1568acgproposal.ppt 1 Atlanta OAUG June 19, 1998 Supply Chain Management Tim Boyle, CFPIM, CPM AnswerThink Consulting Group, Inc.

1568acgproposal.ppt 2 What is a “Supply Chain”? —APICS (1): The processes from the initial raw material to the ultimate consumption of finished product, linking across supplier-user companies. —APICS (2): The functions within and outside a company that enable the value chain to make products and provide services to the customers.

1568acgproposal.ppt 3 Definitions of “Supply Chain” — A strategic logistical linkage between customers and suppliers; demand and supply. (You fill in the details).

1568acgproposal.ppt 4 What is linked in a Supply Chain? —Information/data —Communication —Processes

1568acgproposal.ppt 5 Objectives of Supply Chain Management (SCM) —Greater efficiency; lower costs —Enhance flexibility; agility —Improve customer service —Optimize the value chain

1568acgproposal.ppt 6 What The Analysts Say... Business Objectives Drive Supply Chain Management Investments Improve Customer Service Improve Order Management Corporate Growth Improve Asset Use Improve Demand Planning Improve Warehouse/Distribution Activities Accelerate “Cash to Cash” Cycle Supplier/Supply base Management Strength Partnerships Year 2000 Regulatory Compliance Source: AMR/Logistics Management Respondents - Primarily manufacturers 1 = low, 5 = high

1568acgproposal.ppt 7 SCM-specific Techniques & Technologies —Distribution Resources Planning (DRP) —Distributed warehousing —Drop ship —Multi-sourcing —Supplier scheduling —Information networks —Internet —EDI —Integrated ERP —The “Interprise” —The “Virtual Corporation”

1568acgproposal.ppt 8 Planning & logistics - Approaching Zero Working Capital Strategic Forecast Sales Order Demand Vendor Owned Managed Strategic Inventory Pull Min/Max Replenishment Common Inventory Vendor Optimize Capacity Optimize Daily Through-put Optimize J.I.T. for Common Parts Point of Use-MTO CTO ATO Point of Use AccountsAccounts ReceivableReceivable Accounts Payable JIT BANK Distributor/Customer Flow Manufacturing

1568acgproposal.ppt 9 The Virtual Corporation PartsSupplier VirtualCorporation Manufacturer Buyer ServiceSupplier Flow of Goods Flow of Information —Suppliers as Buyers, Suppliers as Partners, Manufacturers as Suppliers… unlimited combinations in virtual corporations Suppliers as Buyers Suppliers as Partners

1568acgproposal.ppt 10 Communication links - Multi-directional feedback loops result in rapid supply chain improvement Continuous flow manufacturing Rules based configuration Real time available to promise Supplier Management Point of Use Delivery on Demand J.I.T. First Promised Deliver Date Correct Configuration Inventory Supplier WIP Distributor Interprise Visibility

1568acgproposal.ppt 11 Mainframe choking the Web Dumb Terminal DatabaseServer ApplicationServer PersonalComputer Three-Tiered Client Server Architecture WebServerApplications NetworkComputer Leveraging Technology Infrastructure Leapfrogging Technologies

1568acgproposal.ppt 12 Purchasing Production Optimization Advanced Planning Order Management Export / Import and Freight Management Forecasting and Demand Planning Warehousing & Distribution Available to Promise ERP Engine - Oracle - Peoplesoft - Baan Web Procurement Ariba CyberSystems Connect Integrated SCM Applications Think i2 Manugistics Dallas McHugh Freeman Uniteq I2 Red Pepper Manugistics Factory Works Consilium GEMMS Vastera Rockport CSX Transnet Trilogy IMI Integrated Optimization: Process PLUS Technology

1568acgproposal.ppt 13 Oracle SCM-Specific Applications —Web applications in general —EDI Gateway —Supply Chain Planning (DRP; multi-source planning) —Supplier Scheduling