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State University Of
     New York
Supply chain class
     Fall 2010
Instructor :Dr.Larry
      Howard
 By :Kaoutar Dribki
Objectives


• Review the supply chain planning process maps
  in detail.
• Develop the SNP ,Demand Planning and the
  LTCP
• Summary about The SCM in The UN




                                                  2
Main Commodity areas in support
of the field mission




 • General Supply
 • Rations
 • Fuel

 • Digital cameras, military aids   ..
1.Sourcing
 Strategic Deployment Stocks
 UN Reserve
 Systems Contracts
 Inter-mission Transfers
 Member States
2.Warehouse Operations

3. Distribution
Global view of Peacekeeping
operations



         • Current Contracts: 13 Missions
            Supported strength: 98,000
         • 3 International contractors
         • Yearly Expenditure: $ 380,000,000
         • Cost per person / day: $ 11.00 inclusive food &
           logistics cost
Focus of operations




    Food Quality and safety
    Integration in rations operations –
     recipe card based menu plans, aligning
     catering processes to prevent waste
    Standardizing operations and controls
•
  •         Supply Chain – Fuel


                                                                                   COE/UNOE

                                                     LOG
                                                     Base
             Ship
             Ship




                                                      Sector
            Refinery
                       Main Tank


            Terminal
                                                     SFR

Tank Farm




                                                     LR
                                    Transportation


   Main                 Main Storage                 SHQ              Team Sites    End Users
  Source

                                   TRANSPARANCY & REAL TIME INFORMATION
Beyond the linear supply chain



                                                      Logistics Process Model




                                                                           Supplier



Location Plant
and storage
locations


                                     Supplier Plant
Planning integrates the Supply Chain function



                                           Master Data Management

                                Source to Acquire                Plan and Manage
                                                                                                                     Four primary
                           Contract           Supplier                         Long-Term
                          Management        Collaboration                       Planning                             process areas
                                                                                                                     (Level One)
Financial Accounting




                                                                                               Project Management
                          Requisition to                    Supply Network
                                                                             Demand Planning
                         Purchase Order                        Planning

                                            Low – Value
                                            Acquisitions                      Force Planning

                                                                                                                      Secondary
                                              Force
                                            Deployment
                                                                                                                    process areas
                                                                                                                    to encompass
                            Inbound         Planning and    Set Assembly      Decommission
                           Processing       Dispatching     and Execution      and Disposal
                                                                                                                        SCPL
                                                                                                                       activities
                                                                               Equipment
                         Warehouse and                       Equipment
                            Storage
                                             Outbound
                                                             Assignment
                                                                             Maintenance and                         (Level Two)
                                                                               Operations

                             Receive to Distribute              Employ to Dispose
                                                                                                                                    9
                                            Management Reporting
      




        
   

        

    
        
    
        


        


            10
Supply Chain Planning functionality sequence

           Migration to Plan-driven Procurement
                       Planning horizon
Unconstrained           Demand Planning (DP)               Consensus Demand
Demand                      Monthly / Operational

                  Generate Safety Stock Levels (SNP)       Days of Supply / Safety Stock
Constrained
                       Monthly / Strategic / Operational
Demand
                                                           Purchase Requisitions, Planned
(netted)            Replenishment Planning (SNP)           Orders, Stock Transport Requisitions
                            Monthly / Operational
                                                           Stock Transport Requisitions
                     Deployment Planning (SNP)             (Movement Planning)
                               Weekly / Tactical
Available to
                                                           Demand Execution (Allocations and
Promise               Demand Fulfillment (DF)              Available to Promise
(prioritized to
                               Daily / Tactical
need)
                    Transportation Planning (TM)           Consolidated Shipments
                               Daily / Tactical                                            11
Demand Planning
      •   More than just forecasting, we will be incorporating information on new/old materials, events as well as
          information from past trends
      •   Develop a ‘Demand Plan’ that is unconstrained by our ability to supply
      •   Consensus based process with inputs from Requisitioning, Projects, Finance, LogOps
      Supply Planning
         Use a combination of Reservations and the unconstrained Demand Plan to develop supply
          plans, deployment plans and planned production from our suppliers
         Share plans with suppliers where feasible to enable collaboration/Evaluate supplier capacities and lead-
          times to constrain the plan

      Deployment Planning Plans the movements between locations &Optimizes the loads and modes of
          transportation

