Week 13 - Redesign Supply Chain Process

Source / Reference:
1. Supply Chain Cost-Cutting Strategies
http://www.percon.com/whitepapers/Supply_Chain_Cost-Cutting_Strategies.pdf


Subject:
How redesign supply chain process can be carried out

Response:
A traditional supply chain has several tiers of enterprise types that enable the flow of products and services. For example, in a manufacturing supply chain, there are sourcing suppliers who produce components that are then assembled by manufacturers. It is known as buy side. Then manufacturer distributes their products through wholesale distributors, who in turn make them available to resellers and retailers, who sell them to business customers. It is called the sell side or distribution side.

There are two types of PIPs (the partner interface process): Open PIPs and closed PIPs.

The PIP approach for redesigning supply chain processes for e-business has a two-part sequence:

PIP is designed at the supply chain level, and then

Enterprise processes are aligned with and redesigned around the PIP.

There are five steps for PIP approach:

Step .1 Scoping the supply Chain Process

It involves understanding how the supply chain process fits into the supply chain process cluster and identifying partner scenarios for supply chain process. Final one is identifying sub-processes within supply chain process

Step .2 Identifying Partner Interface Processes within the Supply Chain Process

Identify the sub-processes that comprise the supply chain process. The partner types such as manufacturers and resellers that are associated with each sub-process can also be identified.

Step .3 Designing the To Be e-Business Partner Interface Processes

After identifying the boundaries of the main PIPs around the supply chain, it is possible to design the PIPs and specify them in detail. Designing an e-Business PIP around a supply chain process involves identifying roles, role interaction, creating PIP model and identifying the roles of the partners who perform the activities that make up a PIP.

Step .4 Estimating and Articulating Expected Impacts Due to PIPs

It can be done by running what-if analysis using the process modeling software, financial impact analysis (cost savings) and operational impact analysis (time savings)

Step .5 Agreeing on and Disseminating the Partner Interface Process Specification

Specification document disseminated to all who will implement the process and should be shared with all partner.

These are what I have learnt from lecture 13.