May 2016

P2P13 Third Party Manufacturing

SNC Training

Agenda

Introduction

Overview

What are we going to achieve?

How does success look like?

What are our roles?

Supply Network Collaboration Process

Supply Network Collaboration (SNC) Training

Page 2

Overview – 3PM scenarios

Tolling (Subcontracting manufacturing)

Page 3

What do we want to achieve?

Improve and eliminate inconsistencies through the Supply Chain

Improve transparency in Order status

Improve the customer/supplier experience

Reducing time, inefficiencies and guesswork

Ensuring our partners are ready for Go-Live.

Page 4

How does success look like?

Orders are fulfilled according to the requirements

There is one source of truth

Order status are visible on the report which enable tracking of process

Communication is well maintained

Vendor and customers supports each other to deliver quality goods and

services which we are proud of

Smooth transition to the new system, with minimum business interruption.

Page 5

3rd Party Manufacturing Process

Page 6

3PM Manufacturing Process - Tolling

Page 7

Receive PO,

confirm quantity

& delivery date

3PM Vendor

Receive

components

required from

MG or 3rd party

vendor

3PM Vendor

Manufacture

product

Create

Advanced

Shipping

Notification

(ASN)

Create Handling

Unit and Print

SSCC Pallet

Label

Create

Shipment Note

& Publish ASN

3PM Vendor 3PM Vendor 3PM Vendor

3PM Vendor

Ship goods to

MG

Record components

used for production

and confirm

production quantity

3PM Vendor

Order Finished Goods Tolling Arrangement

Page 9

Role Step Manual/System

Vendor 1. Receives Purchase Order (PO) SNC

Vendor/MG 2. Confirms PO by accepting order in the Work OrderContact MG if there is any change required to the PO, Material

Resource Planning requisition will be able to adjust the information

in MG PO.

Vendor update PO for confirmation.

SNC

Vendor 3. Manufactures the products Manual

Vendor 4. Records Component used for production and confirm

production quantity (Ref. Yield)

SNC

Vendor 5. Creates Advanced Shipment Notification (ASN) SNC

Vendor 6. Creates Handling Unit (Print Pallet Label Automatically SNC

Vendor 7. Creates delivery note SNC

Vendor 8. Ship goods to Murray Goulburn assigned location Manual

Roles & Responsibilities

Murray Goulburn: Planning and Procurement

Work closely with vendor on subcontracting materials.

Work with Vendors to provide quality materials/products to enable subcontracting

process to go smoothly.

Provide a collaborative environment to enable efficient planning and order

confirmation.

Vendor

Work with Murray Goulburn closely on purchasing requirements. Update status and

produce quality products.

Update Murray Goulburn if there is any potential changes on order/delivery date.

Warehouse to Dispatch with relevant batch information.

For tolling scenario, Indicate batched materials received from MG used for the

production.

Update stock balance for replenishment and planning.

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The process (Today vs Future)

Suppler Network Collaboration (SNC)

Page 11

TODAY

Vendor Net

FUTURE

SNC

1. Confirm Purchase Order

3. Create Advanced Shipment Notice (ASN)

4. Create Handling Unit & Print SSCC Label

5. Ship product to Murray Goulburn

2. Record Components used for production &

confirm production quantity

5. Create Shipment Note & Publish ASN

Confirm (Accept) Purchase Order

Enter pallet details, prepares shipment

and prints SSCC labels

Finalise shipment and send advanced

shipping Notice (ASN)

Ship products to Murray Goulburn

Warehouse

The process

Suppler Network Collaboration (SNC)

Page 12

MG SNC vendor

Create/Change

Subcontracting PO

Purchase Order

Component stock update

ASN Received

Goods Receipt

Invoice Receipt

Invoice Match & Approve

Payment

Remittance Advice

1. Receive Subcontracting Purchase Order

2. Confirm & Review Work Order

4. Create Advanced Shipment Notice (ASN)

5. Create Handling Unit and Print the SSCC

Label

Create Invoice

Remittance Advice

6. Create Shipment Note and Publish ASN,

ship product to MG

3. Update Component stock

Receive Shipment

Other Key Changes

Page 13

Area What’s changing

Batch management • All finished goods will be batch managed

• One batch per pallet (or where this is not practical, supply SSCC label per batch)

Quality • You will be required to provide Certificate of Analysis (CoA) quality certificates

• The batch management process supports the QA program – through traceability and

labelling of procured product

Key output: SSCC labels

Page 14

Information about the material

• Current labels will be replaced by SSCC

(Serial Shipping Container Code) labels,

produced by SNC

• You will require a printer that is able to print

new SSCC labels

Bar code for customers

Bar code for MG warehouse activities

Draft only

Key output: New consignment note

Page 15

Sample 3PM Vendor

100 St Kilda Rd

MELBOURNE VIC 3000

AUSTRALIA

Batch number is now

included

Chep pallet quantity

now provided

SNC system training

Page 16

SNC navigation

1. Login

Page 17

2. Navigation

3. Customisation

SNC navigation

Page 18

4. Quick View

5. Settings of Quick view

SNC: Process Purchase Order steps

1. Review PO

2. Confirm Quantity

(communicate directly with MG should the quantity required are not met)

3. Save and Publish (Final)

SNC: Process Work Order

1. Review Work Order

2. Create Yield document

(be ready for assembly)

3. Save and publish

SNC: Create ASN

1. Supplier Batch

2. Manufacturing date

3. Best before date

4. Packing

(print SSCC label)

SNC: Create Shipment

1. Use the ASN reference

2. Select Carrier

3. Select Means of transport

Reporting (query)

1. Check PO status

2. Check Work Order status

3. Check ASN status

Important note

Important data will be required to complete before the document can be saved

If the purchase order is required to be amended, for example quantity, please

ensure to contact MG.

Manage status, change and review

Record of batch number (referencing the product used for the Tolling / Buy/Sell

scenario)

Identify the batch (vendor reference)

Save ASN first in preparation for packing and publish when the shipment is

created.

Page 24

Learning Materials

• Training documents

• Quick reference card

• Reference materials

Supporting you through the transition

Page 26Page 26

IT infrastructure requirements

To operate SNC, you will require:

• Internet Explorer version 10 or above

• A printer that can print SSCC labels, usually laser printer, which prints the barcode as well as numbers (example printers include PM43 running ZSIM or Zebra printers

• You will need the drivers installed on each workstation that will print the SSCC labels

Our IT team will contact you over the coming weeks to ensure you have the required infrastructure to support the rollout of SNC. If you do not have a compatible printer, MG will supply one.

Page 27Page 27

Accessing the system at Go-live

You will receive a Web link together with required login details

Support

• Step by step instructions & QRCs

• A support phone number will be provided at go-live

Supporting you through the transition

Thank you

For questions relating to… Speak with…

• Contracts/ Commercial Kevin McKie

• Production Planning Silke Davis or John Dinh

Support for you