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1、MIT Forum for Supply Chain Innovation Disclaimer: Opinions expressed in this presentation are that of the author. It does notrepresent the consensus opinion of MIT as an institution or other faculty that may bedirectly or indirectly associated with MIT School of Engineering or MIT Sloan School.MIT F
2、orum for Supply Chain Innovation u UNCERTAINTY URL for powerpoint presentation /innovationEducation Course 1.270 / ESD.273MIT Forum for Supply Chain Innovation Nobel Prize in Economics 2002 (announced today, 09 Oct 2002)for having integrated insights from psychological resea
3、rch into economic science, especially concerning human judgment and decision-making under uncertaintyfor having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms Daniel KahnemanVernon L. Smith1/2oftheprize1/2ofthepri
4、zeUSAandIsraelUSAPrincetonUniversityPrinceton,NJ,USAGeorgeMasonUniversityFairfax,VA,USAb.1934b.1927MIT Forum for Supply Chain Innovation BODY SCANNER BY TC2MIT Forum for Supply Chain Innovation Invasion of the Body Scanners Digitally speaking MIT Forum for Supply Chain Innovation Part of the Process
5、MIT Forum for Supply Chain Innovation PERSONALDIGITALPROFILEMIT Forum for Supply Chain Innovation Customer: How will I look in this dress?Retailer: What should we order for Fall ?Manufacturer: Whats the next demand?Data miningData MartRetailersAccessoriesJewelry, ShoesShiseido, CoachHarrods, M&SGucc
6、i, BallysGuerlain, PoloUSD, DEMEURO, INRYEN, YUANTRAVELHEALTHEDUCATIONARTS & MUSICCelebrityGalleryWorld History ofFashionThe Way We WoreData WarehouseBODY SCANeFASHIONEBCB2BAnne KleinLevis, BebeTalbots, AXChina, India, SiamFABRICSUPPLIERSDataWarehouseFABRICBROKERINDEPENDENTDESIGNBROKERGlobal DesignW
7、AREHOUSEMEDIA / POPTailors-Contract ShopsAmateursDesign ForumManufacturingTailor BrokerOrderIndividual Tailors On-callPreference SurveySHIPPINGMALLamFinancialRETURNCRMDONATESalvation ArmyCAREGoodwilleBAYBoutiquesJ C PenneyOutlet StoresAmateurModelsSHIPPINGERPRETAILERSMACYS, NORDSTROM, BLOOMINGDALESP
8、ERSONALPROFILESOFTWAREPERSONALPROFILEANALYSISPortalMIT Forum for Supply Chain Innovation Customer Relationship ManagementSource: AMR Research 1999 OctoberMIT Forum for Supply Chain Innovation Lack of rule-based resolution: expectation vs resultu Financial Impactu Cost of Correctionu Side Effects MIT
9、 Forum for Supply Chain Innovation Financial Impactu Opportunity lost: unable to ramp upu Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Cost of Correctionu Resourcesu Inventory MIT Forum for Supply
10、 Chain Innovation Side Effects (undesirable)u Tackle only symptomsu Negative fall out MIT Forum for Supply Chain Innovation Insulation of Planning from Execution Individual optimisation not SC optimisation Smart-Hub and Dumb-Spoke Configuration Isolation of Environment of OperationMIT Forum for Supp
11、ly Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation What to do ? Understand customer need Monitor supply availability Manage supply chain partner performance Decentralize problem solving Monitor corrective actions and feedback Include macro-economic indica
12、torsMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Financial Impactu Opportunity lost: unable to ramp upu Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Su
13、pply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum fo
14、r Supply Chain Innovation MIT Forum for Supply Chain Innovation Push-Pull Supply ChainsThe Supply Chain Time LineLow Uncertainty High UncertaintyCustomersSuppliersPUSH STRATEGYPULL STRATEGYMIT Forum for Supply Chain Innovation From Make-to-Stock Model.ConfigurationAssemblySuppliersMIT Forum for Supp
15、ly Chain Innovation to Assemble-to-Order ModelConfigurationAssemblySuppliersMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Imagination is out of focus !MIT Forum for Supply Chain Innovation Inven
16、tory ManagementOrder ProcessingE-BusinessVendor ManagementTaxElectronic CommerceFinancialsMarketingExecutive InformationInventory ProgramsAccounts PayableStock TransfersWarehouseInbound QA1ReceivingRepair OrdersPurchasingAccounts ReceivableOutbound QAShippingOrder ServicesQuotingCreditCustomer Manag
17、ementMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Observation 199883 million accessthe Internet inlanguages otherthan EnglishProjection 200570% of 1 billio
