Appunti di Construction Supply Chain Management

SCOR Model

Supply chain operations reference

• Supply Chain

We have it in the product industry and in the service industry

Upstream or supply side

Downstream or demand side

We see circulating raw materials, intermediate components, end product

It ends with the final customer

The assembly is around

FOCAL FIRM - the strategic or dominant actor in a supply chain.

It orchestrates the all flow of materials connecting upstream and downstream side.

The EXECUTION FLOW goes from raw materials to finished products to the distribution network to the retailers, to the end customer.

Each one of these steps of the supply chain is called ECHELON or LAYER or STEP -> Each layer represents a customer-supplier relationship.

Supply Chain -> A multiple customer-supplier relationship involving several actors from raw materials to the final customer.

To properly represent a supply chain: 2 Main Dimensions

• The length of a supply chain
• The width of each tier

(Sometimes the wider the network in terms of suppliers, the wider is the corresponding geographical wide of the supply chain)

• In terms of elasticity
• In terms of ability to respond very quickly to what the customers want to buy

Faster processes and new products in a short time

(This is the down side of global competition)

The second reason of importance of SCM is connected to the fact that we have not to consider a firm as a stand alone entity but as a part of a network

You don't need to optimize your internal processes.

But you have to look and manage the processes beyond the boundaries of your company

This means that you don't compete company A vs company B; the competition is one supply chain vs another supply chain.

This is a shift on competition

This means for instance

Manufacturer Distributor

Engine A + B costs A Car SC₁

B Car

SC₂ ⬑Margin

⬒costs C C Car

D D

SC₃

ORGANIZATIONAL MODELS

The models we have come from US and they innovate some organizations.

1° Type FUNCTIONAL MODEL

Every single function has its own way of doing business, so we have a general manager and then different managers for each specific function.

2° Type DIVISIONAL MODEL

All key activities to reach the company goals become profit center.

Supposing a company that provides formulars, the formulars for the school are different from the ones for hospital or residential or offices. So there is a specialization by market segmentation (divisions), and in every single division we have the functional organization.

Every single division is like a company in itself.

3° Type MATRIX MODEL

The most used in all multinational companies is!

There is the divisional model and then you have to sum up all the marketing managers, then all the managers of customer service and so on, because the level of service that you provide must be equal for all the divisions.

• All the DIVISIONAL MANAGERS are measured on the financial result
• All the FUNCTIONAL MANAGERS are measured on the efficiency and best practices.

WHAT TO DO IN THE MARKET

SC STRATEGY

2 Models for Supply Chain Strategy

• Supply Chain

Is a multiple supplier-customer relationship

Meaning:

you are intended to take a choice not just to your supplier and your customer, but also to the customer of the customer and to the supplier of the supplier.

The Importance of Supply Chain

lies in the fact that there is an increasingly growing trend toward an evolution of the competitive paradigm from competing between companies to competing between supply chains (some companies are competitors in some stages of the supply chain, ex at the distribution level, but they are partners at ex the manufacturing stage)

• Models for Supply Chain Strategy

A strategy has 2 dimensions:

• A space-wise dimension of strategy: an issue is strategic as long as it impacts the whole supply chain (organization).

A time-wise dimension of strategy

If the strategic issues are here, it means that they involve the whole organization in the long term.

1) Alignment

A good alignment between internal and external processes is the first building block of our strategy.

We need to understand who are our customers and what we are mainly able to do.

2) Product and demand characteristics

We have to consider that innovative products require responsive supply chains and functional products require efficient supply chains. Second building block of our strategy.

3) Process typologies

We follow the same idea of predictable vs unpredictable applied to demand and so to products considering processes.

Hai Lee Model of Supply Chain Strategy

3° ingredient

• Hai Lee considers 2 types of processes:
• Stable processes
• Evolving processes

Contribution of Hai Lee Model → He created a model able to interpret according to some specific characteristics the notion of stable vs evolving.

(If a process has a lot of characteristics related to "stable" and some characteristics related to "evolving" we can say that the process is stable) → Segmented company

Different companies have their own specific features that make them able to provide an adequate service level to a specific population of customers.

SC SEGMENTATION

means

Our ability to move different product lines coexisting in the same plant or at the shop floor level by targeting at the same time completely different types of customers.

Here emerges the need to face our globalized population of customers.

GLOBAL SUPPLY CHAINS

• worldwide extended SCs.

• There are CUSTOMERS ALL OVER THE WORLD with different needs in terms of service level.
• There is a RIGID PRODUCTION CAPACITY placed somewhere in the world.

How can we develop our business in a way we are able to provide the right products at the right price and time to a worldwide population of customers?

• Global company = International company

synonym

• Global SC = International SC?

Example of PORSCHE and BMW (luxury car manufacture)

• Both German companies with headquarters in Germany
• They compete globally having customers all over the world

GLOBAL COMPANIES

INTEGRATED FACILITY MANAGEMENT AND ADOPTION LIFE CYCLE

• INTEGRATED FACILITY MANAGEMENT

All the activities need to be controlled by technology and need to have a support system available like IMS (maintenance management system) or the CMMS (computerized maintenance management).

Then you need to have:

• SLA’s control
• KPI’s control
• A unique data repository in which all the activities can be reported and controlled.

• Organization point of view

There is the CLIENT

could be

• INTERNAL
• EXTERNAL

You have a function that is providing services related to FM.

When you have an external company that is providing facility services.

In front of the client you need to have a SPOC simple point of contact that is organizing and synchronizing all the activities.

Then you need somebody that makes all the necessary BPR business process redesign

Then there is the OPF (operational process framework) that are the people that are coordinated.

Then the lower part is the SSD simple service delivery