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By
Dallas Consulting Group
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In today's competitive marketplace,distributors and wholesalers must fight tocreate and maintain an advantage over theircompetition.
The wholesale distribution solution supportsthe day-to-day order to cash and procureto pay processes.
Solution supports industry specific
functionality like warehouse and inventorymanagement, demand management andfinance and controlling.
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The legacy system utilized by the FoxMeyerCorp employs obsolete technology, whichlimits the expansion of functionalitynecessary to remain competitive in thewholesale distributor market .
The capabilities of the ERP system willsupport reengineering efforts to increasethe order fill rate and attain highercustomer satisfaction.
The modules that are going to be coveredare S&D,Purchasing,IWM,Shipping andDemand Management
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Wholesale Distribution solution reducesenterprise operating costs by:
Improved sales order processing
Automated rebates and bill back contracts Improved inventory control
Reduced days sales outstanding (DSO) cycles
Improved labor efficiency
Reduced financial closing time cycles
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Inventory Management Purchasing/Procurement
Sales and Distribution
Warehouse Management
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All routine tasks from the entry of requisitions to thegeneration of purchase orders are handled automatically,
ERPS vendor evaluation feature supports purchasing by
optimizing procurement operations. Referencing and fast-entry functions contribute to efficient
purchasing operations.
It simplifies the process of source selection and permits thecontinuous tracking and review of existing supply
relationships.
Purchase requisitions already assigned to a source of supplycan be converted into purchase orders automatically.
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Procurement based on schedulingagreements gives you these importantadvantages:
Reduced processing time and fewer papertransactions
Stockless or near-stockless purchasing
Shorter vendor lead times for the individual
shipments
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Optimizing Review Cycle The process begins with the identification
of vendors who not only can supply theneeded product or service but is a strategicmatch for the buying firm.
These are usually variables that add valueto the process through increased service or
decreased cost
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Reduces reactive buying as it leads toadditional workloads and costs to anorganization, from purchasing, to expediting,
to receipting, to accounts payable.
Parameters such asreceipts within a certain
tolerance. High-level
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As Figure shows, requirements for materials or services are determined
within user departments, or through material requirements planning.
The Procurement Cycle
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Reduced manual data entry
Reduced postage and handling costs
Reduced order cycle Increased customer service
Reduced lead times
Reduced inventory carrying costs
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The SAP Warehouse Management (WM)application provides flexible, automatedsupport to assist in processing all goodsmovements and in maintaining current stock
inventories in a warehousing complex.
The systems also direct and optimize stockput away based on real-time informationabout the status of bin utilization.
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See.
Inventory Transfers Know exactly where allinventory is locatedwhen when it is in
transit to another location. Drastically improves asset management and
also avoids short fall. ERP helps in implementing, configure and
support cutting edge RFID solutions that willincrease warehouse productivity and improvematerials handling.
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Sales & Distribution- Process Flow -
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Customer Order Picking Goods Issue
BillingAccounts ReceivableFinal Payment
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Delivery scheduling Availability check
Transfer of requirements to MRP
Pricing Credit check
Shipping point & route determination
Document flow
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Core of customerorder management
No impact to G/L
Can referenceexisting documents
Copies keyinformation from
master data
Automatedstandard functions... availability check MRP updating pricing credit check delivery scheduling
export control shipping & route
determination
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To get the historical data, the system loads orderdata from the Sales (SD) component of SAP ERP andstock transfer data from the Materials Management(MM) component of SAP ERP into the BusinessIntelligence system in SAP Supply Chain Management(SAP SCM).
used in making pricing decisions, in assessing futurecapacity requirements, or in making decisions onwhether to enter a new market.
used to determine sales targets and to help identifyterritories worthy of an allocation of limited resources
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Profiles Contains the forecast strategy andmodel the parameters that the systemneeds to determine the forecast for eachstrategy.
We assign a forecast profile to each locationproduct for which the system is to carry outa forecast.
:Used to assign unique Characteristics value
based on the selection in planning
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Comprehensive functionality to supportpicking, packing and loading functions
Work list and deadline monitoring
Functions with backorder processing
Tightly coupled to the MM and FI modules
Facility for transportation management
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Order
Order
Order
Delivery
Order
Combination
Order
Delivery
Partial
Delivery
Delivery
Order
Complete
Delivery
Delivery
Delivery
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Main functions Picking, Packing & Inventory management Generate Shipping Documents
Transportation Management Routes Transportation Scheduling
Delivery Scheduling, Returns Deliveries &Stock Transfer
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Based on historical sales data it models customerdemand for every store, product and promotiontype thus promoting customer loyalty.
Regular Price Optimization helps you to find thebest combination of regular prices to meetbusiness and category goals based on customerdemand patterns.
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Plan & Design (Strategy) including BPR 11/01/2012 11/20/2012
Build & Unit Test 11/21/2012 01/10/2013
System & Integration Test 01/11/2013 01/31/2013
User Acceptance Testing & Training 02/01/2013 02/21/2013
Go Live date 02/24/2013Post Implementation Support 02/24/2013
03/02/2013
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Linking key controls systems, performancemeasures and incentives to strategic priorities. Inthis way, the company:
Preventing false declarations of success (the
specific criteria are set up in advance).
Helps implementation teams resist "scope creep"and focus on delivering results.
Balances systems against business and physical
processes, helping the company optimize overallbusiness performance.
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When a new system needs to be implementedin an organization, there are three differentways to adopt this new system: The big bangadoption, phased adoption and paralleladoption.
We would suggest that big bang adoption typeis riskier than other adoption types because
there are fewer learning opportunitiesincorporated in the approach, so we wouldrecommend a .
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Purchasing the ERP in the BPR phase itself, helps inproviding a test simulation to the business so thatit sets the expectations right during thepreparation phase itself.
Getting the users involved during BPR phase andalso frequently communicating with them aboutchanges in business processes, will help inreducing the resistance and anxiety as BPR hasbeen equated to downsizing always.