SAP®-Supply-Chain-Management-ppt

SAP® Supply Chain Management The Best Solution for Supply Chain Managers in the Manufacturing Field

Supply Chain Managers ● Tasks to perform include: Planning, design, execution, and implementation of the supply chain ● Components if the supply chain include: – – – –

Inventory Raw Materials Manufacturing and Order Fulfillment Transportation and Logistics

Information Processing Needs Inventory ● Number of items left in inventory – The number of items that are left outstanding per week, per month, per year. ● Dates of fabrication – The dates each item has been produced and introduced into inventory. ● FIFO, LIFO – The Company’s inventory policy can be either First in – First Out or Last in – First Out, depending on the type of inventory. ● Average inventory count each year – The time and average count of inventory each year according to the physical count realized periodically. ● Sales Figures – How each product sells based on the type of product, line, and how often they sell. ● Chain of production – How much (in $) material is in raw materials, work in progress, and finished goods. ● Inventory Obsolescence – The average time it takes inventory to become obsolete, depending on the type of product. ● Cost of Goods Manufactured – Total costs of producing a product, including material costs, labor costs, and factory overhead. ● Inventory Turnover – The days it takes to sell each line of products in inventory. ● Inventory Lines – The product lines the company has based on sales and outstanding inventory. ● New Productions – How often the company launch new products. ● Revision dates – How often each product in revised or replaced. ● Stolen or damaged items – How often and the percentage of items in inventory are damaged or stolen.

Information Processing Needs Raw Materials ● Pricing of materials – How much materials costs and how those costs fluctuate throughout the year. ● Costs of shipping – How much it costs for materials to be delivered from the suppliers to the company. ● Supplier contracts – Which suppliers the company does business with, how long the contracts are due, and the specifications to meet the legal requirements of those contracts. ● Timing – The time raw materials arrive, how long they stay as raw materials, and how long it takes for them to be converted into finished goods. ● Promotions – promotions on pricing of materials and new potential suppliers based on costs. Order fulfillment ● Retailers – Which retailers the company contracts with and how often they request new orders. ● Wholesaling - Percentage of sales the company relies on wholesaling.

Information Processing Needs Transportation ● Warehouse and retailer locations – Location of each warehouse and retailer by state, city, zip code. ● Type of transportation – Types of transportation services the company utilizes for delivery and companies that offer these services. ● Costs – Cost and fees of transportation services depending on type of transportation and destination points. ● Timing – The time required for goods to reach the destination points. ● Insurance – Type of insurance needed to ensure the safety of goods being transported. ● Packaging – Costs and materials used for packaging as well as the type of identification and barcodes.

Information System Technology Supply Chain Management ● The SAP® SCM application is a part of the SAP® Business Suite. It functions with a technology platform called SAP® NetWeaver, which enables a company to reduce costs in IT while joining technologies into a single platform. This platform helps companies to process information and data in an organizational leveling order to monitor processes and generate coordination in the supply chain.

SAP

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SCM Functions

SAP

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SCM Solutions

SAP

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SCM Solutions

SAP

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SCM Solutions

Substitute Technologies Supply Chain Management ● Oracle® SCM is an open integrated solution that ensures companies’ efficiency by predicting demand fluctuation, organizing and planning operations on the supply chain, and providing industry-specific solutions. Some of the solutions that this program offers are: Advanced procurement, logistics and transportation management, order fulfillment, manufacturing operations management, product life-cycle management, supply chain planning, and optimization.

Oracle

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SCM Benefits

Oracle

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SCM vs. SAP

● Oracle – Less features – Reduced information on products – Certain services not provided – Less customized

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SCM

● SAP – – – –

Multiple benefits More services in package More technical support More information provided on products

Conclusion The SAP® SCM suite provides the best optimal solution for problems with the management of the supply chain. The different information needs and technological advances in the area of inventory, logistics, distribution, and manufacturing make the job of a supply chain manager very difficult and there are always different concerns that arise as well as possibilities to enhance operations and make the supply chain more efficient. The SAP® software provided is the best solution to all these problems and it entails more tools and technology to make all these possibilities come true.