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Enhancing Supply Chain Management Efficiency Through Integrated Solutions

Supply chain management involves guiding product manufacturing, distribution, and procurement. Performance measurements like cycle time and total cost are crucial. Market leaders like SAP, Oracle, and Baan offer advanced planning systems for decision support. Integrated supply chains optimize business processes to react quickly to consumer demand.

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Enhancing Supply Chain Management Efficiency Through Integrated Solutions

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  1. Supply Chain Management

  2. Supply Chain Management • Supply chains support the flow of goods and services from their origin to their endpoint – the customer.

  3. Supply Chain Management

  4. Supply Chain Management • Supply Chain Management (SCM) comprises business-management applications that provide guidance on which products to manufacture, when, and where they should be distributed. • The category includes software that manages plant scheduling, demand forecasting, ordering raw materials and related functions.

  5. Supply Chain Management • Plant automation applications are involved in the actual manufacturing processes, such as machining, material movement, blending, heating, cooling, etc. • These applications are generally hosted on small, independent controllers, on Supervisory Control and Data Acquisition systems running on PCs, or on complex and elaborate distributed control systems.

  6. Supply Chain Management • Prior to 1999, most companies were looking at the supply chain from an internal perspective. • The emphasis was on bringing together the operations of manufacturing, planning and scheduling with sales and marketing. • Many companies turned to Enterprise Resource Planning (ERP) and advance planning and scheduling systems to bring together the procurement process internally.

  7. Supply Chain Management • Performance measurements – • Cash-to-cash cycle time: the time from paying for raw materials to collecting cash from the customer. Efficient SCM processes do this in 30 days vs. 100 days. • Total SCM cost: cost of buying and handling inventory, processing orders, and information systems support. Efficient SCM incur costs equal to 5% of sales vs. costs equal to 12% of sales.

  8. Supply Chain Management • Other Performance measurements – • Initial fill rate: % of the order that the supplier provided in the first shipment • Initial-order lead-time: time needed for the supplier to fill the order • On-time performance: how often the supplier meets agreed to requested delivery dates

  9. Packaged Applications • Market leaders • SAP, Oracle, Baan • Advanced planning systems (APS) – decision support by analyzing material flows throughout the supply chain • CAPS Logistics • i2 Technologies • Manugistics • Numetrix

  10. Integrated Supply Chain • Supply chain or value chain is the flow of goods and services from their points of origin to the ultimate consumer. • Fully integrated supply chain can react to consumer demand in minutes • High-value opportunity for most businesses

  11. Integrated Supply Chain • Step 1: automate and optimize major business processes within each member organization. • Step 2: Extend the enterprise to all members in the supply chain

  12. Exercise • What would be a supply chain for our semester project?

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