Supply Chain Management

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Supply Chain Management
Renu Rajani
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Supply Chain Management

• SCM A Definition
• From Silos, to Interfaces, to Chain
• Push vs Pull
• Stages of Supply Chain
• ERP vs SCM

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SCM - Techniques

• Prioritisation
• Sequencing
• Scheduling
• Integration
• Scenario Analysis
• Optimisation Constraint Planning

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SCM - Areas

• Distribution Network Planning
• Demand Management
• Whiplash Effect
• Event Modeling
• Collaborative Demand Planning
• Manufacturing Planning Scheduling
• Warehouse Management
• Distribution Management
• Shipment Transport Management

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SCM - Benefits

• Reliable Demand Management
• High Customer Service levels
• Reduced lead times
• Optimum working capital costs
• Optimum supply chain costs

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Some Cases

• An electrical eqipment manufacturer has reduced
  quoting and order reengineering time by 75 and
  design iterations from 2 weeks to a few minutes.
• An automobile manufacturer has reduced the time
  required to engineer the basic structure of a
  hood from around 2 months to one day while
  improving the structural quality without
  increasing the weight
• A large fast moving consumer goods (FMCG) company
  operates on negative working capital.

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Supply Chain Costs - Method (1)
Measured as of sales
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Supply Chain Costs - Method (2)
Measured as of sales
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SCM Transformation Framework
Consumer Packaged Goods Industrial
Products Retail Distribution Logistics/
Transportation Health Care
e-COM
CRM
SCM
ERP
EP
BI
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A CPG/Industrial products SC
RD/Design /Engrg
Sales/ Mktg
Demand Mgmt
Procurement
Inbound Logistics
RM Stores
Mfg Assembling Testing
Customer Service Returns
Distribution
Outbound Logistics

• Market Analysis
• Engineering
• Design
• Sourcing
• Prototyping
• Packaging
• Designs

• Market Segmentation
• Product Development
• Sales Order Contracting
• Sales Order Processing
• Credit Finance
• Promotions
• Trade Shows

• Forecasting
• Capacity Planning,
• Scheduling
• MRP, Inventory Control
• Allocations
• Network Design

• Contract, Negotiation
• Requisition
• Purchase Order
• Expediting
• Quality Control
• Inspection Test
• Packaging
• Labeling
• Landed Cost
• Finance

• Load Consolidation
• Sequencing, Expediting
• Shipment Tracking
• Routing
• Carrier Selection
• Shipment Booking
• Documentation
• Clearances
• Freight Bill Payment

• Kitting
• Kan Ban
• Facility Layout Planning
• Inventory Control
• Receiving
• Quality Control

• Repair Exchange
• Exchange, Refurbish
• Credit
• Defective Refused
• Shipments
• Field Service Support

• Carrier Selection Mgmt
• Routing Optimization
• Consolidation
• Cross Docking
• Merge In-Transit
• Pool Distribution
• Configuration In-Transit
• Shipment Tracking
• Claims Administration
• Freight Bill Payment

• Manufacturing
• Assembly
• Configuration
• Testing
• Packaging
• Labeling

• Facility Layout Design
• Order Processing
• Receiving, Stocking
• Shipment Planning
• Consolidation
• Picking, Labeling, Packing
• Quick Repl of Parts
• Shipment Booking Doc

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Supply Chain Planning

• Recognizing constraints across the supply chain-
  Mfg, Distribution, Transportation
• Focus on aggregate planning
• Multi-site MPS Planning
• Deployment Planning for Resources
• Available to Promise (ATP)

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Mfg Planning Scheduling

• Recognizing detail requirements and constraints
  while developing plan/schedule for material,
  capacity, tools, HR
• Focus on detail scheduling and sequencing
• Balance production output with market demand
  recognizing constraints
• Refine Due dates

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Distribution Planning

• Plan safety stock levels for items and their
  locations
• Plan replenishment frequency
• Schedule shipment taking into account demand
  priorities
• Recognize constraints
• Trend analysis

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Transportation Planning

• Develop detail routes
• Analyse fleet rates by transporter
• Tracking and Monitoring
• Freight cost and payment tracking
• Multi-modal carrier tariff
• Performance measurement and reporting
• Sensitivity analysis for alternate routes,
  carriers / modes, lowest costs

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Shipment Scheduling

• Scheduling equipment and resources
• Dynamic shippable load building, consolidation
  and rating, considering
• Transport constraints
• Packaging Requirements
• Product Stacking restrictions
• Sensitivity analysis to arrive at lowest cost
  mode and carrier
• Consolidated corporate routing and scheduling
• Generate Shipping Documents and Tracking

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APS integrates all aspects of planning

• That are separated within MRP II
• Material and capacity planning.
• Production and distribution planning.
• Aggregation levels and horizons.
• Automatic planning and manual planning.
• Replaces iterative planning by rolling plans.

APS Vendors i2 Technologies Bridgeware Manugistic
s Numetrix Logility Baan Distinction Chesapeake P
eopleSoft Adapta/DynaSys SynQuest Paragon
Management Systems Thru-Put Technologies STG FYGI
R Ortems Aliah CAPS
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Product Lifecycle Mgmt (PLM)
The lifecycle can be subdivided into 3 phases
Product Lifecycle Management (PLM) enables fast,
reliable collaboration for product design,
manufacturing and data management within an
enterprise and with external trading partners.
Companies benefit from achieving greater control
and accuracy over the product lifecycle, bringing
products to market faster and improving product
designs to better fit customer needs.Source
SAP AG
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PLM facilitates Collaborative Product Design and
Development