Presentation AgendaPresentation AgendaWhat is Supply Chain Management? What is Supply Chain Management? (SCM)(SCM)Supply Chain PlanningSupply Chain Planning– Challenges (Interactive), Resolutions, Latest Challenges (Interactive), Resolutions, Latest
TrendsTrends
Supply Chain Execution Supply Chain Execution – Challenges (Interactive), Resolutions, Latest Challenges (Interactive), Resolutions, Latest
TrendsTrends
Q&AQ&A
Supply Chain Planning Supply Chain Planning ChallengesChallenges
InteractiveInteractive
Some of the ChallengesSome of the Challenges
How many Stocking Locations; Where they are? Where to Stock?How many Stocking Locations; Where they are? Where to Stock?
One Supplier or Multiple Suppliers? One Supplier or Multiple Suppliers?
Multiple Lead Times?Multiple Lead Times?
Variability in Supply?Variability in Supply?
Variability in Demand?Variability in Demand?
Centralised or Decentralised planning?Centralised or Decentralised planning?
How often to order? Weekly, Daily, Monthly, Quarterly? Or a How often to order? Weekly, Daily, Monthly, Quarterly? Or a
combination?combination?
What forecasting methods to use and why?What forecasting methods to use and why?
How to classify products for effective inventory control?How to classify products for effective inventory control?
What target service levels to set and why?What target service levels to set and why?
How much buffer stocks to hold and where?How much buffer stocks to hold and where?
How to measure the achieved service levels?How to measure the achieved service levels?
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Production Planning& Scheduling
Replenishment PlanningDemand Forecasting
Executive Information
Systems
Supply Chain Supply Chain ManagementManagement
Modelling and
Simulation
Are you operating in isolation rather than in partnership? next
Syncron - Supply Chain Management
JDE
SAP R/3
SAP R/3
Movex
Oracle
Baan
Inhouse
IFS
IFS
IFS
WEB Shop.com
ERP Myth
JDE
Inhouse
Supply Chain PlanningSupply Chain Planning
Global Warehouse
Divisional Warehouse
ShopManufacturing Supplier
Cyclical
variation
External factors
FORECAST COMPONENTS FORECAST COMPONENTS
Trend
Forecast ComponentsForecast Components
Base level
LUMPY SLOW ERRATIC
FAST NEGATIVE TREND
NEW DYING OBSOLETE
Demand PatternsDemand Patterns
Trend
MANAGING FORECAST ERROR MANAGING FORECAST ERROR THE OPTIONSTHE OPTIONS
Month
Dem
an
d
BUFFER STOCK
Lead timeReview timeTarget service levelAverage demandVariability of demandBatch size
94.00 95.00 96.00 97.0012.45 13.16 13.99 15.02
223.20 186.00 148.80 111.60235.65 199.16 162.79 126.62
93 94 95 96 97 98 99 100
Target service level
Val
ue
of s
tock
DFRP Models
Warehouse
Forecasts
• Branch Demand
• Branch Forecasts
• Branch Orders
• Branch Order
Schedules
Warehouse Stocks
• Warehouse Stocks Only
• National Stocks
Branch forecasts and order
schedules based on local
demand
eCollaborationeCollaboration
OEM Supplier Distributor Warehouse Retail
Supplier Collaboration
Internal Collaboration
Customer Collaboration
Information Flow
Product Flow
VMI – Vendor Managed Inventory
Virtual Stock Management
Supply Chain ExecutionSupply Chain Execution
ΑΒ
Γ
Δ
Ε
The Work Flow
What is Supply Chain What is Supply Chain Execution?Execution?
Simply Handling Receipts and Issues of Simply Handling Receipts and Issues of Inventory, and Controlling Warehouse and Inventory, and Controlling Warehouse and FleetFleet
Receipts include, POs, Shipping Receipts include, POs, Shipping Notifications, Scheduling, Advance GRN, Notifications, Scheduling, Advance GRN, GRN, Checking, Quality Management, GRN, Checking, Quality Management, Sorting, Binning, Cross Docking and Task Sorting, Binning, Cross Docking and Task InterleavingInterleaving
What is Supply Chain What is Supply Chain Execution?Execution?
