Supply Chain Management (SCM)

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Content

Key Business Challenges

Every Angle Use Cases for SCM

Every Angle Business Value for SCM

Customer Reference Cases for SCM

Position the Business Process●1

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Financial administrative processes

Human resource management

Finance and Controlling

Operational processes

Order To

Cash

Supply ChainProcureto

PayPlan

CustomerSupplier DeliverFGMakeSource RM

Supply Chain

RM Make

Plan

FG

Plant Maintenance

SCM in a Simplified Business Process Model

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Content

Key Business Challenges

Every Angle Use Cases for SCM

Every Angle Business Value for SCM

Customer Reference Cases for SCM

Position the Business Process●1

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SCM Process Goals, Key Challenges and Use Cases

Goals for SCM

Maximize customer service

Every Angle Use Cases

●Business ResultsBusiness Results

Every Angle Business ValueKey Challenges

The right product in the right quantity and in the right condition with the

right documentation to the right place at the right time

at the right price.

● Higher customer service level.

● Lower work in progress.

● Lower costs.Complexity

Responsiveness vs Effectiveness

Process Dynamics

Market changes, new product laun-ches, changing priorities, etc.

Lack of insight

● Manage customer service levels.

● Supply chain efficiency.

● Production statistics.

● Manage stocks.

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Content

Key Business Challenges

Every Angle Use Cases for SCM

Every Angle Business Value for SCM

Customer Reference Cases for SCM

Position the Business Process●1

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Improvement Focus Areas in SCM

Improve data

quality

Planning

Quality batch

release

Perfect order

delivery

The right product to the right customer at the right time and at the right price

Streamline

end-to-end

processes

Warehousing

& inbound

Transportation

Compliance

Increase customer service

level

Component

availability

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Improvement… Starting from Standard Angles

Focus

Act

Evaluate

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Important Every Angle Functionalities for SCM

Functionality description

Goods flow measurement

• Analytics of revenue, purchased and produced goods and intercompany deliveries over time dimensioned in any available property like plant, material group or type, sales or purchase organization, country, planner, distribution channel, order category or type, or any other dimension from the SAP database.

• Planned, actual and target cost analytics for work orders, projects and WBS elements.

Delivery performance

• Delivery reliability in purchase, customer delivery, intercompany deliveries and production orders (taking into account partial confirmations, deliveries and returns).

• Service level. Like delivery reliability, but judged to the “Requested” instead of “Promised” date.• Lead times and lead time differences in purchase, intercompany and customer deliveries and production

orders. • Complaint measurements in customer deliveries, production, intercompany deliveries and purchase.

Stock situation

• Actual stocks, dead stocks, excess stocks and stock shortages.• Weeks on hand, stock coverage date, safety stock coverage, stock run out date.• Projected stock situation.• Unneeded procurements in production, purchase and intercompany, both planned and ordered.

Order network analytics

• Bottleneck types in production, intercompany deliveries, customer deliveries, and purchase, including predicted bottlenecks based on actual goods flow status, and including effect-cause-effect analytics in supply chains.

• Delivery situation, including delivering and dependent order types, number and reliabilities.• Calculated delay, reason for delay.• Reschedule advises when the needed date and the due date of open orders differ.

Data reliability and GRC

• Old work orders, reservations, plan orders, sales orders, purchase orders, forecasts, requisitions and requirements. Invalid and incomplete data.

• GRC checks like duplicate partners and SOD violations.• Incomplete data in material master, BOMs and routings.

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PPIs and Supply Chain Performance Measurement

In a Supply Chain, throughput times and lead times are very important: ● numerous important dates

● different type of lead time measurements:● planned/actual date differences

● planned/actual lead time differences

Realized

delivery date

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Use Cases Supply Chain Management

ERP Data QualityDetect, Prioritize and Solve

Warehousing

Operational / Execution Operational Management

Measure and Control

Shipping and distribution

• Stock overviews• % of slow movers• Average batch age• Warehouse delivery reliability

• Perfect order measurements• Customer service level/delivery

reliability• Overview of bottlenecks

Warehousing

• Detect and solve (future) stock excesses/shortages

• Batch ageing• Value of blocked stock

• Late deliveries• Prioritize deliveries• Detect and solve potential

sales turnover losses

• Data Correctness (i.e.warehouse parameters material master)

• Data Completeness (i.e. slow / no movers to be deleted, batches (to be) expired )

• Data Consistency (i.e. warehouse units across WH)

• Data Correctness (i.e. sales parameters in material master)

• Data Completeness (i.e. duplicate customers).

• Data consistency (i.e. deliveries in full pallets)

• Shop floor control• Detect (unnecessary) delays• Detect potential future delays• Missing part overview

• Data Correctness (i.e. planning parameters material master) (*)

• Data Completeness (i.e. in-house produced materials without BOM / routing)

• Data Consistency (i.e. pallet information in MM / BOM)

• Factory (plant) output• Service level per factory• Scrap• Lead times

Use Cases

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Content

Key Business Challenges

Every Angle Use Cases for SCM

Every Angle Business Value for SCM

Customer Reference Cases for SCM

Position the Business Process●1

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Use Case and Business Case of Every Angle

Use Case

Improve BusinessPerformance

Higher service level against lower cost, improved working

capital, improved cash flow, etc.

Support Operations Management & Control

Measure KPIs such asservice level, delivery reliability,

process accuracy, output, data accuracy, etc.

Support day-to-dayOperations execution

Bottleneck detection, prioritization & solving

Support SAP ERPdata Quality

Quality of Master dataQuality of Transaction data

Business Value

Every Angle’s Use Cases for Execution

Every Angle’s Use Cases for Operations Management

Every Angle’s Business Value for Business Performance

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Focus - Evaluate - Act

Intended Improvement:

Focus Find and list the issues you want to improve

Evaluate Define an associated KPI

Act Build “action lists” pointing people to their improvement actions

Working Capital Service & Revenue Operating Cost Data Quality

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Focus - Evaluate - Act: Example Production Order Delivery

Intended Improvement:

Focus

Evaluate

Act

Delivery Reliability Improvement

KPI - historical delivery reliability

List of late production and process orders

Angle with late process/production orders that can be delivered from stock

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Focus - Evaluate - Act: Example Future Excess Stock

Intended Improvement:

Focus

Evaluate

Act

Lower Excess Stock Level

Overview of all stocks

Overview of potential future excess stock

Potential excess stock: can these orders be cancelled

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Focus - Evaluate - Act: Example “Perfect Order”

Intended Improvement:

Focus

Evaluate

Act

Higher “First Time Right” Processing of Orders

KPI - perfect order: percentage of orders cancelled

Look at the reasons for turnover losses

Analyze the cancelled sales order per rejection code

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Content

Key Business Challenges

Every Angle Use Cases for SCM

Every Angle Business Value for SCM

Customer Reference Cases for SCM

Position the Business Process●1

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