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vMoksha Technologies / December 2001EVERY DAY COUNTS...

Supply Chain Management

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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 reducedquoting and order reengineering time by 75% and

design iterations from 2 weeks to a few minutes.

An automobile manufacturer has reduced the timerequired 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)

Cost Element*RM, Pkg Matl, WIP, FG

+ Carrying Cost of Inventory

+ Storage Cost of Inventory+ Transportation

+ Distributors Margin

+ Interest Cost of AR- Interest Saved on AP

* Measured as % of sales

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Supply Chain Costs - Method (2)

Cost Element*Cost of Working Capital

+ Transportation

+ Warehousing+ Distribution

* Measured as % of sales

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SCM Transformation Framework

Business

Objective CSFs SCM

Architecture

Transition

PilotCutover

Roll-out

Post-impl audit

Application

Networks

Data Center

Storage

SCM Solns

MAP

SCM SolnsSelection

GAP

analysisCustomization Integration

e-COM CRM SCM ERP EP BI

SCPlanning

SC Design/Construction

SCImplementation

SCSupport

SCConsulting

DataCenter

Storage Networking Security Infrastructure

Consumer &Packaged Goods

IndustrialProducts

Retail &Distribution

Logistics/Transportation

Health Care

STRATEGISE PLANDESIGN /CONSTRUCT

IMPLEMENT RUN

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A CPG/Industrial products SC

R&D/Design

/Engrg

Sales/

Mktg

Demand

MgmtProcurement

Inbound

LogisticsRM Stores

MfgAssembling

Testing

CustomerService &

Returns

Market Analysis

Engineering

Design

Sourcing

PrototypingPackaging

Designs

Market Segmentation

Product Development

Sales Order Contracting

Sales Order ProcessingCredit & Finance

Promotions

Trade Shows

Forecasting

Capacity Planning,

Scheduling

MRP, Inventory ControlAllocations

Network Design

Contract, Negotiation

Requisition

Purchase Order

Expediting

Quality ControlInspection & 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 PlanningInventory Control

Receiving

Quality Control

Repair & Exchange

Exchange, Refurbish

CreditDefective & 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

DistributionOutbound

Logistics

Manufacturing

Assembly

Configuration

TestingPackaging

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 PlanningDeployment Planning for Resources

Available to Promise (ATP) Main Players:

i2 Tech. Logility Manugistics

Baan IRP

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Recognizing detail requirements and constraints whiledeveloping plan/schedule for material, capacity, tools, HR

Focus on detail scheduling and sequencing

Balance production output with market demand recognizing

constraintsRefine Due dates

Main Players:

i2 Tech. Logility

Manugistics

Baan/Berclain

Mfg Planning & Scheduling

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Plan safety stock levels for items and their locationsPlan replenishment frequency

Schedule shipment taking into account demand priorities

Recognize constraints

Trend analysis

Distribution Planning

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Develop detail routesAnalyse 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

Transportation Planning

Main Players:

i2 Tech. Logility

ManugisticsSynQuest Inc.

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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

Shipment Scheduling

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APS integrates all aspects of planning

That are separated withinMRP 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 Vendorsi2 Technologies

Bridgeware

Manugistics

Numetrix

Logility

Baan

DistinctionChesapeake

PeopleSoft

Adapta/DynaSys

SynQuest

Paragon Management

Systems

Thru-Put Technologies

STG

FYGIR

Ortems

Aliah

CAPS

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Product Lifecycle Mgmt (PLM)

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

The lifecycle can

be subdivided into

3 phases

PLM f ilit t C ll b ti P d t

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PLM facilitates Collaborative Product

Design and Development

CPDD

PDMVisualization

ProcessModeling

LifecycleSupportMfg

Planning

CAD/CAM

ProductPlanning

Sourcing

Source: Aberdeen Group

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