Re Nu Presentation

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vMoksha Technologies / December 2001EVERY DAY COUNTS...

Supply Chain Management

Renu Rajani




Supply Chain Management

� SCM ± A Definition

� From Silos, to Interfaces, to Chain

� Push vs Pull

� Stages of Supply Chain

� ERP vs SCM




SCM - Techniques

� Prioritisation

� Sequencing

� Scheduling

� Integration

� Scenario Analysis

� Optimisation ± Constraint Planning




SCM - Areas

� Distribution Network Planning� Demand Management

± Whiplash Effect

± Event Modeling ± Collaborative Demand Planning

� Manufacturing Planning & Scheduling

� Warehouse Management

� Distribution Management

� Shipment & Transport Management




SCM - Benefits

� Reliable Demand Management

� High Customer Service levels

� Reduced lead times� Optimum working capital costs

� Optimum supply chain costs




Some Cases

� An electrical eqipment manufacturer has reduced

quoting 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.




Supply Chain Costs - Method (1)

Cost Element*

RM, Pkg Matl, WIP, FG

+ Carrying Cost of Inventory

+ Storage Cost of Inventory

+ Transportation

+ Distributor¶s Margin

+ Interest Cost of AR - Interest Saved on AP

* Measured as % of sales




Supply Chain Costs - Method (2)

Cost Element*

Cost of Working Capital

+ Transportation

+ Warehousing

+ Distribution

* Measured as % of sales




SCM Transformation Framework

� Business

Objective� CSFs

� SCM Architecture

�Transition

� Pilot�Cutover

�Roll-out

�Post-impl audit

� Application

� Networks

� Data Center

� Storage

� SCM Solns

MAP

�SCM SolnsSelection

�GAP

analysis�Customizati

on� Integration

e-COMe-COM CRMCRM SCMSCM ERPERP EPEP BIBI

SC

Planning

SC

Planning

SC Design/

Construction

SC Design/

Construction

SC

Implementation

SC

Implementation

SC

Support

SC

Support

SC

Consulting

SC

Consulting

Data

Center

Data

CenterStorageStorage Networking Networking Security Security InfrastructureInfrastructure

Consumer &

Packaged Goods

Industrial

Products

Retail &

Distribution

Logistics/

Transportation

Health Care

STRATEGISE PLANDESIGN /CONSTRUCT

IMPLEMENT RUN




A CPG/Industrial products SC

R&D/Design

/Engrg

Sales/

Mktg

Demand

MgmtProcurement

Inbound

LogisticsRM Stores

Mfg

Assembling

Testing

Customer

Service &

Returns

�Market Analysis

�Engineering

�Design

�Sourcing

�Prototyping

�Packaging

Designs

�Market Segmentation

�Product Development

�Sales Order Contracting

�Sales Order Processing�Credit & Finance

�Promotions

�Trade Shows

�Forecasting

�Capacity Planning,

Scheduling

�MRP, Inventory Control

�Allocations

�Network Design

�Contract, Negotiation

�Requisition

�Purchase Order

�Expediting

�Quality Control�Inspection & 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 Planning�Inventory Control

�Receiving

�Quality Control

�Repair & Exchange

�Exchange, Refurbish

�Credit�Defective & 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

�Testing

�Packaging

�Labeling

�Facility Layout & Design

�Order Processing

�Receiving, Stocking

�Shipment Planning& Consolidation

�Picking, Labeling, Packing

�Quick Repl of Parts

�Shipment Booking & Doc




Supply Chain Planning

�Recognizing constraints across the supplychain- Mfg, Distribution, Transportation

�Focus on aggregate planning

�Multi-site MPS Planning

�Deployment Planning for Resources

�Available to Promise (ATP) Main Players:

�i2 Tech.

� Logility

� Manugistics

�Baan IRP




�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

constraints

�Refine Due dates

Main Players:

� i2 Tech.� Logility

� Manugistics

�Baan/Berclain

Mfg Planning & Scheduling




�Plan safety stock levels for items and their locations

�Plan replenishment frequency

�Schedule shipment taking into account demand priorities

�Recognize constraints

�Trend analysis

Distribution Planning




�Develop detail routes�Analyse 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

� Manugistics�SynQuest Inc.




� 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




APS integrates all aspects of planning

�That are separated within

MRP 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




Product Lifecycle Mgmt (PLM)

³Product 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 facilitates Collaborative Product

Design and Development

CPDD

PDMVisualization

ProcessModeling

LifecycleSupportMf g

Planning

CAD/CAM

ProductPlanning

Sourcing

Source: Aberdeen Group

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