supply chain presentation

WAR withLean SCM . . . Crusaders of business

by Wahyu Adi, ST, CPIM

SCM architecture initial stage (push)

Objective:

WAR

Business Model

3G approach

Stock Availability accross product portfolio

Supply Chain Processes

Efficient OTD Processes

Supply Base Portfolio

Strategy Implementation

Supply Base Our Organization

Distributors Retailers

Cost

Seamless Order Processing`

Capacity/LeadtimeOptimal

Inventory Levels

Business Model

DSO

Cost

Quality Assurance

Quality Assurance

Replenishment

SCM architecture 2nd phase (transition to pull)

Objective:

WAR

Business Model

3G approach








Cost



Inventory Levels

Business Model

DSO

Cost

Sell out data

Quality Assurance

Quality Assurance

Replenishment

SNOPCollaborative Planning

SCM architecture 3rd phase (pull)

Objective:

WAR

Business Model

3G approach








Cost



Inventory Levels

Business Model

DSO

Cost

Sell out data

Quality Assurance

Quality Assurance

Replenishment

VMI Demand Planning

SNOP

Collaborative Planning

VMI

SCM supports to WAR

ENABLERS- Inventory level- Back order- Open order- Credit mngmt / DSO- Distribution /

Transport- Lean SCM

RESULTS :- Sales Volume- Repeat order - Customer Service Level- Optimal Inventory

Level- Stock out / backlog- Open order- SCM cost

STRATEGIES and MEASURE

Business Model

SCM architecture 3rd phase (pull)

Objective:

WAR

Business Model

3G approach








Cost



Inventory Levels

Business Model

DSO

Cost

Sell out data

Quality Assurance

Quality Assurance

Replenishment

VMI Demand Planning

SNOP

Collaborative Planning

VMI


How to get optimized inventory

• Stock availability accross product portfolio• How to manage / control• What strategy• How to start ?

Inventory Strategy / Design

Category Factory Fact WHS Reg. DC Local DC Customer

Make to forecast, ship to Loc.DC DP

Make to forecast, ship to Local DC

Make to forecast; ship to Reg. DC

Make to forecast; ship to RDC/LDC

Make to forecast; ship to Factory whs

Make to Customer Order)DP

DP

DP

DP

DP

DP = decoupling point

Tool listed in theory

• ABC classification• ROP• MRP• EOQ• JIT• Kanban• many others

Industry Situation

• Product Portfolio – Finished Product = 1500-2000 sku– Raw Material = 6000 -8000 sku– Spare Part = 15000-20000 sku

Guideline

•Do product Classification, Master Data completion

•Define inventory stragegy / design per class

•Map and explore overall root cause/possibilities

•Analysis of the problem and define alternative solution

•Implement and Improve

•Control of the result and improvement

What is the finding

• In-complete/in-accurate Master Data•Requirement of Supply chain strategy •Need coordination and collaboration planning and activity

•Business / Portfolio Complexity •Too complex business process flow• In-efficient inventory / too high working capital

•Too long vendor leadtime•Reliability of vendor and manufacturing•Reliability of customer demand

How to get optimized inventoryModel Characteristics

ROP Steady demandMust use EOQ

MRP Erratic Demand

VMR (min – max level)VMI (min – max level)

Too gain better supply reliability, Predicted future demandReduce working capital

Consigment (min – max) Steady and predicted demand

Kanban Controll replenishment

MSL To gain shorter leadtime with risk managed

Total Cycle Time approach

Horizontal and Vertical Inventory Approach for total Supply Chain Optimization

Current state Vertical – Horizontal Cycle TimeQ1-Q2 2009

15

Sourcing policy based on MTO

Long Internal Order Cycle Time, from moment of order receipt until goods issued from factory

Very high finished product inventory in USA

Desire state Vertical – Horizontal Cycle Time

16

Desire state to have zero leadtime for all inventory

IOCT is expected short enough to cut the overall leadtime

Require to bring the finished product inventory down in the chain

OPEN FOR DISCUSSIONS

supply chain presentation

Documents