Vice president and group director, supply chain and global supply management practices. Pdf supplier integration into new product development. Supply chain design is the process by which a company structures and manages the supply chain in order to identify the right balance between inventory, transportation, and manufacturing cost. Distribution network design supply chain network strategy product flow, inventory and capacity optimization. Maximizing value with network design and transportation. Integrating product design into the supply chain cogent oa. One of the biggest differentiators between the amazon supply chain strategy and other online retailers is the plethora of delivery options offered. A free powerpoint ppt presentation displayed as a flash slide show on id. Rethinking supply chain organizational design is becoming necessary since business as usual doesnt work anymore. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what.
Furthermore, a reference model for supply chain design. Companies must face corporate challenges that impact supply chain management such. How the supply chain can help improve new product development. Understanding the optimization behind supply chain design projects kindle edition by watson, michael, hoormann, sara, cacioppi, peter, jayaraman, jay.
Innovative versus functional products when designing a supply chain, the design needs to be adapted to the type of products it is intended for. Download it once and read it on your kindle device, pc, phones or tablets. Ppt supply chain management powerpoint presentation. In fishers model, products can be classified as being either more. Product design and supply chain supply chain, logistics. Pdf concurrent product and supply chain design thiam. Designing supply chain network for each industry involves arriving at a satisfactory design framework taking into all elements like product, market, process, technology, costs, external environment and factors and their impact on the business. For years, researchers and practitioners have primarily investigated the various processes within manufacturing supply chains individually. This paper provides an overview and orientation for fellow researchers who are interesting in the dependency between product and supply chain design attributes. Pdf this paper presents a framework for supply chain decisionmaking. Prior research has indicated that the integration of material.
It presents new approaches and methods based on operations research, artificial intelligence and computer sciences techniques for design of production systems, supply and inventory management, production planning and scheduling, facility location, transportation and logistics, supply flow optimisation via. Product design and supply chain supply chain, logistics and. The bestinclass are 70% more likely to segment demand by key product, customer, or channel characteristics. Design for supply chain supply and demand chain executive. Due to some of the security measures on certain pdf documents, we. Product design for supply chain management means building products that thrive in and enhance your supply chain architecture. An analysis of supply chain best practices in the retail industry with case studies of walmart and. But also an art because the assumptions we make are never going to completely. Reference models for supply chain design and configuration. Dec 03, 2007 design for supply chain is the process of optimizing the fit between supply chain capabilities and product designs. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product.
Supply chain design and analysis models and methods. Designing distribution networks and applications to ebusiness. Equally, if there is a particularly poor performer in the supply chain, great benefit can figure 1. An analysis of supply chain best practices in the retail. Product supply agreement instructions the following provisionbyprovision instructions will help you understand the terms of your product supply agreement. Which methodologies for the upstream stages of innovation. A supply chain is a network of retailers, distributors, transporters, storage facilities, and suppliers who take part in the production, delivery, and sale of a product that convert and move the goods from raw materials to end users, it describes the processes and organisations involved in converting and conveying the goods from manufactures to consumers. More specifically, it highlights how the integration of product design into the supply chain increases communication, supply chain visibility, responsiveness as well as the reduction of supply chain risk, all of which are key to. Historically, supply chains have focused on delivering products and services by one of the. This paper aims to present an approach that two leading supply chain companies have. Lecture notes operations management sloan school of.
In sophisticated supply chain systems, used products may reenter the supply chain at any point where residual value is recyclable. Furthermore, the determination of the optimal supply chain network design or redesign if a supply chain network already exists with some capacities needs to be done in a rigorous manner that captures the systemwide nature of the problem. Learn process improvements such as postponement, mass customization, resequencing production operations, and shifting the pushpull point. Then we discuss and analyze each case study companys supply chain strategy, design, and processes. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Visualize your supply chain displaying the solutions allows you to compare scenarios 11 data for network design 1. Pdf product development process managing in supply chain.
In creating a production plan, a company looks at the big picture the aggregate rather than the level of the individual product or item, predicting a level of manufacturing output in accordance with predicted sales and other company goals and constraints. Mutually coordinated visualization of product and supply chain metadata for sustainable design william z. To accelerate instore delivery and ensure the freshest goods. The project discuss the effects of aligning decisions on product design with the decisions on supply chain management. Designing the supply chain organization in a digital world.
Science because we can quantify the impact of different choices, and find the optimal tradeoffs between different choice parameters. Issues, challenges, frameworks and solutions article pdf available in international journal of production research 527 april 2014 with 4,512 reads how we measure reads. Integrating supply chain design with product and process development in this segment, we will articulate the three key components of strategic supply chain design, and provide a framework for coordinating and integrating product development, process development and supply chain development. Designing the distribution network in a supply chain. Design is a key competitive capability that is often neglected in the management of supply chains, yet research shows its significance can carry. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the product s consumption at the enduser.
Supply chain design and optimization oliver wight eame. A supply chain is the endtoend system that creates products and services and delivers them to the customer. For example, the supply chain for a restaurant will not be the same as a clothing retailer or a management consultancy. Supply chain design summary supply chain design is as much an art as it is science. Product design low uncertainty value for money example. Pdf concurrent product and supply chain design thiamsoon. The healthcare supply chain involves the flow of many different product. Topperforming supply chains, in turn, engage partners and suppliers early in the npd process. Jan 12, 2016 how product design impacts supply chain. Jul 23, 2011 as design is increasingly seen as a source of differentiation it is getting increasingly complex and having a major effect on supply chain cost and risk due to factors such as global sourcing, offshoring, product complexity, process complexity and outsourced design. The optimal supply chain design will differ for each supply chain depending on the competitive strategy and the market, product and production characteristics. Oliver wight thought leadership extends through the supply chain oliver wight international 3.
