archive-edu.com » EDU » N » NCSU.EDU

Total: 449

Choose link from "Titles, links and description words view":

Or switch to "Titles and links view".
  • Implementation Issues: Developing Collaborative Supplier Partnerships - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    company ideas and goals in developing these collaborative supplier relations The major objective of this step is finding suppliers with goals that are similar to the company s and presenting the partnership proposal to these companies 24 top Develop a purchasing profile After identifying possible suppliers develop a profile that provides potential or current suppliers with a detailed report of both material and service needs This step gives suppliers honest assessments of what is needed of them and puts them in a better position to formulate a plan that will fit these needs Also it gives suppliers a format to develop proposals that will be used in negotiating a collaboration that benefits both companies that are involved 24 top Develop specific negotiable issues Then identify what the company wants is willing to accept and thinks supplier needs will be Using hard facts and figures in addressing these issues helps define where the proposal will benefit both parties involved 24 If there is a feeling that one of the involved parties needs are not being met or that there is not a perceived mutual benefit the riskier the collaboration becomes top Conduct negotiations At this stage discuss every service and pricing issue in detail before agreeing to the terms of the collaboration 24 Once negotiations have been conducted formalize a document that will be the basis of the partnership As situations in the partnership arise this contract should be the point of reference to solve any issues Also at this time the negotiations should establish clear guidelines about how the information is to be used and what information should and should not be shared It is essential that all parties understand how information sharing will benefit their operations If this is not done one company may not see where they are benefiting from the sharing of information and harbor resentment resulting in a failed partnership 20 top Award the business Once negotiations have ended it is very important to develop supplier rewards and criteria associated with these rewards As suppliers meet certain goals extend the current business dealing and establish new business with these suppliers Also the creation of certifications will help define what suppliers are working towards in meeting the terms that your negotiations have identified as critical to a successful collaboration 23 top Provide joint resources as required For successful on going relationships it is vital to provide equipment personnel and training when it is required by the supplier In addition to making resources available to all suppliers information must be shared with them if they are to meet the organization s needs and terms of the contract 23 top Develop monitoring and evaluation system Finally a crucial responsibility is to sevelop tools tasks reports and routines that will be used throughout the duration of the relationship These tools should focus on measurable deliverables such as delivery time and rate of defects Without evaluation tools to measure success and gauge performance failure of the entire relationship initiative is likely

    Original URL path: https://scm.ncsu.edu/scm-articles/article/implementation-issues-developing-collaborative-supplier-partnerships (2016-04-30)
    Open archived version from archive


  • Associated Technologies: Developing Collaborative Supplier Partnerships - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    of web browsers companies can present internal company information to all users with access to the portal These portals can be divided into various sections limiting access of some sections to specific user groups Portals also allow applications such as ERP systems to run via a web browser so that businesses can access current inventory information and track current order status 13 Pratt Whitney a jet engine maker developed a portal that allows access to suppliers systems where they can examine and evaluate delivery schedules for a wide range of parts 13 Many companies choose to use portals because they offer a low cost solution compared to many of the other options in the market place In addition to their ease of use this type of system limits the amount of capital investment in computer hardware and software because of its use of a standard Internet browser top Electronic Data Interchange EDI The most popular technology associated with supplier collaboration is Electronic Data Interchange EDI Through the implementation of EDI users are able transfer information through a networked computer to computer link known as a Value Added Network 14 Companies using EDI now have the ability to improve overall supply chain integration through the tracking of information between suppliers customers and manufacturers Unlike other supply chain integration systems EDI transmits vital data to all parts of the system eliminating the need to reenter the data several times This lowers the risk for data entry errors as well as reduces the amount of hands on work needed to keep the system operational 15 Early on in order for these systems to interact it was necessary to develop a standard format in which the data would be transmitted For many years different EDI systems communicated in different formats making implementation among several companies difficult After some time it was decided that a standard must be created if EDI were to grow beyond its current state In the U S a standardized format X12 was developed in order to promote cross industry collaboration For those companies operating globally another set of standards UN EDIFACT was made to ensure proper communication with global EDI partners 16 Traditional EDI systems place limits on smaller companies because of the extreme capital costs of building a network infrastructure These limits have spurred growth in the development of low cost technologies that will serve the same purpose as traditional EDI systems In recent years traditional EDI has evolved into systems that are more easily implemented and have the ability to reach all suppliers no matter how small Newly developed EDI systems use the Internet as the medium to transmit information rather private than networks built and maintained by the company By reducing the extreme cost of building a network infrastructure smaller companies are able to become involved in information exchange with manufacturers and suppliers Known as Web or Internet EDI these systems use standard web browsers to transmit and view information Web EDI is normally used for low

