3. SUPPLY CHAIN MANAGEMENT
The design, planning, execution, control and monitoring of
supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging
world wide logistics, synchronizing supply with demand and
measuring performance globally.
Supply chain analytics is the streamlining of a business
supply side activities to maximize customer value and to
gain competitive advantage in the marketplace
SUPPLY CHAIN ANALYTICS
4. Metric Business
Purpose of
Measurement
Frequency of
reporting this
metric
What will be
level of
Measurement
Internal
customers for
this Metric
External
Customers
Explanation What is the
business use of
this metric /
analytics
Some metrics
could be
reported every
week (rain in
mm), monthly
(sales analysis
by product),
some are
reported
annually (profit
%)
The level at
which this data
gets collected
Who will be
internal
customer using
this particular
analytic report
Who will be
external
stakeholders
who will refer to
this analytic
report
WMS
(Warehouse
Management
System)
For understand
real time
inventory details
Continuously At Business unit &
Regional level
SCM Dept.
Marketing Dept.
Sales Dept.
Production Dept
Company Mgmt.
Suppliers
TMS(Transport
Management
System)
For lead time
delivery, vehicle
tracking & driver
safety
Continuously At Business unit &
Regional level
SCM Dept.
Marketing Dept.
Sales Dept.
Production Dept
Company Mgmt.
Transporters,
Distributor, Dealer
& Retailer
ERP (Enterprise
resource planning)
– POS (Point of
sale)
For real time
information of point
of sale finished
goods
Continuously At Business unit
level
At Regional level
At Retail outlet
SCM Dept.
Marketing Dept.
Sales Dept.
Production Dept
Company Mgmt.
Retailer &
Transporters
5. RFID(Radio
Frequency
Identification)
For understand
real time
inventory details
Continuously At Business unit &
Regional level
SCM Dept.
Marketing Dept.
Sales Dept.
Production Dept
Company Mgmt.
Suppliers
Transporters
Distributor
Dealer
Retailer
GPS (Global
Positioning
System)
For lead time
delivery, vehicle
tracking & driver
safety
Continuously At Business unit &
Regional level
SCM Dept.
Marketing Dept.
Sales Dept.
Production Dept
Company Mgmt.
Suppliers
Transporters
Distributor
Dealer
Retailer
MES
(Manufacturing
Execution System)
For managing &
monitoring work-in-
process
Continuously At Factory & Plant
level
SCM Dept.
Production Dept
Company Mgmt.
Suppliers
SUPPLY CHAIN ANALYTICS COVERING AREAS
Demand Forecasting
Inventory Management
Spare Parts optimization
Warranty Optimization
Network Optimization
Pricing Analytics
Customer Analytics
6.
7.
8.
9. THE DYNAMICS OF THE SUPPLY
CHAIN
OrderSize
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Customer
Demand
Retailer Orders
Distributor Orders
Production Plan
What is shown here is how divergent these various forecasts are in relation to real demand.
Why?? Because they are developed independently from each other and are dated, and unconnected to each other and the daily fluctuations in the market