Section 3.

1 - Supply Chain Design

The decision-making phases in a

supply chain, according to Chopra
and Meindl (2011) are:

1. Strategy or supply chain design:

aims to structure the chain, defining
the processes that each stage will
perform.
2. Supply chain planning: definition
of the set of operational policies that
lead short-term operations, as well
as constraints.
3. Supply chain operation: short-term
decisions and has the purpose of
implementing operational policies.

Project, in its principle, is something

specific and unique, we will hardly
have examples of situations in which
a project elaborated and executed by
an organization, was replicated
identically for the solution of another
company. What can and should
happen is the observation and study
of a particular case, called a case
study and after a series of changes
and adaptations, a possible solution
may be performed by another
organization. The structuring of a
supply chain project should focus on
competitiveness and efficiency
improvement. However, we must not
forget that there are factors that may
be able to prevent such as, for
example, financial or market
restrictions, such as laws and
environmental or health codes.

In order for the chain project to

succeed, we must understand the
characteristics of the consumer and
that of the Final product segment.
The discovery of these
characteristics will influence our
design choices, such as: volume of
deliveries, location, and possible
other characterizations of both
product and scripting, lot sizes.
According to Gasnier (2008), there
are three types of supply chains and
each of these models should be
structured based on the
characteristics of their profile, being:
for each segment, for each product
line and organized by market
segments.

The next step is to put all these

characteristics on paper, and with
the use of tools, such as flowcharts
and basic information, describe what
will be the "path to be
to the final consumer. Many
companies only care about the
physical flow of the material,
forgetting the information and
financial flows that exist within these
chains. The analysis of these
different luxuries becomes an
excellent scenario for competitive
improvements.

In almost all chains there are these 4

cycles:
• Customer order cycle - the
beginning of the entire process, at
the request of the customer.
• Manufacturing cycle - the process
of manufacturing or assembling the
product / service to be delivered to
the final customer.
• Cycle replacement - usually the
distribution process between
manufacturer and wholesaler or
retailer directly in some cases.
• Acquisition cycle (also called
procurement) -the purchase of the
product / service by the
manufacturer.

It is then realized that between all

the steps of the chain there are
subprocesses and other cycles within
a same productive process that will
interfere in the whole sequence.

Another factor that has a direct

impact on the supply chain strategy
or project in CS is shelf life, which in
free translation means shelf life.
Shelf life consists of the useful time
that the product has to be acquired
by the final consumer, after this
period, the product can no longer be
marketed or consumed, since its
integrity is already compromised.
According to a study by Provar,
published in a Folha de S.Paulo
article (2014), small supermarkets
lose 6.7% of revenues due to
problems with product shelf life. In
the big retail, this index reaches
1.95%.

Decisions about supply chain design

are long-term, and must take into
account the uncertainties of the
market and the high costs and risks
involved. In addition to the
understanding, analysis and strategy
as a function of the variables
consumer, cyclical vision and shelf
life, which impact on the supply
chain, the project should make
decisions such as:
• The structure of the supply chain
and which processes each stage will
perform.
• Supply Chain Strategies:
• Facilities locations and capacities;
• Products to be manufactured or
stored in various locations;
• Means of transport; and
• Information systems.

Section 3.2 - Design and Deployment

The supply chain that works in an

integrated way aims at customer
satisfaction. By working in this way,
we will not be bound only by isolated
goals by areas or departments.
Supply chains that do not work with
this vision, have separate actions by
areas, where each acts for individual
results, which do not always bring a
common benefit to the organization.

We understand an organization
chart, such as the layout of positions
or departments within the
organization. It is through this design
that we understand "who does what"
within the company. Also by him we
can understand how the
communication between people and
the departments, they follow a flow.
There are three types of flows:

Horizontal: where information

exchange takes place between
people who occupy the same
hierarchical level.

Vertical: in the same department, but

with people who occupy different
positions.

Diagonal (or transversal): this would

be an exchange of information
between people of different levels,
working in departments or
completely different areas.

We must also understand that there

are separations or organizations
through the types of
departmentalization and we can
observe nine models of
departmentalization: quantity,
functional, geographical, products /
services, clients, processes, projects,
matrix and mixed. However, we see
more commonly the separations by
functions (functional) and processes.

The functional is performed

according to the function of the
employees in the company, ie people
are separated by what they perform
on a daily basis, an example is the
separation of sales staff and the staff
that performs the manufacturing
process.

Already by processes, usually

present in productive areas, in which
the operators of machines and
equipment are separated into
sections, such as the cutting,
assembly and welding sections, in a
metallurgical. In this small example,
we note that the personnel
performing the welding will not be
directly connected to the cutting
staff and vice versa.

However, regardless of the difficulty,

it is necessary to define the structure
of work and activities, the
product flow structure,
communication and information flow
structure, and management
methods.

In addition there are the connections

between the members of the Supply
Chain, being possible to identify four
types of connections that can be
defined and differentiated through:

1. Managed Process Links: These are

process-related links that the focal
company finds important to integrate
and manage.
2. Monitored Process Links: Although
not critical processes for the focal
company, they are important enough
for the focal company to maintain
some bond, even if they are
integrated and managed by other
members of the supply chain.
3. Non-managed Process Links:
These are links in which the focal
company is not directly involved.
4. Non-member Process Links: These
are process links between members
of the focal company's supply chain
and other members who do not
belong solely to this supply chain.

