Presentation report global supply chain management topic supply chain integration

VIET NAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DAI HOC TON ĐỨC THẮNG PRESENTATION REPORT GLOBAL SUPPLY CHAIN MANAGEMENT TOPIC:

VIET NAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

DAI HOC TON ĐỨC THẮNG

PRESENTATION REPORT GLOBAL SUPPLY CHAIN MANAGEMENT

TOPIC: SUPPLY CHAIN INTEGRATION

Lecturer: Ph.D Le Phuoc Luong Subject code: 702049

Class group: 10 Group: 05

HO CHI MINH, MAY 2022

MEMBER LIST

No Full ID student Assignment Evaluation name

Đã - Content analysis: Impact of Internet

Nguyễn on supply chain strategies; Examples

0I Minh 719H1104 | from some industries 100% Phuong - Presentation

Tran - Content analysis: Pull system

Quan - Presentation

- Content analysis: Supply Chain

Võ Kim Integration (Definition, Role,

03 Nguyệt 719H1107 Information Sharing) 100% Qué - Presentation slides designing

- Game slide design content Huynh - Content analysis: Push systems

04 Quang 7IH0500 | Presentation slides designing 100% Sang

à - Content analysis: Explain the

05 | Nguyên | 718H1018 | integration (Roles of SCI) 100%

Thai Son -

- Presenfation Trần - Content analysis: Push-pull system

06 Ngoc 719H0797 | _ presentation 100% Anh Thơ

- Content analysis: Demand-driven

Nguyén strategies; Impact of Lead time

07 | Trân Anh | 719H0534 Thư - Report’s format editing 100%

ACKNOWLEDGEMENT

A completed report would not be possible without any assistance Therefore, our reporting team would like to thank them for their support and motivation during the writing of this report

First of all, we would like to express our infinite gratitude and deep gratitude to Ph.D Le Phuoc Luong - in charge of teaching the subject of Global Supply Chain Management His continuous support and lectures helped our group complete the report well Without the teacher's motivation and guidance, the report could not be produced effectively So far, we would also like to thank the research articles available on the website which greatly assisted in the data collection process and the previously researched information Besides, we would like to thank Ton Duc Thang University, Faculty of Business Administration for organizing and teaching a very useful course for our group to have the opportunity to research this topic

Finally, we would like to express our deep gratitude to all the members of group 5 who actively contributed ideas and developed the article The contribution, support and mutual help of everyone has contributed to completing the report successfully

Ho Chi Minh, May 2022

TEACHER’S COMMENT

Ho Chi Minh, May 2022

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11 Definition: - 9 V2 Role: Sàn HH HH HH HH HT TH HT TH HH TH TH TH Tp 9 1.3 Information Sharing in Supply Chạn Integrafion: - sa nhe 9 1.4 Explain the introduction of supply chain integration (Roles of SCD: - 10 CHAPTER 2: PUSH, PULL, PUSH-PULL SYSTEMS LH re 12 P9092 n5 e 12 2.1.1 Advantages of push syStem LH HH TH TH TH TH HT KT KH ky 12 2.1.2 Disadvantages of push sVStem - n LH nHH ng KH TH HT HT HH TH TH TT Hy 12 2.1.3 Condifions to use push system for ÿYOUT €OITIDATV 2 5n 3n tHerrsrrrrrrsrre 13 2.2 Definition of PulÏ sySf€im 1 3n THTTH T ng Hà H T T h H h Hà v 13 2.2.1 Advantages oŸ pulÌÌÏ sySf€im - - Sàn HH HH HH HH HH HH TH gi 14 2.2.2 Disadvantages oŸ puÏÌÏ sySf€Im - - Sàn HH HH HH HH Hy 14 2.2.3 Practical application 0 0 0 tees ẻỐẻẦẦẦẦẦẦẦ 14 2.3 Definition of push-pull] SySÍCIN - nàng HH HH HH KHI 14 2.3.1

2.3.2

2.3.3 Differences of push and pull eects 2 + + 323153 912 kg HH tri 16 2.3.4 Impact oŸ push-pull on supply chaÌn 5c 2à n nghi, 17 CHAPTER 3: IMPACTS ON SUPPLY CHAIN STRA TEGIES cành 18 3.1 Demand-driven sfraf€gÏes - - HH HH HH TH TT TH HH HH 18 3.2 Impact oŸ Lead fỉme - 1S TH HH TH Tàn TT HP 19 3.3 Impact of Internet on supply chạn sfraf€Ẹ€S net 20 3.4 Examples from some ÏndUSÉTÏ€S - 5 nh HH 21

CONCLUSION REFERENCES

LIST OF FIGURE Chapter 1:

