Unit 4: Logistics1 Unit 4 Logistics Dr. Supakorn Kungpisdan [email protected].

Unit 4: Logistics 1

Unit 4Logistics

Dr. Supakorn [email protected]

Unit 4: Logistics 2

Supplier Relationship Management

Business Example Effectiveness of procurement processes can

have a large influence on cost within a company

IDES wants to relieve the strain placed on purchasing by more closely integrating suppliers in procurement transactions

Unit 4: Logistics 3

Managing Costs for Continuous Profitability Materials and services received from suppliers are so

important But when reducing procurement costs, the company

treats suppliers as adversary Collaboration with suppliers is far more profitable that

pressuring suppliers for marginal cost reductions

Need a way to effectively manage the entire supply base in a way that streamlines procurement and souring processes, maintains supply quality, and increases profits, supplier collaboration, and innovation

Unit 4: Logistics 4

mySAP SRM

Unit 4: Logistics 5

Managing Costs for Continuous Profitability (cont’d)

Unit 4: Logistics 6

Business Benefits

Improved sourcing strategy Rationalization and optimization of the supply base Better access to data on supplier performance Improved quality of supply and reduced risk

Compressed cycle times Automation of request-for-proposal (RFP) and request-

for-quotation (RFQ) cycles Faster procurement execution through online approval Faster acknowledgement and response from suppliers

Unit 4: Logistics 7

Business Benefits (cont’d)

Reduced process costs Increased compliance through reduced maverick buying Reduced complexity through content consolidation Increased efficiency through procurement automation

Lower unit prices Demand consolidation across multiple business units Lower inventory carrying costs Better prices through competitive bidding

Unit 4: Logistics 8

Strategic Purchasing and Sourcing

A process of Developing a sound supply strategy Executing the strategy by finding qualified sources to

fulfill supply needs, negotiate purchase agreements, manage contracts, and evaluate supplier performance

Unit 4: Logistics 9

Strategic Purchasing and Sourcing (cont’d)

Unit 4: Logistics 10

Strategic Purchasing and Sourcing (cont’d) Supply Strategy Development

Develop supply strategies that fit the needs of business units and are in line with overall corporate goals

The strategy provides specific details, e.g. recommended suppliers, length and type of contract, local or global suppliers

Spend Analysis Improve visibility into global spend and supply-base data by

mapping and cleansing commodity and vendor information and distributing it to internet systems electronic catalogs, and data warehouses

Supplier Selection Minimize purchase risk, improve system-base monitoring,

and more easily assess supplier performance


Strategic Purchasing and Sourcing (cont’d)

Contract Management Centralized contract management ensures compliance with

negotiated terms and conditions Different purchasing departments in business units can reuse

preexisting contracts for specific product categories throughout the company

Catalog Management Create and manage a unified e-commerce catalog,

using tools that import data from external sources, maintain consistent schemes, and index items for faster search capabilities


Operational Procurement

Process of buying direct materials and services (those used in production) or indirect material and services (those used in maintenance, repair, and operations)


Operational Procurement (cont’d)


Operational Procurement

Self-Service procurement Use web-based shopping cart that enforces compliance

with corporate purchasing policies to enable employees to procure materials

Plan-Driven Procurement Streamline and automate the procurement of materials

used in core business processes by integrate purchasing with any supply chain management system

Service procurement Reduce administration and processing costs associated

with procuring a wide range of services, e.g. consulting and contract labor


Supplier Collaboration

Use web to provide a cost-effective way for suppliers to connect to a number of processes among the supplier relationship life cycle


Supplier Collaboration (cont’d)



Supplier registration Purchaser has access to supplier-managed information

for better sourcing decisions Order collaboration

Provide supplier access to internal order management systems for processing orders and delivery schedules, managing invoices, and updating specifications electronically

Design collaboration Permit employees from partners to share relevant

product and project information to shorten product development cycles and keep supporting and detailed information within enterprise



Collaborative replenishment Enable supplier to access to customer inventory data

and make them responsible for maintaining inventory level

Reduce cost and increase overall velocity and accuracy of the supply network

Supplier connectivity Connect with suppliers of different sizes and capabilities

using XML-based document exchange


Integration

Require mySAP SRM, SAP ECC, Also require SAP Exchange Infrastructure (SAP XI)

delivered as part of SAP Netweaver For connectivity and sending XML-based messages

Purchasers and users work in SAP SRM through a web browser. Then the POs created are then posted in the ERP back end for follow-up processes


Integration (cont’d)


Product Life Cycle Management

Business Example IDES must respond quickly to market and

customer demands within a heterogeneous corporate system landscape.

