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03.06.2018

Online Educational Course “The Supply Chain Eco-System Framework”

by N. Viswanadham

Supply Chain Ecosystems are made up of a network of organizations, people, activities, information, and resources all of which are involved in moving a product or service from supplier to customer.

The course begins by describing how modern supply chains have evolved into complex international networks, which can no longer be adequately described using the linear concept of a ‘chain’. The course then reviews how modern supply chain ecosystems now comprise of a network of companies, countries and their governments, social and political organisations, natural, industrial (clusters), financial and human resources, delivery infrastructure including logistics and IT, and knowledge of the industrial environment. You will learn how within these ecosystems, each configuration is unique to the particular enterprise that owns that supply chain.

This course will be of great interest to all professionals who work in the areas of operations management, logistics, procurement and information technology, and to all learners who are interested in developing a career in the area of supply chain management.

The key points from this module are:

The Ecosystem Model: A framework to visualize all Operational, Strategic, Management and Execution issues.

Ecosystems comprise of a network of:
Companies, countries and their governments, Social and political organisations
Natural, Industrial (clusters) and Financial and Human resources
Delivery infrastructure including logistics and IT
Connections, and knowledge of the industrial environment.
All interacting together with the landscape and climate (economic and industrial).

Supply chain ecosystems consist of:
Institutions
Resources
Delivery Services infrastructure
Supply Chain

Institutions:
Customs, Export and Other Govt. Regulators
Quality Control and Environmental issues
Social, Financial and Trade issues

Resources:
Infrastructure, Sea ports, Airports, Roads
Industry clusters
Human, Financial and Natural resources and labor unions

Delivery Services infrastructure:
Logistics and IT companies
Transport – Rail, Air, Ship, Road
Logistics parks, SEZs, Freight corridors

Supply Chain:
Retail chains
Distribution
Manufacturing
SuppliersDrivers of Supply Chain Competitiveness

Resources: Labour, Materials and Energy
Government policies and investments on institutional, environmental and infrastructural elements
Delivery mechanisms: Logistics and IT

SES Framework can hep to study:
Governance
Risk
Innovation
Performance

The Five STERM Forces:
Science research
New Technologies
New Engineering materials
Regulations and policies
New Management techniques

Modular Product:
– Made by appropriately combining different modules.
– Provides customers a number of options for each module and thus the product.
– Products differ from each other in terms of the subsets of modules assembled to produce them.

Modular Process:
– Each module undergoes a specified set of operations making it possible to outsource its manufacturing and inventory to them in a semi-finished form.

Part Standardization:
– Common parts are used across many processes
– Products redesigned as necessary

Process Standardization:
– Standardizing as much of the process as possible, making a generic or family product.
– Final product assembly delayed until the customer order is received (i.e. called “postponement”).

Modular Organization Designs

Modularization of product designs paves the way for similar modularization of organization designs facilitting coordination of activities via an “information structure” rather than managerial authority or hierarchy.

The codification of knowledge and standardization (through technical standards and design rules) of the interfaces between organizationally separate stages of production has made vertical specialization (organizational modularity) replace vertical integration.

Types of Resources

Classical economics define:>
– Natural resources
– Human resources
– Financial resources
– Capital assets

Modern view also includes:
– Knowledge, Intellectual property
– Social capital relationships with stake holders
– Management of high value delivery processes
Special Economic Zones (SEZs)

SEZ is a geographical region that has economic laws different from the rest of the country. The goal of SEZs is to attract foreign investments. SEZs have been established in many countries – China, India, Jordan, Poland, Philippines, Russia and North Korea. Indian SEZs are not as effective as those in China probably because they are not as focused.

Clusters

Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions (universities, training) in a particular vertical.

Clusters allow companies to operate more productively in sourcing inputs; accessing inforamtion, technology and human resources.

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