Figure 1.1: Information Sharing in Supply Chain Infegraflonn s55 << s5 << <<cssec+ 9 Chapter 2:

Figure 2.1: Definition of push-pulÏ SySf€Tm - - << << + xx E nH H HhvnHrnrư 15 Chapter 3:

Figure 3.l: Impact of lead time and UC€TẨA1TIẨY - cà xxx ngư như 19 Figure 3.2: Example supply chain integration in Grocery I[ndusfTy - -<‹« 22 Figure 3.3: Example transformation to integrated supply chain within the construction

06 0 23

LIST OF TABLE Chapter 2:

Table 2.1: Differences of push and pull na 17

INTRODUCTION

We observed that supply chain management revolves around efficient integration

of supplier, manufacturings, warehouse, and stores The challenge in supply chain integration, of course, is to coordinate activities across the supply chain so that the enterprise can improve performance: reduce costs, increase service levels, grow down the bullwhip effect, Many companies realize that this is not only a problem in the production and transportation process but also by the process of integrating the front end

of the supply chain, customer demand, to the silver end of the supply chain, the production and manufacturing portion of the supply chain To clarify the above issue, our team will analyze and clarify 4 main contents which are:

- Various supply chain strategies, including push, pull and a relatively new paradigm, the push-pull strategy

- A framework for matching products and industries with supply chain strategies

- Demand-driven supply chain strategies

- The impact of the Internet on supply chain integration

Our team will present this content in turn in the following 3 chapters:

Chapter 1: Supply chain integration

Chapter 2: Push, Pull, Push-Pull systems

Chapter 3: Impacts on supply chain strategies

Throughout the report, it is inevitable that there will be small errors, the comments, comments and evaluations of the teacher and you will be valuable experiences for us to carry out future projects

CHAPTER 1: SUPPLY CHAIN INTEGRATION

1.1 Definition:

"Integration of supply chain is how everyone in the team and company and its trading partners work in sync to achieve the same business objectives via integrated business process and information sharing"

Supply chain integration allows all the parties involved to simply exchange information through all planning, execution and completion of transport and logistics operations by using a standardized and centralized system

1.2 Role:

Supply chain integration is recognized as an important factor to reduce costs in the supply chain, and it offers a number of competitive advantages: Provide good service quality in the right time and right place, complete transparency all the way from supplier

to customer

Supply chain integration also provides a platform for the flexibility to respond to market changes, which in turn causes fewer problems or risks arising from inventory Supply chain integration boosts workflow speed in the business chain and reduces production time as well as uses resources more optimally

1.3 Information Sharing in Supply Chain Integration:

Oo——— Supply Chain Integration ——————O

Baseline Functional Internal External

Integration #§ Integration Mj Integration

Information Sharing

Figure 1.1: Information Sharing in Supply Chain Integration

Baseline: This is the first stage in each department within the same company and it manages supply chain issues separately At this stage, “Functional Silo" is a major problem Silo is a psychological state when some departments do not want to cooperate and share information with others in the same company, which reduces overall operational efficiency across the entire supply chain

Functional Integration: In this next stage, all the different departments within a company will work together to reduce costs and improve efficiency Functional integration aim is linking more efficiently elements of the supply chain

Internal Integration: All the departments within a company are connected via the same IT infrastructure to work efficiently together Using these systems allows each department to share their needs and identify collaboration opportunities

External Integration: The final stage involves both external vendors and internal departments Each company in the same supply chain shares information, collaborates and works together to reach the same goal All company mutual support to generate the best possible results that are to satisfy the customer service and customer's requirements 1.4 Explain the introduction of supply chain integration (Roles of SCD:

Supply chain integration is a process where all the parties involved with the fulfillment of a product are integrated into a single system This requires significant coordination and alignment in order to ensure everyone is effectively working toward the same goal at all times

Having the parts required for a product show up where they are needed, when they are needed, helps to not only prevent delays in the manufacturing process, but also eliminates a lot of wring parties that are often at odds together with a single focus All of the materials and components from along the supply chain are needed, and

by integrating everything into a single system, it is much easier for effective product creation

We observed that supply chain management revolves around efficient integration

of suppliers, manufacturers, warehouses, and stores The challenge in supply chain integration, of course, is to coordinate activities across the supply chain so that the enterprise can improve performance: reduce cost, increase service level, reduce the bullwhip effect, better utilize resources, and effectively respond to changes in the marketplace As many companies have recently realized, these challenges are met not only by coordinating production, transportation, and inventory decisions, but, more generally, by integrating the front end of the supply chain, customer demand, to the back end of the supply chain, the production and manufacturing portion of the supply chain The objective of this chapter is to illustrate the opportunities and the challenges associated with supply chain integration We consider:

e« Various supply chain strategies, including push, pull, and a relatively new paradigm, the push-pull strategy

