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1、Achieving Competitive Advantage Through Supply Chain Management Advanced Planning and Scheduling Systems May 25, 2000,Agenda,1. The Evolution of the Supply Chain 2. Advanced Planning and Scheduling Systems 2.1 How They Work 2.2 The Vendors,The Supply Chain encompasses a number of key business proces
2、ses involved in managing the flow of materials, information, and funds from the initial suppliers to the ultimate consumer., the concept of supply chain management is relatively simple.,However, in the real world, multiple suppliers, multiple plants, multiple distribution points and multiple custome
3、rs significantly complicate material and information flows., And, given that supply chains cross multiple companies, walls have been built that prevent full and timely information flow.,Breaking down these walls and integrating the supply chain is critical. However, to date, most supply chain initia
4、tives have been inwardly focused. 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
5、coordinated with supply chain capabilities). Phase 3 - Inter-Enterprise Integration (e.g., collaborative forecasting & replenishment between retailers and suppliers),Stage 1: Separate best of breed applications dedicated to specific business processes (1970s),Enterprise Resource Planning (ERP),Suppl
6、y Chain Technology has evolved over the past several decades.,Todays ERP systems are transaction-based applications with limited decision-support capability.,Stage 3: Enterprise-wide applications (early to mid 1990s and still ongoing),Stage 2: Suites of integrated applications for functional process
7、es (1980s),APS Definition ERP or legacy interfaced decision 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 Characteristics Allo
8、ws complex supply chain representation and rapid SC model reconfiguration Enables concurrent, dynamic planning, and “what-if” simulations using memory resident processing Possess scaleable object architectures capable of running large data-intensive models,Advanced Planning and Scheduling Systems (A
9、PS) Are the Next Step of the Evolution for Providing Decision Support Capabilities.,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
10、Supply Chain Management Problems?,Customer Service Concerns - Customer complaints, loss of share, delivery problems, customer surprises Materials Management Difficulties - High inventory buffers/obsolescence, high transportation costs, supplier shortages, lost purchasing discounts Manufacturing Proc
11、ess Problems - Production inefficiencies, overcapacity, undercapacity, cost growth Planning Difficulties - Inaccurate forecasts, high stockouts, growing overhead costs Obsolete Technology - Incompatible systems linkages, inaccurate/inaccessible information Revenue Cycle Concerns - Lengthy time to ma
12、rket, long order cycle, distribution delays, conflicting channel demands Vendor Management Problems - Poor response levels, lost growth, lack of commitment,The Importance of Supply Chain Management Has Increased Significantly Over the Past Few Years.,The Response: Approximately 60% of Manufacturers
13、Currently Have a Major Supply Chain Initiative Underway.,However, 42% are “less than satisfied” with the outcome of their previous 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 In
14、formation That Is Available, Within a Short Time Period.,The Supply Planning (SP),Distribution Planning,Master Planning,Factory Planning & Scheduling,Inventory Planning,SP - Inventory Planning,Inventory Planning Goal: Determine optimal inventory levels and location to protect desired customer servic
15、e goals,Trade off between inventory and service not understood Limited ability to know how much inventory, when and where Inability to plan at a sufficient level of detail Inability to quantify the impact of demand and supply variability,Challenges,SP Master Planning,Master Planning Goal: Globally o
16、ptimize production plan considering tradeoffs of available capacity, materials, costs, time,Lack of visibility Disjointed planning Inability to reconcile demand priorities with supply constraints Inability to globally optimize production plan considering multiple constraints Planning doesnt support corporate objectives,Challenges,Distribution Planning,Master Planning,Factory Planning & Scheduling,Inventory Planning,SP Factory Planning & Scheduling,FP & Scheduling Goal: Op
