1. World Class Supply Chain Management 18 th December 2004, Dubai Krishnan Sugavanam Mantis International Supply Chain & Logistics Group

2. Presentation Agenda What is Supply Chain Management? (SCM) Supply Chain Planning –Challenges (Interactive), Resolutions, Latest Trends Supply Chain Execution –Challenges (Interactive), Resolutions, Latest Trends Q&A

3. Supply Chain Planning Challenges Interactive

4. Some of the Challenges How many Stocking Locations; Where they are? Where to Stock? One Supplier or Multiple Suppliers? Multiple Lead Times? Variability in Supply? Variability in Demand? Centralised or Decentralised planning? How often to order? Weekly, Daily, Monthly, Quarterly? Or a combination? What forecasting methods to use and why? How to classify products for effective inventory control? What target service levels to set and why? How much buffer stocks to hold and where? How to measure the achieved service levels?

5. 5 Production Planning & Scheduling Replenishment Planning Demand Forecasting Executive Information Systems Supply Chain Management Modelling and Simulation

6. Are you operating in isolation rather than in partnership? next Syncron - Supply Chain Management

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

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

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

10. LUMPYSLOW ERRATIC FAST NEGATIVE TREND NEW DYING OBSOLETE Demand Patterns Trend

11. MANAGING FORECAST ERROR THE OPTIONS Month Demand BUFFER STOCK Lead time Review time Target service level Average demand Variability of demand Batch size

12. DFRP Models Warehouse Forecasts Branch Demand Branch Forecasts Branch Orders Branch Order Schedules Warehouse Stocks Warehouse Stocks Only National Stocks Branch forecasts and order schedules based on local demand

13. eCollaboration OEM SupplierDistributorWarehouseRetail Supplier Collaboration Internal Collaboration Customer Collaboration Information Flow Product Flow

14. VMI – Vendor Managed Inventory

15. Virtual Stock Management

16. Supply Chain Execution

17. Α Β Γ Δ Ε The Work Flow

18. What is Supply Chain Execution? Simply Handling Receipts and Issues of Inventory, and Controlling Warehouse and Fleet Receipts include, POs, Shipping Notifications, Scheduling, Advance GRN, GRN, Checking, Quality Management, Sorting, Binning, Cross Docking and Task Interleaving

19. What is Supply Chain Execution? Issues include Sales Orders, Delivery Orders, Stock Control, Shipments, Picking Planning, Picking, Task Interleaving, Replenishment, Kitting, Sorting, Checking, Packing, Repacking, Labeling, Documentation, Loading, Delivery Confirmation, Billing, Returns, AR and CRM

20. Managing Warehouse & Fleet Stock Search Pack Changes Cycle Counting Activity Management Truck Routing Fleet Tracking

21. In modern era SCE means… Increased Customer Satisfaction with Lower Cost of Delivery More accurate satisfaction of increasing logistics requirements Value added services to be provided – this has raised the minimum standard

22. Supply Chain Execution Some Challenges Interactive

23. Challenges Optimizing Storage Capacity Utilization Optimizing Resources such as men and machine Traceability of LOTs Inventory Accuracy Managing FIFO/FEFO Customer Service Management Fleet Management, Routing & Tracking

24. Resolution of Challenges

25. Optimizing Storage Capacity A Variety Storage Systems Multiple Units of Measure Variable Bins Mixed Bins Mixed Palettes Splitting Storage and Picking Location

26. Optimizing Resources such as Men & Machine Task Interleaving Storing by Product Velocity – Sales, Pack Sizes, Promotions Warehouse Design

27. Traceability of LOTs Audit Trail by LOTs, especially to enable LOT recalls Records on LOTs by Multiple Pack Sizes

28. Inventory Accuracy Bar Coding Multiple Storage Units Multiple Units of Measure De-link WMS Stocks from ERP Stocks to improve accuracy

29. Managing FIFO/FEFO Storage Kaizen System proposed Picking Splitting Storage and Picking Location

30. Customer Service Management Manage Date and Time windows for delivery through system Minimum Product Shelf Life Pallet Types Shipping Docs and Labels Consequent Reduction in Returns

31. Fleet Management & Routing Fleet Attributes, Item Attributes, Stock Attributes Automatic Vehicle Loading Sequence Routing – Shortest Time, Distance Fleet Tele-Tracking

32. Some Key KPIs Order Fill Rate and Accuracy Inventory Accuracy Warehouse Flow Through Compliance to Internal Standards

33. Some Action Points Ensure KPIs and Continuous Improvement Programs are in place Insure Warehousing and Transportation Processes are in Sync Insure these processes are in Sync with Customer Delivery Instructions

34. Additional Initiatives RFID Compliance, Direct Store Delivery, Smaller more Frequent Orders, Increased Order Fulfillment Accuracy, Reduce Working Capital, Efficient use of Inventory, Shorter Fulfillment Time

35. Past vs Present Past –Value Added Services such as BOM, Assembly, Packing, Kits –Compliance – Barcodes, BOLs, UCC Labels Present –Real-time integration with TMS –KPIs –Cross Docking –Remote Satellite Warehouse Operations –RFID Compliance

36. Some Latest Trends… Picking for Pieces, Cartons and Pallets –Strategies Basic Order Picking Batch Picking Zone Picking Wave Picking

37. Some Latest Trends… Picking for Pieces, Cartons and Pallets –Equipment ShelvesRacksCarousels Bar Code Scanners ASRS Pick to Light Voice-Directed Picking ACSS

38. Questions? Thank You