SUPPLY CHAIN MANAGEMENT PLAN

ISCOM424

Presentation Outline

Review Riordan Supply Chain Diagram Customer Relationship Management (CRM)

Vendor Managed Inventory System (VMI) Total Quality Management (TQM) Standards Conformity Controls

Enhancing Efficiencies Process Improvement Measures Collaborative Planning, Forecasting, and

Replenishment Process (CPFR) Rationale of Effective Plan

CRM Improvement Recommendations

Applying a Vendor Managed Inventory System (VMI) Enhances supplier visibility

No need to maintain purchase orders

Lowers down the risk of shortage of production

CRM Improvement Recommendations

Implement Total Quality Management (TQM) Make quality of processes and functions better

Minimize errors in supply chain and production

Make customers more satisfy Provide better products and services than customers’ expectations.

(Edraw, 2011)

CRM Improvement Recommendations Make efficient and effective Standards

Controls Applying source checking and monitoring (inspection) system

Recognize and use “preferred vendor agreements”

Certificate of compliance Guarantee of conformity

Minimize on-site inspections(GTIHEA, 2011)

Some Suggestions to increase Efficiencies

Vendor Managed Inventory Centralized Control

Lowers Internal Cost Streamline Inventory Control Approach Make effective Business mergers,

relationships and partnerships

OUTCOMES

“Measures for Process Improvements” Table Example

Vendor2008 Revenue

2008 Share (%)

2007 Revenue

2007 Share (%)

2006 Revenue

2006 Share (%)

Microsoft

581 6.4 332.1 4.1 176.1 2.7

Amdocs 451 4.9 421.0 5.2 365.9 5.6

John Deer

965 10.6 676.5 8.3 451.7 6.9

Club Car 1,475 16.1 1,319.8 16.3 1,016.8 15.5

SAP 2,05522.5 (-2.8)

2,050.8 25.3 1,681.7 26.6

Riordan 3,620 39.6 3,289.1 40.6 2,881.6 43.7

Total 9,147 100 8,089.3 100 6,573.8 100

Collaborative Planning, Forecasting, and Replenishment Process (CPFR)

Product flow

Information flow

Collaborative planning Forecasting (real time) Replenishment processes

Suppliers

MFG DistRetail

erconsum

er

Reasoning (Rationale) for Effective Plan

Applying a Vendor Managed Inventory System Beneficial for entire supply chain

Implementing Total Quality Management

Emphasize on Customer Relationship Management

ReferencesBlanchard, D. (2010). Supply Chain Management: Best Practices (2nd ed.). Hoboken, NJ: John Wiley & Sons, Inc.

Data Alliance, 9916 Carver Road, Suite 500, Cincinnati, OH 45242, Weldon Parts, Inc. Uses VMI to Improve Efficiency, and

Increases Sales, Retrieved from http://www.datalliance.com/Weldon_SS.pdf

Edraw (2011) Total quality management flow photo retrieved from http://www.edrawsoft.com/TQM-Diagrams.php

Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2007). Supply Chain Management: From Vision to Implementation. Upper

Saddle River, NJ: Pearson Education Inc...

Gtihea certificate of compliance photo (2011) Retrieved from http://www.tradevv.com/chinasuppliers/zhenglivv/certificates

Parks, L. (1999). CPFR programs facilitate inventory management. Drug Store News, 21(2), 27. Retrieved from EBSCOhost.

Riordan Manufacturing model. (2008). Retrieved February 13, 2011, from https://ecampus.phoenix.edu/secure/aapd

/cist/vop/Business/Riordan/RioMfgHome002.htm