Introduction to Supply Chain and SAP

Understand Supply Chain Management

• Concept and Overview of the Supply Chain Management Reference Model
• The top-level processes of the SCOR model
• The key attributes in supply chain management
• Suppliers and customers
• Inputs and outputs
• Processes
• Common trade-offs in business supply chain
• Sales operations – cost vs. service
• Customer vs. Supplier
• Inventory vs. service level
• Discussion of real-life examples in supply chain
Concept and Overview of the Supply Chain
Management Operations Reference Model (SCOR)
Plan
• Demand and Supply planning, aligning to company financials
• Communication across entire chain
• Rules to improve and measure inventory, transportation, etc.
Source
• Raw material acquisition
• Supplier management and performance evaluation
• Payments and verification
Make
• Make-to-order, make-to-stock, engineer-to-order
Concept and Overview of the Supply Chain
Management Operations Reference Model (SCOR)
Make (continued)
• Production, packaging, staging, release
• Equipment, facilities, transportation
Deliver
• Order management – order entry, invoice
• Import and export requirements
Return
• Process the return of containers, packaging
• Return of defective products
Concept and Overview of the Supply Chain
Management Operations Reference Model (SCOR)
3 levels of process details:
• Level 1: Defining Scope – geographies, segments, and context
• Level 2: Configuration of the supply chain
• Level 3: Process element details – identify key business activities
Concept and Overview of the Supply Chain
Management Operations Reference Model (SCOR)
Key Attributes in Supply Chain Management

• Suppliers
• Inputs
• Process
• Outputs
• Customers
Suppliers

• Also known as vendors

• Sourcing – best supplier, right balance of speed, quality and pricing
• Management – contract terms, performance measurement
• Collaboration – shared common objectives
• Use of technology enablers like EDI help automate ordering process
Inputs

• Demand Forecasts – from company financial plan and/or Customers orders

• Supplier capacities, lead times
• Manufacturing capabilities, engineering details, Bills of Materials
• Warehouse capacities, inventory staging
• Transportation methods, rules and regulations
• Payment terms
Process

• Discreet or continuous process manufacturing

• Details of converting raw materials to semi-finished to final Products
• Work center, routing
• Materials Requirements Planning (MRP), ABC strategies
• Packaging
• Storage, batch, shelf life
• Serial number tracking