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01-09-2006
Projects & SolutionsSupplier's Logistic performance:prospects for improvment based on the analysis of orders and forecast's structure Since 2001, Ducati Motor has been using MaNeM, the product developed by Joinet to manage suppliers through the Internet. Besides MaNeM operative advantages, since 2004 Ducati has also appreciated its capacity to store an extraordinary and unusual bulk of data during normal use. As a matter of fact, the application records the history of orders and consignment schedules sent to suppliers. MaNeM database collects orders, orders’ variations and forecasts, which Ducati has sent its suppliers for years. Ducati has always committed to realizing forms of collaborative relations and integrated models in supply chain management. One goal is the full exploitation of the supplier’s potential in production management and optimization. The Ducati management (like that of many other manufacturing firms) perceived, and still does, the great importance of the information quality the supplier receives on its logistic performance. However, although it can be deductively understood that sending to a supplier stable orders with long consignment time leads to a high logistic performance and vice-versa, such a perception had nonetheless never been followed by numeric measurements. By observing the data available on MaNeM, in autumn 2005 the Ducati management decided to launch a special project to measure the phenomenon described above. Another aim was to answer the question: how much Ducati orders’ possible instability affects the supplier’s logistic performance from a quantitative point of view? This project was realized between autumn 2005 and summer 2006. The actors involved were Joinet, Ducati and the University of Bologna C.I.E.G. (economic-management engineering study center). The work team was made up of Mr. Paolo Barbieri of C.I.E.G., Mr. Elio Roversi, Ducati planning manager and Mr. Domenico Biondi, Joinet technical manager. Prof. Andrea Zanoni, C.I.E.G. director and Mr. Bruno Mussini, Joinet partner, participated and supervised the project. The project dealt with the definition and calculation of innovative metrical systems. The work plan focused on the following aspects: · Definition of indicators to measure the quality of suppliers’ logistic service. This aspect was definitely the easiest. There is a great experience in this field. Ducati already disposed of several indicators, partly calculated by elaborating the data automatically recorded by MaNeM, and partly by exploiting the management database. For example, MaNeM has several reports allowing to measure suppliers’ punctuality, reactivity and flexibility. · Definition of indicators to measure Ducati schedules’ and orders’ stability. This aspect, on the other hand, proved to be the most complex. There was extremely limited experience. The C.I.E.G. carried out a survey, which showed that in the world there is short significant experience in this field, and all of it is in the USA. Therefore, about ten new indicators were created, all of them from the data automatically recorded by MaNeM. · Definition of the mathematic model allowing to check the existence (and in that case, the extent) of mathematic correlations between the two different groups of indicators. That was the most important effort with regard to research. What defined above was then applied to 12 months of data on 657 item codes, which Ducati orders to 65 suppliers, and which cover the 80% of Ducati turnover of purchases from those suppliers. The project final results were surprising. The mathematic correlation is unequivocal. A certain value of orders’ instability corresponds to a certain value of suppliers’ logistic performance. Therefore, a certain improving in orders’ stability could evidently lead to a precise and predeterminable optimization of the logistic service quality coming from suppliers. Today Ducati is studying the best possible use of these results, and that is why they are kept secret at the moment. Ducati, Joinet and C.I.E.G. are available to supply more information on the methods used. |
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