Supply Chain Concepts (LE)

Ambarish Modak
Month 07, 2014

Internal

nly with
o
e
lid
s
e
tl
ti
is
th
Use

an image

Supply Chain of Today

Integrated supply chains
Supply chain Integrative
Processes
Demand Planning Responsiveness
Customer Relationship collaboration
Order fulfillment & delivery
Supplier Relationship Collaboration
Manufacturing customization
Reverse Logistics

2014 SAP AG or an SAP affiliate company. All rights reserved.

Internal

Logistics
Design and administer systems to control movement and geographic positioning of raw materials, work-in
Progress and finished inventories at lowest cost

Logistics Integration Objectives

Responsiveness
Variance Reduction
Inventory Reduction
Shipment Consolidation
Quality
Life Cycle support

2014 SAP AG or an SAP affiliate company. All rights reserved.

Internal

Manufacturing
Manufacturing Strategy

Engineer to Order( ETO )

Make to order( MTO )
Assemble to Order ( ATO)
Make to plan (MTP)

Contemporary Manufacturing developments

Manufacturing Processes

Job Shop Process

Batch Process
Line Flow Process
Continuous Process
Product
Variety

Volume

Strategy

Consumer
Leadtime

Job Shop

Very high

Very low

ETO/MTO

Very long

Batch

High

Low

ETO/MTO/A
TO

Long

Line Flow

Limited

High

ATO/MTO

Short

Continuous

Very Limited

Very high

MTP

Very Short

2014 SAP AG or an SAP affiliate company. All rights reserved.

Mass customization

Lean systems

Flexible Manufacturing

Six Sigma

Materials Requirement Planning

Available to Promise

Design to Manufacture

Design to logistics

Internal

Inventory
Inventory functionality

Geographical Specialization
Decoupling
Supply/Demand balancing
Buffering uncertainty

Inventory Definitions

Inventory Policy
Service level
Average inventory
Independent & dependent
demand

Inventory carrying cost

Capital
Taxes
Insurance
Obsolescence
Storage

Planning Inventory
When to Order
How much to order
o
o
o
o

EOQ
Volume transportation rates
Quantity discounts
Production lot size, Dedicated
trucking, unitization

2014 SAP AG or an SAP affiliate company. All rights reserved.

Internal

Transportation
Participants

Specialized transportation
services
Package service
Intermodal ( TOFC/COFC)
Containership

Transportation Economies

Modes of Transport

Truck
Rail
Water
Pipeline
Air

Economy of distance
Economy of weight
Economy of Density
Handling
Liability
Market

Pricing Freight

2014 SAP AG or an SAP affiliate company. All rights reserved.

Class rates
Freight Classification
Rate determination(minimum +
surcharges)
Commodity rates

Transportation Management

Operational
Consolidation
Negotiation
Control
Auditing and Claims administration

Documentation
Bill of Lading
Freight Bill
Shipment Manifest

Impact of Transportation on Product Pricing

FOB Origin
FOB Destination
Delivered Pricing ( Single Zone, Multi-zone,
Basepoint

Internal

Warehousing
Warehousing Benefits
Economic
o
o
o
o

Consolidation and Break-bulk

Sorting
Seasonal Storage
Reverse Logistics

Service
o Spot Stocking
o Full-line stocking
o Value added services

2014 SAP AG or an SAP affiliate company. All rights reserved.

Internal

Warehousing
Warehousing Operations
Handling
o Receiving
o In-Storage Handling
o Shipping

Typical Warehouse Design

Master Cartons
Unitization
Unit Load

Storage
o Active Storage
o Extended Storage

Warehousing Decisions

Site Selection
Design
Product Mix Analysis
Expansion
Handling

2014 SAP AG or an SAP affiliate company. All rights reserved.

Internal

10

Thank you
Contact information:
F name MI. L name
Title
Address
Phone number
2014 SAP AG or an SAP affiliate company. All rights reserved.