Slide 1 SUPPLY CHAIN MANAGEMENT – SUPPLY CHAIN MANAGEMENT – AN OVERVIEW AN OVERVIEW Chwen Sheu Chwen Sheu Paul Edgerly Chair Professor Paul Edgerly Chair Professor Kansas State University Kansas State University (CSCMP Kansas City Roundtable (CSCMP Kansas City Roundtable ) )
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Slide 1
SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT – AN OVERVIEW– AN OVERVIEW
Chwen SheuChwen SheuPaul Edgerly Chair ProfessorPaul Edgerly Chair Professor
Kansas State UniversityKansas State University(CSCMP Kansas City Roundtable(CSCMP Kansas City Roundtable))
TotalTotalDollars Spent in 2002Dollars Spent in 2002
$ 22.6$ 22.6BB6,1936,193
TotalTotalSupplier BaseSupplier Base
~70%~70% of Product Costof Product Cost
Slide 16
Responsiveness: DellResponsiveness: Dell
Why SCM?Why SCM?
A win-win partnershipA win-win partnership
Value-addedValue-added
““We focus on how we can We focus on how we can coordinate our coordinate our activities to create the most activities to create the most value for customers.”value for customers.”
- M. Dell- M. Dell
Slide 17
(3PL)SupplierAssembly Plants
Retailer
Supplier Assembly Plants(3PL)
重新洗牌 Responsive
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CREATING VALUESCREATING VALUES
Producers
Shipping
EastmanWarehou
se
EastmanIT Dept
Wait …
Open the boxes &
Load
EastmanEmployee
s
Tradition: Time Consuming & Costly
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Implementing SCM requires a fundamental change in the way firms operate
““Gee, we've never Gee, we've never done that before, done that before, but why not? Let's but why not? Let's give it a trygive it a try.”.”
12 12 tonstons of CO of CO22 per capita are per capita are produced per year. Only produced per year. Only 8%8% of this of this emission is managed by nature. emission is managed by nature.
The average temp of the Earth could The average temp of the Earth could raise up to raise up to 5ºC5ºC by the end of 21 by the end of 21 century century Sea level could rise up to Sea level could rise up to 100 meters100 meters. .
A visit to Amsterdam could be soon a A visit to Amsterdam could be soon a submarine visitsubmarine visit..
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EM? WHY?EM? WHY?
60 % 60 % of managers considered environmental of managers considered environmental issues to be highly important, 82 % expected issues to be highly important, 82 % expected the importance would further increase in the the importance would further increase in the years to come (2002).years to come (2002).
“… “… a new industrial revolution. It is the most a new industrial revolution. It is the most forceful trend in my lifetime ... it will redefine forceful trend in my lifetime ... it will redefine the rules of the gamethe rules of the game.” (CEO, Sony).” (CEO, Sony)
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Waste Electrical and Electronic Waste Electrical and Electronic Equipment (WEEE)Equipment (WEEE)
Restriction of Hazardous Restriction of Hazardous Substances (RoHS)Substances (RoHS)
b.b. 1970s1970s: 2000 federal, state, and local e-regulations; : 2000 federal, state, and local e-regulations; TodayToday: 100,000. Business in LA must answer up to : 100,000. Business in LA must answer up to 72 separate authorities. 72 separate authorities.
c.c. Computer Takeback: Among 28 global computer Computer Takeback: Among 28 global computer firms, U.S. computer firms rank 9firms, U.S. computer firms rank 9thth (Apple), 11 (Apple), 11thth (HP). (HP).
d.d. 80% of consumer are willing to pay more for 80% of consumer are willing to pay more for greengreen..
e.e. Dow Jones Sustainability IndexDow Jones Sustainability Index
f.f. ““It's a difficulty for European firms, and it's a huge It's a difficulty for European firms, and it's a huge difficulty for American firmsdifficulty for American firms.”.”
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EM – DEVELOPMENTEM – DEVELOPMENT
JapanJapan 63% of Japanese consumers are willing to pay 63% of Japanese consumers are willing to pay
5% more, 27% pay 15% more for green 5% more, 27% pay 15% more for green products. products.
Green Products Green Products • Toyota Hybrid Prius Toyota Hybrid Prius uses half the petrol & uses half the petrol &
emits only half the carbon dioxide.emits only half the carbon dioxide. Sony Green PartnerSony Green Partner
EuropeEurope No kidding!!!No kidding!!!
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TOYOTA Eco-Friendly Prius ~$20,000
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EM & TQMEM & TQM
Total Quality Environmental Total Quality Environmental Management (TQEM) Management (TQEM)
Prevention is better than compliancePrevention is better than compliance
Benefit outweighs cost Benefit outweighs cost EM Is FreeEM Is Free
Slide 33
EM – BUSINESS IMPACTSEM – BUSINESS IMPACTS
• Pepsi: Saved $44 million by switching from corrugated to reusable plastic shipping containers for one liter & 20 oz bottles, conserving 196 million lb of corrugated material.
• Texas Instruments: Saved $8 million each year by reducing its transit packaging budget for its semi-conductor business thru source reduction, recycling & use of reusable packaging.
• Commonwealth Edison: Produced $50 million in financial benefits from the implementation of Life-Cycle Analysis approach.
• Dow Corning: Saved $2.3 million by using reconditioned steel drum in 1995. It also conserved 7.8 million lb of steel.
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GSCM – LIFE CYCLE GSCM – LIFE CYCLE ANALYSIS/ASSESSMENTANALYSIS/ASSESSMENT
Design Raw Mat. Logistics ManufactureRetailer/Customer
RecycleReuse
Disposal
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CRISIS? OPPORTUNITY?CRISIS? OPPORTUNITY?
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“… We are convinced that being good to the environment is also good for business – and have every intention of keeping it that way.”