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Transcript of 1 scm intro
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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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