1 scm intro

8/8/2019 1 scm intro

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SUUPLY CHAIN

MANAGEMENT


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SUUPLY CHAIN

MANAGEMENT In the case of inventory

planning, we have already

increased our service

levels from 91% to 96%.Recently, we have

surpassed our target of

98.5%.

Gary Brookes,Head of supply chain,

AB Foods on Infor SCM

Demand Planning


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DEFINITION

SCM is strategically

managing the

procurement, movement

and storage of materialsand related information in

such a way that current

and future profitability

are maintained throughcost effective fulfilment of

orders


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EVOLUTION

Independent businessfunction era-Till 1950s

Limited internally

integrated businessfunction era-1960-1970

Internally integratedbusiness function era-1980s

Externally integratedbusiness function era-1990s


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Importance

Logistics is all aboutcreating value

Costs are significant

Logistics customer serviceexpectations areincreasing

Supply and distribution

lines are lengthening withgreater complexity

It plays a key role instrategy formulation


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Importance- contd

It adds significant

customer value

Customers want quick

and customised response Increasing importance in

non manufacturing areas

and service industry

Effect on environment


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USES OF SCM

Strategic Network Design

Demand Planning

Distribution Planning

Manufacturing planning

Production Scheduling

Transportation & Logistics

Warehouse Management

Event Management Supplier Management


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NetworkDesign Determine the optimal facility location and

capacity requirements. Determine where and when to make, buy,

store, and move product through yournetwork to customers.

Evaluate different transportation andinventory strategies.

Select the best vendors ModelingIncorporate complex costs,

revenues and supply chain constraints tomodel the best manufacturing anddistribution network.

OptimizationAnalyze your environment

to determine the optimal number, location,and size of facilitates; the right inventorylevels; and make the best sourcing decisionpossible.

The result: You use your assets better,reduce supply chain costs, decrease cycletimes, lower inventory levels, decrease

carbon emissions, and enhance customerservice.


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Demand Planning

Improve forecast accuracy Predict and shape customer

demand more efficiently and

effectively

Create a single, global view of

true demand to improve sales and

operations planning

Reduce inventory investments

and increase turns

Reduce product obsolescence

Lower production costs

Have more successful product

launches


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Distribution Planning

Increase customer orderfulfillment, while reducing

your inventory investment

Improve visibility across

multiple systems and borders Respond faster to changes in

demand and supply

Introduce vendor managed

inventory (VMI) programs for

leaner supply chain networks


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Manufacturing Planning

Achieve high productivitylevels of the product types

and volumes customers

demand.

Keep customer service levelshigh.

More efficiently manage

inventory.

Lower operational costs.


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Production Scheduling

Achieve higher throughputand faster cycle times.

Lower manufacturing costs.

Better respond to changing

demand and planned changeover.

Increase on-time delivery

performance.

Increase capacity utilization.


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Transportation & Logistics

Lower logistics andtransportation costs 8-15%

Increase asset turnover

Reduce inventory carrying

costs

Decrease customs fines and

penalties through better trade

compliance

Strengthen customer service


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Warehouse Management

Reduce inventory 5 to 20% Increase labor productivity

15 to 40%

Improve shipping accuracy 2

to 5%

Increase inventory accuracy

99+% at location level

Boost perfect order rates Reduce direct operating costs

and increase overall revenue


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Event Management

Supply up-to-date orderstatus information

Improve delivery

performance

Resolve problems beforethey escalate

Reduce the cost of goods

sold

Decrease expense overruns

Eliminate excess inventory

and avoid stock outs


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Supplier Management

Achieve technology-enabledbusiness process excellence

Increase productivity and cash

flow

Improve operational efficiencyand quality

Increase supplier visibility

Respond faster to change and

opportunity Enable innovation

Profit from a strong, flexible,

lean supply chain


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