CLO 3 - Contemporary (Best) Practices in SCM - Dr. Walid Smew
CLO 3 - Contemporary (Best) Practices in SCM - Dr. Walid Smew
CLO 3 - Contemporary (Best) Practices in SCM - Dr. Walid Smew
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CLO 3: Contemporary (Best) Practices in SCM
Objectives:
To study the Contemporary (Best) Practices in Supply Chain Management (SCM).
Contemporary/Modern/Best practices used by a supply chain to become
‘best-in-class’.
To evaluate the effectiveness of contemporary practices to improve supply chain
performance
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CLO 3: Contemporary (Best) Practices in SCM
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How to build a best-
in-class supply chain
organization
https://www.youtube.com/watch?v=ylD901gv9UA
https://www.youtube.com/watch?v=sLJF9u-IoKQ
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CLO 3: Contemporary (Best) Practices in SCM
At a glance…
Establish a governing supply chain council
Properly align and staff the supply chain organization
Make technology work for you
Establish alliances with key suppliers
Engage in collaborative strategic sourcing
Focus on total cost of ownership, not price
Put contracts under the supply chain function
Optimize company-owned inventory
Establish appropriate levels of control and minimize risk
Take green initiatives and social responsibility seriously
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
Too many companies select software they hope will make them more
efficient, and they structure their workflows and processes around that
chosen technology.
Instead, they should first review the processes that need improvement,
and only then select the technology that best satisfies those process
needs.
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CLO 3: Contemporary (Best) Practices in SCM
Best-in-class companies work closely with suppliers long after a deal has
been signed. In most circles today, this is called "supplier relationship
management."
But that implies one-way communication (telling the supplier how to do it).
Two-way communication, which requires both buyer and seller to jointly
manage the relationship, is more effective.
A more appropriate term for this best practice might be "alliance
management," with representatives from both parties working together to
enhance the buyer/supplier relationship.
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
The global economic downturn means that more chief financial officers
have put inventory on their radar screens, and their financial teams are
constantly looking for new ways to improve the bottom line and reduce
working capital.
Supply chain organizations should therefore constantly review their
inventory quantities and strive to keep them at an optimal level.
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CLO 3: Contemporary (Best) Practices in SCM
Keeping them realistic and easy to understand and follow will help to
ensure compliance.
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CLO 3: Contemporary (Best) Practices in SCM
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CLO 3: Contemporary (Best) Practices in SCM
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Questions?
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