Business Process Improvement – Today’s Source of Competitive Advantage How Logistics and Supply Management can Tap the Power of Process Improvement A presentation by: F. Michael Babineaux, CPSM. C.P.M. President/CEO Babineaux Educational Services and Training, Inc. www.BESTraining.com 901.413.8893
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Business Process Improvement for Supply Management
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Business Process Improvement – Today’s Source of Competitive
Advantage
How Logistics and Supply Management can Tap the Power of Process
Improvement
A presentation by:F. Michael Babineaux, CPSM. C.P.M.
President/CEOBabineaux Educational Services and Training, Inc.
Business Process Improvement – Today’s Source of Competitive
Advantage
How Logistics and Supply Management can Tap the Power
of Process Improvement
Why’s Business Process Improvement Important?
Global Supply Chain: Balancing Cost Reduction and Performance Improvement
Ernst & Young | March 18, 2009
Working with the Economist Intelligence Unit, Ernst & Young surveyed more than 250 senior executives from the world's largest corporations to get a sense of how businesses are approaching cost reduction efforts, and what is expected of their supply chains.
Overwhelmingly, senior executives expect to achieve savings by improving the business processes of their operations.
Why Now?
This is a great time . . .– to think about Business Process
Improvements!
Anytime offers opportunity . . .– to take on projects that you would (in
normal and prosperous times) just throw more money at it!
“Profit hides a lot of sins”
Agenda and DirectionBusiness Process Improvement
Process Basics– What’s it all about– Where to start
Process Management– The Need for Management– Performance Management– Performance Constraints
Process Improvement– Selection, process and “Best
Practices”
Agenda and DirectionBusiness Process Improvement
Process Basics– What’s it all about– Where to start
A business process consists of a group of logically related activities that use the resources of the organization to provide defined results in support of the organization’s objectives
Business Processes -Definition
Inputs Value-Adding Activities Outputs
Business Processes -Objectives
1. Easy to use – and understand
2. Optimize use of resources– Idle assets = expensive
3. Eliminate errors– and duplications
4. Minimize delays– Cycle time focus
Business Processes - Thirty Thousand foot level
CustomerRequirements
NEW PRODUCT INTRODUCTION
ORDER FULFILLMENT
Design/Develop Market
Procure Produce Distribute
Supply Base
Supply Base
CustomerSatisfaction
Corporate Strategy
Infrastructure, People, and Culture
Forecasting
Supply/Demand Planning
Base business philosophy
Getting and keeping customers
Staying on the leading edge
Order Fulfillment Process – Key Supply Chain Management Processes
OPERATIONS DEMAND
• Operations Planning and Scheduling
• Capacity Planning• Material Handling• Insourcing/
Outsourcing
• Demand Planning and Forecasting
• Sales• Order Entry• Outbound Logistics• Finished Goods
Inventory Management
DEMAND
Order Fulfillment Process – Key Supply Chain Management Processes
OPERATIONS DEMAND
• Demand Planning and Forecasting
• Sales• Order Entry• Outbound Logistics• Finished Goods