Unit 4 Logistics

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Unit 4Logistics

• Dr. Supakorn Kungpisdan

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Supply Chain Management

• Business Example
• IDES has distribution center all over the world
  in order to deliver goods to customers quickly
  and directly
• Need a global planning method to ensure that
  deliveries are made from the nearest distribution
  center

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mySAP SCM
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Supply Chain
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Goal of SCM

• The ultimate goal of SCM is to perform
  Just-in-Time delivery of goods and services to
  all locations in the supply chain at the lowest
  cumulative network cost possible

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Requirements

• Plan timely and cost-efficient replenishment
  throughout the entire supply chain
• Quickly react to constantly changing business
  relationships, customer expectations, and
  business processes within the supply chain
• Manage the supply chain on a global basis

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SCM Software Requirements

• Provide immediate visibility to all supply and
  demand information
• Ensure replenishment plans are synchronized
  throughout the entire supply chain
• Provide modeling tools to help determine the best
  approach to reducing overall cycle time in the
  work
• Support the evolving techniques for buying and
  selling products/services over the Internet
• Allow automation of business process between
  suppliers and customers in the supply chain

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mySAP SCM Overview
PP/DS Production Planning/Detailed Scheduling
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mySAP SCM Features

• Planning
• Model supply chains with planning capabilities
• Supply chain design, demand and supply planning,
  manufacturing planning, and transportation
  planning
• Execution
• Integrates planning, promising, logistics, and
  transactional systems through material
  management, manufacturing execution, order
  promising, transportation execution, and
  warehouse management
• Coordination
• Monitor and analyze processes both within and
  outside the company
• Collaboration
• Share information and set achieve common supply
  chain goals through collaborative planning,
  forecasting and replenishment (CPFR), support for
  vendor-managed inventory (VMI), and support for
  supplier-managed inventory (SMI)

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Planning and Execution
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Supply Chain Planning

• Supply Chain Design
• Get centralized overview of the entire supply
  chain network
• Support strategic and tactical business planning
  company can test how changes in the market, the
  business, or customer demand affect the supply
  chain
• Demand and Supply Planning
• Demand planning drive forecasting, promotion
  planning, and inventory planning
• Supply and distribution planning plan
  procurement, manufacturing, distribution, and
  transportation

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Supply Chain Planning (contd)

• Manufacturing Planning
• Create feasible production plan
• Medium- and long-term aggregate requirements of
  materials and resources e.g. machines, production
  resource tools, and people.
• Immediate plans on specific resource and build
  schedules
• Transportation Planning
• Determine the right shipment mode, carriers, and
  routes based on the lowest cost of delivery,
  while considering transportation constraints.
• Integrates with enterprise transportation
  execution system
• Optimize use of the available capacity of trucks,
  trains, ships, and planes
• Plan loading capacity more efficiently, and to
  lower costs

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Supply Chain Execution

• Materials Management
• Ensures that the materials are in the right place
  at the right time
• Manufacturing Execution
• Supports engineer-to-order, configure-to-order,
  make-to-order, and make-to-stock
• Generates optimized production schedules that
  take into account real-time and capacity
  constrains

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Supply Chain Execution (contd)

• Order Promising
• Receive queries from order management or CRM
  systems and determine when a product is available
  across a fulfillment network or can be built, how
  much the product will cost, how long it will take
  to deliver.
• Transportation Execution
• Manage transportation from central location
• Consolidate orders and optimize shipments from
  suppliers to customers
• Ensure transport constraints and costs while
  ensuring time-definite deliveries
• Support shipment tendering and booking, carrier
  selection, freight building, freight cost
  calculation, shipment cost settlement, document
  printing, and intl trade management

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Supply Chain Execution (contd)

• Warehouse Management
• Reconciles open purchase orders with incoming
  shipments
• Supports putaway system that remembers where
  goods are stored
• Optimizes employee picking assignments
• Support warehouse tasks e.g. labeling, kitting,
  and deferred handling

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Supply Chain Coordination

• Supply Chain Event Management
• Event a situation or change in plan or during
  production
• Sense and response the event across the supply
  chain
• Monitoring can produce visibility from price
  quotation to procurement to product delivery
• Distributes alerts and recommends actions when
  key event s are missed
• Produces detailed reports on supply chain status
• Supply Chain Performance Management
• Measures, monitors, and displays Key Performance
  Indicators (KPIs) associated with supply chain
  processes.

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Supply Chain Collaboration
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Supply Chain Collaboration (contd)

• Support for CPFR
• CPFR (Collaborative Planning, Forecasting, and
  Replenishment)
• Enable manufacturer to collaborate with strategic
  customers to increase revenue, improve service,
  and lower inventory levels and costs
• Support for VMI (Vendor-managed Inventory)
• VMI is a collaborative process used in many
  industries
• VMI is built into mySAP SCM

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Supply Chain Collaboration (contd)

• Support for SMI (Supplier-managed Inventory)
• Allow companies to use the internet to gain
  visibility into their suppliers and to manage the
  replenishment process
• Suppliers can monitor the status of their parts
  at all plants and response quickly via the web.

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Integration
SCM is responsible for optimized planning and
delivers additional functionality for
coordination and collaboration
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Procurement
Checking and matching invoices
Create RFQ
Simulate pricing scenario, compare quotations
- Create reminder periodically, - Update status
of purchase requisitions, quotations, and POs
Create PO from requisition or quotation
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Self-Service Procurement

• Allow employees to create and manage their own
  requisitions
• Purchasing non-strategic goods (MRO maintenance,
  repair, and operations)
• Providing catalogs of the most frequently ordered
  materials ensures that employees can easily
  manage their own POs in accordance with the
  companys rules.

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Inventory Management

• Posting a goods receipt to stock with reference
  to a PO
• Can check if the delivery is the same as the PO
  data
• The system suggests data from the PO when
  entering the goods receipt
• Automatically update the PO history
• When posting the goods receipt to the warehouse,
  the system creates a material document, e.g.
  material and quantity, and records the storage
  location

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Invoice Verification

• Invoices and credit memos are entered and the
  content and prices are checked for accuracy
• Create a link between Procurement and Accounting

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Exercise 14
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 14 (contd)
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Exercise 15
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Exercise 15 (contd)
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Exercise 15 (contd)
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Exercise 15 (contd)
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Exercise 15 (contd)
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Exercise 16
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Exercise 16 (contd)
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Exercise 16 (contd)