OtherRelated ObservationsSupplychainstrategylinkedtotheDevelopmentChainChallenging to minimize system costs andmaximizesystemservicelevelsInherent presenceof uncertaintyand risk1-11
1-11 Other Related Observations ⚫ Supply chain strategy linked to the Development Chain ⚫ Challenging to minimize system costs and maximize system service levels ⚫ Inherent presence of uncertainty and risk
1.2 The Development ChainSetof activitiesandprocessesassociatedwith new productintroduction.Includes:productdesign phaseassociated capabilities and knowledgesourcingdecisionsproductionplans1-12
1-12 ⚫ Set of activities and processes associated with new product introduction. Includes: ⚫ product design phase ⚫ associated capabilities and knowledge ⚫ sourcing decisions ⚫ production plans 1.2 The Development Chain
1.2 The Development Chain.ProductarchitecturePlan/design.Make/buyEarlysupplierinvolvementStrategicpartnershipsVSourceSupplierselection·Supply contractsProduceSellSupplyDistributeSupplychainFIGURE1-2:The enterprise development and supply chain1-13
1-13 1.2 The Development Chain FIGURE 1-2: The enterprise development and supply chain
1.3 Global OptimizationGeographicallydispersedcomplexnetworkConflictingobjectivesof differentfacilitiesDynamicsystemVariationsovertimeMatching demand-supplydifficultDifferent levels of inventory and backordersRecentdevelopmentshaveincreasedrisksLeanproduction/Off-shoring/Outsourcing1-14
1-14 1.3 Global Optimization ⚫ Geographically dispersed complex network ⚫ Conflicting objectives of different facilities ⚫ Dynamic system ⚫ Variations over time ⚫ Matching demand-supply difficult ⚫ Different levels of inventory and backorders ⚫ Recent developments have increased risks ⚫ Lean production/Off-shoring/Outsourcing
Global ApparelValueChainTracing back the dress you are wearingTextile companiesApparel manufacturersRetail outletsNorthAmericaAll retail outletsUS garment factoriesDepartment stores(designing.cutting)sewing, buttonholing.ironing)FabricBrand-namedYarnapparel(weaving,NaturalCotton,wool,Specialty stores(spinning)knittingcompaniesfibressilk,etcfinishing)Domestic andMexican/CaribbeanBasin subcontractorsMass merchandisechainsAsiaOverseasSvntheticAsian garmentSyntheticbuying officesPetrochemicalsOil, natural gasDiscount chainsfibresibrescontractorsDomesticandOff-price, factoryAll retailTrading companiesoutlet, mail order.overseasLoutlets.otherssubcontractorsComponent networksExport networksMarketing networksRawmaterialnetworksProduction networks1-15
1-15 Global Apparel Value Chain Tracing back the dress you are wearing