/
Supply Chains, Supply Chains,

Supply Chains, - PowerPoint Presentation

test
test . @test
Follow
402 views
Uploaded On 2017-11-01

Supply Chains, - PPT Presentation

Silos and Enterprise Systems Cathy Dwyer Fall 2012 IS617 1 2 What Is the Supply Chain Also referred to as the logistics network Suppliers manufacturers warehouses distribution centers and retail outlets ID: 601692

supply management chain amp management supply amp chain costs planning product processes sap systems service process collaboration business transportation supplier procurement information

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "Supply Chains," is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

Supply Chains, Silos, and Enterprise Systems

Cathy DwyerFall 2012 IS617

1Slide2

2

What Is the Supply Chain?

Also referred to as the logistics network

Suppliers, manufacturers, warehouses, distribution centers and retail outlets –

facilities”and theRaw materialsWork-in-process (WIP) inventoryFinished productsthat flow between the facilities

Suppliers

Manufacturers

Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

Costs

Transportation

Costs

Transportation

Costs

Inventory Costs

Manufacturing CostsSlide3

3

The Supply Chain

Suppliers

Manufacturers

Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

Costs

Transportation

Costs

Transportation

Costs

Inventory Costs

Manufacturing CostsSlide4

4

The Supply Chain – Another View

Suppliers

Manufacturers

Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

Costs

Transportation

Costs

Transportation

Costs

Inventory Costs

Manufacturing Costs

Plan

Source

Make

Deliver

BuySlide5

5

What Is Supply Chain Management (SCM)?

A set of approaches used to efficiently integrate

Suppliers

Manufacturers

WarehousesDistribution centersSo that the product is produced and distributedIn the right quantitiesTo the right locationsAnd at the right timeSystem-wide costs are minimized andService level requirements are satisfied

Plan

Source

Make

Deliver

BuySlide6

6

Why Is SCM Difficult?

Uncertainty is inherent to every supply chain

Travel times

Breakdowns of machines and vehicles

Weather, natural catastrophe, warLocal politics, labor conditions, border issuesThe complexity of the problem to globally optimize a supply chain is significantMinimize internal costsMinimize uncertaintyDeal with remaining uncertainty

Plan

Source

Make

Deliver

BuySlide7

7

The Importance of Supply Chain Management

Dealing with uncertain environments – matching supply and demand

Boeing announced a $2.6 billion write-off in 1997 due to

raw materials shortages, internal and supplier parts shortages and productivity inefficiencies”U.S Surgical Corporation announced a $22 million loss in 1993 due to “larger than anticipated inventories on the shelves of hospitals”IBM sold out its supply of its new Aptiva PC in 1994 costing it millions in potential revenueHewlett-Packard and Dell found it difficult to obtain important components for its PC’s from Taiwanese suppliers in 1999 due to a massive earthquakeU.S. firms spent $898 billion (10% of GDP) on supply-chain related activities in 1998Slide8

8

The Importance of Supply Chain Management

Shorter product life cycles of high-technology products

Less opportunity to accumulate historical data on customer demand

Wide choice of competing products makes it difficult to predict demand

The growth of technologies such as the Internet enable greater collaboration between supply chain trading partnersIf you don’t do it, your competitor willMajor buyers such as Wal-Mart demand a level of “supply chain maturity” of its suppliersAvailability of SCM technologies on the marketFirms have access to multiple products (e.g., SAP, Baan, Oracle, JD Edwards) with which to integrate internal

processesSlide9

9

Today

s Marketplace Requires:

Personalized

content and services for their customersCollaborative planning with design partners, distributors, and suppliersReal-time commitments for design, production, inventory, and transportation capacityFlexible logistics options to ensure timely fulfillment Order tracking & reporting across

multiple vendors and carriers

Shared visibility for

trading partnersSlide10

10

Supply Chain Management – Benefits

A 1997 PRTM Integrated Supply Chain Benchmarking Survey of 331 firms found significant benefits to integrating the supply chain

Delivery Performance

16%-28% Improvement

Inventory Reduction

25%-60% Improvement

Fulfillment Cycle Time

30%-50% Improvement

Forecast Accuracy

25%-80% Improvement

Overall Productivity

10%-16% Improvement

Lower Supply-Chain Costs

25%-50% Improvement

Fill Rates

20%-30% Improvement

Improved Capacity Realization

10%-20% Improvement

Source: Cohen & RousselSlide11

11Slide12

Business processes

Sequence of tasks or activities that take a set of inputs and convert them into desired inputsKey processesProcurement

Fulfillment

ProductionSlide13

Figure 1: A generic processSlide14

Business process - example

Make skateboardsWhat are some parts of a skateboard

Buy parts

What are some steps in the buying process

Who performs these steps

Sell skateboardsWhat are some steps in the selling procesWho performs these stepsSlide15

Procurement ProcessSlide16

Fulfillment Process Slide17

Functional structure

Common functionsTypical tasks in functional areasReview steps in procurementWho does what where?

Characterize processes - who is responsible for the process?

Why functional structure?Slide18

Functional organizationalSlide19

Functions vs. processesSlide20

The Silo effect

Communication and collaboration between functionsWhat must be communicated?

What information must be exchanged?

