Presentation AgendaPresentation AgendaWhat is Supply Chain Management? What is Supply Chain Management? (SCM)(SCM)Supply Chain PlanningSupply Chain Planning– Challenges (Interactive), Resolutions, Latest Challenges (Interactive), Resolutions, Latest

TrendsTrends

Supply Chain Execution Supply Chain Execution – Challenges (Interactive), Resolutions, Latest Challenges (Interactive), Resolutions, Latest

TrendsTrends

Q&AQ&A

Supply Chain Planning Supply Chain Planning ChallengesChallenges

InteractiveInteractive

Some of the ChallengesSome of the Challenges

How many Stocking Locations; Where they are? Where to Stock?How many Stocking Locations; Where they are? Where to Stock?

One Supplier or Multiple Suppliers? One Supplier or Multiple Suppliers?

Multiple Lead Times?Multiple Lead Times?

Variability in Supply?Variability in Supply?

Variability in Demand?Variability in Demand?

Centralised or Decentralised planning?Centralised or Decentralised planning?

How often to order? Weekly, Daily, Monthly, Quarterly? Or a How often to order? Weekly, Daily, Monthly, Quarterly? Or a

combination?combination?

What forecasting methods to use and why?What forecasting methods to use and why?

How to classify products for effective inventory control?How to classify products for effective inventory control?

What target service levels to set and why?What target service levels to set and why?

How much buffer stocks to hold and where?How much buffer stocks to hold and where?

How to measure the achieved service levels?How to measure the achieved service levels?

55

Production Planning& Scheduling

Replenishment PlanningDemand Forecasting

Executive Information

Systems

Supply Chain Supply Chain ManagementManagement

Modelling and

Simulation

Are you operating in isolation rather than in partnership? next

Syncron - Supply Chain Management

JDE

SAP R/3

SAP R/3

Movex

Oracle

Baan

Inhouse

IFS

IFS

IFS

WEB Shop.com

ERP Myth

JDE

Inhouse

Supply Chain PlanningSupply Chain Planning

Global Warehouse

Divisional Warehouse

ShopManufacturing Supplier

Cyclical

variation

External factors

FORECAST COMPONENTS FORECAST COMPONENTS

Trend

Forecast ComponentsForecast Components

Base level

LUMPY SLOW ERRATIC

FAST NEGATIVE TREND

NEW DYING OBSOLETE

Demand PatternsDemand Patterns

Trend

MANAGING FORECAST ERROR MANAGING FORECAST ERROR THE OPTIONSTHE OPTIONS

Month

Dem

an

d

BUFFER STOCK

Lead timeReview timeTarget service levelAverage demandVariability of demandBatch size

94.00 95.00 96.00 97.0012.45 13.16 13.99 15.02

223.20 186.00 148.80 111.60235.65 199.16 162.79 126.62

93 94 95 96 97 98 99 100

Target service level

Val

ue

of s

tock

DFRP Models

Warehouse

Forecasts

• Branch Demand

• Branch Forecasts

• Branch Orders

• Branch Order

Schedules

Warehouse Stocks

• Warehouse Stocks Only

• National Stocks

Branch forecasts and order

schedules based on local

demand

eCollaborationeCollaboration

OEM Supplier Distributor Warehouse Retail

Supplier Collaboration

Internal Collaboration

Customer Collaboration

Information Flow

Product Flow

VMI – Vendor Managed Inventory

Virtual Stock Management

Supply Chain ExecutionSupply Chain Execution

ΑΒ

Γ

Δ

Ε

The Work Flow

What is Supply Chain What is Supply Chain Execution?Execution?

Simply Handling Receipts and Issues of Simply Handling Receipts and Issues of Inventory, and Controlling Warehouse and Inventory, and Controlling Warehouse and FleetFleet

Receipts include, POs, Shipping Receipts include, POs, Shipping Notifications, Scheduling, Advance GRN, Notifications, Scheduling, Advance GRN, GRN, Checking, Quality Management, GRN, Checking, Quality Management, Sorting, Binning, Cross Docking and Task Sorting, Binning, Cross Docking and Task InterleavingInterleaving

What is Supply Chain What is Supply Chain Execution?Execution?

Issues include Sales Orders, Delivery Issues include Sales Orders, Delivery Orders, Stock Control, Shipments, Picking Orders, Stock Control, Shipments, Picking Planning, Picking, Task Interleaving, Planning, Picking, Task Interleaving, Replenishment, Kitting, Sorting, Checking, Replenishment, Kitting, Sorting, Checking, Packing, Repacking, Labeling, Packing, Repacking, Labeling, Documentation, Loading, Delivery Documentation, Loading, Delivery Confirmation, Billing, Returns, AR and Confirmation, Billing, Returns, AR and CRMCRM

Managing Warehouse & Managing Warehouse & FleetFleet

Stock SearchStock Search

Pack ChangesPack Changes

Cycle CountingCycle Counting

Activity ManagementActivity Management

Truck RoutingTruck Routing

Fleet TrackingFleet Tracking

In modern era SCE In modern era SCE means…means…

Increased Customer Satisfaction with Increased Customer Satisfaction with Lower Cost of Delivery Lower Cost of Delivery

More accurate satisfaction of increasing More accurate satisfaction of increasing logistics requirementslogistics requirements