    Original URL path: https://scm.ncsu.edu/scm-articles/article/associated-technologies-developing-collaborative-supplier-partnerships (2016-04-30)
    Open archived version from archive

  • Performance Measurements and Metrics: Developing Collaborative Supplier Partnerships - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    it is needed for production Also early deliveries could impact the carrying costs incurred by the manufacturer So it is important to note the potential impacts of early delivery Bruce Nolting senior manager of purchasing and production control for Toyota Industrial Equipment Manufacturing believes that delivery is the most challenging aspect of supplier development Toyota set its goal at 100 for on time delivery and requires in most cases that the delivery be made within one hour of when the parts are needed Toyota only considers a delivery as complete when the entire order arrives when scheduled This is a very difficult standard for the majority of suppliers to meet so Toyota must be selective during its supplier selection However Toyota is willing to work with the selected suppliers to develop them so they are able to meet these difficult milestones 9 top Quality Measuring quality improvements is vital to gauge the development of a supplier A supplier needs to demonstrate its willingness to learn new techniques and to work extensively with the organization it is supplying Companies must be willing to work with their suppliers to help reduce eliminate errors and defects or at the very least guide their suppliers in reducing quality problems 2 Honda of America has shown impressive results through its quality improvement programs with its suppliers Honda holds a yearly supplier conference and identifies areas for improvement as well as recognizes suppliers who have shown exemplary performance 11 top Cost Perhaps the easiest evaluation tool to measure costs can be quickly identified Reducing supplier costs impacts the company s bottom line directly Often the focus of attention two methods of tracking a supplier s cost reduction efforts are normally used The first method is to track supplier costs adjusted for inflation Another method is to benchmark a supplier s costs against similar suppliers 2 Cost reduction is a benefit of going through Honda of America s BP Program In this program Honda works extensively with suppliers on continuous improvement projects and expects that the supplier will split the cost savings 50 50 This shows the level of cooperation necessary to invoke this sharing of cost savings 11 top Benchmarking Why start from scratch when others have already paved the way Knowing which companies have successfully developed collaborative suppliers is critical in beginning the process Companies that have exhibited successes in this area need not be in the same industry but the processes should be similar in nature or purpose For example Honda has effectively employed supplier development techniques for quite some time now 10 Honda has carried this process over to its North American manufacturing group Honda North America has created what is known as the BP Program This approach focuses on the following areas of project improvement Best Position improve global competitiveness Best Productivity improve the process Best Product improve quality and delivery Best Product decrease cost Best Partners improve Honda supplier relationship 11 The program is a hands on venture that lasts 13

    Original URL path: https://scm.ncsu.edu/scm-articles/article/performance-measurements-and-metrics-developing-collaborative-supplier-part (2016-04-30)
    Open archived version from archive

  • Definition: Developing Collaborative Supplier Partnerships - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    development to discern different viewpoints Though there are similarities between the definitions each definition covers something that the others do not According to Partnership Sourcing Ltd a body created by England s government and various industries partnership sourcing is defined as Where customers and suppliers develop such a close and long term relationship that the two work together as partners It isn t philanthropy the aim is to secure the best possible commercial advantage The principle is that teamwork is better than combat If the end customer is to be best served then the parties must work together and both must win Partnership sourcing works because both parties have an interest in each other s success 1 Monczka Trent and Handfield define collaboration as The process by which partners adopt a high level of purposeful cooperation to maintain a trading relationship over time The relationship is bilateral both parties have the power to shape its nature and future direction over time Mutual commitment to the future and a balanced power relationship are essential to the process While collaborative relationships are not devoid of conflict they include mechanisms for managing conflict built into the relationship 2 Finally Krause and Handfield define supplier development as A bilateral effort by both the buying and supplying organizations to jointly improve the supplier s performance and or capabilities in one or more of the following areas cost quality delivery time to market technology environmental responsibility and managerial capability and financial viability 3 The importance of developing relationships with collaborative suppliers has risen within the past three decades in the United States Nowhere else is this more apparent than in the auto industry The Japanese have made impressive strides by chipping away at the Big Three s market share starting back in the 1970s 4 Spurred