SUPPLY CHAIN INTEGRATION




                                                                                                                     12
How far ahead should we forecast                ?
   Long-term Capabilities
   Demand Plan
                                    Long
      Example: Strategic Plan
                                  3-XX years


     Operational Demand
     Plan                           Medium
      Example:
                                  6-18 months
      Supply Plan
      Annual / Bi-annual Budget
      Project Plan

     Tactical Demand Plan
                                     Short
        Example:                  1-6 months
        Rapid Replenishment


                                                    13
A - Demand Planning and Forecasting




• 1 - Gather and Clean Data Elements
• 2 - Plan Lifecycle Management(green Supply Chain)

• 3 - Generate Statistical Forecasting

• 4 - Agree on Consensus Demand Plan

• 5 - Infrequent Demand Model



                                               14
The mission Solution – Generate Statistical Forecast


     Materials with repeatable demand pattern will be forecasted using this
                                   process


     Forecasting is performed at pre-defined levels of aggregation such as
        plant, regional level, UN-HQ, material, material category, etc.


     Statistical models will be applied to historical consumption patterns to
     identify trends, seasonality and causal factors to project future demand


    Alerts help with exception based management of issues related to data or
                      forecast model or level of aggregation


        Ability to evaluate best forecast model that fits history based on
                      commonly used statistical measures


    Accuracy of forecast can be calculated and monitored while calculating
                          estimates of future demand


    Ability to provide manual corrections or updates to forecasts calculated
                                by the system
                                                                                15
B - Supply Network Planning



• Safety Stock Planning

• Replenishment Planning

• Plan Deployment



                              16
What is Supply Network Planning ?



   •   A planning approach to create Operational and Tactical Plans and Sourcing
       Decisions that takes the complete supply network into consideration

                      Supply Network Planning
               Safety Stock                  Replenishment
                Planning                     Planning (DRP)

          Rough-Cut Capacity
                                                Deployment
           Planning (MPS)

      Meet Consensus Demand and Actual Demand (Requisitions and Internal
       Orders by:
      Optimal use of Manufacturing, Distribution and Transportation Resources
      Consider all constraints in the supply chain
Overview of Supply Network Planning



   Supply Network Planning (SNP) ensures the optimal Use of Procurement, Manufacturing, Distribution, and
    Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain
   Supply Network Planning plans Procurement, Movements and Manufacturing throughout the entire Supply Network
    using Optimizing and Heuristic Approaches

                                       Planning Paradigm
                                        Quantity based, cross-location
                                           finite planning
                                        Leverage Supplier contracts
                                        Vendor Managed Inventory
Supply Chain Network                    Create Purchase Requisitions,                 Feasible, Executable
                                          Stock transfer between inventory
Products / Services                       locations
                                                                                       Supply constrained
                                                                                        Distribution plans
Forecasts                               Supply Network Planning
Supply Sources                                   (SNP)
Business Rules
                                          Matches demand and supply
                                           for sourcing
                                          Generates Safety Stock Plan
                                          Generates deployment plan
                                                                                                         18
Supply Network Planning Overview


Supply Network Planning (SNP) ensures the optimal Use of
Procurement, Manufacturing, Distribution, and Transportation Resources to meet
Forecasts and actual Demand while considering all Constraints in the Supply Chain


        Supply Network Planning plans Procurement, Movements and Manufacturing
        throughout the entire Supply Network using Optimizing and Heuristic
        Approaches



                Configurable Profiles determine on how the System generates Supply and
                Demand within Short, Mid and Long-term Planning



                        Supply Network Planning offers three competitive Algorithms: SNP Heuristics,
                        Capable to Match (CTM) and SNP Optimizer
Overview of Supply Network Planning

                       Planning Paradigm
                        Quantity based, cross-location
                           finite planning
                        Leverage Supplier contracts
                        Vendor Managed Inventory
                        Create Purchase Requisitions,
                          Stock transfer between inventory
                          locations
Supply Chain Network
                                                             Feasible, Executable
Products                Supply Network Planning              Supply constrained
Forecasts                        (SNP)                        Distribution plans
Supply Sources
Business Rules
                           Matches demand and supply
                            for sourcing
                           Generates Safety Stock Plan
                           Generates deployment plan