Value added services to be provided – this Value added services to be provided – this has raised the minimum standardhas raised the minimum standard

Supply Chain Execution

Some Challenges

Interactive

Supply Chain Execution

Some Challenges

Interactive

ChallengesChallenges

Optimizing Storage Capacity UtilizationOptimizing Storage Capacity Utilization

Optimizing Resources such as men and Optimizing Resources such as men and machinemachine

Traceability of LOTsTraceability of LOTs

Inventory AccuracyInventory Accuracy

Managing FIFO/FEFOManaging FIFO/FEFO

Customer Service ManagementCustomer Service Management

Fleet Management, Routing & TrackingFleet Management, Routing & Tracking

Resolution of ChallengesResolution of Challenges

Optimizing Storage Optimizing Storage CapacityCapacity

A Variety Storage SystemsA Variety Storage Systems

Multiple Units of MeasureMultiple Units of Measure

Variable BinsVariable Bins

Mixed BinsMixed Bins

Mixed PalettesMixed Palettes

Splitting Storage and Picking LocationSplitting Storage and Picking Location

Optimizing Resources Optimizing Resources such as Men & Machinesuch as Men & Machine

Task InterleavingTask Interleaving

Storing by Product Velocity – Sales, Pack Storing by Product Velocity – Sales, Pack Sizes, PromotionsSizes, Promotions

Warehouse DesignWarehouse Design

Traceability of LOTsTraceability of LOTs

Audit Trail by LOTs, especially to enable Audit Trail by LOTs, especially to enable LOT recallsLOT recalls

Records on LOTs by Multiple Pack SizesRecords on LOTs by Multiple Pack Sizes

Inventory AccuracyInventory Accuracy

Bar CodingBar Coding

Multiple Storage UnitsMultiple Storage Units

Multiple Units of MeasureMultiple Units of Measure

De-link WMS Stocks from ERP Stocks to De-link WMS Stocks from ERP Stocks to improve accuracyimprove accuracy

Managing FIFO/FEFOManaging FIFO/FEFO

Storage KaizenStorage Kaizen

System proposed PickingSystem proposed Picking

Splitting Storage and Picking LocationSplitting Storage and Picking Location

Customer Service Customer Service ManagementManagement

Manage Date and Time windows for Manage Date and Time windows for delivery through systemdelivery through system

Minimum Product Shelf LifeMinimum Product Shelf Life

Pallet TypesPallet Types

Shipping Docs and LabelsShipping Docs and Labels

Consequent Reduction in ReturnsConsequent Reduction in Returns

Fleet Management & Fleet Management & RoutingRouting

Fleet Attributes, Item Attributes, Stock Fleet Attributes, Item Attributes, Stock AttributesAttributes

Automatic Vehicle Loading SequenceAutomatic Vehicle Loading Sequence

Routing – Shortest Time, DistanceRouting – Shortest Time, Distance

Fleet Tele-TrackingFleet Tele-Tracking

Some Key KPIsSome Key KPIs

Order Fill Rate and AccuracyOrder Fill Rate and Accuracy

Inventory AccuracyInventory Accuracy

Warehouse Flow Through Warehouse Flow Through

Compliance to Internal StandardsCompliance to Internal Standards

Some Action PointsSome Action Points

Ensure KPIs and Continuous Improvement Ensure KPIs and Continuous Improvement Programs are in placePrograms are in place

Insure Warehousing and Transportation Insure Warehousing and Transportation Processes are in SyncProcesses are in Sync

Insure these processes are in Sync with Insure these processes are in Sync with Customer Delivery InstructionsCustomer Delivery Instructions

Additional InitiativesAdditional Initiatives

RFID Compliance, Direct Store Delivery, RFID Compliance, Direct Store Delivery, Smaller more Frequent Orders, Increased Smaller more Frequent Orders, Increased Order Fulfillment Accuracy, Reduce Order Fulfillment Accuracy, Reduce Working Capital, Efficient use of Inventory, Working Capital, Efficient use of Inventory, Shorter Fulfillment TimeShorter Fulfillment Time

Past vs PresentPast vs Present

PastPast– Value Added Services such as BOM, Assembly, Value Added Services such as BOM, Assembly,

Packing, KitsPacking, Kits– Compliance – Barcodes, BOLs, UCC LabelsCompliance – Barcodes, BOLs, UCC Labels

PresentPresent– Real-time integration with TMSReal-time integration with TMS– KPIsKPIs– Cross DockingCross Docking– Remote Satellite Warehouse OperationsRemote Satellite Warehouse Operations– RFID ComplianceRFID Compliance

Some Latest Trends…Some Latest Trends…

Picking for Pieces, Cartons and PalletsPicking for Pieces, Cartons and Pallets– StrategiesStrategies

Basic Order PickingBasic Order Picking

Batch PickingBatch Picking

Zone PickingZone Picking

Wave PickingWave Picking

Some Latest Trends…Some Latest Trends…

Picking for Pieces, Cartons and PalletsPicking for Pieces, Cartons and Pallets– EquipmentEquipment

ShelvesShelves

RacksRacks

CarouselsCarousels

Bar Code ScannersBar Code Scanners

ASRSASRS

Pick to LightPick to Light

Voice-Directed PickingVoice-Directed Picking

ACSSACSS

Questions?Questions?

Thank YouThank You