Supply Chain and Management of the Improvement Process in SME (Small - - PowerPoint PPT Presentation

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.

1 They are Proactive 2 They happen in a win-win context 3 A change of paradigms is involved 4 A preparation process is required 5 Continuous improvement is required Business Relationships in Supply Chain

• As dependent as the most dependent
• As fast as the slowest
• As safe as the least safe

Business relationships in the value chain are:

Opportunity areas of Supply Chain Management

• Competitive prices (productivity

and features of cost reduction)

• Delivery time *
• Quality
• Technical Support
• Customer Service *

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 non- existent Others

What problems does the Supplier Chain Administration solve in your company?

• 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
• 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.

Benefits of being part of a PL (Productive Linkage) process The more common handicaps found in failed relationships

Improvement Management

Main Problem to achieve the consolidation of this kind of relationships:

Organizational environment Transparency Innovation Support Leadership Influence Communication Strategy HR Administration

The Influences

• f the

Environment + The Dynamics

• f 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 Efficiency e-learning Certification e-data Service e-commerce Results e-money Relationships

• How do I

make Money in my trade?

• To halve business cycles
• To identify the restrictions of the mentioned above
• To know the demand of the used capital
• To identify the process of added value
• To assess the installed capacity
• To identify the equipment demand
• To know the information currents
• To set the performance markers
• To measure the net operational efficiency of the assets

Main purpose: To identify and take advantage of joint

• pportunities:

Logistics Consumer Retailers Distribution Points Warehousing Manufacturing Raw Materials

Metodología para mejorar la competitividad

Methodology to increase competitiveness

• 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:

What does the manager do?

I.To create a context to change... II.To promote commitment...

III To balance innovation and stability...

The Improvement Process

The Strategic Context and Strategy Making

Results

Unabridged definitions

• 1. Plan
• 2. Behavior pattern
• 3. Position
• 4. Perspective

4 4

Decisions