                                                                             20
Safety Stock Planning






   Safety Stock Planning enables automated replenishment of stock when safety
    stock values deviates from specified levels primarily due to consumption
   The frequency of safety stock calculation is linked with the material classification
    based on criticality of material
   Features:
        Cost effective management of inventory to meet required service levels
        Intelligently manage safety stock to decrease inventory carrying cost
        Automated controls support detection of excess safety stock


                                                                              21
Example of Mission Solution – Safety Stock Planning




  • Inventory Planner reviews forecast from the
    demand planning process, reviews supplier lead
    time and material classification and identifies
    materials that are at risk due to variations in supply
    and demand
  • Experience of Inventory Planner is leveraged in
    specifying the safety stock value for a material-
    location combination at critical locations in the UN
    supply chain.
  • Automated replenishment of stock when safety
    stock values deviates from specified levels
    primarily due to consumption
  • Safety Stock values and methods are published in
    Material Master
  • Supply Planner validates the safety stock values

                                                             22
Long term capabilities planning
Long Term Capability Planning

     Gather Aggregate Data

     Generate Long Term Demand Plan

      Generate Long Term Supply Plan

      Publish Long Term Capabilities Plan

     Manage Performance

     Manage Fleet Equipment



                                             24
Generate Long Term Demand Plan

  • Establishes long term planning horizons -
    typically forward looking 3-10 years
  • Integrates review of program
    inputs, operational demand plans including
    events and fleet planning
  • Generates an initial long term demand
    plan and reviews for scenarios
  • Creates scenarios as required
  • Publishes an agreed long term demand
    plan
                                          25
Generate Long Term Supply Plan

   • Establishes long term planning horizons for the
     supply side activities
   • Reviews the supply chain network
   • Reviews material classification and criticality
   • Reviews safety stock policies
   • Integrates review of production capabilities
   • Integrates review of strategic sourcing
     capabilities
   • Generates an initial long term supply plan and
     determines the scenarios required
   • Publishes a long term supply plan
                                                26
Manage Performance

• Gathers performance data from published long term
  capabilities plans
• Monitors the performance against physical data such as
  resource availability, utilization and related resource
  performance metrics.
• Identifies and determines if thresholds for planning have
  been met
• Identifies root causes where thresholds have not been
  met
• Develops alternative corrective actions
• Documents corrective actions
• When thresholds have been met identifies continuous
  improvement actions for purposes of improved long term
  supply and demand planning.
                                                        27
Manage Fleet Equipment

• Identifies fleet categories from master data
  definitions
• Creates fleet specific data
• Defines fleet measurement in terms of defined
  metrics
• Enables gathering of fleet consumption from
  automated dispatch and event capture
• Provides input to Equipment Planners for fleet
  consumption data
• Conducts fleet performance analysis in terms of
  wide ranging metrics such as utilization and
  availability for use in long term demand
  planning.
                                            28
Summary




             In sum, peacekeeping
operations tend to be characterized by slower yet
    longer deployments, implying the need for
              leaner supply chains.




                                                29
Thank you

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Supply chain process in the UN

