Unit 4 Logistics

1. Unit 4Logistics Dr. Supakorn Kungpisdan Unit 4: Logistics

2. Supply Chain Management • Business Example • IDES has distribution center all over the world in order to deliver goods to customers quickly and directly • Need a global planning method to ensure that deliveries are made from the nearest distribution center Unit 4: Logistics

3. mySAP SCM Unit 4: Logistics

4. Supply Chain Unit 4: Logistics

5. Goal of SCM • The ultimate goal of SCM is to perform Just-in-Time delivery of goods and services to all locations in the supply chain at the lowest cumulative network cost possible Unit 4: Logistics

6. Requirements • Plan timely and cost-efficient replenishment throughout the entire supply chain • Quickly react to constantly changing business relationships, customer expectations, and business processes within the supply chain • Manage the supply chain on a global basis Unit 4: Logistics

7. SCM Software Requirements • Provide immediate visibility to all supply and demand information • Ensure replenishment plans are synchronized throughout the entire supply chain • Provide modeling tools to help determine the best approach to reducing overall cycle time in the work • Support the evolving techniques for buying and selling products/services over the Internet • Allow automation of business process between suppliers and customers in the supply chain Unit 4: Logistics

8. mySAP SCM Overview PP/DS: Production Planning/Detailed Scheduling Unit 4: Logistics

9. mySAP SCM Features • Planning • Model supply chains with planning capabilities: • Supply chain design, demand and supply planning, manufacturing planning, and transportation planning • Execution • Integrates planning, promising, logistics, and transactional systems through material management, manufacturing execution, order promising, transportation execution, and warehouse management • Coordination • Monitor and analyze processes both within and outside the company • Collaboration • Share information and set achieve common supply chain goals through collaborative planning, forecasting and replenishment (CPFR), support for vendor-managed inventory (VMI), and support for supplier-managed inventory (SMI) Unit 4: Logistics

10. Planning and Execution Unit 4: Logistics

11. Supply Chain Planning • Supply Chain Design • Get centralized overview of the entire supply chain network • Support strategic and tactical business planning; company can test how changes in the market, the business, or customer demand affect the supply chain • Demand and Supply Planning • Demand planning: drive forecasting, promotion planning, and inventory planning • Supply and distribution planning: plan procurement, manufacturing, distribution, and transportation Unit 4: Logistics

12. Supply Chain Planning (cont’d) • Manufacturing Planning • Create feasible production plan • Medium- and long-term: aggregate requirements of materials and resources e.g. machines, production resource tools, and people. • Immediate: plans on specific resource and build schedules • Transportation Planning • Determine the right shipment mode, carriers, and routes based on the lowest cost of delivery, while considering transportation constraints. • Integrates with enterprise transportation execution system • Optimize use of the available capacity of trucks, trains, ships, and planes • Plan loading capacity more efficiently, and to lower costs Unit 4: Logistics

13. Supply Chain Execution • Materials Management • Ensures that the materials are in the right place at the right time • Manufacturing Execution • Supports engineer-to-order, configure-to-order, make-to-order, and make-to-stock • Generates optimized production schedules that take into account real-time and capacity constrains Unit 4: Logistics

14. Supply Chain Execution (cont’d) • Order Promising • Receive queries from order management or CRM systems and determine when a product is available across a fulfillment network or can be built, how much the product will cost, how long it will take to deliver. • Transportation Execution • Manage transportation from central location • Consolidate orders and optimize shipments from suppliers to customers • Ensure transport constraints and costs while ensuring time-definite deliveries • Support shipment tendering and booking, carrier selection, freight building, freight cost calculation, shipment cost settlement, document printing, and int’l trade management Unit 4: Logistics

15. Supply Chain Execution (cont’d) • Warehouse Management • Reconciles open purchase orders with incoming shipments • Supports putaway system that remembers where goods are stored • Optimizes employee picking assignments • Support warehouse tasks e.g. labeling, kitting, and deferred handling Unit 4: Logistics

16. Supply Chain Coordination • Supply Chain Event Management • Event: a situation or change in plan or during production • Sense and response the event across the supply chain • Monitoring can produce visibility from price quotation to procurement to product delivery • Distributes alerts and recommends actions when key event s are missed • Produces detailed reports on supply chain status • Supply Chain Performance Management • Measures, monitors, and displays Key Performance Indicators (KPIs) associated with supply chain processes. Unit 4: Logistics

17. Supply Chain Collaboration Unit 4: Logistics

18. Supply Chain Collaboration (cont’d) • Support for CPFR • CPFR (Collaborative Planning, Forecasting, and Replenishment) • Enable manufacturer to collaborate with strategic customers to increase revenue, improve service, and lower inventory levels and costs • Support for VMI (Vendor-managed Inventory) • VMI is a collaborative process used in many industries • VMI is built into mySAP SCM Unit 4: Logistics

19. Supply Chain Collaboration (cont’d) • Support for SMI (Supplier-managed Inventory) • Allow companies to use the internet to gain visibility into their suppliers and to manage the replenishment process • Suppliers can monitor the status of their parts at all plants and response quickly via the web. Unit 4: Logistics

20. Integration SCM is responsible for optimized planning and delivers additional functionality for coordination and collaboration Unit 4: Logistics

21. Procurement Checking and matching invoices Create RFQ Simulate pricing scenario, compare quotations - Create reminder periodically, - Update status of purchase requisitions, quotations, and POs Create PO from requisition or quotation Unit 4: Logistics

22. Self-Service Procurement • Allow employees to create and manage their own requisitions • Purchasing non-strategic goods (MRO: maintenance, repair, and operations) • Providing catalogs of the most frequently ordered materials ensures that employees can easily manage their own POs in accordance with the company’s rules. Unit 4: Logistics

23. Inventory Management • Posting a goods receipt to stock with reference to a PO • Can check if the delivery is the same as the PO data • The system suggests data from the PO when entering the goods receipt • Automatically update the PO history • When posting the goods receipt to the warehouse, the system creates a material document, e.g. material and quantity, and records the storage location Unit 4: Logistics

24. Invoice Verification • Invoices and credit memos are entered and the content and prices are checked for accuracy • Create a link between Procurement and Accounting Unit 4: Logistics

25. Exercise 14 Unit 4: Logistics

26. Exercise 14 (cont’d) Unit 4: Logistics

27. Exercise 14 (cont’d) Unit 4: Logistics

28. Exercise 14 (cont’d) Unit 4: Logistics

29. Exercise 14 (cont’d) Unit 4: Logistics

30. Exercise 14 (cont’d) Unit 4: Logistics

31. Exercise 14 (cont’d) Unit 4: Logistics

32. Exercise 14 (cont’d) Unit 4: Logistics

33. Exercise 14 (cont’d) Unit 4: Logistics

34. Exercise 14 (cont’d) Unit 4: Logistics

35. Exercise 15 Unit 4: Logistics

36. Exercise 15 (cont’d) Unit 4: Logistics

37. Exercise 15 (cont’d) Unit 4: Logistics

38. Exercise 15 (cont’d) Unit 4: Logistics

39. Exercise 15 (cont’d) Unit 4: Logistics

40. Exercise 16 Unit 4: Logistics

41. Exercise 16 (cont’d) Unit 4: Logistics

42. Exercise 16 (cont’d) Unit 4: Logistics