|
  

 


 

  


Ô
 

        Ô    
 
 
 


Ô
 
 
     
  
Mass
Introduce Customization
Reduce Time
New Products to Markets
Frequently

Companies

Customize products Reduce

in Niche Markets Costs

Sell
Globally

‡ An increased focus on Globalization

‡ An increased focus on Supply Chain Management
  
 

‡ Many players in each industry - domestic / international /

unorganised: competition in all segments
‡ Expectations being shaped by products & services across
industries
‡ Unwilling to bear inefficiencies / costs of suppliers
‡ Increasing need for customized services & products
‡ Need for responsiveness in fast changing scenarios
‡ Loyalty cannot be taken for granted
 |  




‡ ³Loyal consumers´ may switch to
competition if desired product is not
available / delivered
‡ Retailers expect immediate
response to product / service needs
‡ Distributors are unwilling to carry
inventory beyond accepted norms
‡ Cost of inventory in the supply chain
is eventually borne by manufacturer
   


Forecasting
Errors

To address
different Rapid SKU Long cycle
customer times
segments: proliferation

‡Increasing need
for wide variety High
uncertainty
‡Great push to
introduce new
products rapidly
   

‡Poor responsiveness
‡Inventory build-up at
various stages

*
  

 

 3  .

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If you think it is to...

† Manage the component parts from Suppliers
† Manage inbound freight
† Manage outbound freight
† Manage product distribution
† Manage logistics and warehouses
mÔ  

 



 
 

  

  Ô
     

 
 
| 4 
 


  .
† @ime to Market
† Lead @imes / cycle times
† Inventory formation and accumulation
† Information and demand flow
† Product flow
† Planning & procurement processes
† Distribution and logistics
 
  

Means: O
 

u


Waste Waste Waste Waste Waste

Supplier Supplier Manufacturer Wholesale Distribution Sales

Level 3 Level 2

Evolves to:

- Seam less Flow Profitability

- Eliminate waste Customer Satisfaction
- Reduce cycle time ROA
EPS
 
  |.

     

‡ Flow of information up & down the

chain is as important as Material Flow
‡ Helps reduce uncertainty
‡ Improves credibility & defines customer
expectations
‡ In the internet age - it will be a must for
all supply chains
‡ I@ is playing a big role in keeping
communication flowing
 
  
  | 

     |

 
 

Critical 

Very Important 

Important

Somewhat
Important
Ë

Not Important 
  Ë   
w of Respondents
   
 
 
 |.
  

‡ ERP systems
± Focus on transaction processing
± Integrates various functions within the organisation
± Ensures connectivity across geographic locations
± Provides a clean & single information back bone
± Is fast becoming an industry standard
± Helps the organisation to become process oriented
‡ E-connectivity
± Is useful as a medium for connectivity across various entities
± Cheaper , faster , non-hierarchical (network)
 @



 
  


 

  
 
 



 


 


 




  
 



 








   















   

‡ SCM Packages
± Used mainly as a decision support tool in the planning
function
± Optimise various planning processes: forecasting, demand
planning, factory planning, etc..
± Helps modify the planning process based on real time
changes or constraints in the operations e.g.: likely order
completion date due to unforeseen delays, etc
± Draw basic information from ERP / other transaction
processing systems
 




‡ Motivation of supply chain links can improve only if

performance measures are put in place

‡ Focus of performance measures on Interfaces between

entities of the chain in place of independent individual
entity performance

‡ Performance measures need to be derived from overall

objective of supply chain - I.e. they need to be aligned
across the chain
 




m








‡ Production alignment to demand
‡ Order Fulfilment ratio (On time in full) or Availability cover
‡ Forecasting efficiencies
‡ Distribution efficiency
‡ Vendor rating on delivery reliability, lead times
‡ Inventory turns
‡ Cycle times / Response time / Average Lead time
  

‡ Demand Planning
‡ Production Planning
‡ Distribution planning
‡ Supply Chain Strategies
‡ Information management
‡ Performance Measures
 
  
  
   
Today

m


Suppliers RDS/WOT Trade

Factory CFA

Synchronized Aligned The New Link

Production Distribution

Tomorrow - Demand Communication

Tomorrow - Inventory Visibility

 áefore SAP

 

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m


   

m
 
 Today - with SAP R/3
m


 

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m


   

m
 
  |    

‡ Facilitation of CRP flow

‡ Better distribution and stock
correction
‡ Smarter demand planning
‡ Rapid demand communication
‡ p
 
supply chain -
changes in demand / supply
being incorporated
  

|4 5 6



 

Suppliers Plants C Showroom Consumer

RDS

`  Ô 

 
 

A win-win situation

± Secondary sales data will be available to us

leading to sharper forecasting
± Pull system will ensure leaner inventories across
the chain
± Increased availability of A category products for
BAs
± Leading to better customer service (End &
intermediate customers)

   
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