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Supply Chain Management at Philips Display Components. Scope of Supply Chain Activities The products The customers The supply chain SCM Strategy & Architecture Philips Display Components SCM Roadmap. TV Tubes. TV Tubes. TV Tubes. TV Tubes. N. America. N. America. Guns. Guns.
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Supply Chain Management at Philips Display Components • Scope of Supply Chain Activities • The products • The customers • The supply chain • SCM Strategy & Architecture • Philips Display Components SCM Roadmap
TV Tubes TV Tubes TV Tubes TV Tubes N. America N. America Guns Guns S. America S. America CMT CMT Philips Display Components - Internal supply chain Components Customers Sub-components Tubes Sales Other Parts Belgium Belgium Sittard Europe Aachen Multi-forms Eindhoven Sittard Masks UK UK Durham Eindhoven Guns Germany Germany Gun Parts Sittard Dreux Aachen Glass France France Glass Base Stadskanaal Barcelona Simonstone Italy Glass Italy Blackburn Lebring Cathodes Deflection Unit Washington CMT Spain Spain N. America Mask/Screen Delafoil Ottawa TV Tubes Deflection Unit Juarez Glass Base Beamstream Beamstream Guns S. America Recife Sao José TV Tubes Sao José Deflection Unit Souzano Cones Glass Capuava Asia Deflection Unit Chungli Taiwan Taiwan Chupei Chupei Hong-Kong Hong-Kong TV Tubes/CMT Nanjing China China Guns/Deflection Unit Nanjing Hsinchu Singapore Singapore Chupei Glass/Cones
Supply Chain Management at Philips Display Components • SCM Strategy: small steps in an Overall concept • 1. Definition of overall architecture • 2. Realisation improve of data exchange • internal • with customers • with suppliers • 3. Add optimisation functions
Supply Chain Management Architecture Basic questions • Central vs. decentral Functions - Systems solutions • How many levels of planning • Definition of order: • Forecast • Deal • Blanket order • Call off order • in relation to ERP system • Inter relation with ERP planning and scheduling functions
Supply Chain Management Architecture Customers Orders & Forecasts Suppliers Global Forecasting & Planning Allocation & routing Demand supply comp factories tube factories Call off orders customer sub comp Suppliers scheduling scheduling scheduling
Inter relation with ERP planning & scheduling functions Two alternative strategies 1. Use available ERP functions and add new tools to cover the short comings 2. Separate transaction administration from planning Supply Chain Management Architecture
1. Use of available ERP planning functions Planning & scheduling tools ERP - high number of complex interfaces + less changes in working with system
2. Separate transaction administration from planning requirements ERP Planning stock book transactions production, shipment and plans operations
ERP financials Financials logistics Logistics 2. Separate transaction administration from planning < 1990 1990-2000 2000 - 2010 Activity planning OLTS (ERP) F&A Transaction registration Weak interface between goods movement, value added processes and F&A. Good integration of goods movement and F&A, limited planning functionality. Combine best solutions
Supply Chain Management Roadmap Philips DC Phase 1 Concept definition Phase 2 New integrated Global Forecasting & Planning System: Paragon GDM (Global Demand Management) and Paragon SCP (partly, basic functions) Phase 3 Detailed scheduling concept, implement support tools Phase 4 Add optimisation tools
Supply Chain Management Roadmap Philips DC Partners • SuppliersSCM Tools • Paragon • Oracle Philips DCUser Requirements System integration Origin solutions
The real challenges The people & the organisation • How to explain that after investments in ERP (Enterprise ResourcePlanning) systems, we need to invest in Planningtools • New ways of working, understanding, optimization. Supply Chain Management Roadmap Philips DC