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1、Achieving Competitive Advantage Through Supply Chain ManagementAdvanced Planning andScheduling SystemsMay 25,2000,Agenda,1.The Evolution of the Supply Chain2.Advanced Planning and SchedulingSystems2.1How They Work2.2The Vendors,The Supply Chain encompasses a number of key business processes involved
2、 in managing the flow of materials,information,and funds from the initial suppliers to the ultimate consumer.,the concept of supply chain managementis relatively simple.,However,in the real world,multiple suppliers,multiple plants,multiple distribution points and multiple customers significantly com
3、plicate material and information flows.,And,given that supply chains cross multiple companies,walls have been builtthat prevent full and timely information flow.,Breaking down these walls and integrating the supply chain is critical.However,to date,most supply chain initiatives have been inwardly fo
4、cused.Only recently,manufacturers are beginning to embrace the total supply chain as a means to achieving competitive advantage.,Phase 1-Process Integration(e.g.,reengineering the order-to-cash process).Phase 2-Intra-Enterprise Integration(e.g.,sales strategies coordinated with supply chain capabili
5、ties).Phase 3-Inter-Enterprise Integration(e.g.,collaborativeforecasting&replenishment between retailers and suppliers),Stage 1:Separate best of breed applications dedicated to specific business processes(1970s),Enterprise Resource Planning(ERP),Supply Chain Technology has evolved over the past seve
6、ral decades.,Todays ERP systems are transaction-basedapplications with limited decision-support capability.,Stage 3:Enterprise-wide applications(early to mid 1990s andstill ongoing),Stage 2:Suites of integrated applications for functional processes(1980s),APS DefinitionERP or legacy interfaced decis
7、ion support technology which uses advanced algorithms,(e.g.,LPs,IPs,mixed IPs,heuristics,theory-of-constraints,etc.)to model supply chain constraints and enable intelligent supply chain planning/decision making.APS CharacteristicsAllows complex supply chain representation and rapid SC model reconfig
8、urationEnables concurrent,dynamic planning,and“what-if”simulations usingmemory resident processingPossess scaleable object architectures capable of running largedata-intensive models,Advanced Planning and Scheduling Systems(APS)Are the Next Step of the Evolution for Providing Decision Support Capabi
9、lities.,While we tend to draw all supply chains the same,there are many types of supply chains-each with their own unique challenges.,E.g.,Pulp&Paper,E.g.,High-Tech,E.g.,Consumer Products,How Do You Know If You Have Supply Chain Management Problems?,Customer Service Concerns-Customer complaints,loss
10、 of share,delivery problems,customer surprisesMaterials Management Difficulties-High inventory buffers/obsolescence,high transportation costs,supplier shortages,lost purchasing discountsManufacturing Process Problems-Production inefficiencies,overcapacity,undercapacity,cost growthPlanning Difficulti
11、es-Inaccurate forecasts,high stockouts,growing overhead costsObsolete Technology-Incompatible systems linkages,inaccurate/inaccessible informationRevenue Cycle Concerns-Lengthy time to market,long order cycle,distribution delays,conflicting channel demandsVendor Management Problems-Poor response lev
12、els,lostgrowth,lack of commitment,The Importance of Supply Chain Management Has Increased Significantly Over the Past Few Years.,The Response:Approximately 60%of Manufacturers Currently Have a Major Supply Chain Initiative Underway.,However,42%are“less than satisfied”with theoutcome of their previou
13、s improvement efforts.,As the Pace of Business Continues to Increase,a Key Challenge for Todays Supply Chain Managers Is to Make Good Business Decisions,Using All the Information That Is Available,Within a Short Time Period.,The Supply Planning(SP),Distribution Planning,Master Planning,Factory Plann
14、ing&Scheduling,Inventory Planning,SP-Inventory Planning,Inventory Planning Goal:Determine optimal inventory levels and location to protect desired customer service goals,Trade off between inventory and service not understoodLimited ability to know how much inventory,when and where Inability to plan
15、at a sufficient level of detailInability to quantify the impact of demand and supply variability,Challenges,SP Master Planning,Master Planning Goal:Globally optimize production plan considering tradeoffs of available capacity,materials,costs,time,Lack of visibility Disjointed planningInability to re
16、concile demand priorities with supply constraintsInability to globally optimize production plan considering multiple constraintsPlanning doesnt support corporate objectives,Challenges,Distribution Planning,Master Planning,Factory Planning&Scheduling,Inventory Planning,SP Factory Planning&Scheduling,
17、FP&Scheduling Goal:Optimal execution ofthe Master Plan to minimize cost and improve quality of the plan,Material and capacity constraints not considered simultaneously Inaccurate representation of real world constraintsSlow,inability to reactLack of problem visibilityPoor delivery date quoting in bu
