Supply Chain Management
Challenges
John Birchak
Strategic Manufacturing Programs
Intel Corporation
Chandler, Arizona
John Birchak, Intel Corp., National
Science Foundation, University of
1
“The greatest challenge in working with
suppliers is getting them in sync with the
fast pace we have to maintain.
The key to making it work is information.”
Michael Dell, Dell Computer
Harvard Business Review, Mar/Apr 1998
John Birchak, Intel Corp., National
Science Foundation, University of
2
Broadened Scope of
Information and Coordination
Plan
Deliver
Suppliers’
Supplier
Source
Make Deliver
Supplier
Source
Make
Deliver
Your Company
(internal or
external)
Source
Make
Deliver Source
Customer
Customer’s
Customer
(internal or
external)
John Birchak, Intel Corp., National
Science Foundation, University of
3
Real-World Information Flows
Suppliers’
Supplier
Customer
(internal or
external)
Supplier
Suppliers’
Supplier
(internal or
external)
Your Company
Customer’s
Customer
John Birchak, Intel Corp., National
Science Foundation, University of
4
Real-World Roles
Customer
Research
Partner
Supplier
Research
Partner
Supplier
Development
Partner
Supplier
Subcontractor
Your Company
Customer
Supplier
John Birchak, Intel Corp., National
Science Foundation, University of
5
Supply Chain Complexity
• More and more complexity
• Organic, not linear
• Boundaries of stability
John Birchak, Intel Corp., National
Science Foundation, University of
6
Supply Chain Visibility
• Lack of visibility increases risk, cost,
and time
• All stages of relationships
• Identifying constraints
• Ability to manage bottlenecks
John Birchak, Intel Corp., National
Science Foundation, University of
7
eBusiness Standards Framework
eBusiness Applications
•Supply Chain Management
•Marketing
•Customer Support
•Channel Management
•Collaboration
Public Policy
•Legal
•Crypto
•Privacy
•Tax
•Control
•Economics
Business Services Infrastructure
•Security, payments, catalogs
Messaging Infrastructure
•XML, EDI, e-mail, HTTP
Content & Publishing Infrast
•XML, SGML, HTML, Java, WWW
Technical
Standards
•Documents
•Security
•Privacy
•Network
•Computing
Network Infrastructure
•Telecom, cable, wireless, IP
Computing Infrastructure
•Servers, Clients, Operations
John Birchak, Intel Corp., National
Science Foundation, University of
8
eBusiness Standards Needed
• Product Content
• Business Content
• Logistics
• General Framework
• Sales and Marketing
• Customer Service
John Birchak, Intel Corp., National
Science Foundation, University of
9
Supply Chain Challenges
• Better Models
• for dealing with supply chain
complexity
• for understanding supply chain
visibility
John Birchak, Intel Corp., National
Science Foundation, University of
10
Supply Chain Challenges
• Standards
• need better development
processes for standards
• need international eCommerce/
eBusiness standards
John Birchak, Intel Corp., National
Science Foundation, University of
11
Supply Chain Challenges
• Models, methods and standards
• for analyzing and institutionalizing
risk assessments
• eBusiness Collaboration
John Birchak, Intel Corp., National
Science Foundation, University of
12
Supply Chain Challenges
• Customer Needs
• no inventory risk
• ability to respond rapidly to changes in
market demand and competitors
• guaranteed delivery of product on a
daily basis
• a “level playing field” on constrained
product
• all the product quality and features they
have today
John Birchak, Intel Corp., National
Science Foundation, University of
13
Supply Chain Challenges
• Intellectual Property and Knowledge
Management
• standardized accounting methods
are needed for valuing intellectual
property
• need technologies and processes
for securing and protecting IP
• better methods are needed for
capturing and reusing knowledge
John Birchak, Intel Corp., National
Science Foundation, University of
14
Supply Chain Challenges
• Intellectual Property Interchange
Standardization
• need standards for generalized and
industry specific taxonomies, terms
and semantics
• need standardized syntax and
schemas for expressing and
interchanging IP and other
business information
John Birchak, Intel Corp., National
Science Foundation, University of
15
Supply Chain Challenges
• Globalization
• how to better deal with different
languages, laws, and customs
• need better support models
• need to learn how to optimize
beyond corporate and supply chain
spheres of influence
John Birchak, Intel Corp., National
Science Foundation, University of
16
Cognitive Complex Models
COST
= TOTAL COST
QUALITY
SPEED
John Birchak, Intel Corp., National
Science Foundation, University of
17
Contact Information
John Birchak
Strategic Manufacturing Programs
Intel Corporation, MS: CH3-68
5000 W. Chandler Blvd.,
Chandler, AZ 85226
tel: 602.554.5859
email: [email protected]
John Birchak, Intel Corp., National
Science Foundation, University of
18
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Supply Chain Management Challenges at Intel Corporation