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What is Supply Chain Management?
(SCM)
Supply Chain Planning
– Challenges (Interactive), Resolutions, Latest
Trends
Supply Chain Execution
– Challenges (Interactive), Resolutions, Latest
Trends
Q&A
Supply Chain Planning
Challenges
Interactive
Some of the Challenges
How many Stocking Locations; Where they are? Where to Stock?
One Supplier or Multiple Suppliers?
Multiple Lead Times?
Variability in Supply?
Variability in Demand?
Centralised or Decentralised planning?
How often to order? Weekly, Daily, Monthly, Quarterly? Or a combination?
What forecasting methods to use and why?
How to classify products for effective inventory control?
What target service levels to set and why?
How much buffer stocks to hold and where?
How to measure the achieved service levels?
Supply Chain
Management
Modelling and Simulation
Production Planning
& Scheduling
Executive Information Systems
Replenishment Planning
Demand Forecasting
5
Syncron - Supply Chain
Management
Are you operating in isolation rather than in partnership?
next
ERP Myth
JDE
IFS
Inhouse
WEB Shop.com
Oracle
IFS
Baan
SAP R/3
JDE
IFS
SAP R/3
Inhouse
Movex
Supply Chain Planning
Shop
Divisional
Warehouse
Global
Warehouse
Manufacturing
Supplier
Forecast Components
Cyclical
variation
Base level
FORECAST COMPONENTS
Trend
External
factors
Demand Patterns
LUMPY
SLOW
FAST
Trend
NEW
DYING
ERRATIC
NEGATIVE TREND
OBSOLETE
MANAGING FORECAST ERROR
THE OPTIONS
BUFFER STOCK
Month
95. 00
13. 16
186. 00
199. 16
96. 00
13. 99
148. 80
162. 79
97. 00
15. 02
111. 60
126. 62
Value of stock
Demand
Lead time
Review time
Target service level
Average demand
Variability of demand
Batch size
94. 00
12. 45
223. 20
235. 65
93
94
95
96
97
98
99
Target service level
100
DFRP Models
Warehouse Stocks
Warehouse Forecasts
• Branch Demand
• Branch Forecasts
• Branch Orders
• Branch Order Schedules
Branch forecasts and order schedules
based on local demand
• Warehouse Stocks Only
• National Stocks
eCollaboration
Supplier
Collaboration
OEM
Information Flow
Product Flow
Internal
Collaboration
Supplier
Customer
Collaboration
Distributor
Warehouse
Retail
VMI – Vendor Managed
Inventory
Virtual Stock
Management
Supply Chain Execution
The Work Flow
Α
Β
Γ
Δ
Ε
What is Supply Chain
Execution?
Simply Handling Receipts and Issues of
Inventory, and Controlling Warehouse and
Fleet
Receipts include, POs, Shipping
Notifications, Scheduling, Advance GRN,
GRN, Checking, Quality Management,
Sorting, Binning, Cross Docking and Task
Interleaving
What is Supply Chain
Execution?
Issues include Sales Orders, Delivery
Orders, Stock Control, Shipments, Picking
Planning, Picking, Task Interleaving,
Replenishment, Kitting, Sorting, Checking,
Packing, Repacking, Labeling,
Documentation, Loading, Delivery
Confirmation, Billing, Returns, AR and
CRM
Managing Warehouse &
Fleet
Stock Search
Pack Changes
Cycle Counting
Activity Management
Truck Routing
Fleet Tracking
In modern era SCE
means…
Increased Customer Satisfaction with
Lower Cost of Delivery
More accurate satisfaction of increasing
logistics requirements
Value added services to be provided – this
has raised the minimum standard
Supply Chain Execution
Some Challenges
Interactive
Challenges
Optimizing Storage Capacity Utilization
Optimizing Resources such as men and
machine
Traceability of LOTs
Inventory Accuracy
Managing FIFO/FEFO
Customer Service Management
Fleet Management, Routing & Tracking
Resolution of Challenges
Optimizing Storage
Capacity
A Variety Storage Systems
Multiple Units of Measure
Variable Bins
Mixed Bins
Mixed Palettes
Splitting Storage and Picking Location
Optimizing Resources
such as Men & Machine
Task Interleaving
Storing by Product Velocity – Sales, Pack
Sizes, Promotions
Warehouse Design
Traceability of LOTs
Audit Trail by LOTs, especially to enable
LOT recalls
Records on LOTs by Multiple Pack Sizes
Inventory Accuracy
Bar Coding
Multiple Storage Units
Multiple Units of Measure
De-link WMS Stocks from ERP Stocks to
improve accuracy
Managing FIFO/FEFO
Storage Kaizen
System proposed Picking
Splitting Storage and Picking Location
Customer Service
Management
Manage Date and Time windows for
delivery through system
Minimum Product Shelf Life
Pallet Types
Shipping Docs and Labels
Consequent Reduction in Returns
Fleet Management &
Routing
Fleet Attributes, Item Attributes, Stock
Attributes
Automatic Vehicle Loading Sequence
Routing – Shortest Time, Distance
Fleet Tele-Tracking
Some Key KPIs
Order Fill Rate and Accuracy
Inventory Accuracy
Warehouse Flow Through
Compliance to Internal Standards
Some Action Points
Ensure KPIs and Continuous Improvement
Programs are in place
Insure Warehousing and Transportation
Processes are in Sync
Insure these processes are in Sync with
Customer Delivery Instructions
Additional Initiatives
RFID Compliance, Direct Store Delivery,
Smaller more Frequent Orders, Increased
Order Fulfillment Accuracy, Reduce
Working Capital, Efficient use of Inventory,
Shorter Fulfillment Time
Past vs Present
Past
– Value Added Services such as BOM, Assembly,
Packing, Kits
– Compliance – Barcodes, BOLs, UCC Labels
Present
–
–
–
–
–
Real-time integration with TMS
KPIs
Cross Docking
Remote Satellite Warehouse Operations
RFID Compliance
Some Latest Trends…
Picking for Pieces, Cartons and Pallets
– Strategies
Basic Order Picking
Batch Picking
Zone Picking
Wave Picking
Some Latest Trends…
Picking for Pieces, Cartons and Pallets
– Equipment
Shelves
Racks
Carousels
Bar Code Scanners
ASRS
Pick to Light
Voice-Directed Picking
ACSS
Questions?
Thank You