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Optimize your supply chain
- 1. Optimize Your Supply Chain
Presented by
Daniel Feiman, MBA, CMC©, Visiting
Professor
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 1 All international rights reserved
- 2. Agenda
Optimizing Your Supply Chain
Primary SCM disruptions
How to reduce disruptions
Develop a win/win SCM system
Use of proven tools for immediate results
Training Methodology
• Participant discussions
• Best practices approach
What have we learned?
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 2 All international rights reserved
- 3. Defining the Supply Chain (SC)
SUPPLY CHAIN MANAGEMENT
APICS - The design, planning, execution, control & monitoring of
SC activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand & measuring performance
globally.
ISM - The design and management of seamless, value-added
processes across organizational boundaries to meet the real
needs of the end customer. The development and integration of
people and technological resources are critical to successful
supply chain integration.
Produce
Sale
Deliver
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 3 All international rights reserved
- 4. A graphic representation of the Supply
Chain
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 4 All international rights reserved
- 5. From the supplier’s supplier to the customer’s
Supplier
customer (external or macro focus) Customer
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
Company
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
Downstream Upstream
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 5 All international rights reserved
- 6. From the supplier’s supplier to the customer’s
Supplier
customer (internal or micro focus) Customer
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
Value stream / Process
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
Supplier Customer
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 6 All international rights reserved
- 7. Primary SCM disruptions:
Natural
Earthquake
Fire
Flood
Storm
Hurricane
Tornado
Man-made
Terrorism, piracy
Labor strife
Business decisions
Country risk
Exchange rate risk
Liquidity risk
Political instability
Operational risk
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 7 All international rights reserved
- 8. Dealing with risks
There are four ways of dealing with, or managing, each
individual risk that you identified. You can:
Accept it
Transfer it
Mitigate it
Eliminate it
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 8 All international rights reserved
- 9. How to reduce disruptions
Think strategically.
Contingency planning
Balance
Broaden cooperation.
Consider the tradeoffs
Certified (a) suppliers
Alternative (b) suppliers
Glocal (see my SlideShare presentation at http://goo.gl/eDSai)
Don't ignore a risk just because you can't quantify it.
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 9 All international rights reserved
- 10. Develop a win/win SCM system
Communication
Lead time – both
Automated portals
Certified supplier program
Multiple levels
Alternatives
Data
Accurate
Timely
Complete
1st vs. 2nd generation
Objective
Forecasting
Expected
Alternative scenarios
Partnership –
Upstream
Downstream
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 10 All international rights reserved
- 11. Use of proven tools for immediate & continuous
results
1. Review your current supply chain (SC)
2. Draw an “as-is” SC flow chart
3. Identify “critical” suppliers
4. Contact each “critical” supplier
5. Obtain a copy of their contingency plan
1. If they have one, review
2. If not, have them create one
3. If they won’t they do not qualify as a critical supplier
6. Add this to the Critical Supplier Program
7. Review the SC
8. Draw a “future-state” flowchart
9. Annually audit the SC
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 11 All international rights reserved
- 12. Training Methodology
Communication
Preparation
Demonstration
Participation
Collaboration
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 12 All international rights reserved
- 13. Participant discussions
In your experience what have you seen:
Work
• -
• -
• -
• -
Not work
• -
• -
• -
• -
Suggestions
• -
• -
• -
• -
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 13 All international rights reserved
- 14. Real world templates-takeaway
ABC, Inc.
Supplier Comparison Chart
Rate the Quality Critical Features of the suppliers
( 1 ‐ worst, 5 ‐ best )
Quality Critical Features Weights Supplier X Supplier Y Supplier Z Supplier T Supplier Q
Product Quality 25% 4 6 4 1 6
Service Quality 13% 5 5 7 1 4
Lead Time 12% 7 6 3 2 2
Reputation 10% 8 9 8 4 5
Responsiveness 5% 2 8 10 4 2
Price 35% 3 10 2 9 1
Total Scores: 29 44 34 21 20
Total Weighted Scores: 4.44 7.67 4.27 4.37 3.21
Rank: 2 1 4 3 5
General
Supplier X ████
Best Supplier Y ████████
Supplier Z ████
Supplier T ████
Supplier Q ███
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 14 All international rights reserved
- 15. Best practices options
External Internal
Certified Supplier program PICMA model
A suppliers Value stream mapping
B suppliers Continuous Process Improvement
Communications
Accountability
Verbal
Written Transparency
Published Consistency
Expectations Champion
Objective
Added-value only focus
Consistent
Documented 6S
Accountability Leverage TOC
