Supply Chain Supply Chain ManagementManagementSupply Chain Supply Chain ManagementManagement

Gina HishinGina HishinRegional Product ManagerRegional Product ManagerMicrosoft CorporationMicrosoft Corporation

What Is “Distribution?”What Is “Distribution?”

Satellite, Regional Satellite, Regional & Overflow DCs& Overflow DCs

3PL W/H3PL W/H

Central DCCentral DC

Mfg/Kitting Mfg/Kitting WarehouseWarehouse

Small retailers, Small retailers, companies, companies,

and customersand customers

Large Large retailersretailers

Corporate Corporate AccountsAccounts

Distribution Distribution CompanyCompany

Suppliers/VendorsSuppliers/Vendors CustomersCustomers

Sell SideSell SideBuy SideBuy Side OperationsOperations

Private Private FleetFleet

Common Common CarrierCarrier

Buy goods ahead of demand:

•Multiple suppliers•100’s of SKU’s•Long lead times

Manage inventory Manage inventory buffers without excess buffers without excess or shorts: or shorts:

•100’s of SKU’s & 100’s of SKU’s & multiple sitesmultiple sites

•Timely, efficient Timely, efficient replenishmentreplenishment

•Demand spikes Demand spikes (promos, events)(promos, events)

Provide High customer service

•Quote/accept/reject orders; track order status

•Schedule shipments•Pick-pack-ship all order line items (ordre fill rate)

Customer Service (ATP Customer Service (ATP e.g.)e.g.)

SuppliersSuppliers

In-TransitIn-TransitOrdersOrders

CustomerCustomerOrders &Orders &inquiries?inquiries?

On-HandOn-Handinventoryinventory

InventoryInventory “Available to Promise” “Available to Promise”

PlannedPlannedOrdersOrders

PO’s “Available to Promise”PO’s “Available to Promise”

SalesSales

Customer Customer ServiceService

Self-serviceSelf-service(Web)(Web)

??

DistributionDistributionCenterCenter

Inventory Inventory allocated toallocated to

ordersorders

??

Can the enterprise address the needs of customers:

•To promise orders based on all available inventory? And keep that promise?

CustomersCustomers

Supply Chain Supply Chain Management Management Sales Order ProcessingSales Order Processing

Multi-departmental order processing Multi-departmental order processing workflowworkflow

Complete Integration with Purchasing SeriesComplete Integration with Purchasing Series

Automated Returns from Invoice DocumentsAutomated Returns from Invoice Documents

* Process Holds for customers over their * Process Holds for customers over their credit limitcredit limit

* Customer Priority Ranking* Customer Priority Ranking

Supply Chain Supply Chain Management Management Sales Order Processing cont’dSales Order Processing cont’dEffective Distribution ManagementEffective Distribution Management

Advanced DistributionAdvanced Distribution

Control distribution while improving Control distribution while improving efficiency and profitabilityefficiency and profitability

Advanced PickingAdvanced Picking

Maximize flexibility by tailoring inventory Maximize flexibility by tailoring inventory selection methodsselection methods

ATP – Available to PromiseATP – Available to Promise

Meet customer needs with accurate order Meet customer needs with accurate order managementmanagement

Extended Pricing Compatibility Extended Pricing Compatibility

Supply Chain Supply Chain Management Management InventoryInventory

Extended PricingExtended PricingMulti-bin capabilitiesMulti-bin capabilitiesCycle CountingCycle CountingABC AnalysisABC AnalysisSerial and Lot Tracking capabilitiesSerial and Lot Tracking capabilitiesHistorical Stock Status Report Historical Stock Status Report * Minimum Shelf Life* Minimum Shelf Life* Lot Number Consolidation* Lot Number Consolidation* Cradle-to-Grave Serial/Lot Tracking* Cradle-to-Grave Serial/Lot Tracking* Allocated/On-order quantity drill-downs* Allocated/On-order quantity drill-downs

Supply Chain Supply Chain ManagementManagement Purchase Order ProcessingPurchase Order Processing

Invoice and Receipt Matching FacilitiesInvoice and Receipt Matching Facilities

Automated Purchase Order GeneratorAutomated Purchase Order Generator

Workflow ManagementWorkflow Management

Purchase Order Rollup FacilityPurchase Order Rollup Facility

Revalue Inventory for Cost VariancesRevalue Inventory for Cost Variances

Landed CostsLanded Costs

POP ReturnsPOP Returns

* Blanket Purchase Orders* Blanket Purchase Orders

* Contract Number and Expiration Dates* Contract Number and Expiration Dates

* Ship to Address per Purchase Order line* Ship to Address per Purchase Order line

* Multiple Manufacturing Part Numbers* Multiple Manufacturing Part Numbers

Encumbrance Encumbrance ManagementManagement* Allows you to track encumbrances at any * Allows you to track encumbrances at any

point in time.point in time.

