“How to improve Organizational Performance and Profitability by implementing Success factors of Collaborative Supply Chain Environment”. Supply Chain Program for IBA Program Overview In today’s competitive environment organizations are struggling for sustainability and profitability. Besides Marketing and Financials issues Supply Chain issues like poor planning and forecasting, longer lead times, poor ordering, poor quality raw material, poor quality finished products and poor logistical activities etc, make a deep impact on organizational image and performance. Successful organizations are employing Supply chain Management techniques to minimize the supply chain issues which ultimately improve organizational performance and profitability. Many SCM related issues arise due to lack of collaboration and lack of information sharing among supply chain partners. Huge inventory levels (Bullwhip effect) and inventory stock out are due to lack of collaboration and poor planning, both of these issues impact the profitability of the organization. Through collaboration and combined planning organizations can improve planning and forecasting, and inventory related decision making, resulting in improved profitability. Proper SCM and inventory management requires coordination of all activities and links in the supply chain to ensure that goods move smoothly and on time from suppliers to customers and keep the inventories low and keep the costs down. High Level Program Objectives Improves Strategic thinking from Supply Chain Perspective. Understand the difference between the new and the old SCM paradigm Understand the importance of collaboration among supply chain partners. How supply chains can be streamlined with process and objectives alignment at the organizational and departmental level. Understand each other’s strengths, weaknesses, threats and opportunities at the organizational and department level. Improve strategic analytical skills and to ensures that the right things are done right and aligns the activities of organization to deliver the results To offer clear road map and powerful tools to ensure execution of the strategy. Improve supply chain planning skills. Understand the supply chain issues and its impact of organizational performance and profitability. Understand the success factors for successful supply chains. Understand how Supply Chain SWOT analysis help’s organization set realistic goals. Understand how the understanding of Product Life Cycle improves the Forecasting, Procurement and Production Planning To provide both the simulated & theoretical content as to identify and eliminate barriers in Supply Chain Management Page 1 Supply Chain Program for IBA Program Approach Supply Chain Simulation Stimulating Group discussion Competition based Rigorous Group Exercises Development of Supply Chain Planning Group Presentation Role Plays Why Use Supply Chain Simulation for Learning Supply Chain issues can be easily understood through a simulated supply chain environment. Management games (or business simulations) have been finding favor in business education in recent years. Business simulations that incorporate a dynamic model enable experimentation with business strategies in a risk free environment and provide a useful extension to case study discussions. SCM simulation game increases the participant’s understanding of Supply Chain dynamics and common supply chain issues and their impact on organizational performance. The game provides knowledge and understanding to the participants about the true SCM concept. The participant will get a crisp idea, what is a Supply Chain and how Supply chains function and operate and what are the issues that might cause disruptions in the smooth functioning of the organization. It is like running a business so it is much more than reading and solving a case study. The beauty of the game is that Participant's decision lead to the failure or success of the organization. How the Simulation will be played. The participant will be working in teams and will be assigned the role of Retailer, Wholesaler, Distributor, Manufacturer and Raw Material Supplier. The Participant will see the entire supply chain under one roof and will realize that their performance is dependent on not only on their own organizational performance but other team’s performance as well. The Simulation consist of the two following Phases 1st Phase “The Non Collaborative Environment” The non-collaborative business represents the scenario where organizations do not share business information among the Supply Chain Partners except for sending order and delivery information. In the 1st phase participants will play in a non- collaborative environment and will be working with the objective to maximize the individual organizational profits and see the impact of this approach as higher level of inventories (Bullwhip effect) resulting in decreasing profits and capital blocked in inventories. The Competition is among the same supply chain team members. After the 1st Phase simulation is completed, the participant will: Do a detailed analysis of the game along with identification of the issues they have faced and its impact on their business and on the Supply Chain as a whole. Identify the key lessons they have learned through observation and analysis. Page 2 Supply Chain Program for IBA 2nd Phase “The Collaborative Environment” In the 2nd phase the collaborative environment will be adopted and teams will be working in complete harmony and without the communication barrier towards the same business objective that is Supply Chain Profitability. Participant will observe the benefits of collaboration on lower level of inventories through better planning and Forecasting and its impact on organizational performance. In the 2nd Phase the competition is not with the same supply chain members but switched to other Supply Chains working in the same business environment. After playing the 2nd Phase of the simulation, the participants will: Do a detailed analysis of the game along with identification of the issues they have faced and its impact on their business and on the Supply Chain as a whole. Identify the key lessons they have learned through observation and analysis. Conduct a group presentation (Issues identified and key lessons learned). Who Should Attend? The Program is specifically designed for those who are interested in learning new skills and the best business practices in the areas of Purchasing, Manufacturing and Distribution. This course will be beneficial for those currently working in: Supply Chain, Freight Forwarding, Production Planning, Procurement / Purchasing, Inventory / Materials Management, Production, Logistics / Transportation, Finance, Sales and Marketing. Note: Functional knowledge of the respective departments is required. Minimum 2 years of work experience in the respective area. Knowledge of the processes and issues of the field is required. The Trainer Syed Ameer Hasan Rizvi has more than 20 years of versatile experience in industry and academia. He is associated with Institute of Business Administration (IBA) for the past 7 years. Prior to IBA he has earned extensive experience in the field of ERP and he has worked for Oracle Corporation (Dubai UAE) as Oracle Financial Sales Consultant 1998-2001. From 2002-2005 he has worked for Deloitte and Touché and Arthur Consulting (Canada 2002-2005) as Oracle Procurement Cycle Trainer. His strong areas are Supply Chain Management, Enterprise Resource Planning and Customer Relationship Management. He has conducted numerous workshops and courses for reputable national and multinational organizations. He is one of the Founding Members of SCAP (Supply Chain Association of Pakistan). In 2007-2008 he was part of the Japanese Forum and worked on Vision 2030 for Pakistan. He is also the Patron of Photographic Society and Adventure Society of IBA. Page 3 Supply Chain Program for IBA Program Topics Day 1 Introduction to Supply Chain Telecommunication Industry Challenges and organizational priority. Stakeholder’s Needs Analysis and Supply Chain Objectives Our ability to meet challenges (SCM Model Development of PTCL) Preparing Supply Chain to meet challenges Customers the true driving force in Supply Chain Customer Issues and role of Organizational departments Customers’ Expectations and needs and departments ( Best and Worst Characteristics of Products and Services) Setting Departmental Objectives (Supply Side and Distribution Side) Departmental SWOT Analysis Day 2 Understanding the Simulation Demo of the game Analysis of the Ordering Pattern and its impact on the supplier. Phase 1 of the Simulation Identification of the Problem area, issues and their impact , root causes and Key lessons learned Supply Chain Issues and its impact on Organizational Profitability Departmental Issues Identification Working in Non-Collaborative Environment (Advantages and Disadvantages) Day 3 Strategy Formulation for Global supply Chain demand Phase 2 of the Simulation Analysis of the Ordering Pattern and its impact on the supplier. Identification of the Problem area, issues and their impact , root causes and Key lessons learned Collaboration (Advantages and Disadvantages) Departmental Success and Failure Factors SCM Simulation done for the following organizations, SCM Workshop from CEE ( 4 Session) Agha Khan University and Hospital (2 Session) Sanofi Aventis ( 2 Sessions) Atlas Honda ( 2 Sessions) Atlas Battery ( 2 Sessions ) Rehmpack ( 1 Session) Young’s Food ( 2 Sessions) SMEDA (1 Session) Pharmacy Department KU ( 2 sessions) Page 4 Supply Chain Program for IBA Page 5
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