How is this coordinated

Paper based processes

Processes supported by functional systemsProcesses supported by enterprise systemsSlide21

Paper-based processSlide22

Consequences of delays

DelaysIncreased lead timesIncreased cycle timesExcess inventory

“just in case”

Lack of visibility across the process

Status: “where is my order”

How is the process doingWhy accept these delays?Slide23

Delays are no longer acceptable

Why?GlobalizationIncreased competitionPressure to do better

Reliance on technology!Slide24

Process using functional systemsSlide25

Processes using Enterprise SystemsSlide26

Framework: Key process flowsSlide27

Types of Enterprise Systems

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

27

The ES Application Suite

Enterprise Resource Planning (ERP)

Supply Chain Management (SCM)Supplier Relationship Management (SRM) Product Lifecycle Management (PLM)Other classificationsBest of breed vs. Niche applicationsSoftware as a service (SaaS)Slide28

The application suite

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

28Slide29

SAP ERP Solution Map

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

29

Shared Service Delivery

SAP NetWeaver

End-User Service Delivery

Analytics

Financial Analytics

Operations Analytics

Workforce Analytics

Financials

Financial Supply Chain Management

Treasury

Financial Accounting

Management Accounting

Corporate Governance

Human Capital Management

Talent Management

Workforce Process Management

Workforce Deployment

Procurement and Logistics Execution

Procurement

Inventory and Warehouse Management

Inbound and Outbound LogisticsTransportation Management

Product Development and Manufacturing

Production Planning

Manufacturing ExecutionProduct Development

Life-Cycle Data Management

Sales and Service

Sales Order ManagementAftermarket Sales and Service

Professional-Service Delivery

Corporate Services

Real Estate ManagementEnterprise Asset Management

Project and Portfolio Management

Travel Management

Environment, Health, and Safety Compliance Mgmt.Quality Management

Global Trade Services

Copyright SAP AG 2008Slide30

SAP Supply Chain Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

30

SAP NetWeaver

Demand & Supply Planning

Demand Planning & Forecasting

Safety Stock Planning

Supply Network Planning

Distribution Planning

Service Parts Planning

Procurement

Strategic Sourcing

Purchase Order Processing

Invoicing

Manufacturing

Production Planning & Detailed Scheduling

Manufacturing Visibility & Execution & Collaboration

MRP based Detailed Scheduling

Warehousing

Inbound Processing & Receipt Confirmation

Outbound Processing

Cross Docking

Warehousing & StoragePhysical Inventory

Order Fulfillment

Sales Order Processing

BillingService Parts Order Fulfillment

Transportation

Freight Management

Planning & Dispatching

Rating & Billing & SettlementDriver & Asset Management

Network Collaboration

Real World Awareness

Supply Chain Event ManagementAuto ID / RFID and Sensor Integration

Supply Chain Visibility

Strategic Supply Chain Design

Supply Chain AnalyticsSupply Chain Risk Management

Sales & Operations Planning

Supply Network Collaboration

Supplier CollaborationCustomer Collaboration

Outsourced Manufacturing

Supply Chain Management with Duet

Demand Planning in MS ExcelCopyright SAP AG 2008Slide31

SAP Supplier Relationship Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

31

SAP NetWeaver

Purchasing Governance

Global Spend Analysis

Category Management

Compliance Management

Sourcing

Central Sourcing Hub

RFx / Auctioning

Bid Evaluation & Awarding

Contract Management

Legal Contract Repository

Contract Authoring

Contract Negotiation

Contract Execution

Contract Monitoring

Collaborative Procurement

Self-Service Procurement

Services Procurement

Direct / Plan-Driven Procurement

Catalog Content ManagementSupplier Collaboration

Web-based Supplier Interaction

Direct Document Exchange

Supplier Network

Supply Base ManagementSupplier Identification & Onboarding

Supplier Development & Performance Management

Supplier Portfolio ManagementCopyright SAP AG 2008Slide32

SAP Product Lifecycle Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

32

SAP NetWeaver

Product Management

Product Strategy and Planning

Product Portfolio Management

Innovation Management

Requirements Management

Market Launch Management

Product Development and Collaboration

Engineering, R&D Collaboration

Supplier Collaboration

Manufacturing Collaboration

Service and Maintenance Collaboration

Product Quality Management

Product Change Management

Product Data Management

Product Master and Structure Management

Specification and Recipe Management

Service and Maintenance Structure Management

Visualization and Publications

Configuration ManagementPLM Foundation

Product Compliance

Product Intelligence

Product CostingTool and Workgroup Integration

Project and Resource Management

Document Management

Copyright SAP AG 2008Slide33

SAP Customer Relationship Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

33

Web Channel

Interaction Center

Partner Channel Management

Trade Promotion Management

Business Communication Management

Marketing

Marketing Resource Management

Segmentation & List Management

Campaign Management

Real-Time Offer Management

Lead Management

Sales

Sales Planning & Forecasting

Sales Performance Management

Territory Management

Accounts & ContactsOpportunity Management

Quotation & Order Management

Pricing & Contracts

Incentive & Commission ManagementTime & Travel

Service

Service Order ManagementService Contract Management

Complaints & Returns

In-House RepairCase Management

Installed Base Management

Warranty ManagementResource Planning

Copyright SAP AG 2008Slide34

Risk/Rewards of ES

Benefits of fully integrated information technology systemsIncreases speed, quality, accuracy – others?

Risk? – dependency and changing

expectations

Changes in the business environment as companies move to supply chain/value chain systems

(Changes in technology -> changes in org. Structure/social structure)34Slide35

ES Risks

NY Times news? — Hack of banks in retaliation for Muslim video (on Blackboard)(Risk - business continuity planning)(Security risk assessment - security audits, IT audits

)

35Slide36

ES Risks cont.

Internet has become platform for political protest and civil disobedienceAnonymous on Scientology – http://www.youtube.com/watch?v=JCbKv9yiLiQ

Other actions

http://www.youtube.com/watch?v=HrXyLrTRXso

36Slide37

Green Supply Chain

Use of ES have led to expectations that companies are responsible for who they select as suppliersWalmart

, Starbucks set environmental standards on their suppliers

37