Lec5- Lean Global Production & SCM

• ​labor costs
• ​general proximity to customer and market
• ​availability of specialised staff
• ​material costs and availability
• ​transportation costs
• ​delivery time
• ​availability of land & infrastructure

Incoterms are the possibilities to define the freight conditions between supplier and customer

The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels

Delay & distortion of the demand information

• ​greater saftey stocks
• ​negative financial effects on the company

• ​Hard customisation
• ​Soft customisation

1. ​Customised finishing
2. ​unique manufacturing
3. ​customised pre-fabrication
4. ​modular design principle

1. ​ Self individualisation
2. ​ Service individualization
3. ​ Individual finishing

1. ​ Sole sourcing
2. ​Single Sourcing
3. ​ Double sourcing
4. ​Modular sourcing
5. ​Global sourcing

• ​possibility of a closer cooperation
• ​power of demand:1) Price concessions 2) Special Wishes

• ​risk of failure of a supplier
• ​dependence on a supplier

• ​no risk of failure of a supplier

• ​higher effort in coordination

to reduce the complexity in the SCM, the number of suppliers is replaced by a hierarchical cooperation

• ​SCM is consequently oriented to the customer
• ​a pull principle is targeted
• ​vague assumptions regarding possible demands must be put into the background