Model for Supply Chain Change

Figure 15.1 repeats a model for supply chain change introduced in Chapter 13. Such a model could form the nucleus of a singular methodology, Level 3 in the Kerzner maturity model. We have already used the approach to define the supply chain strategy. An important point is that it also applies to process improvement projects that implement the strategy. 

Ideally, those responsible for supply chain change in a business unit would follow a deliberate process similar to the model shown in Figure 13.1. An organization needs a structure like this to control the change process and communicate that process to its employees. A disciplined management team will insist on it. 

To put every scenario on a common basis, CGR Management Consultants and SFI developed a common cost model. Its purpose was to eliminate these differences when evaluating the underlying changes in location. The model, called SITELINK, used a structure that is adaptable for supply chain network optimization modeling. Figure 44.1 is a simplified stmcture of the SITELINK model. 

No doubt the fact that the effects of the SCI are estimated on the basis of discussions with experts, thus relying on their wealth of experience is not conducive to the accuracy of the generated results. However, a process perspective was integrated into the structuring scheme to create a link for supply chain models. The simulation of operative changes produced by concrete SCIs within such a model and the subsequent introduction into the developed structuring scheme and matrices and A ... 

Global models since being more strategic oriented less addressing chemical supply chain specifics required for tactical production planning such as change-overs or recipes... 

We label the factors such that all factors have the same meaning in the three simulation models. To achieve this, we introduce dummy factors for the Current and the Next Generation models that represent those factors that are removed as the supply chain is changed. Such dummy factors have zero effects but simplify the calculations and interpretations of the sequential bifurcation results. 

In the near future, the main concerns of CAPE will probably focus on issues related to product design (molecular modeling for solving function-property-composition problems), supply chain management (cost reduction of raw materials, effective use of energy and its new sources), and life cycle assessment (mitigation of climate change, process sustainability). 

Evolution to a demand-driven supply chain will likely proceed in the order proposed above. Shortening the lead-time is fundamental to changing batch model economics. Basing decisions on demand comes after adopting the economics of the flow model. Along the path, there is feedback to earlier steps. For each phase in Fig. 2.6 above there are three to four methodologies to be applied towards a DDSC operation. 

Wang, Y.C.W, Chang, C., Heng, M.S. (2004). The levels of information technology adoption, business network, and a strategic position model for evaluating supply chain integration. Jourwa/ of Electronic Commerce Research, 5(2), 85-98. 

The model in Figure 3.1 shows innovation as the engine of change, affecting both products and the processes needed to produce them. An innovation in product technology, such as nanotechnology or improvements in diesel engines for automobiles, will act on current supply chains for related products and services. 

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