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Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Click to edit Master title style,This information is confidential.Do not disclose outside DTT.,Achieving Competitive Advantage Through Supply Chain Management,Advanced Planning andScheduling Systems,May 25,2000,Agenda,1.The EvolutionoftheSupply Chain,2.AdvancedPlanningand SchedulingSystems,2.1How TheyWork,2.2The Vendors,TheSupply Chain encompasses anumber of keybusinessprocessesinvolvedinmanagingthe flowofmaterials,information,andfundsfrom theinitial supplierstotheultimateconsumer,.,.,Retailing,Delivering,Distributing,Producing,Supplying,theconcept of supplychainmanagementis relativelysimple.,Materials,Information&Funds,Materials,Information&Funds,Materials,Information&Funds,However,intherealworld,multiplesuppliers,multipleplants,multiple distributionpointsand multiple customerssignificantly complicatematerialand information flows.,.,.,Retailing,Delivering,Distributing,Producing,Supplying,And,giventhatsupplychains cross multiple companies,wallshavebeen builtthat preventfullandtimely information flow,.,.,Retailing,Delivering,Distributing,Producing,Supplying,Breakingdown these walls andintegratingthesupply chain is critical.However,todate,mostsupplychaininitiativeshavebeen inwardly focused,.,.Only recently,manufacturersarebeginning to embracethe total supplychainasa means to achievingcompetitiveadvantage,.,.,Phase1-ProcessIntegration(e.g.,reengineeringtheorder,-,-to,-,-cashprocess).,Phase2-Intra-EnterpriseIntegration(e.g.,salesstrategiescoordinatedwith supplychaincapabilities,),).,Phase3-Inter-EnterpriseIntegration(e.g.,collaborativeforecasting,&,&replenishmentbetweenretailersand suppliers),Stage1:Separatebest of breed applicationsdedicatedtospecificbusinessprocesses(1970s),G/L,Payroll,A/P,Purchase,OrderMgmt.,Order,Entry,Inventory,Mgmt.,Financials,Manufacturing,Distribution,Enterprise Resource Planning(ERP,),),SupplyChainTechnologyhasevolvedover thepast severaldecades.,Todays ERPsystems aretransaction-basedapplicationswithlimited decision-supportcapability.,Stage3:Enterprise-wideapplications(earlytomid1990sandstill ongoing,),),Stage2:Suitesofintegratedapplicationsfor functionalprocesses(1980s),ERP or Legacy,Systems,Demand,Planning,ProductionPlanning&Scheduling,Distribution/SupplyPlanning,Transportation,Planning/Management,APSDefinition,ERPorlegacy interfaceddecisionsupporttechnology which usesadvancedalgorithms,(,(e,.,.g.,LPs,IPs,mixed,IPs,heuristics,theory-of-constraints,etc,.,.)tomodelsupplychainconstraintsand enableintelligentsupplychainplanning,/,/decisionmaking.,APSCharacteristics,Allowscomplexsupplychainrepresentationand rapid SC model reconfiguration,Enables concurrent,dynamicplanning,and,“,“what-if”simulationsusingmemory resident processing,Possess scaleableobjectarchitecturescapable of runninglargedata-intensivemodels,AdvancedPlanningandSchedulingSystems(APS,),)AretheNextStep of theEvolutionfor ProvidingDecisionSupport Capabilities.,Asset Intensive,Supply Chain,Setup/sequence dependencies,Capable to promise,Capacity utilization,Bottleneck utilization,Material Intensive,Supply Chain,Capable-to-promise requirements,Excess inventory,Obsolescence,Changes to orders,Engineering change,Distribution IntensiveSupply Chain,Large number of SKUs,Complex distribution/transportation requirements,Excessive inventory,Customer service,Whilewetend to drawall supplychainsthe same,there aremany types of supplychains,-,-each withtheirown uniquechallenges.,E.g,.,.,Pulp&Paper,E.g,.,.,High-Tech,E.g,.,.,ConsumerProducts,HowDoYou KnowIfYou HaveSupply Chain ManagementProblems,?,?,CustomerService Concerns-Customer complaints,lossofshare,delivery problems,customersurprises,MaterialsManagementDifficulties-Highinventory buffers,/,/obsolescence,high transportation costs,suppliershortages,lostpurchasingdiscounts,Manufacturing ProcessProblems-Productioninefficiencies,overcapacity,undercapacity,costgrowth,PlanningDifficulties-Inaccurateforecasts,high stockouts,growingoverheadcosts,ObsoleteTechnology-Incompatiblesystems linkages,inaccurate/inaccessibleinformation,Revenue Cycle Concerns-Lengthytimetomarket,longordercycle,distributiondelays,conflicting channeldemands,VendorManagementProblems-Poorresponselevels,lostgrowth,lackofcommitment,TheImportanceofSupplyChainManagementHasIncreased SignificantlyOverthePastFewYears,.,.,Past,(1995-1998),Present,(1999),Future,(2000+),%Survey Respondents RatingSupply Chain Critical to Success,Supply Chain Management isIncreasingly Important,25%,70%,91%,TheResponse,:,:Approximately 60%ofManufacturers CurrentlyHave aMajorSupply Chain InitiativeUnderway,.,.,However,42%are“less thansatisfied”with theoutcome of their previous improvement efforts,.,.,%Survey Respondents,Major Supply Chain Improvementsare Underway or Planned,Within 2 Years,Already done,Within 3-5 years,10%,2%,6%,Within 1999,13%,Currently Underway,59%,No Plans,10%,Ability to Respond,Ability to Predict,12-18 Months,Supply,Plan,Demand,Plan,SupplyChainDesign,Strategi
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