It is not enough just to know and

define the types of relationships it is
necessary to know the necessary
components of management. Being
at least nine management
components in CS, and they can be
allocated into two groups:

Group I - Technical and Physical

Components of Management:
planning and control, structure of
work, structure of organization,
structure for the flow of products,
structure for the flow of information.
Group II - Managerial and Behavioral
Management Components:
management methods, power
structure and leadership, risk and
reward structure, and culture and
attitude.

Some factors lead to the failure of

the supply chain management, and
their respective projects, among
them we can mention:

• Lack of knowledge of the costs of

the company.
• Incompatibility of processes among
the members of the chain.
• Different information systems.
• Application and time required for
implementation.
• Unrealistic expectations.
• Organizational structure.
• Organizational culture.
• Performance measures and
evaluation and remuneration criteria.
All of these factors are relevant
because only a structured and
aligned supply chain can deliver
better results. This statement is also
true for the implementation of
projects.
Section 3.3 - Collaborative
Partnerships and Techniques

We can see around us that few

products are manufactured in a
single company, without depending
on any other organization. These
companies end up delivering isolated
parts of
your products to others, smaller or
larger, to help deliver your final
product to the consumer. These
decisions aim to minimize costs and
add value to products and there is a
lot of study and complex projects
behind them. The modular
consortium of the Volkswagen truck
plant in Resende, in the state of Rio
de Janeiro, is an excellent example of
this concept.
It is clear that suppliers / partners
should be chosen by analyzing many
factors, not only cost and delivery,
but also by their technical expertise
and market experience, in the case
of the modular consortium, this is
extremely relevant, replacing a
particular vendor in the course of the
process will also cause several
problems for the other companies
involved in the operating system.

Within the proposed unbundling, we

will often come across the term
outsorcing, which can be defined as
use of third parties (companies /
external people), ie, taking the
previous example of the modular
consortium, companies that actually
assemble the vehicles, who provide
services or carry out part of the
operation for the contracting
companies. Outsourcing is a way of
adding value to a business by
converting an internal cost center
into an external service, allowing the
release of resources from the
organization and managers to focus
their attention on highly strategic
business areas.

Outsourcing's vision is not limited to

the so-called "outsourcing", as it
involves the option of a partnership
and complicity relationship with one
or more suppliers of the production
chain, and outsourcing
has meant only a business, an
operational decision, that is,
outsourcing involves the unbundling
of internal activities, to external
experts.

Companies outsource their services

or processes for financial reasons: an
external process can be cheaper
than maintaining it as part of the
company, and by know-how: by
technical knowledge.
Section 3.4 - Strategies and
Performance

Both concepts, projects and strategy,

seek to find ways to meet the
defined objectives. So much so that
the strategy can be defined being
the way in which the company aims
to reach objectives through technical
plans and competencies, surpassing
the competitors. Through CS
information, it is possible to devise
strategies that generate competitive
advantage. The essence of strategy
is to conduct activities differently
from competitors and to maintain
continuous competitive advantage.

To do so, it is first necessary to

identify and prioritize the
competitive criteria to later translate
them into objectives for the area of
operations. Competitive criteria are a
set of priorities that the company has
to value in order to become
competitive. Slack (2002) defines as
main competitive criteria: cost,
quality, flexibility, speed and
reliability of delivery.

One of the main tools used for this

purpose is the BSC (Balanced
Scorecard), which in a free
translation for our language, would
be something like "Balanced
Performance Indicators".
We can understand BSC as a
management system that uses
indicators that help to identify the
company's goals and strategies,
forming a set that will help to
measure and evaluate the results of
the initially proposed goals. Several
authors use it as a way to illustrate
or exemplify the BSC, using the
image of an airplane cockpit.

The BSC proposes management

based on four perspectives
Another topic of extreme importance
in this class, comes to be the
Logistics in the management of the
supply chain. CS Logistics
encompasses topics such as: lead
time, milk run, cross docking, transit
point, merge in transit and
postponement.

The lead time, which can present

several translations or uses in the
day to day professional, but
It is mainly used as the
determination, or measurement, of
the time taken between one
operation and another. A logistics
strategy to be considered for lead
time reduction is
the milk run, translated as the
milkman's path or programmed
collection. It is a technique where
vehicles in circulation take goods
from suppliers in a kind of
synchronized schedule and in a
sequential and logical circuit, thus
preventing vehicles from moving
without load, delays or errors will be
punished with fines and even even
the loss of supply contracts.
The term cross docking indicates that the operation is a dock crossing, that is, the
merchandise arrives on the CD and without stocking the product it is already
separated into smaller batches and dispatched in an operation also known as a
transfer. This technique can be used for fractionation, but also to consolidate loads.

In the transit point model, the operation is the consequence of the verbatim
translation of the term. The CD becomes just a unit of passage of the merchandise,
which is not stocked, only fragmented into smaller units already established, that is,
with the right destination, only as a transition point within the delivery routes.

While the merge in transit, the product is assembled along the chain, the
components arrive separately and the physical location (CD) is used for the
grouping of these and subsequent assembly of
According to customer request, an example that fits this type of operation is the
computer segment, which is only assembled moments before dispatch.

Finally the postponement, in a more literal translation, we can say postponement,

that is, it consists of a technique to postpone to the maximum the activity of final
configuration of the product in a process. There are some types of postponement
process, the best known or used are:

• labeling, where the final step is the placement of labels according to the market to
be delivered;
• packaging, a process in which packaging with regional variations is postponed;
• assembly, where stocks of assembled products will not be kept, but of
components, which are only assembled according to the orders, and;
• Manufacturing, production is only completed upon receipt of an order.