Supply Chain Management Supply Chain Management n Supply

Supply Chain Management

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

Supply Chain Management

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

Supply Chain Management n Plant automation applications are involved in the actual manufacturing processes, such as machining, material movement, blending, heating, cooling, etc. n 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.

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

Supply Chain Management n Performance measurements – n 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. n 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.

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

Packaged Applications n Market leaders n n SAP, Oracle, Baan Advanced planning systems (APS) – decision support by analyzing material flows throughout the supply chain CAPS Logistics n i 2 Technologies n Manugistics n Numetrix n

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

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

Exercise n What would be a supply chain for our semester project?