庫存管理新工具 SSCR. Presented by Henry SOO MBus, CSCP, CPIM, CLM, CSCM, CDDP, SCOR-P, IC3PM, CPF
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1 庫存管理新工具 SSCR Presented by Henry SOO MBus, CSCP, CPIM, CLM, CSCM, CDDP, SCOR-P, IC3PM, CPF
2 Today s Theme 今 天 的 主 題 庫 存 管 理 新 工 具 - 同 步 供 應 鏈 補 貨 模 式 New Inventory Management Tool - (SSCR: Synchronized Supply Chain Replenishment) Presented by Mr. Henry SOO
3 About [Mr. Henry Soo] Mr. Henry Soo, Managing Director of DataDevelop Consulting Ltd. He is a Certified Practitioner by TOCICO (Theory of Constraints International Certification Organization) in Supply Chain Logistics and TOC Fundamental and a Trained Project Manager (by Goldratt Consulting and Goldratt Schools). He is a Certified Lean Master (CLM ) by ISCEA US. He is a Certified Six Sigma Black Belt by International Academic for Quality Certification (IAQC) with 20 years experience of implementing enterprise software in companies throughout Greater China, will provide a range of services to highlight the power and capability of TOC, Lean, Six Sigma, ERP recovery and SCOR modeling. Now, DataDevelop focuses to provide solution for profits growth without taking real risk and significant investment. Authorized Channel Partner (ACP) and recognized instructor of APICS certification program DBA researcher in supply chain design at UK Master in Business (MBus) Certified SCOR professional by Supply Chain Council, USA Certified Supply Chain Manager (CSCM) Certified in Production and Inventory Management (CPIM) Certified Supply Chain Professional (CSCP) Certified Demand Driven Planner (CDDP) Certified Critical Chain Project Manager (IC3PM) Certified Positive Core/Appreciative Inquiry (PC/AI Coach) Certified Professional Forecaster (CPF) President of Six Sigma Society of Hong Kong, Professional member of HKLA (Hong Kong Logistics Association), member of HKMA and Hong Kong Society for Quality Member of Chartered Institute of Marketing (MCIM) Founding member of TOC Learning Network Asia Pacific My ultimate goal is helping our customers to succeed Mr. Henry Soo Managing Director of DataDevelop Consulting Ltd. henrysoo@datadevelop.com Web site:
4 Our Company DataDevelop Consulting Ltd. ( as Channel Partner of APICS ( Authorized Knowledge Provider (AKP) of ISCEA and Director of Operation - International Supply Chain Education Alliance ( Contact : Mr. Henry Soo henrysoo@datadevelop.com Tel: , Fax:
5 Agenda What is the volatile environment in food supply chain? Why we need to shift from forecast to demand driven SSCR? What is the performance impact after the paradigm shift in case study? Q&A
6 What is the volatile environment in food supply chain?
7 The World is Changing Customers want to know more! What is the price? Where to buy? Where is made from? Is it in good quality, safe? Is it genuine? EVEN.
8 The World is Changing Do they have products on shelf?
9 The World is Changing Studies show that on shelf availability did gain! Happy customer Sales growth
10 Today s Reality Persistent product availability issues! Asset Too Little = stock-outs, back orders, expedites & missed sales Waste Too much = cash, capacity and space tied up in inventory
11 Today s Reality Persistent sources of variability! Management Variability Supply Variability Demand Variability Operational Variability Organizational Output
12 The Reality Persistent sources of complexity! Rising forecast error Shorter product life cycles Shorter customer tolerance times More product and packaging complexity Pressure for leaner inventories More regulatory requirements SKU proliferation Long lead time materials Worldwide there is more volatility than ever the past is NOT an predictor for the future
13 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Forecasts lucky or lousy Weekly MH Can History Cases 11/7/11 11/21/11 12/5/11 12/19/11 1/2/12 1/16/12 1/30/12 2/13/12 2/27/12 3/12/12 3/26/12 4/9/12 4/23/12 5/7/12 5/21/12 6/4/12 6/18/12 7/2/12 7/16/12 7/30/12 8/13/12 8/27/12 9/10/12 9/24/12 10/8/12 10/22/12 11/5/12 11/19/12 Forecast Sales
14 Why we need to shift from forecast to demand driven SSCR?
15 It s tough to deal with the challenges of the volatile environment. Buying better forecasting software is expensive typically shows little bottom line results. Training suppliers to be reliable is costly and doesn t last. Trying to shorten lead time usually requires a big investment. There is a better way to overcome the challenges of complex supply chains and SSCR with eztrack delivers it.