Helps ensure funds will be available when Helps ensure funds will be available when payment is duepayment is dueReduces the time it takes to track Reduces the time it takes to track expensesexpensesUses encumbrance accounting as an aid to Uses encumbrance accounting as an aid to fund managers in budgetary controlfund managers in budgetary controlProvides immediate tracing upon entering Provides immediate tracing upon entering transactionstransactionsCan help avoid overspending of specific Can help avoid overspending of specific accounts with automated messagesaccounts with automated messagesFacilitates effective cash planning and Facilitates effective cash planning and controlcontrol

Supply Chain Supply Chain Management Management Requisition Requisition ManagementManagement

Employees can enter online requisitionsEmployees can enter online requisitions

Automated routing for approvalAutomated routing for approval

Online approval hierarchyOnline approval hierarchy

Single PO can be created from multiple requisitionsSingle PO can be created from multiple requisitions

Multiple views provided for employees, supervisors Multiple views provided for employees, supervisors and accounting departmentand accounting department

Ensures requisitions are entered against the Ensures requisitions are entered against the appropriate budgetappropriate budget

What are the customers What are the customers needs?needs?

““DP is strategic to us as we need DP is strategic to us as we need to to deplete previous-yeardeplete previous-year models models just as the new models begin just as the new models begin shippingshipping.”.”

““We need to provide We need to provide

better forecastsbetter forecasts to reduce to reduce production lead time.production lead time.””

““Sales people are being Sales people are being measured on their ability measured on their ability to reach specific goalsto reach specific goals.”.”

““We have to We have to be better at be better at predicting predicting the futurethe future demand to demand to avoid stock-avoid stock-outsouts.”.”““Ensure capability!”Ensure capability!”

““New products”New products”

The process of The process of estimating future future demand with a demand with a known confidence confidenceHelps businesses:Helps businesses:

PositionPosition goods for which there is demand goods for which there is demand

ReduceReduce inventory inventory

ImproveImprove customer satisfaction customer satisfaction

ReduceReduce operating costs operating costsPrecursor to other business planning Precursor to other business planning activities:activities:

Production Production planningplanning

Purchasing and Purchasing and replenishmentreplenishment

Resource planningResource planning

Logistics planningLogistics planning

What is Demand Planning?What is Demand Planning?

Demand Planner helps …Demand Planner helps …

Minimize stock outs & delaysMinimize stock outs & delays

Increase Customer Service Increase Customer Service LevelsLevels

Reduce inventoryReduce inventory

Reduce operating costsReduce operating costs

Supply Chain ManagementOperations Working at Peak Efficiency

Customer TestimonialCustomer Testimonial

“Colorbök needed an ERP solution that was both scalable and easy to adapt to our rapidly growing needs.  Microsoft Great Plains helped our firm achieve record shipments in the first month after ‘go live’ date.”- Stuart P. Hall (MSIE/OR) – CFO, Colorbök

Transform time-consuming Transform time-consuming processes into tasks that can processes into tasks that can be executed quickly and be executed quickly and accurately…accurately…

Demo Scenario

Demo Scenario

Qty Available?

Qty Available?

FulfillOrderFulfillOrder

OrderOrder

Qty to DeliverQty to Deliver

QuoteQuote

Sell SideSell Side

- Pick- Pack- Ship

- Pick- Pack- Ship

Inventory

Customer

General ledger

OrderOrder

NoNoYesYes

AvailableTo

Promise?

AvailableTo

Promise?

POPO

BOBO

Qty to Back Order

Qty to Back Order

Buy SideBuy Side

General Ledger

InventoryCreditors

Receive Invoice

Enter RequisitionTransfer

Approve POApprove Req.

Receive Goods

POPO

… automatically created from

Sales Order

© 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

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