BOOK:Supply Chain Revolution
- Innovative sourcing and logistics for a fiercely competitive world
Contents:
introduction
- Steve jobs
- Zara
- TJX
chapter1&chapter2
- increase revenue
- reduce business risk
Notes:
Part 1
Introduction
- supply chain
- Steve Jobs
- The field of supply chain has expanded into new areas that are revolutionizing business. It is now able to help businesses drive revenue, manage corporate risk, drive excellence, and continue to reduce costs.
- supply chain management and sourcing.(供应链管理和采购)
- Need for supply chain revolution
- We are entering a time of testing for business leaders: Those who can evolve will survive; those who can’t won’t.
- In an era when management will need to exploit every competitive advantage it can find, leaders who continue to think of supply chains and sourcing only in terms of cost reduction will be at a serious disadvantage.
- Success will come to leaders who learn to see them as potential drivers of revenue growth, innovation, and risk reduction.
- Zara’s supply chain advantage
- having a highly responsive, demand driven supply chain.
It keeps almost half of its production in-house, leaves room for extra capacity, and manufactures and distributes products in small batches.
Zara offers a large variety of the latest designs quickly and in limited quantities, (in-house内部的)which allows them to command a higher fraction of the full retail ticket price (an estimated 85%) compared to the industry average (60% to 70%). market cap(市值)
- sourcing
- TJX
- They have turned traditional retail sourcing on its head and have thereby created value.(颠覆了行业)
- business results 业务成果
- change management:
step up to change
Drive customer satisfaction——Through excellent service
- Customer service is a team effort. It’s important that front line colleagues are supported by a well-oiled machine that can meet or exceed customer expectations
- Amazon:
customer service:
- two-day delivery(a focus on its supply chain)
- same-day delivery
- Best Buy:
-fewer salespeople
- more self-help product information for its customers
- increasing service levels:
- When I ran sourcing projects for my clients, suppliers would provide free services as a way to sweeten the deal. Over time, it became an acceptable industry norm.
- segment their service offerings
- To be known for service, a company should have intimate knowledge of customer needs, the ability to provide service that is difficult for its competition to match, and a way to get customers to pay for the better service.
-
tailoring service level by customer segment
-
first step:classify customers by segment
(irrespective of 不考虑,不管,不受影响) -
second step:develop a menu of service levels
-
third step:identify service levels appropriate for different segments
-
developing a competitive edge
-
getting customers to pay for increased service
-
improve service with the help of supply chain
need to ask about its customer service:
- How do you measure customer service?
- Are you focusing on customer-facing employees or underlying operations to improve customer service?
- Are you able to improve service in a cost-effective manner?
- Is your service model unique and difficult for competitors to copy?
- What’s the best way to improve customer service?
- Do you include supply chain organization in customer service discussions?
- In addition to improving customer service, companies can boost revenue by bringing innovation quickly to market and being responsive to market demand.
Boost revenue with supply chain
- A supply chain specifically tailored to a company’s business model addresses these challenges effectively and, in turn, boosts revenue and profits.
- Customization(监管) Philosophy
- Demand Planning and Communication
- Companies need to find a balance between competing priorities.
My reading:
- By reading chapter1 and chapter2 in the Book: Supply chain revolution, I learn that the significance of the innovation of sourcing and logistics for a fiercely competitive world, which means the supply chain in all industries.It is the first time for me to think about the role in the process of manufacture supply chain plays. In the past, I instinctively held the idea that the feedback and profits of product mainly depend on its quality.After reading this book and talking to the author of this book in my mind, I turn into assuming that supply chain certainly plays a decisive role in the revenue of the company.
- Besides, we can drive customer’s satisfaction through excellent customer service.By providing different services for different kinds of customers, It can boost revenue to bring innovation quickly to market and being responsive to market demand.By contrast, different strategies of different companies leads to different results. Obviously the decisive role of supply chain for a firm is vindicated.
- As the era of big data is coming, we are faced with new challenges and chances, I believe that the Block Chain will innovate the conventional supply chain as well, and I look forward to learning more about the future of supply chain with this new technology.
11.17
chapter3. Art of alliance(involve sourcing in: Alliances can make or break a company)
- Sourcing organizations have experience with deal negotiations and governance of these types of relationships.
- Unfortunately,most CEOs are not aware of the sourcing organization’s capabilities and instead involve sales or business teams in leading and finalizing their strategic alliances.
- Involving the sourcing organization in deal negotiation(交易谈判) and in the governance or ongoing partner engagement can significantly improve the success of alliance.
Part 2 reduce business risk through efficient operations
chapter4. De-bottleneck the supply chain and reduce risk
- business risks from supply chain
Steve Jobs focused his talent on three problem areas: Apple’s product pipeline, its marketing, and its supply chain.
11.24(7.8.3.4:先略读,再精读)
Part 3 Improve Profitability from areas that are Currently out of scope for Sourcing Organization
chapter7 Smart real estate outsourcing(外包,交外办理)
- need for smart sourcing:be given to a third party to manage
- cost savings vs cost reduction
- trends:business models of the outsourcing industry are evolving rapidly
- evolving customer expectations
ask for performance against budget and began to put the management fee at risk based on cost performance.(要求绩效低于预算,并且开始根据成本绩效将管理费置于风险之中)
at stake=to be win or to be lost
- As we work with our clients, we see a short-term and longer-term trend
- enable cost reduction with technology:location and utilization
- making smart outsourcing a reality
Outsourcing is a means to an end.(译:达到目的的手段)
Part 4:drive business excellence with help from sourcing(在采购部的帮助下推动业务的卓越发展)
chapter8 source excellence
- achieve excellence
- business:sourcing organizations and suppliers helping companies achieve excellence.
- Apple helping AT&T wireless achieve excellence
- 360 triangulation
- Supplier workshops
- making excellence a reality