COORDINATION IN

SCM

E.P. JOHN

INTRODUCTION◦SUPPLY CHAIN COORDINATION IMPROVES – ALL

◦SUPPLY CHAIN CONSISTS OF STAGES WITH DIFFERENT OWNERS

◦MAIN CHALLENGE IS TO ACHIEVE COORDINATION INSPITE OF MULTIPLE OWNERSHIP AND INCREASED PRODUCT VARIETY

BULLWHIP EFFECT

THE FLUCTUATION IN ORDERS INCREASES AS WE MOVE UPSTREAM IN THE SUPPLY CHAIN FROM RETAIL TO MANUFACTURING

LACK OF SC COORDEFFECT ON PERFORMANCE

◦MANUFACTURING COST◦INVENTORY COST◦REPLENISHMENT LEAD TIME◦TRANSPORTATION COST◦LABOR COST FOR SHIPPING AND RECEIVING

◦LEVEL OF PRODUCT AVAILABILITY◦PROFITABILITY◦RELATIONSHIPS ACROSS SC

OBSTACLES

◦INCENTIVE OBSTACLES◦INFO-PROCESSING OBSTACLES

◦OPERATIONAL OBSATCLES◦PRICING OBSTACLES◦BEHAVIOURAL OBSTACLES

MANAGERIAL LEVERS ALIGNING GOALS AND

INCENTIVESIMPROVING INFO ACCURACYIMPROVING OPERATIONAL

PERFORMANCEDESIGNING PRICING

STRATEGIES TO STABILISE ORDERS

BUILDING PARTNERSHIPS AND TRUST

CPFRCOLLABORATIVE PLANNING,

FORECASTING AND REPLENISHMENT

A BUSINESS PRACTICE THAT COMBINES THE INTELLIGENCE OF MULTIPLE PARTNERS IN THE PLANNING AND FULFILLMENT

OF CUSTOMER DEMAND

CPFR – SC ACTIVITIES

STRATEGY AND PLANNINGDEMAND AND SUPPLY MANAGEMENT

EXECUTIONANALYSIS

FOUR SCENARIOS OF

COLLABORATIONRETAIL EVENTDC REPLENISHMENTSTORE REPLENISHMENTCOLLABORATIVE ASSORTMENT PLANNING

RISKS AND HURDLES OF CFPR

CUSTOMER 1 TEAM

CUSTOMER 2 TEAM

CATEGORY TEAM

MANUFACTURER RETAILERORGANISATION ORGANISATION

RISKS AND HURDLES OF CFPR

DEMAND PLANNING

SALESCUSTOMER SERVICE

LOGISTICS

DEMAND PLANNING

SALESCUSTOMER SERVICE

LOGISTICS

MERCHANDISE PLANNING

BUYING REPLENISHME

NT

ROLE OF IT IN COLLABORATIONINFORMATION AVAILABILITYSHARING OF THE SAMEHELP IN DECISIONSCOMPLEXITY & DIFFICULTYTECHNICAL CHALLENGESTRUST

ACHIEVING COORDQUANTIFY THE

BULLWHIP EFFECTGET TOP MGMT COMMITMENT

DEVICE RESOURCES FOR COORD

FOCUS ON COMN WITH OTHER STAGES

ACHIEVING COORDTRY TO ACHIEVE COORD IN THE ENTIRE SUPPLY CHAIN

USE TECH TO IMPROVE CONNECTIVITY IN THE SC

SHARE THE BENEFITS OF COORD EQUITABLY

THANK YOU