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Umair Shabbir – 63435 – MCS Date: 30th June 2018

ERP – BPR Submitted to Sir. Iftikhar Samee

Assignment No. 01

In which industries is Supply Chain Management important? In which industries is it not? Why, or
why not?
Supply Chain Management is critically important in manufacturing, oil & gas, food and all other
industries which rely their business on acquiring raw material and converting it into useful product. It is
because, a good SCM can simplify the procurement and manufacturing process resulting in efficient
production of products yielding high profits.

Industries which do not rely on procurement of raw materials, such as services industries, consulting
firms, software houses, education sector, hospitals, do not need very sophisticated SCM. They rely on
good quality of their services.

Using an Internet search engine or the library, research a manufacturing company that has
successfully implemented SCM. Did the company have an ERP system prior to the SCM
implementation? Can the company quantify the benefits of having SCM? How does the company
measure success?
Case Study: Implementation of SCM in Novo Nordisk Pharma (a Danish pharmaceutical company).

Prior to implementation, the company did not have any ERP based SCM. It was using decentralized MIS
which caused no up-to-date information, resulting in poor planning, no insights into overall database of
the company and problems with distribution of raw materials to production locations.

After implementing SAP APO PP/DS and SNP solution, the visibility and problem-solving capabilities of
the entire organization were improved by the use of a common data basis and a common visualization
tool, allowing better and faster decisions. System based finite capacity scheduling and fast simulation
capabilities improved the plan stability and resource utilization significantly. Collaborative demand
planning with the customers allow for a proactive stabilization of the demand as changes in the demand
by the customers are compared with a constrained demand from the previous master planning. By
reducing the order to cash cycle, as well as pushing for more collaboration with the affiliates through a
VMI process, the inventory levels were reduced and significantly reduced the IT maintenance costs by
consolidating the system landscape.

Standardization of the master data enabled the visibility and interchangeability of information faster
across the supply chain. The overall administrative workload for tasks performed previously manually or
based on wrong information was reduced significantly.
To measure success, the data comparison was used before and after the implementation of SCM.

It is evident that final score was significantly increased after the implementation of SAP SCM.

Compare Customer Relationship Management (CRM) and SCM. How are they similar? How are
they different? Where do they interact? In answering, consider the kinds of technologies used in
each.

The similarities of a CRM and SCM system are both allow organizations to analyze their processes and
customer behavior. By collecting data in vast quantities and in detailed levels, both the CRM and SRM
systems are similar in their ability to provide management with tools and data analysis they need to run
their organization.

The differences are that (CRM) Customer Relationship Management systems include tools, technologies
and procedures that allow managing, improving and the facilitating sales, support and related
interactions with customers, prospects, and business partners throughout the enterprise. Whereas the
(SCM) Supply Chain Management is a package technology solution that, offers to organizations several
advantages for coordinating their overall material acquisitions, production and logistics processes, it
improves their relations with customers and suppliers by building long-term strategic alliances.

They both interact at different points at when an integrated system is implemented. For example, when
sales team are in the middle of a crucial touchpoint throughout a customer’s journey, having on-the-go
access to all customer inventory and orders alongside product and pricing information will assist in
closing deals more efficiently. A fully integrated CRM and ERP solution will provide employees with
access to important information in real-time. With the push of a button, they can retrieve information
on inventory levels, shipments, customer financials, order history, returns, payments, pricing and more.
Furthermore, a sales team would have enhanced visibility regarding order status updates for customers
and easy access to make necessary changes if needed.
Using the sales forecast for July through December from Exercise 4.2, develop a spreadsheet for
sales and operations planning. Use the format of the spreadsheet shown in Figure 4-5. The
number of working days for each month is shown in Figure 4-13.

Sales and Operations Planning:


(Assuming inventory level from May to be 100)

Sales & Operations Planning June July Aug Sep Oct Nov Dec
Sales Forecast 6702 6327 6215 6007 5954 5813
Production plan 6666 6400 6200 6000 6000 5800
Inventory 100 64 137 122 115 161 148
Working Days 20 23 21 21 20 21
Capacity (shipping cases) 6666.6 7666.59 6999.93 6999.93 6666.6 6999.93
Utilization 99.99% 83.48% 88.57% 85.72% 90.00% 82.86%
NRG-A (Cases) 70% 4666.2 4480 4340 4200 4200 4060
NRG-B (Cases) 30% 1999.8 1920 1860 1800 1800 1740