petitive Advantage Through Supply Chain Management Advanced Planning and Scheduling Systems May 25, 2000 Agenda 1. The Evolution of the Supply Chain 2. Advanced Planning and Scheduling Systems How They Work The Vendors The Supply Chain passes a number of key business processes involved in managing the flow of materials, information, and funds from the initial suppliers to the ultimate consumer. Retailing Delivering Distributing Producing Supplying … the concept of supply chain management is relatively simple. Materials Information & Funds Materials Information & Funds Materials Information & Funds However, in the real world, multiple suppliers, multiple plants, multiple distribution points and multiple customers plicate material and information flows... Retailing Delivering Distributing Producing Supplying … And, given that supply chains cross panies, walls have been built that prevent full and timely information flow. Retailing Delivering Distributing Producing Supplying Breaking down these walls and integrating the supply chain is critical. However, to date, most supply chain initiatives have been inwardly focused. Only recently, manufacturers are beginning to embrace the total supply chain as a means to petitive advantage. Phase 1 - Process Integration (., reengineering the order-to-cash process). Phase 2 - Intra-Enterprise Integration (., sales strategies coordinated with supply chain capabilities). Phase 3 - Inter-Enterprise Integration (., collaborative forecasting & replenishment between retailers and suppliers) Stage 1: Separate best of breed applications dedicated to specific business processes (1970s) G/L Payroll A/P Purchase Order Mgmt. Order Entry Inventory Mgmt. Financials Manufacturing Distribution Enterprise Resource Planning (ERP) Supply Chain Technology has evolved over the past several decades. Today’s ERP systems are transaction-based applications with limited decision-support capabil