18、nusers may notspeak EnglishFACT46% US businessrefuse intl orderbecause they lack means toprocess them.JapaneseSpanishGermanFrenchChineseDutchKoreanSwedishItalianMIT Forum for Supply Chain Innovation Conceptual advances occur about twice a century and lead to wealth of nations DistributedIntelligence
19、NanotechMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation PLANEXECUTESENSERESPONDDEMANDEXCEPTIONMIT Forum for Supply Chain Innovation CustomerCustomers DCMANUFACTURERRaw material SUPPLIERSStoreStoreStoreStoreStoreStoreStoreStoreDCDCDCPaperMedicalCottonStorePlantDCPlantDCREA
20、L TIME ePCePC data from RFID TagReplenishmentneedsConfirmationLoadsStore OrdersStatusImmediateReplenishmentneedsFutureshipping needsReplenishmentneeds determinedfrom RFID Tag info“Intelligent Signal”PORTALS / ExchangeTransportCustomer Info CenterManufacturerHQreal timeRFID dataPersonal CareConsumer
21、TissueHealth CareInformationAgentInventory Early Warning AgentTLB AgentCross-Docking AgentConsumptionInventoryDataDC to MfrMIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCCustomerStoreStoreStoreStoreStoreStoreStoreStoreStoreIndustry b
22、est now versus what can be achieved:Day 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Product =InfoDay 7Received, unloaded & stocked on store shelvesDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Non-value-added time=Product=InfoPortalTransportCustomerCenterManufacturerMIT Forum for Supply Chain Innovati
23、on DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStoreConsumerBuys SCOTT 2pm Day 0=Product =InfoMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCPo
24、rtalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =InfoRFID Smart Tag atPOS read 2pm Day 0Day 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day
25、 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001112pm Day 0RFID Smart tag datatransmitted instantly010110011011101000111MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day
26、 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001110101100110111010001112:10pm Day 0Replenishment needs receivedby scheduling (TLB) systemsMIT Forum for Supply Chain Innovation DCDCDCPaperMedical
27、CottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info0101100110111010001112:35 pm, Day 0System detects OOS danger at customer & co-ordinates rapid-response shipment (reallocation o
28、f en route load evaluated)010110011011101000111010110011011101000111010110011011101000111MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreS
29、tore=Product =InfoSmart PlannerSmart Plannerinterrogates interrogates demand filterdemand filterMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStor
30、eStoreStore=Product =InfoSmart Planner integrates info:current inventory, shipment, planning MIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreSt
31、oreStore=Product =InfoSmart Planner executes changes, broadcasts plan, exceptions, optionsMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStore
32、Store=Product =InfoMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info10pm Day 0Customer DC receives SCOTTMIT Forum for Su
33、pply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info11pm Day 0Customer DC ships SCOTTMIT Forum for Supply Chain Innovation DCDCDCPaperMedic
34、alCottonPlantDCPlantDCDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0PortalTransportCustomerCenterManufacturerCustomerStoreStoreStoreStoreStoreStoreStoreStoreStore=Product =Info3am Day 1Received, unloaded & stocked on store shelvesMIT Forum for Supply Chain Innovation DCDCDCPaperMedicalCottonPlantDCPl
35、antDCCustomerStoreStoreStoreStoreStoreStoreStoreStoreStoreDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Product =Info3am Day 1Received, unloaded & stocked on store shelvesDay 1Day 3Day 4Day 5Day 6Day 7Day 8Day 2Day 0=Non-value-added time=Product=InfoPortalTransportCustomerCenterManufacturerMIT Forum
36、 for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 1 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 2 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 3 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day 4 MIT Forum for Supply Chain Innovation 2008: P&G shortens replenishment cycle from 120 days to 1 day
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