16 Supply Chain Complaints by Silo Finance Expenses too high Too many inventory disposals Cash is short economy is weak and lenders are nervous Cost of goods sold too high Sales Money Lost orders due to unavailability Line not broad enough Must discount some stock just to sell it Market Share Purchasing Too much expediting Spending disproportionate time on trivial raw materials Not enough time to work strategically e.g. on buying better Operations Time Too many rush deliveries Warehouse too small Cross shipping too often Frequently, it takes 2 or more shipments per order Efficiency
17 Supply Chain Challenge Improve Goal Results The forecast is imperfect replenishment takes time and suppliers don t always ship on time. Protect Need Availability Control Cost Need& Cash Because: Increase Condition Inventory Levels Limit Opposite Inventory Condition Levels
18 Inventory Compromise Improve Results The forecast is imperfect replenishment takes time and suppliers don t always ship on time. Each link must be ready for demand PEAKS Increase Each link must protect against LATE deliveries Protect Availability Control Cost & Because: Inventory Levels Each link chooses a balance point (which is both too high and too low) Limit Inventory Each link must consider COST Cash Each link must avoid OBSOLESCENCE Levels When decisions other links make magnify the impacts on us, how can we make good decisions about our inventory?
19 Supply Chain Pain Profitability lower Costs higher Revenue lower Too Little Time to Negotiate Expediting Lost sales & clients Operations disrupted Rescheduling Disposals Carrying Costs Returns Inventory promotion sales Limited options Less working capital Shortages Surpluses Holding wrong inventories Limit Inventory Increase Inventory
20 Purchasing Workload Strategic Work Capacity Workload Where is the split in your company? Any day Workload exceeds capacity puts you at risk Firefighting
21 Purchasing Workload in Pilot Capacity Workload Strategic Work Where is the split in your company? Strategic Work Firefighting Firefighting Any day Workload exceeds capacity puts you at risk Work Done by SSCR in Pilot
22 What is the performance impact after the paradigm shift in case study?
23 Supply Chain synchronization system Demand Signal TOC-ERA with SSCR that ties supply order generation to actual consumption within EzTrack platform Supply Order Generation (Purchase Order) Supply Order Generation (Manufacturing Order) Supply Order Generation (Transfer Order) Supplier DC Supplier Raw Stock Mfg Int Stock Mfg Central Stock POS Supplier POS
24 The resultant change in reality! CONSUMPTION INFORMATION REPLENISHMENT OF GOODS We have changed from a SUPPLY CHAIN (Push system) to a DEMAND CHAIN (Customer Pull system)
25 Sample Simulation Result
26 Baseline Beginning situation: 30% Shortages in stores (Counted missing items) 2.2 Inventory turns per year in stores (Excludes inventory in transit and in DCs) 7 million sales baseline (Comparable previous year s sales)
27 Summary of Sample Results After Implementing Same Store Sales Doubled (This occurred in just 6 weeks) Double Inventory Turns (No increase in overall inventory at the stores was necessary) In Store Shortages 20x Less (from baseline of 30% to 1.5%) Net Profits to 30% of Sales (Net Profits went from 0% to 60% of the previous year s baseline sales.)
28 The Result Replenishment lead time has been reduced 82% to 9 days from 50 days Raw and pack inventory down 17% Finished good inventory down 45% 99.7% customer service 99% On shelf availability
29 Q&A Learning points and conclusion 學 習 分 享 與 結 論
30 Questions? Comments? Call (852) We are happy to help you!
31 Thank you very much! Please feel free to join next SSCR workshop in 6 7 Nov., 2014
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