Interdependence
>
Independence
> Dependence
Supply Chain and Management of the
Improvement Process in SME (Small & Medium Enterprise)
An updated approach to understand the dynamics of the value chains
Lecturer: M.Sc. Javier Cruz Morales
Consultant in Business Management and the Change Process
The Goal:
“To acknowledge and analyze the necessary change process in your organization,
starting on your actual level of competitiveness, by means of the research on better
practices of strategic administration, a better market approach and the development of
more efficient business models”.
Interdependence
>
Independence
> Dependence
In business management,
interdependence stems from the
generation of better business
relations.
Business Relationships in
Supply Chain
1
They are Proactive
3
A change of paradigms is involved
5
Continuous improvement is required
2
4
They happen in a win-win context
A preparation process is required
Business relationships in the value
chain are:
• As dependent as the most dependent
• As fast as the slowest
• As safe as the least safe
What problems does the Supplier Chain Administration solve in your company?
Lack of precision in the prognosis of
the demand?
It is not necessary to administer the
risks of the supplier
The purchase administration is
divided in different areas in the
company
The authority line is not clear
Incomplete information on the
inventory
Lack of leadership and management
The people responsible for the
chain of strategic changes are nonexistent
Others
Opportunity areas of Supply
Chain Management
• Competitive prices (productivity
and features of cost reduction)
• Delivery time *
• Quality
• Technical Support
• Customer Service *
Benefits of being part of a PL
(Productive Linkage) process
• To enter in the context of systemic competitiveness
• Strategy in the long term
• Competitive advantages that would not be obtained
individually
• Generation of AV for the individual and the group
• Trust relationships and decrease of transaction costs
• Flexibility in the market approach
• Access to infrastructure
• Access to technology (transfer, R+D, etc.)
• Access to financing
• Access to a more appropriate training
The more common handicaps found in
failed relationships
•
•
•
•
•
•
•
•
•
•
Individualism
Only competence relationships
Distrustfulness
Short term thinking
Different approaches on the strategy
Heterogeneity of the group
Cost & Time Coordination
Information costs
Unfulfilled expectations
Conflict of interests (specially regarding on results
distribution)
• Businessmen despair easily if they do not achieve
immediate results.
Main Problem to achieve
the consolidation of this
kind of relationships:
Organizational environment
Transparency
Innovation
Support
Leadership
Influence
Communication
Strategy
HR Administration
Improvement
Management
The Influences
of the
Environment
+
The Dynamics
of change
Do the dynamics of the market in the sector/category we are part of, or do
they not generate opportunities in a certain environment?
The Business Environment is characterized by the
new paradigms that are in force:
The age of
information
e-business
e-learning
e-data
e-commerce
e-money
Efficiency
Certification
Service
Results
Relationships
How do I
make Money
in my trade?
Main purpose: To identify and take advantage of joint
opportunities:
Manufacturing
Raw Materials
Warehousing
Distribution Points
Logistics
•
•
•
•
•
•
•
•
•
To
To
To
To
To
To
To
To
To
halve business cycles
identify the restrictions of the mentioned above
know the demand of the used capital
identify the process of added value
assess the installed capacity
identify the equipment demand
know the information currents
set the performance markers
measure the net operational efficiency of the assets
Retailers
Consumer
Methodology
to increase
Metodología para
mejorar la
competitiveness
competitividad
What does the
manager do?
1. The manager sets the objectives
2. The manager organizes
3. The manager motivates and
communicates
4. The manager measures and
controls
5. The manager promotes
development in people and even in
himself:
The Improvement Process
I.To create a context
to change...
II.To promote
commitment...
III To balance innovation
and stability...
4
Results
The Strategic Context and Strategy Making
Decisions
Unabridged definitions
1. Plan
2. Behavior pattern
3. Position
4. Perspective