Transparency
Audits
Self
Annual
“Real” scorecards
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 15 All international rights reserved
- 16. Other item of interest from Daniel Feiman
YouTube videos: Books:
Accounting http://goo.gl/XJhKf Daniel Feiman, et al; 2011; THE Book on…Business From A to Z: The 260 Most
Branding http://goo.gl/8gFDD Important Answers You Need to Know; Build It Backwards Publishing; Los Angeles,
California, USA; Amazon http://goo.gl/jMY79 or Kindle http://goo.gl/7SxeY
Cash flow http://goo.gl/R04bC Tony Miller & Daniel Feiman; 2009; THE Book on…Improving Productivity by Fair
Efficiency http://goo.gl/MepxX Means or Foul; Build It Backwards Publishing; Los Angeles, California, USA;
- http://goo.gl/Jp5yB
Equity http://goo.gl/Ydyp7
Press;
Forecasting http://goo.gl/NqGIJ
Kinaxis - Supply Chain Management simulation - http://goo.gl/ii3iq
Generations http://goo.gl/0Pufe Small Business Online Community: Accounting & Budgeting - http://goo.gl/OmYXv
Innovation http://goo.gl/NNo3t New York Times - http://goo.gl/2eCwo
Leadership http://goo.gl/pZ1Fw Pepperdine Alumni News - http://goo.gl/hbvHh
Marketing http://goo.gl/bYoyZ The LA CPA - http://ping.fm/oaYAG
Shoestring Ventures - http://goo.gl/zmgVO
Mediation http://goo.gl/Re6RZ
Carol Roth’s blog on Top Book Marketing Tips: - http://goo.gl/RSUG8
Negotiation http://goo.gl/EGIL4
LEAN Guide for the Business Traveler - http://goo.gl/3fKnW
Process http://goo.gl/EpTnU Kinaxis Supply Chain Expert Community interview - http://goo.gl/RZ5hf
Quality http://goo.gl/E4dmh BizTalk radio interview - http://goo.gl/fmytq
Quality http://goo.gl/qW3XY Jim Blasingame’ Small Business Advocate radio show - http://goo.gl/zopgF
Whitepapers
Strategy http://goo.gl/xAeOo
Daniel Feiman & Eric Augusta; 2009; What Everyone Needs to Know about Financial
Strategy http://goo.gl/sqLb5 Modeling; California Certified Public Accountants conference;
Turnaround http://goo.gl/9B3JC - www.BuildItBackwards.com/publishing
Daniel Feiman & Ivan Rosenberg; 2009; Strategic Planning WORKS-If You Give It a
Underperformance http://goo.gl/2l83Z Chance; - www.BuildItBackwards.com/publishing
Valuation http://goo.gl/timfH Daniel Feiman & Tom Drucker; 2009; Process Improvement is NOT a Dirty Word;
- www.BuildItBackwards.com/publishing
X-Ray http://goo.gl/a0Twq
Daniel Feiman; 1995; How to Develop an Asset Based Lending Department;
Yield http://goo.gl/C6lPE American Bankers Association; (Award winning paper)
Z-Score http://goo.gl/flde2
Reasons why http://goo.gl/cnyuV
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 16 All international rights reserved
- 17. Daniel Feiman, MBA, CMC©, Visiting Professor
Consultant, Trainer, Author, Publisher, Reviewer
Daniel Feiman, MBA, CMC®, Visiting Professor is the Founder & Managing Director of
Build It Backwards, a consulting & training firm based in Redondo Beach, CA. He turns
Roadblocks into Roadmaps(SM) by teaching companies how to Assess, Achieve & Accelerate
exceptional success; with measureable results in 90 days. His core competencies include:
Strategy; Finance & Process. Mr. Feiman is an internationally recognized seminar facilitator;
working with firms such as Apple, ADNOC (United Arab Emirates), ARAMCO (Saudi Arabia),
California Institute of International Business & Economics, Credit Suisse, Hilton Hotels
International, Institute for Supply Management (ISM), Mattel, PEMEX (México), Promigas
(Colombia), Reliance (India), TRW, University of Manchester (UK) & others.
He is adjunct faculty at the University of California, Los Angeles (UCLA) Extension
Department (since 1990) has taught at the University of Manchester (UK) & is the Visiting
Professor at the Business School of the University of Huddersfield (UK).
He has consulted with firms in many industries including, manufacturing, distribution,
financial services, oil & gas, education, healthcare, consumer products, legal, & hospitality. His
diverse knowledge-base & world-wide contacts is leveraged to assist his clients in gaining
advantages not available through other resources. (Please see www.BuildItBackwards.com for
case studies and testimonials).
Mr. Feiman is a reviewer for the New York Journal of books
(http://www.nyjournalofbooks.com/) .
Build It Backwards Publishing (www.BuildItBackwards.com/Publishing) publishes
business books with recognized expert authors targeting those who have decided to learn what
they really need to know in the simplest straight forward way; without jargon. Mr. Feiman is the
author of numerous articles and whitepapers, is a contributing author to several books as well as
co-author of others. The latest book in the series, THE Book on…Business from A to Z: the 260
Most Important Answers You Need to Know, was published this fall. He has been interviewed by
television, radio & print resources.
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 17 All international rights reserved
- 18. Contacting us:
Daniel Feiman, MBA, CMC®
Managing Director
Build It Backwards(TM)
Success by Choice; Not Chance(SM)
Office: 310.540.6717 Cell: 818.522.2892
Consulting & Training in:
Strategy * Finance * Process
DanielFeiman@BuildItBackwards.com
www.BuildItBackwards.com
http://goo.gl/j6F5b
http://goo.gl/TxRuA
dsfeiman@BuildItBackwards.com APICS © Build It Backwards 2012 www.BuildItBackwards.com
310.540.6717 18 All international rights reserved