    Original URL path: https://scm.ncsu.edu/scm-articles/article/definition-developing-collaborative-supplier-partnerships (2016-04-30)
    Open archived version from archive

  • Background: Developing Collaborative Supplier Partnerships - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    be characterized as adversarial At the beginning of the twentieth century standardization of parts was the norm for most organizations This sparked the requirement that suppliers produce large volumes of product and offer the lowest price possible In turn this created intense rivalry between competing firms which was actually encouraged by the organization demanding the product At the time many large organizations were vertically integrated to ensure a steady uninterrupted supply stream 6 In post World War II Japan the development of cogent techniques that would set the standards for many U S firms by the end of the twentieth century emerges Given the fact that Japan is such a densely populated nation and does not have a seemingly endless supply of resources like the U S they have to utilize all of their resources to the fullest Because of this situation the Japanese had to cooperate extensively with each other in order to succeed leading Japanese businesses to form an integrated network known as the keiretsu This type of integrated network was characterized by informal but strict cooperation among members 6 Given the success that Japanese companies were able to achieve with this tight knit network it is no wonder that U S firms interests were piqued However it has taken time for this philosophy to take hold in many organizations This can probably be attributed to the vertical integration that characterized most company s practices during the first half of the 20th century 7 The evolution of supplier collaboration over the last 100 years parallels the progress of business models At the beginning of the century sound business practice could be characterized by a single focused enterprise with mass produced products By the end of the century the trend was that firms had begun to move to multiple

    Original URL path: https://scm.ncsu.edu/scm-articles/article/background-developing-collaborative-supplier-partnerships (2016-04-30)
    Open archived version from archive

  • The Relationship between Disruption Amplifiers and Risk Reduction Mechanisms: A Managerial Framework - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    en route to the US from Europe with high value pharmaceutical products were diverted two to Canada and five returned to the UK It took a full 24 hours simply to discover this information and there was no knowledge of the exact products on the flights They didn t know what airports the planes were diverted to Meanwhile the overseas factories had not yet been notified of the delay and continued to produce and ship products to the freight forwarder The freight forwarder location was filling up rapidly and some of the drugs being shipped to the US were in danger of shutting down a US based manufacturing location due to this blockage The team engaged immediately and initiated a prioritization process upon discovery of this disaster This involved daily teleconference calls with US demand management the freight forwarder and the UK distribution group The transfer of product destined to travel by air was moved onto ocean carriers to at least ensure that it was moving in the right direction In addition re routing of goods in Canada being shipped by truck to the US through ports was required After the event the pharmaceutical logistics team recognized that they did not have a robust process for disaster management They also recognized that once all of the parties in the supply chain were communicating with one another had visibility to the same information and were making decisions jointly instead of in a silo that management decisions were dramatically more effective and easier As one executive noted Physical flow and product movement doesn t just happen by magic previously the shipping area was successful be being invisible it was also its major problem In effect 9 11 brought about a high level recognition of the importance of effective supply chain planning We realized that we had no process to move air shipments to sea in the event of a disaster so that we needed to work with government officials to do this and use our creativity to solve problems This event also allowed the pharmaceutical company to establish a solid business case outlining the need for an investment in a global Transportation Event Management system that provided greater visibility into disruptions and allowed all parties to view the same information and communicate regularly on status and updates In some cases electronic visibility systems may not be available particularly in remote locations in China One major logistics provider developed an intricate system for exchanging information First information was transmitted via walkie talkie then typed up in a local office The information was faxed to a broker who would then initiate the paperwork and enter the information into the company s primary logistics management system The most extensive approach used by firms with complex supply chains that expand globally is to rely on increased planning collaboration and education of partners in the supply chain The importance of collaboration was most clearly identified by a major retailer Prior to the West Coast port strike there

    Original URL path: https://scm.ncsu.edu/scm-articles/article/the-relationship-between-disruption-amplifiers-and-risk-reduction-mechanism (2016-04-30)
    Open archived version from archive