  • 1. State University Of New York Supply chain class Fall 2010 Instructor :Dr.Larry Howard By :Kaoutar Dribki
  • 2. Objectives • Review the supply chain planning process maps in detail. • Develop the SNP ,Demand Planning and the LTCP • Summary about The SCM in The UN 2
  • 3. Main Commodity areas in support of the field mission • General Supply • Rations • Fuel • Digital cameras, military aids ..
  • 4. 1.Sourcing  Strategic Deployment Stocks  UN Reserve  Systems Contracts  Inter-mission Transfers  Member States 2.Warehouse Operations 3. Distribution
  • 5. Global view of Peacekeeping operations • Current Contracts: 13 Missions Supported strength: 98,000 • 3 International contractors • Yearly Expenditure: $ 380,000,000 • Cost per person / day: $ 11.00 inclusive food & logistics cost
  • 6. Focus of operations Food Quality and safety Integration in rations operations – recipe card based menu plans, aligning catering processes to prevent waste Standardizing operations and controls
  • 7. • • Supply Chain – Fuel COE/UNOE LOG Base Ship Ship Sector Refinery Main Tank Terminal SFR Tank Farm LR Transportation Main Main Storage SHQ Team Sites End Users Source TRANSPARANCY & REAL TIME INFORMATION
  • 8. Beyond the linear supply chain Logistics Process Model Supplier Location Plant and storage locations Supplier Plant
  • 9. Planning integrates the Supply Chain function Master Data Management Source to Acquire Plan and Manage Four primary Contract Supplier Long-Term Management Collaboration Planning process areas (Level One) Financial Accounting Project Management Requisition to Supply Network Demand Planning Purchase Order Planning Low – Value Acquisitions Force Planning Secondary Force Deployment process areas to encompass Inbound Planning and Set Assembly Decommission Processing Dispatching and Execution and Disposal SCPL activities Equipment Warehouse and Equipment Storage Outbound Assignment Maintenance and (Level Two) Operations Receive to Distribute Employ to Dispose 9 Management Reporting
  • 10.             10
  • 11. Supply Chain Planning functionality sequence Migration to Plan-driven Procurement Planning horizon Unconstrained Demand Planning (DP) Consensus Demand Demand Monthly / Operational Generate Safety Stock Levels (SNP) Days of Supply / Safety Stock Constrained Monthly / Strategic / Operational Demand Purchase Requisitions, Planned (netted) Replenishment Planning (SNP) Orders, Stock Transport Requisitions Monthly / Operational Stock Transport Requisitions Deployment Planning (SNP) (Movement Planning) Weekly / Tactical Available to Demand Execution (Allocations and Promise Demand Fulfillment (DF) Available to Promise (prioritized to Daily / Tactical need) Transportation Planning (TM) Consolidated Shipments Daily / Tactical 11
  • 12. Demand Planning • More than just forecasting, we will be incorporating information on new/old materials, events as well as information from past trends • Develop a ‘Demand Plan’ that is unconstrained by our ability to supply • Consensus based process with inputs from Requisitioning, Projects, Finance, LogOps Supply Planning  Use a combination of Reservations and the unconstrained Demand Plan to develop supply plans, deployment plans and planned production from our suppliers  Share plans with suppliers where feasible to enable collaboration/Evaluate supplier capacities and lead- times to constrain the plan Deployment Planning Plans the movements between locations &Optimizes the loads and modes of transportation SUPPLY CHAIN INTEGRATION 12
  • 13. How far ahead should we forecast ? Long-term Capabilities Demand Plan Long Example: Strategic Plan 3-XX years Operational Demand Plan Medium Example: 6-18 months Supply Plan Annual / Bi-annual Budget Project Plan Tactical Demand Plan Short Example: 1-6 months Rapid Replenishment 13
  • 14. A - Demand Planning and Forecasting • 1 - Gather and Clean Data Elements • 2 - Plan Lifecycle Management(green Supply Chain) • 3 - Generate Statistical Forecasting • 4 - Agree on Consensus Demand Plan • 5 - Infrequent Demand Model 14
  • 15. The mission Solution – Generate Statistical Forecast Materials with repeatable demand pattern will be forecasted using this process Forecasting is performed at pre-defined levels of aggregation such as plant, regional level, UN-HQ, material, material category, etc. Statistical models will be applied to historical consumption patterns to identify trends, seasonality and causal factors to project future demand Alerts help with exception based management of issues related to data or forecast model or level of aggregation Ability to evaluate best forecast model that fits history based on commonly used statistical measures Accuracy of forecast can be calculated and monitored while calculating estimates of future demand Ability to provide manual corrections or updates to forecasts calculated by the system 15
  • 16. B - Supply Network Planning • Safety Stock Planning • Replenishment Planning • Plan Deployment 16
  • 17. What is Supply Network Planning ? • A planning approach to create Operational and Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration Supply Network Planning Safety Stock Replenishment Planning Planning (DRP) Rough-Cut Capacity Deployment Planning (MPS)  Meet Consensus Demand and Actual Demand (Requisitions and Internal Orders by:  Optimal use of Manufacturing, Distribution and Transportation Resources  Consider all constraints in the supply chain