Product and process design for supply chain management. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. The output of supply chain is not just a physical product, but a combination of time, place, form and function of a. Product design and supply chain coordination under. Architecture, design and vision vikas misra university of petroleum and energy studies, dehradun, india m. Overview of production planning production planning is one of the logical steps in managing the supply chain. We define a supply chain as a network including the procurement of raw materials, processing of intermediate and finished products, customization of the product for local market needs, and distribution of the product to customers. As design is increasingly seen as a source of differentiation it is getting increasingly complex and having a major effect on supply chain cost and risk due to factors such as global sourcing, offshoring, product complexity, process complexity and outsourced design. Product development process managing in supply chain. The following are illustrative examples of a supply chain. Design for supply chain is the process of optimizing the fit between supply chain capabilities and product designs.
Linking product, supply chain, process and manufacturing. Recently, however, there has been increasing attention placed on the performance, design, and analysis of the supply chain as a whole. Kulkarni, jeffrey tew cincinnati innovation lab tata consultancy services, milford, oh 45150 niklas elmqvist. Optimal supply chain network design and redesign at minimal. Finally, we discuss the commonality and transferability of walmart and. The interrelationships between product characteristics, supply chain design, process choice and the design of manufacturing planning and control principles is a. Supply chain design and supply chain strategy is referred to the operational strategy in which a business or organization uses to transform raw materials to finish goods, the three main types are lean just in time supply chain, flexible supply chains and risk adverse supply chain. With an understanding of each case study companys supply chain in place, an analysis of supply chain strategy linkage with business strategy is performed. Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. Goods can also flow in a reverse direction in a supply chain from the customer back to producers for purposes such as returns, reuse and recycling. Supply chain design is being used to match the supply and demand under uncertainty by positioning and managing inventory.
Supply chain optimisation productprocess design, facility. This volume is a collection of recent key results in supply chain optimisation. Mutually coordinated visualization of product and supply. Design integration in supply chain management page 3 preface this is final project is made within the context of the diploma programme. Hd part ii supply chain management at copenhagen business school in spring 2012. A supply chain consists of manufacturers, retailers and others involved in filling a customer order. Find materials for this course in the pages linked along the left. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. The bestinclass are 59% more likely to manage outside suppliers and partners in the design process than all others. Likewise, a supplier can be a power player, particularly if its product is in short supply and it can call the shots with its customers. Overview of production planning mrp and supply chain.
Bernstein, devarajan ramanujan school of mechanical engineering purdue university, west lafayette, indiana 47906 devadatta m. The purpose of this paper is to investigate the alignment between product design and the supply chain and to identify how this alignment impacts on a firms supply chain responsiveness and resilience. A model for product development process managing in su pply chain was proposed. Many aspects are importantfor example, product life cycle, demand predictability, product variety, and market standards for lead times and. Apr 27, 2012 the purpose of this paper is to investigate the alignment between product design and the supply chain and to identify how this alignment impacts on a firms supply chain responsiveness and resilience. Global supply chains are threatened by calls of protectionism, product complexity is leading to an explosion of skus, incumbent startup competitors are rapidly eroding market share and technologyenabled supply and demand. Supply chain network design due to the significant impact that supply chain design has on the cost and service provided by a company, it is critical that managers be knowledgeable about how to optimize the flow of products and goods within their supply chain. Product design and supply chain coordination under extended producer responsibility ravi subramanian college of management, georgia institute of technology, atlanta, georgia 30308, ravi. The elements of a supply chain will vary with business and product type. The first step in devising an effective supplychain strategy is ther efore to consider the natur e of the demand for the products ones company supplies. May 22, 2017 as an example, companies that involve supply chain specialists as early as possible in the npd process gain competitive advantage in driving new product success by ensuring the product can be supported functionally and profitably by the supply chain.
Distribution refers to the steps taken to move and store a product from the supplier stage to a customer stage in the supply chain. Pdf how to design the right supply chains for customers. Fulfillment and development supply chain industry clock speed innovative vs. In many industries, firms are seeking to cut concept to customer development time, improve quality, reduce the cost of new products and facilitate the smooth launch of new products. Sure, those options include the free, twoday prime deliveries and even the prime now option, which gets products from point a to. Supply chain management in healthcare should ensure complete endtoend visibility of information among suppliers, manufacturers, distributors and customers. Distribution is a key driver of the overall profitability of a firm because it directly impacts both the supply chain cost and the. Decamposb amichigan state university, department of supply chain management, the eli broad graduate school of management, east lansing, mi 48824, usa.
The framework is used to gain insights into applications of modelling. Development of a simultaneous design for supply chain process for the optimization of the product design and supply chain configuration problem by nuri mehmet gokhan b. It creates product configurations that address infrastructure limitations and use supply chain capabilities as they evolve throughout the life of the product. This paper describes emerging concepts for product and process design that include a supply chain perspective. Decamposb amichigan state university, department of supply chain management, the eli broad graduate school of management, east. The supply chain must be responsive in the initial stage and costeffective in the latter stage. Through the oslo manual, the organization for economic. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Supply chain processes in new product development collaboration in new product development supply chains july 17, 2007 new product development is a growing area in chinese manufacturing as both foreign and local companies develop further strategies for sustained viability.
Pdf truly effective supply chain management is planned and purposive. Product development process managing in supply chain 5 the process of supplier involvement in pdp is divided in 4 stages. Location of customers, stocking points and sources 3. In business and finance, supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer. Sultanpur a supply chain is a network of suppliers, factories, warehouses, distribution centers and retailers. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.
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