  • SC Risk Articles - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    and product process complexity firms have deployed a variety of different Risk Reduction Categories SCM Topics SC Risk Methodology A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain By Robert B Handfield PhD Jennifer Blackhurst PhD Christopher W Craighead PhD Debra Elkins PhD Posted 01 18 2011 Methodology To benchmark risk planning and mitigation practices we conducted a series of focused interviews and captured various insights into the area of supply chain disruptions We interviewed executives from Categories SCM Topics SC Risk Introduction A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain By Robert B Handfield PhD Jennifer Blackhurst PhD Christopher W Craighead PhD Debra Elkins PhD Posted 01 18 2011 Introduction Recently the topic of Enterprise Risk Management appears at the top of many corporate agendas Although most discussions on risk management are confined to financial reporting and internal controls Categories SCM Topics SC Risk Executive Summary A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain By Robert B Handfield PhD Jennifer Blackhurst PhD Christopher W Craighead PhD Debra Elkins PhD Posted 01 18 2011 Executive Summary Low cost sourcing has now become a staple of competitive strategy in many retail and manufacturing sectors As organizations source a greater proportion of manufactured products from China India Categories SCM Topics SC Risk Amplifiers of Supply Chain Disruptions A Managerial Framework for Reducing the Impact of Disruption to the Supply Chain By Robert B Handfield PhD Jennifer Blackhurst PhD Christopher W Craighead PhD Debra Elkins PhD Posted 01 18 2011 Amplifiers of Supply Chain Disruptions Certain attributes of a company s global supply chain environment may amplify or mitigate the impact of disruptions In the case of Nokia and Ericsson one Categories SCM Topics SC Risk How Do Supply

    Original URL path: https://scm.ncsu.edu/scm-articles/all-articles/category/sc-risk (2016-04-30)
    Open archived version from archive

  • Risk Reduction Mechanisms: A Managerial Framework for Reducing the Impact of Disruptions to the Supp - SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State University
    for response Add additional personnel or shifts which will under utilize resources but provides greater flexibility to react when a disruption occurs Using two or more suppliers for a critical input into a product or service It is interesting to note that although inventory levels have been reducing overall in the supply chain the correlation between higher premium freight shipments and inventory reduction is significant Thus companies seem to be substituting inventory one form of excess resources for greater us of premium freight thus merely shifting financial resources to a different area of the supply chain An understanding of the relative levels of premium transportation costs and other excess resources required to sustain supply chain agility and inventory levels in the face of disruptions is an important element of any risk management strategy Interviewees also stated that current models of total landed cost do not capture the holistic cost of global sourcing due to the hidden costs of visibility premium freight response buffers port shut downs etc One international logistics provider executive framed the issue by stating every time you do a handoff in a global supply chain it costs money and there is a potential for a disruption Planning and Collaboration Risk Reducers Organizations are adopting a variety of mechanisms to prevent disruptions from occurring Companies who have recently experienced a major disruption are especially likely to do so Prevention involves first understanding the key players in one s global sourcing channel and establishing the need to work together to minimize the potential for disruptions Once these relationships are established the partners can meet in an open environment to identify the leverage points that represent risk and work collaboratively to plan in advance for potential problems or better yet eliminate these risks altogether Global procurement and logistics personnel play a key role in establishing and laying the foundation for a more robust supply chain by getting the right players involved early on in designing the global sourcing channel In the earliest stages of sourcing strategy development involving the solicitation negotiation with and contracting of sources of material supply a global sourcing team should Regularly perform on site supplier evaluations and screen suppliers that may have poor logistics planning poor second tier supplier management and low process reliability in order to identify high potential disruptors When there are limited sourcing options each potential supplier should be required to produce a detailed plan of disruption awareness and identify contingency plans that can be executed if disruptions occur within the supplier s own facility or supply base Establish supplier s capability to establish information sharing with customers to provide updated information on the visibility of material flows Ideally this information should be shared throughout the network electronically however with the limitations on bandwidth in certain areas of China manual updates may be required on a daily basis In one case a company discovered that its information sharing mechanism involved a worker who traveled 35 miles daily to a location where a fax

    Original URL path: https://scm.ncsu.edu/scm-articles/article/risk-reduction-mechanisms-a-managerial-framework-for-reducing-the-impact-of (2016-04-30)
    Open archived version from archive