Supply Chain Optimization and Planning (15:45) Patrick Xhonneux Head of Business Development
Agenda! Introduction! Supply Chain Issues! Why would you need SCO solutions?! An overview of the SAS solutions for Supply Chain Optimisation and Planning! Conclusion
ERP Systems?! June 99 Forrester Research Report:! ERP apps have reached their limit of competitive advantage. Firms need a new technology that will allow them to not only automate the business but also manage and optimize it.
Goals for ERP Implementations Inventory Reduction Personnel Reduction Productivity Improvement Order/Cycle Time Reduction Closing Cycle Reduction IT Cost Reduction Procurement Cost Reduction Cash Management Improvement Revenue/Profit Increase Logistics Cost Reduction 14% 12% 11% 11% 9% 20% 19% 27% 26% 32% Supply Chain Goals Does ERP achieve these goals? Source: 1998 Deloitte Consulting LLC and Benchmarking Partners Inc.
Supply Chain Solution Space SAS Core Competency Strategic Planning/ Tactical Execution Component Supplier Management Facility, Product & Capacity Planning Supply Chain Optimization Advanced Planning & Scheduling Product Data Mgmt Mfg. Exec. Systems ERP Transportation Planning Transportation Execution Electronic Commerce Inventory Planning Warehouse Mgmt. Demand Planning Order Mgmt Ċustomer Asset Mgmt. Analytical Transactional Supply Operations Logistics Demand Source: Supply Chain Management Review
Overview Supply chain optimization and planning looks beyond traditional supply chain management, aligning supply chain activities to maximize profit, minimize costs, and achieve desired performance at the consumer level. SAS is a registered trademark or trademark of SAS Institute Inc. in the USA and other countries. indicates USA registration. Other brand and product names are registered trademarks or Trademarks of their respective companies.
Solution Perspectives! 80-20 configurable solution! SCALe TM methodology! Implementation strategy! Software! Decouple/Recouple software strategy! Multiple highly focused components! Built on top of SAS! Quick development time! Simple web-based GUI! DW supported
The Decision Support Landscape Production, Distribution, Inventory Planning Scheduling & Resource Planning Facility Location Capacity Planning Supplier Portfolio Optimization Supplier Performance Rating Customer Sourcing Optimization Yield Management & Pricing Forecasting & Demand Planning Inventory Replenishment Policies Supplier SRM Supply Chain Optimization CRM Customer Supplier Data Rationalization Supplier Quality Quality Fraud Detection Campaign Management Demand Management Process Optimization Service Quality Manufacturing Quality
Supply Chain Issues Supplier Restrictions Inventory How much and where? Service Requirements Manufacturing How Supplier much to buy? When Supplier to buy it? Supplier Where to Supplier buy from? Manufacturing What to make? How much and where? Manufacturing Warehouse When to restock? Who to ship to? Warehouse Customer Customer Customer Customer Manufacturing What mode? Fleet size? mix? Transportation zecosoaxposzecosoaxpos etcsoeseveqsetcsoeseveqs
Traditional Solution Forecast Forecast Manufacturing Supplier Supplier Supplier Supplier Manufacturing Manufacturing Warehouse Warehouse Customer Customer Customer Customer Manufacturing Push - Production Focused Old Approach - decoupled, myopic system
Forecast Manufacturing Supplier Supplier Supplier Supplier Manufacturing Manufacturing Warehouse Warehouse Customer Customer Customer Customer Manufacturing Pull - Customer Focused New Approach - tightly coupled, global system
SAS Supply Chain Solutions Advantages:! Excellent modeling and optimization capabilities! Solid foundation of data warehousing and analytical expertise! Targeted, integrated, easily-customized solutions to meet specific supply chain needs
Solution Component Groups Production, Distribution, and Inventory Planning Facility Location Capacity Planning Enterprise SC Customer Sourcing Optimization Yield Management & Pricing Forecasting & Demand Planning Inventory Replenishment Policies Demand and Inventory Supplier SRM Supply Chain Optimization CRM Customer Quality Supplier Portfolio Optimization Supplier Performance Rating Supply Advanced Planning & Scheduling Cycle Time Reduction Equipment Maint. Scheduling Production
Agenda! Introduction! Supply Chain Issues! Why would you need SCO solutions?! An overview of the SAS solutions for Supply Chain Optimisation and Planning! Conclusion
SRM and Supplier Optimization! Problem: How to select, evaluate, and plan future purchases from suppliers?! Solutions:! SPO - Supplier Portfolio Optimization! Planning future purchases! SPR - Supplier Performance Rating! Comparing supplier performance
IRP: Inventory Replenishment Planning! Problem: What, when, and how much to reorder?! Solution: Inventory Replenishment Planner! Automatic reordering; e-procurement! Accounts for:! Automatic parts classification! Target service levels! Lead time and variance
PDIO: Production, Distribution, and Inventory Optimization! Problem: Planning supply chain activities from a global perspective! Coordination of multiple units! Closed loop, cost-profit focus! Solution: Mathematical and network optimization modeling! PROC NETFLOW, PROC LP
EMS: Equipment Maintenance Scheduling! Problem: How to schedule maintenance and repair on large equipment?! Airplanes, buses, manufacturing equipment, etc.! Solution: Resource-constrained scheduling! PROC CPM! PROC GANTT
APS: Advanced Planning and Scheduling! Problem: How to schedule manufacturing activities with limited resources?! Solutions:! Finite-capacity scheduling! PROC CPM! Replaces many MRP, MRPII functions! Incorporation of Bills of Material! PROC BOM (experimental in Release 8.1)
CTR: Cycle Time Reduction! Problem: How to allocate resources to shorten the production cycle?! Solutions:! Finite-capacity scheduling and advanced critical-path analysis! PROC CPM! Incorporation of Bills of Material! PROC BOM (experimental in Release 8.1)
DP: Demand Planning! Optimal cross-selling! Optimal distribution of cross-selling resources! Revenue management! Dynamic pricing! price-demand-inventory equation
Integrating the Solutions
Component Integration EMS PDIO APS SRM Supplier Supplier Supplier Supplier APS APS APS Manufacturing Manufacturing Manufacturing IRP Warehouse Warehouse DP Customer Customer Customer Customer Manufacturing DATA WAREHOUSE
Conclusions! SAS Institute offers a growing number of specialized modules for solving problems at various stages of supply chains! These modules can be customized to meet individual needs, and can work together to form a complete supply chain solution
Supply Chain Optimization and Planning Thank you for your attention! Patrick Xhonneux Head of Business Development