  • 18. Overview of Supply Network Planning  Supply Network Planning (SNP) ensures the optimal Use of Procurement, Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain  Supply Network Planning plans Procurement, Movements and Manufacturing throughout the entire Supply Network using Optimizing and Heuristic Approaches Planning Paradigm  Quantity based, cross-location finite planning  Leverage Supplier contracts  Vendor Managed Inventory Supply Chain Network  Create Purchase Requisitions, Feasible, Executable Stock transfer between inventory Products / Services locations Supply constrained Distribution plans Forecasts Supply Network Planning Supply Sources (SNP) Business Rules  Matches demand and supply for sourcing  Generates Safety Stock Plan  Generates deployment plan 18
  • 19. Supply Network Planning Overview Supply Network Planning (SNP) ensures the optimal Use of Procurement, Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain Supply Network Planning plans Procurement, Movements and Manufacturing throughout the entire Supply Network using Optimizing and Heuristic Approaches Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning Supply Network Planning offers three competitive Algorithms: SNP Heuristics, Capable to Match (CTM) and SNP Optimizer
  • 20. Overview of Supply Network Planning Planning Paradigm  Quantity based, cross-location finite planning  Leverage Supplier contracts  Vendor Managed Inventory  Create Purchase Requisitions, Stock transfer between inventory locations Supply Chain Network Feasible, Executable Products Supply Network Planning Supply constrained Forecasts (SNP) Distribution plans Supply Sources Business Rules  Matches demand and supply for sourcing  Generates Safety Stock Plan  Generates deployment plan 20
  • 21. Safety Stock Planning   Safety Stock Planning enables automated replenishment of stock when safety stock values deviates from specified levels primarily due to consumption  The frequency of safety stock calculation is linked with the material classification based on criticality of material  Features:  Cost effective management of inventory to meet required service levels  Intelligently manage safety stock to decrease inventory carrying cost  Automated controls support detection of excess safety stock 21
  • 22. Example of Mission Solution – Safety Stock Planning • Inventory Planner reviews forecast from the demand planning process, reviews supplier lead time and material classification and identifies materials that are at risk due to variations in supply and demand • Experience of Inventory Planner is leveraged in specifying the safety stock value for a material- location combination at critical locations in the UN supply chain. • Automated replenishment of stock when safety stock values deviates from specified levels primarily due to consumption • Safety Stock values and methods are published in Material Master • Supply Planner validates the safety stock values 22
  • 24. Long Term Capability Planning  Gather Aggregate Data  Generate Long Term Demand Plan  Generate Long Term Supply Plan  Publish Long Term Capabilities Plan  Manage Performance  Manage Fleet Equipment 24
  • 25. Generate Long Term Demand Plan • Establishes long term planning horizons - typically forward looking 3-10 years • Integrates review of program inputs, operational demand plans including events and fleet planning • Generates an initial long term demand plan and reviews for scenarios • Creates scenarios as required • Publishes an agreed long term demand plan 25
  • 26. Generate Long Term Supply Plan • Establishes long term planning horizons for the supply side activities • Reviews the supply chain network • Reviews material classification and criticality • Reviews safety stock policies • Integrates review of production capabilities • Integrates review of strategic sourcing capabilities • Generates an initial long term supply plan and determines the scenarios required • Publishes a long term supply plan 26
  • 27. Manage Performance • Gathers performance data from published long term capabilities plans • Monitors the performance against physical data such as resource availability, utilization and related resource performance metrics. • Identifies and determines if thresholds for planning have been met • Identifies root causes where thresholds have not been met • Develops alternative corrective actions • Documents corrective actions • When thresholds have been met identifies continuous improvement actions for purposes of improved long term supply and demand planning. 27
  • 28. Manage Fleet Equipment • Identifies fleet categories from master data definitions • Creates fleet specific data • Defines fleet measurement in terms of defined metrics • Enables gathering of fleet consumption from automated dispatch and event capture • Provides input to Equipment Planners for fleet consumption data • Conducts fleet performance analysis in terms of wide ranging metrics such as utilization and availability for use in long term demand planning. 28
  • 29. Summary In sum, peacekeeping operations tend to be characterized by slower yet longer deployments, implying the need for leaner supply chains. 29

Editor's Notes

  1. Enable functionality / infrastructure capabilities to deploy the Supply Chain solution in remote areas Manage Supply Chain scope to deliver the processes and functionalities at the same standard or better Leverage scale on procurement and logistics functions to optimize spend and utilization of goods and services Share goods and services across the UN Organization to optimize assets and to take an advantage of economies of scale Construct Supply Chain metrics to align the business processesIncrease the accuracy of demand forecasts Increase the accuracy of inventory holdingsReduce the volume of consumable inventory that reach expiration prior to usage