain Strategy. Mc. Graw Hill, New York

3. PENILAIAN Kriteria dan bobot penilaian Kehadiran : 5 - 10% Mid Semester Test (UTS) : 30-35% Final Test (UAS): 35 - 40% Tugas : 15- 25% Group & individu

4. POKOK BAHASAN PERKULIAHAN Minggu 1: Introduction to Supply Chain Management Minggu 2: Key Issues in Supply Chain Management Minggu 3: Logistics Network Configuration Minggu 4: Inventory Management Minggu 5: Risk Pooling Minggu 6: Case Study Minggu 7: The value of Information Minggu 8: Supply Chain Integration Minggu 9: Strategic Alliances & Procurement/Outsourcing Strategy Minggu 10: Coordinated Product & Supply Chain Design Minggu 11: Case Study Minggu 12: Customer Value & Supply Chain Management Minggu 13: Case Study Minggu 14: Information Tech & Decision Support Systems for SCM

5. Introduction to SCM What is Supply Chain ? 1. Chopra & Meindl (2004) Supply Chain adalah jaringan pihak-pihak yang secara langsung atau tidak langsung terlibat dalam pemenuhan kebutuhan konsumen. 2. Levi et al. (2002) Supply Chain adalah jaringan perusahaan-perusahaan yang terlibat secara langsung dan bersama-sama bekerja dari hulu ke hilir mengelola aliran barang, aliran uang dan aliran informasi untuk menciptakan dan mengantarkan produk ke tangan pemakai akhir (end costumer)

6. Introduction to SCM What is Supply Chain Management? Istilah SCM pertama kali dikemukakan oleh Oliver & Weber pada tahun 1982 SCM perluasan dan kosep baru dalam memandang manajemen logistik. Manajemen logistik lebih terfokus pada pengaturan aliran barang dalam suatu perusahaan SCM mengutamakan tercapainya integrasi aktivitas untuk seluruh mata rantai pengadaan barang mulai dari hulu ke hilir sampai pengiriman pada konsumen akhir.

7. Definisi SCM The Council of Logistic Management SCM is the systematic, strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain for the purpose of improving the long term performance of the individual company and the supply chain as a whole Simchi Levi SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers , warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system - wide costs while satisfying service level requirements.

8. External SC Configuration Supplier s Manufacturers Warehouse s and Distribution Centers Retailers internet

9. Internal SC Configuration

10. A Key Concept: Integration Systems Approach: SCM takes into account every facility that has an impact on cost and customer service The objective of SCM is to be cost-effective across the entire system (total costs: distribution (from supplier to manufacturers, from manufacturers to warehouses, from warehouses to retailers), inventories (raw material, WIP, finished goods), manufacturing costs) In other courses the focus is on local minimization (inventory costs at a single location, distribution costs from one location to another). Here we should think in terms of the system-wide costs and service levels.

11. Integration (continued) Integrated planning involves: Functional Integration (of purchasing, manufacturing, transportation, warehousing) Spatial Integration (across geographically dispersed vendors, facilities, markets) Hierarchical Planning (coherence and consistency among overlapping supply chain decisions at various levels of planning) Integrated Planning does not necessarily require centralized control

12. What makes SCM difficult? Global optimization To design and operate a supply chain so that total systemwide costs are minimized, and systemwide service levels are maintained Uncertainty Such as : Customer demand, travel times, machines & vehicles

13. Global Optimization Facilities in the chain have different, conflicting objectives Manufacturers need to adjust to customer demand (flexibility) Suppliers would like to ship larger-steady quantities Warehouses and distribution centers would like to see smaller batches to reduce inventory Dynamic nature of the supply chain Customer demand and supplier capabilities change over time Relations in the chain evolve over time (highly specific, low volume production through customization)

14. Global Optimization (cont.) The supply chain is a complex network Facilities dispersed over a large geography or all over the globe Systems variation over time Demand and cost paremeters varying overtime due to the impact of : seasonal fluctuations, trends, advertising & promotions, competitors pricing strategy.

15. Where is the complexity ? Although successful applications of SCM concepts are widely available they can not be replicated easily to other organizational settings.

16. The supply chain is a complex network (facilities and organizations with different conflicting objectives) Matching supply and demand (manufacturers have to plan for production levels months before the demand is realized) System variations over time (seasonal fluctuations, trends, advertising, promotions, competitors pricing) Many SC problems are new (high-tech life cycles-one order opportunity-no historical data) MANAGING UNCERTAINTY