Transcript ValueStreams Group

Objectives
At the end of this section you will be able to:
 Understand the key pains and challenges in SCM
 Understand the segmentation of SCM
 Be able to start talking SCM
Copyright © 2004, Manugistics, Inc. All rights reserved.
1
Supply Chain Management
 Objective:
The act of optimizing all activities throughout the supply chain, so that products
and services are supplied in the right quantity, to the right location, at the
right time, and at the optimal cost.
 Definition:
The supply chain includes all activities and processes to supply a product or
service to the final customer. Often, the supply chain includes more than one
company in a series of supplier–customer relationships. Supply chains
usually include four functional components: (1) demand planning, (2)
manufacturing planning and scheduling, (3) supply planning, and (4)
transportation planning.
Buy
Purchase materials
and component, or
finished goods
Make
Manufacturing or
value-added process
Copyright © 2004, Manugistics, Inc. All rights reserved.
Move
Transporting products
between internal facilities
or direct to customer
2
store
Optimally determine
where inventory
should be placed
Sell
Sell at the optimal
price to the customer
SCM Solution Segmentation
Supply Chain Management
Network Design & Optimization
Sales & Operations Planning
Master Planning
(Includes Inventory and Replenishment Planning)
Production Scheduling
Order Fulfillment
CPFR/VMI
Warehouse Management
Copyright © 2004, Manugistics, Inc. All rights reserved.
3
SCM Solution Segmentation
Network Design & Optimization
Helps structure and optimize
manufacturing, supply, and
transportation networks through a
total cost and service evaluation
approach.
Location, network, and vendor analysis
S&OP support, What If analysis, and capital budgeting
Plant/DC rationalization; M&A rationalization of assets
Sales & Operations Planning
Monthly process that integrates all the
plans for the business (customer,
sales, mktg, prod, finance) to best
match supply with demand in support
of overall business goals
Getting buy-in across all the organizations
Integration of people, processes, and technology
Meetings tend to be unproductive and do not meet company business objectives
Master Planning
Multi-location, multi-constraint Master
Plan for the flow of products through
the supply chain to best meet
customer demands in alignment with
business goals; includes inventory
and replenishment planning
Feasible plan recognizing simultaneous constraints (capacity, materials, handling, storage); sourcing,
pre-build, product mix, and manufacturing optimization
Support for hybrid environments: MTO/MTS; Process/Discrete
Support for both family level and detailed SKU level planning; simulation; easy manual manipulation of
plans; order pegging; S&OP support
Production Scheduling
Detailed 4-walls production schedule
by sequence and resource by modeling
appropriate constraints and based on
business objectives (e.g. ROTA, service
levels, etc.)
Copyright © 2004, Manugistics, Inc. All rights reserved.
Detailed resource assignments that in turn feed ERP and MES systems
Detailed production sequence for optimizing bottleneck resources; synchronized flow manufacturing
Ability to “repair” the schedule based on shop floor actuals or new orders; easy manual manipulation
of schedule
4
SCM Solution Segmentation
Order Fulfillment
Buy and sell-side distributed order
management and procurement
between buying and selling
organizations; order promising and
allocation
Full order life cycle management and collaboration from RFQ to requisition to purchase order to
delivery order and ASN
Order workflow and alerts including approvals process and notification of discrepancies to order
dates and/or quantities outside of defined threshold
Order Tracking and Order Promising, hierarchical allocation of constrained demand by customer,
account manager, sales channel, etc.
CPFR/Vendor Managed Inventory
Statistical forecasting and
replenishment planning with real-time
collaboration and event management
enabling better visibility, stream-lined
plans, and strengthened relationships
Remove barriers of trust with regard to information sharing on demand, inventory, and market plans
Heavy emphasis on collaborative promotional planning, associated lift, and ability of supply chain to
support the promotion
Exception driven process flagging disconnects between partners based upon agreed upon business
rules and thresholds through automated alerts
Warehouse Management
Manages inbound and outbound
warehouse transactions including
warehouse location management,
pick list generation and staging
Pick list and order staging
Inventory accuracy, reconciled with inventory management system
Pallet and truck load configuration
Supply Chain Execution
An solution platform enabling
collaboration, visibility, and the flow of
execution data between supply chain
trading partners and internal
constituents
Copyright © 2004, Manugistics, Inc. All rights reserved.
Monitoring and alerting - notify key constituents/partners when issues or disconnects occur
Visibility - global view of orders and information throughout trading network
Business process management and workflow for resolution of issues
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Network Design & Optimization
What it Does
Suppliers
BEFORE Network Design & Optimization
Supplier /
Exporter
Supplier
Supplier
Transportation
Considerations
AFTER Network Design & Optimization
Supplier /
Exporter
Supplier
Supplier
Supplier
Mode Change
Carrier Changes
Tariff / Tax
Considerations
Plants
Tariff / Tax
Considerations
Supplier
Warehouses / DC’s
& Customers
Internal
Factory
Transportation
Considerations
DC /
Customers
Contract
Manufacturer
Internal
Factory
Internal
Factory
Transportation
Considerations
Tariff / Tax
Considerations
DC /
Customers
Copyright © 2004, Manugistics, Inc. All rights reserved.
Contract
Manufacturer
Internal
Factory
Tariff / Tax
Considerations
NEW
DC /
Customers
DC /
Customers
6
DC /
Customers
DC /
Customers
DC /
Customers