18、ild to order,Challenges,SP-Distribution Planning,Distribution Planning Goal:Optimally positioning and deploying inventory to achieve desired customer service,Store&DC replenishment handled independentlyLimited ability to prioritize demandPredetermined(aka inflexible)distributing rulesInventory distr
19、ibuted in advance of actual sales,Challenges,Distribution Planning,Master Planning,Factory Planning&Scheduling,Inventory Planning,Customer Benefits,Growth:Increase revenues Increased margin performance Financial Performance:Reduced inventory costs and obsolescenceOptimal use of available capacity an
20、d inventory Reduced procurement expense through accurate orderingImproved Customer ServiceAnd if you do the aboveincreasedstock price,Selected APS Implementations by Industry,AerospaceBell HelicopterU.S.NavyAutomotiveFordGMVolvoChemicalOccidental ChemicalNovartisMacMillan BloedelConsumer Goods(Durab
21、le)Baker FurnitureBlack&DeckerBoseHerman MillerConsumer Goods(Non-Durable)3MAult Foods,Consumer Goods(Non-Durable)Coca ColaE&J GaloFrito LayHigh Tech3COMDellDigitalGatewaySiemensIndustrialCaseCaterpillarMercury MarineMedicalJohnson&JohnsonBristol-Meyers SquibbMetalsTimken,There Are a Number of APS V
22、endors.According to the Gartner Group,i2 Technologies and Manugistics Are the Leaders Today.,Deloitte currently has established APS relationships with i2,Manugistics,SynQuest and Paragon.D&T has ERP partnerships with PeopleSoft,JDE Numetrix,Baan and SAP.,Source:Gartner Group(03/26/99),Note from S:Th
23、e Table was deleted due to copyrights constraints.Refer to the Gartner Group database in S for current information.,1999 Estimated Total SCM Market Share,Source:Benchmarking Partners,Inc.,1999 Estimated%Share of Market Leaders By Vertical,Source:Benchmarking Partners Inc.,1999 Estimated%Growth by Ve
24、rtical 1998-1999,Source:Benchmarking Partners Inc.,1999 Assessment in the Consumer Packaged Goods Industry,Source:Benchmarking Partners Inc.,Appendix,Demand Plan,KEY CONCEPTSTruly incorporates knowledge from various levels within and outside the organizationProactively control events and reduce vari
25、ations in demand forecastingSupports top-down,bottom-up and hybrid planning approaches Multi-dimensional,enterprise demand planning that integrates systems,processes and people at multiple levelsINPUTConsiders strategic goals,inter/intra-company objectives and constrainedsupply information to constr
26、uct realistic demand planConsiders external economic and events(promotions,pricing changes,etc.)Multiple scenario comparisons and what-if analysis facilitate appropriateuses to add valueOUTPUTIdentifies opportunities,formulates strategies,translates theminto action plans and actual execution steps,a
27、nd analyzes resultsProduces realistic forecast that drives inventory,financial andoperational plansReduces supply chain inventory and costs,Supply Plan,KEY CONCEPTSFacilitates the design of optimal distribution networks,production plans,sourcing decisions,and inventory levelsHelps determine the most
28、 profitable supply chain strategy for end-to-endorder fulfillmentReal time,enterprise wide and cross enterprise visibility and optimizationof constraintsReliable real-time market,product and customer-allocated capable-to-promise and due date quotingINPUTConsiders constraints throughout the supply ch
29、ain at a great level ofdetail,enabling rapid what-if simulationsOUTPUTManufacturing,distribution and sourcing network optimization:improvecustomer responsiveness and reduce costs at the same timeIncreased ability to focus on high-value strategy decisions that drivetactical and operational activities
30、,and responsiveness tochanges in business environmentShorter order fulfillment cycle timeLower inventoriesOptimized asset utilization,Production Plan,KEY CONCEPTSProduces optimized and feasible finite production schedule based onconsideration of dynamic constraintsINPUTWhat-if analysisATP based on u
31、p-to-date material and capacity constraints Fast re-planning of orders to accommodate demand volatilityOUTPUTResource optimizationUtilization improves by 10 to 50%Inventory reduced up to 75%Order Lead Times:10 to 60%reductionDelivery Performance:25 to 50%improvementOrder Fill Rates:50 to 90%improvem
32、entReduced planning cycle time from weeks to hours,Transportation Plan,KEY CONCEPTSDetermines the optimal quantities of products allocated to each distribution warehouseDetermines the most economical means of transporting inbound,outbound and inter-company products while meeting service goals INPUTA
33、djusts to requirements for promotions,unanticipated demandSimultaneously plans for transportation,factory and warehousesourcing,manufacturing and purchasingOUTPUTAttains optimal,least cost solution for material flowGenerates feasible and customer centric enterprise distribution planAchieves close co
34、mmunication with trading partners on shipment and availability changesFeasible enterprise-wide transportation planReal-time in-transit visibility,1999 Assessment in the High Tech&Consumer Electronics Industry,Source:Benchmarking Partners Inc.,1999 Assessment in the Industrial Discrete Manufacturing Industry,Source:Benchmarking Partners Inc.,1999 Assessment in the Automotive Industry,Source:Benchmarking Partners Inc.,1999 Assessment in the Oil&Gas and Commodity Chemicals Industry,Source:Benchmarking Partners Inc.,