Intracompany mapping allow management to track changes within process departments


Product Life Cycle Management

Product life cycle: product development, procurement, production through to service

The aim of PLM is to support the entire product life cycle

PLM allows an organization to quickly react to changes according to market and customer demands


mySAP PLM


Product Life Cycle Management (cont’d)


Benefits of mySAP PLM

Reduce cost Effective cost control in projects Minimizing maintenance costs of a piece of equipment Collaborate with partners at early stages to keep down the cost

of changes Increase productivity

Pooling information and sharing it with partners and customers Quickly introducing new products to the market Increase customer satisfaction – involve with customers at early

stages of product development Integrated solutions

Product development, quality management, asset management, maintenance, and service management


Key Functional Areas of mySAP PLM


Program and Project Management (cont’d) Successful project management: planning, controlling, and

executing the essential project elements in accordance with the aims of the project Rely on determining all processes necessary for the project and the

ability to represent these in the form of a structure and process

Project System Makes available basic data, standard structures, and templates that

assist in the creation of plans for different projects

The project is structured in the project system either by Using the project structure plan (PSP) or Operations that can be linked to a network plan through

relationships


Program and Project Management


Project Management Structure


Program and Project Management (cont’d) Project Planning Board provides a graphical interface for

planning and controlling projects efficiently Plan, check, and change schedules Plan, schedule, and check resources Determine and assign work Compare capacities Calculate costs

The central element of the project planning board is Gantt chart Used to carry out work on the project

Costs, resources, and schedules have to be monitored closely so that you can identify any deviation from the project plan at an early stage


Program and Project Management (cont’d) cProjects (SAP Collaborative Project

Management) Handle the entire range of project activities, from

concept and planning through execution and the closing of a project, covering all project types, from development to service projects.

Enable companies to comply with industry standards by implementing project methodologies e.g. advanced product quality planning (APQP)

cProjects uses cFolders to offer tightly integrated scenarios to jointly work on documents and tasks with external partners

Share information with partners


cProjects and Project System


Life-Cycle Data Management

Life-cycle data management is process engineering and logistics data within a company and across company boundaries

Staff need up-to-date and relevant information to complete day-to-day tasks

mySAP PLM offers the entire spectrum of tools for evaluating and distributing product and project data

Manage specifications, BOMs, routing and resource data, project structures, technical documentation


Life-Cycle Data Management (cont’d)



Document Management Manage how to store and make use of data in various

formats e.g. paper, audio, or visual media Recipe Management

Facilitate daily management of R&D departments, supports efficient knowledge-sharing, and leaves time or more creative and experimental work

Integration mySAP PLM CAD and conversion interface makes

design data available to employees outside the design process at an early stage

At the same time, designers have access to the most up-to-date product data



Change and Configuration Management Give flexibility to design change processes and ensures that

changes are an integral part of operational processes Product quality is constant in every phase of product’s life cycle

Product Structure Management Product structure browser is the central navigation tool in the

product structure. It provides: The material master Documents Bills of materials (BOM) Routings Information from classification


Life-Cycle Collaboration

Collaboration lends itself naturally to an exchange environment by permitting employees from different trading partners to effectively share relevant product and project information


Life-Cycle Collaboration (cont’d)



Design Collaboration cFolders enable SAP customers to communicate with

their partners and suppliers over back-end objects (e.g. documents, materials, and BOMs in SAP PLM) without exposing their ERP system to them

Partners and suppliers can change objects and back-end users can integrate changes from cFolders to the ERP system

Collaborative Project Management cProjects



Quality Management A comprehensive solution that meets all quality

management needs throughout the product life cycle and along the supply chain

Offer a wide range of integrated functions, collaborative services, and mobile solutions to ensure and manage the quality of products and services

Support not only inspection and processing, but also prevention and continuous process improvement through collaboration


Quality Management


Quality Management

Quality Engineering Offers a number of proper quality tools and implement

appropriate quality planning strategies Quality Assurance and Control

Involve inspections at all stages, continuous monitoring, and intervening quickly to deal with unexpected events

Quality Improvement Provides necessary tools to improve the quality of

products though prevention, efficient problem management and evaluations

Audit Management Support audit processes, from planning through audit

execution and valuation to the evaluation phase

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