Supply Chain Planning

1. Supply Chain Planning 19 th September 2004 Dusit Dubai SCLG - Dubai

3. Presented by Krishnan Sugavanam Mantis

5. Corporate Profile of Vedasys BPR, BE, STRATEGY, ISO

7. Supply Chain Planning The Theory and Best Practice

9. SYNCRON International Syncron Systems Syncron Integration Syncron Management England Sweden Finland France Greece Singapore Benelux Hungary USA Italy India UAE Malaysia

10. Syncron Customers

11. Define Supply Chain Planning Production Planning Replenishment Planning Demand Planning ERP Systems OEM Manufacturer Distributor Dealer Retail Consumer

12. Supply Chain Planning Art and a Science Demand Driven & Service Driven SCP OEM Manufacturer Distributor Dealer Retail Consumer

13. Supply Chain Planning Challenges Interactive

15. Theory of Demand Planning

16. Demand Patterns Lumpy Slow Erratic Fast Positive Trend Negative Trend Obsolete New Dying

17. FORECAST COMPONENTS Forecast Components Cyclical variation External factors Trend Base level

18. Seasonality Profiles Year Two Year One

20. Forecasting Demand

21. Some Additional Considerations

22. Automatic Demand Filtering Flier? 0 10 20 30 40 50 60 1 3 5 7 9 11 13 15 17 19 21 23 Period Demand

23. Volume Density 1998 1999 2000 2002 2003

24. Theory of Replenishment Planning

25. How do you classify an Item from an Inventory angle? Interactive

26. Multi Dimensional Pareto Analysis ABC based on Volume ABC based on Frequency ABC based on Turnover

27. The Role of Buffer Stocks in the Supply Chain The Cushion Typical Sources of Supply Stocks The Customer Demand

29. What is the Relationship between Inventory and Service Level?

30. Service Driven Buffer 92% 94% 96% 98% 100%

33. THE FIXED ORDER CYCLE SYSTEM         *ORDER UP TO LEVEL ** REORDER QUANTITY Q1 STOCK LEVEL BUFFER STOCK LEVEL TIME Q2 Q2 Q3 Q3 LEAD TIME (L)               LEAD TIME (L) REVIEW PERIOD (T) REVIEW PERIOD (T) Cover period ** REORDER QUANTITY *OL=Forecast of Demand in cover period + Buffer Stock **ROQ=Order Level-Effective Stock + Back Orders

34. Coverage Analysis The objective of coverage analysis is to identify the optimum ordering frequency for each product within a group to minimise the overall turnover stock capital investment.

35. Coverage Analysis Example

37. Theory of Production Planning

38. Throughput Operating Costs Inventory Realistic Order Release Shorter Lead Times Smaller Lot Sizes Outsourcing Accurate Delivery Dates Responsive to Market Competitive Pricing Product Development Optimised Sequencing Dynamic Buffers High Resource Utilisation THE RIGHT BALANCE THEORY OF CONSTRAINTS

39. Recent Supply Chain Planning Industry Trends

40. eCollaboration OEM Supplier Distributor Warehouse Retail Information Flow Product Flow C P F R Supplier Collaboration Internal Collaboration Customer Collaboration

41. VMI – Vendor Managed Inventory

42. Virtual Stock Management

43. Companies moving more and more towards centralized inventory planning and away from decentralization of planning activities

44. Syncron Supply Chain Planner OUR SUPPLY CHAIN CONCEPT

45. Local Optimisation

46. ERP Myth JDE SAP R/3 SAP R/3 Movex Oracle Baan Inhouse IFS IFS IFS WEB Shop.com JDE Inhouse

47. Supply Chain Planning Global Warehouse Divisional Warehouse Shop Manufacturing Supplier

48. Manufacturer Supplier Region Warehouse Central Warehouse Sub Supplier Store Syncron SCP and eCollaboration Forecasting Replenishment Production plan POS data Forecast Stock level (safety stock) Replenishment plan Forecast Stock level (safety stock) Replenishment plan Forecast Replenishment plan Production planning Capacity/material need Forecast Replenishment plan Production planning Capacity need Material need Forecast Replenishment plan Production planning Capacity need Material need Integration

49. Questions? Break