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« A framework for matching products and industries with supply chain strategies

e¢ Demand-driven supply chain strategies

¢ The impact of the Internet on supply chain integration

Obviously, the availability of information plays an important role in supply chain integration In some cases, the supply chain must be designed to make this information available In other cases, the supply chain strategy must be designed to take advantage of information that is already available And, in many cases, an expensive network must be designed to compensate for the lack of information

Example:

There are different levels of supply chain integration We will understand this with the help of an example of a computer manufacturing company The initial step in integration shall include choosing precise merchants to supply certain inputs and ensuring compliance for them for supplying certain amounts of inputs within the year at

a Set cost

This assures that the company has the appropriate materials required to produce the expected output of computers during the year In the meanwhile, this computer company may sign a bond with a large supplier of circuit boards; the bond expects it to deliver a precise quantity at precise times within a year and fix a price that will be effective during the bond year

If we move to a higher level, the next step would be to integrate the companies more closely The circuit board supplier may construct a plant close to the assembly plant and may also share production software Hence, the circuit board company would

be able to see how many boards are required in the upcoming month and can construct them in time, as the company requires them in order to meet its sales demand

Further higher level is referred as vertical integration This level starts when the supply chain of a company is actually owned by the company itself Here, a computer company may buy the circuit board company just to ensure a devoted supply of elements

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CHAPTER 2: PUSH, PULL, PUSH-PULL SYSTEMS

2.1 Definition of push system

In a push-based supply chain, products are pushed through the channel from production up to the retailers This means that production is dependent on forecasted demand

Using a push system is preferable in instances where there is a high demand for a given product and having large amounts of inventory in stock is beneficial for meeting consumer demand

2.1.1 Advantages of push system

Measuring performance: The push systems allow corporate planners to use historical demand from all channels to accomplish shipping targets while reducing channel inventories

Central planning: Channel planners may establish a single inventory plan for the ongoing ordering and deployment of channel goods by centralizing all inventory planning and replenishment allocation

Cost savings: Companies can lower the total working capital required to fill the supply channel by centralizing inventory planning and deployment Furthermore, operating costs are lowered as a result of cost savings in transportation and purchasing Rather than ordering goods to satisfy individual branch demand, central purchasing can aggregate requirements from all branches, lowering inbound shipping and acquisition costs while getting quantity price reductions and other order savings

Safety stocks control: Whereas safety stock is a feature of inventories that are subject to independent demand, a "push" method allows planners to concentrate safety stockpiles at the central facility "Push" systems lower overall inventory costs while maintaining high channel serviceability by reducing needless safety stocks carried at each channel point

2.1.2 Disadvantages of push system

The inability to meet changing demand patterns

The obsolescence of supply chain inventory as demand for certain products disappears

The variability of orders received from the retailers and the warehouses is much larger than the variability in customer demand, due to the bullwhip effect This increase in variability leads to:

e Excessive inventories due to the need for large safety stocks

« Larger and more variable production batches

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e Unacceptable service levels

e Increased transportation costs, high inventory levels, or high manufacturing costs, due to the need for emergency production changeovers

Example:

Consider the case of a wood trader who has sold 200 dozen twelve-foot boards every week for the past five years The firm sells 35 percent more during the dry season when there are more construction projects The firm expects sales of 3,240 boards as a result of this surge, especially when the government eases the COVID ban It places an order with the saw-milling provider for 3,240 boards right away

However, the actual client order amounts to 3,223 boards, which the corporation

may sell for a higher profit under the current conditions

2.1.3 Conditions to use push system for your company

Your company is more than a year old: It's unusual for a company with less than a year's worth of data to be able to effectively estimate demand and account for big highs and lows A greater sample size allows you to account for more factors, improving your forecast accuracy

You have enough profit to cushion unforeseen mishaps: If estimates turn out to

be inaccurate, a company that sells a variety of items and is typically well-established will not be affected

Your sales volume is high: To counteract the possible impact of surplus inventory, a high volume of sales is required It's easy to predict if your product will sell rapidly in the future if you're selling it

You have high manufacturing fees: If your manufacturer charges high per-order costs, doing bulk orders is the most cost-effective option If you overstock a slow-moving product, you run the danger of suffering big losses

In general, push systems are appropriate for bigger businesses that have a good handle on inventory turnover The hybrid push-pull technique may be a better option for minor problems or new firms

2.2 Definition of Pull system

In a pull-based supply chain, procurement, production, and distribution are demand-driven rather than based on predictions In other words, this system adapts production to actual demand Production and distribution demand driven, coordinated with actual customer demand rather than forecast demand Goods are produced in the amount and time needed The firm does not hold any inventory and only responds to specific orders

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