Gordon Steward
Logistics Information Management
1995, Vol 8, Issue 2, pp. 38-44
1) Integrated supply chain
- a) Plan
- b) Source
- c) Make
- d) Deliver
2) Four categories of operational change
- a) Policies, practices and procedures
- b) Organization
- c) Structure
- d) Systems
- i) Focus on information flow, key data and accessibility and many points in the supply chain
3) Organizational model goals; Organizations must:
- a) Take ownership for the integrated supply chain as a process
- b) Demand results
- c) Ensure operational integration of all elements
- d) Continuously improve performance
- e) Support change management and steady state management
4) Nine key metrics
- a) Published delivery lead times
- b) Time to achieve sustainable 20% production increase
- c) Total order fulfillment cycle-time
- d) Delivery to schedule date
- e) Supply chain response time
- f) Forecast accuracy
- g) Inventory
- h) Days sales outstanding
- i) Total supply chain costs
- j) Warrantee costs
5) Each metric related to key supply chain management focus
- a) Delivery performance
- b) Flexibility and responsiveness
- c) Logistics cost
- d) Asset management
6) Conclusions and key points
- a) Delivery performance
- i) Delivery performance is the driver of customer satisfaction
- ii) Delivery is the most controllable by supply chain management
iii) There is a correlation between carrying more inventory and achieving higher delivery performance
- b) Flexibility and responsiveness
- i) Managing cycle times is crucial to delivery performance
- ii) Rapid supply chain cycle times and flexibility are strongly associated
- c) Logistics cost
- i) High costs are a symptom of an inefficient supply chain
- ii) There is little relationship between the level of integration and logistics costs
- d) Asset management
- i) Some companies fix problems by compensating with assets
- ii) The real opportunities for advantages lies in finished goods inventory where best in class is 1/9th of the median