2. Introduction of Supply Chain Management
CONTENTS
Eight Dimensions of Operation Planning
Supply Chain
Synchronisation
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3. Supply chain management (SCM)
is the process of planning,
implementing, and controlling
the operations of the supply chain
as efficiently as possible.
Supply Chain Management spans
all movement and storage of raw
materials, work-in-process
inventory, and finished goods
from point-of-origin to point-of-
consumption.
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4. Supply Chain Synchronisation is
becoming the most important way to
develop higher levels of supply chain
competitive advantage.
To achieve the highest level of supply
chain synchronization benefit, you must
address eight different dimensions of
the supply chain.
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6. Educate the people. Explain in simple terms what
synchronization is, what it intends to achieve, how it intends to
achieve it and what their part is in it.
Continue direct communication throughout the project to help
develop linkages between employees of participating firms.
Facilitate about data and ongoing communication is critical to
ensure product, ordering and systems information are correctly
updated to support the coordinated scheduling.
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7. Develop the supply chain schedule
Have realistic expectations
Map the current process
Allow for variances
Err on the safe side
Overlay volume and density information
Inform the participants
Collecting data is streamlining the process to minimize
additional work.
Data collection should be a by product of the supply
chain process, not activity unto itself.
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8. Order Timing – Map and understand current supply chain
flows and timings by developing a new, optimized supply
chain synchronization model.
Unitization - taking production at the locations and rates it
is most efficient to take it, without disruption of the
scheme by the legal rights inhering in competing
properties
This is partially completed by the barcode symbology
(or RFID in advanced cases) and the purchase order.
These two key data streams can be easily integrated
into the supply chain synchronization processes.
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9. Collect information about each exception for
monitoring and improvement purposes
Exceptions should be manageable to prevent flaws in
the information used to build the synchronized system
The base level of service required is
to determine the required service
level or delivery lead time that is
acceptable
Once this determination is made,
transportation mode and optimal
load mix density will be selected
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10. Rules and methods for ongoing adjustment and
optimization of the process should be defined
Integrate the ability to switch to varying size and
capacity of containers
Careful monitoring of these optimization
opportunities will make the appropriate timing for
such initiatives readily apparent
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11. Operations Planning is a process where the executives of an
organization gather monthly to review previous performance
against plans and if necessary create new plans.
The input to the process is the forecast and the output of the
S&OP is the production plan, the demand plan, as well as the
many other plans that are derived from these.
The objective of Operations Planning is to arrive at a business
"Game Plan" to help manage and allocate critical resources to
meet the needs of the customer at the least cost to do so.
S&OP works on pre-agreed Key Performance Indicators. It helps
the Managers to identify the area for improvements through
these KPI and track the plan vs. actual performance.
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12. Improved customer service
Reduced inventory
Lower manufacturing & distribution costs
Better control of overall business
performance
Increased team work within and across
functions
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15. Supply Chain tends to focus on purchasing and
procurement, but not necessarily so. It can
include materials, inventory, and production
planning.
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