Issues include Sales Orders, Delivery Issues include Sales Orders, Delivery Orders, Stock Control, Shipments, Picking Orders, Stock Control, Shipments, Picking Planning, Picking, Task Interleaving, Planning, Picking, Task Interleaving, Replenishment, Kitting, Sorting, Checking, Replenishment, Kitting, Sorting, Checking, Packing, Repacking, Labeling, Packing, Repacking, Labeling, Documentation, Loading, Delivery Documentation, Loading, Delivery Confirmation, Billing, Returns, AR and Confirmation, Billing, Returns, AR and CRMCRM
Managing Warehouse & Managing Warehouse & FleetFleet
Stock SearchStock Search
Pack ChangesPack Changes
Cycle CountingCycle Counting
Activity ManagementActivity Management
Truck RoutingTruck Routing
Fleet TrackingFleet Tracking
In modern era SCE In modern era SCE means…means…
Increased Customer Satisfaction with Increased Customer Satisfaction with Lower Cost of Delivery Lower Cost of Delivery
More accurate satisfaction of increasing More accurate satisfaction of increasing logistics requirementslogistics requirements
Value added services to be provided – this Value added services to be provided – this has raised the minimum standardhas raised the minimum standard
Supply Chain Execution
Some Challenges
Interactive
Supply Chain Execution
Some Challenges
Interactive
ChallengesChallenges
Optimizing Storage Capacity UtilizationOptimizing Storage Capacity Utilization
Optimizing Resources such as men and Optimizing Resources such as men and machinemachine
Traceability of LOTsTraceability of LOTs
Inventory AccuracyInventory Accuracy
Managing FIFO/FEFOManaging FIFO/FEFO
Customer Service ManagementCustomer Service Management
Fleet Management, Routing & TrackingFleet Management, Routing & Tracking
Resolution of ChallengesResolution of Challenges
Optimizing Storage Optimizing Storage CapacityCapacity
A Variety Storage SystemsA Variety Storage Systems
Multiple Units of MeasureMultiple Units of Measure
Variable BinsVariable Bins
Mixed BinsMixed Bins
Mixed PalettesMixed Palettes
Splitting Storage and Picking LocationSplitting Storage and Picking Location
Optimizing Resources Optimizing Resources such as Men & Machinesuch as Men & Machine
Task InterleavingTask Interleaving
Storing by Product Velocity – Sales, Pack Storing by Product Velocity – Sales, Pack Sizes, PromotionsSizes, Promotions
Warehouse DesignWarehouse Design
Traceability of LOTsTraceability of LOTs
Audit Trail by LOTs, especially to enable Audit Trail by LOTs, especially to enable LOT recallsLOT recalls
Records on LOTs by Multiple Pack SizesRecords on LOTs by Multiple Pack Sizes
Inventory AccuracyInventory Accuracy
Bar CodingBar Coding
Multiple Storage UnitsMultiple Storage Units
Multiple Units of MeasureMultiple Units of Measure
De-link WMS Stocks from ERP Stocks to De-link WMS Stocks from ERP Stocks to improve accuracyimprove accuracy
Managing FIFO/FEFOManaging FIFO/FEFO
Storage KaizenStorage Kaizen
System proposed PickingSystem proposed Picking
Splitting Storage and Picking LocationSplitting Storage and Picking Location
Customer Service Customer Service ManagementManagement
Manage Date and Time windows for Manage Date and Time windows for delivery through systemdelivery through system
Minimum Product Shelf LifeMinimum Product Shelf Life
Pallet TypesPallet Types
Shipping Docs and LabelsShipping Docs and Labels
Consequent Reduction in ReturnsConsequent Reduction in Returns
Fleet Management & Fleet Management & RoutingRouting
Fleet Attributes, Item Attributes, Stock Fleet Attributes, Item Attributes, Stock AttributesAttributes
Automatic Vehicle Loading SequenceAutomatic Vehicle Loading Sequence
Routing – Shortest Time, DistanceRouting – Shortest Time, Distance
Fleet Tele-TrackingFleet Tele-Tracking
Some Key KPIsSome Key KPIs
Order Fill Rate and AccuracyOrder Fill Rate and Accuracy
Inventory AccuracyInventory Accuracy
Warehouse Flow Through Warehouse Flow Through
Compliance to Internal StandardsCompliance to Internal Standards
Some Action PointsSome Action Points
Ensure KPIs and Continuous Improvement Ensure KPIs and Continuous Improvement Programs are in placePrograms are in place
Insure Warehousing and Transportation Insure Warehousing and Transportation Processes are in SyncProcesses are in Sync
Insure these processes are in Sync with Insure these processes are in Sync with Customer Delivery InstructionsCustomer Delivery Instructions
Additional InitiativesAdditional Initiatives
RFID Compliance, Direct Store Delivery, RFID Compliance, Direct Store Delivery, Smaller more Frequent Orders, Increased Smaller more Frequent Orders, Increased Order Fulfillment Accuracy, Reduce Order Fulfillment Accuracy, Reduce Working Capital, Efficient use of Inventory, Working Capital, Efficient use of Inventory, Shorter Fulfillment TimeShorter Fulfillment Time
Past vs PresentPast vs Present
PastPast– Value Added Services such as BOM, Assembly, Value Added Services such as BOM, Assembly,
Packing, KitsPacking, Kits– Compliance – Barcodes, BOLs, UCC LabelsCompliance – Barcodes, BOLs, UCC Labels
PresentPresent– Real-time integration with TMSReal-time integration with TMS– KPIsKPIs– Cross DockingCross Docking– Remote Satellite Warehouse OperationsRemote Satellite Warehouse Operations– RFID ComplianceRFID Compliance
Some Latest Trends…Some Latest Trends…
Picking for Pieces, Cartons and PalletsPicking for Pieces, Cartons and Pallets– StrategiesStrategies
Basic Order PickingBasic Order Picking
Batch PickingBatch Picking
Zone PickingZone Picking
Wave PickingWave Picking
Some Latest Trends…Some Latest Trends…
Picking for Pieces, Cartons and PalletsPicking for Pieces, Cartons and Pallets– EquipmentEquipment
ShelvesShelves
RacksRacks
CarouselsCarousels
Bar Code ScannersBar Code Scanners
ASRSASRS
Pick to LightPick to Light
Voice-Directed PickingVoice-Directed Picking
ACSSACSS
Questions?Questions?
Thank YouThank You