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Supply Chain Management (SCM)
22
Content
Key Business Challenges
Every Angle Use Cases for SCM
Every Angle Business Value for SCM
Customer Reference Cases for SCM
Position the Business Process●1
●2
●3
●4
●5
33
Financial administrative processes
Human resource management
Finance and Controlling
Operational processes
Order
To
Cash
Supply ChainProcure
to
Pay
Plan
CustomerSupplier DeliverFGMakeSource RM
Supply Chain
RM Make
Plan
FG
Plant Maintenance
SCM in a Simplified Business Process Model
44
Content
Key Business Challenges
Every Angle Use Cases for SCM
Every Angle Business Value for SCM
Customer Reference Cases for SCM
Position the Business Process●1
●2
●3
●4
●5
55
SCM Process Goals, Key Challenges and Use Cases
Goals for SCM
Maximize customer
service
Every Angle Use Cases
●Business ResultsBusiness Results
Every Angle Business ValueKey Challenges
The right product in the
right quantity and in the
right condition with the
right documentation to the
right place at the right time
at the right price.
● Higher customer service level.
● Lower work in progress.
● Lower costs.Complexity
Responsiveness
vs Effectiveness
Process
Dynamics
Market changes,
new product laun-
ches, changing
priorities, etc.
Lack of insight
● Manage customer service levels.
● Supply chain efficiency.
● Production statistics.
● Manage stocks.
66
Content
Key Business Challenges
Every Angle Use Cases for SCM
Every Angle Business Value for SCM
Customer Reference Cases for SCM
Position the Business Process●1
●2
●3
●4
●5
77
Improvement Focus Areas in SCM
Improve
data
quality
Planning
Quality
batch
release
Perfect
order
delivery
The right product to the
right customer at the right
time and at the right price
Streamline
end-to-end
processes
Warehousing
& inbound
Transportation
Compliance
Increase
customer
service
level
Component
availability
88
Improvement… Starting from Standard Angles
Focus
Act
Evaluate
99
Important Every Angle Functionalities for SCM
Functionality description
Goods flow
measurement
• Analytics of revenue, purchased and produced goods and intercompany deliveries over time dimensioned in any
available property like plant, material group or type, sales or purchase organization, country, planner, distribution
channel, order category or type, or any other dimension from the SAP database.
• Planned, actual and target cost analytics for work orders, projects and WBS elements.
Delivery
performance
• Delivery reliability in purchase, customer delivery, intercompany deliveries and production orders (taking into
account partial confirmations, deliveries and returns).
• Service level. Like delivery reliability, but judged to the “Requested” instead of “Promised” date.
• Lead times and lead time differences in purchase, intercompany and customer deliveries and production orders.
• Complaint measurements in customer deliveries, production, intercompany deliveries and purchase.
Stock situation
• Actual stocks, dead stocks, excess stocks and stock shortages.
• Weeks on hand, stock coverage date, safety stock coverage, stock run out date.
• Projected stock situation.
• Unneeded procurements in production, purchase and intercompany, both planned and ordered.
Order network
analytics
• Bottleneck types in production, intercompany deliveries, customer deliveries, and purchase, including predicted
bottlenecks based on actual goods flow status, and including effect-cause-effect analytics in supply chains.
• Delivery situation, including delivering and dependent order types, number and reliabilities.
• Calculated delay, reason for delay.
• Reschedule advises when the needed date and the due date of open orders differ.
Data reliability
and GRC
• Old work orders, reservations, plan orders, sales orders, purchase orders, forecasts, requisitions and
requirements. Invalid and incomplete data.
• GRC checks like duplicate partners and SOD violations.
• Incomplete data in material master, BOMs and routings.
1010
PPIs and Supply Chain Performance Measurement
In a Supply Chain, throughput times and lead times are very important:
● numerous important dates
● different type of lead time measurements:
● planned/actual date differences
● planned/actual lead time differences
Realized
delivery date
1111
Use Cases Supply Chain Management
ERP Data QualityDetect, Prioritize and Solve
Warehousing
Operational / Execution Operational Management
Measure and Control
Shipping and
distribution
• Stock overviews
• % of slow movers
• Average batch age
• Warehouse delivery reliability
• Perfect order measurements
• Customer service level/delivery
reliability
• Overview of bottlenecks
Warehousing
• Detect and solve (future) stock
excesses/shortages
• Batch ageing
• Value of blocked stock
• Late deliveries
• Prioritize deliveries
• Detect and solve potential
sales turnover losses
• Data Correctness (i.e.warehouse
parameters material master)
• Data Completeness (i.e. slow / no
movers to be deleted, batches (to be)
expired )
• Data Consistency (i.e. warehouse
units across WH)
• Data Correctness (i.e. sales
parameters in material master)
• Data Completeness (i.e. duplicate
customers).
• Data consistency (i.e. deliveries in
full pallets)
• Shop floor control
• Detect (unnecessary) delays
• Detect potential future delays
• Missing part overview
• Data Correctness (i.e. planning
parameters material master) (*)
• Data Completeness (i.e. in-house
produced materials without BOM /
routing)
• Data Consistency (i.e. pallet
information in MM / BOM)
• Factory (plant) output
• Service level per factory
• Scrap
• Lead times
Use Cases
1212
Content
Key Business Challenges
Every Angle Use Cases for SCM
Every Angle Business Value for SCM
Customer Reference Cases for SCM
Position the Business Process●1
●2
●3
●4
●5
1313
Use Case and Business Case of Every Angle
Use Case
Improve Business
Performance
Higher service level against
lower cost, improved working
capital, improved cash flow, etc.
Support Operations
Management & Control
Measure KPIs such as
service level, delivery reliability,
process accuracy, output,
data accuracy, etc.
Support day-to-day
Operations execution
Bottleneck detection,
prioritization & solving
Support SAP ERP
data Quality
Quality of Master data
Quality of Transaction data
Business Value
Every Angle’s Use
Cases for Execution
Every Angle’s Use Cases for
Operations Management
Every Angle’s Business Value for
Business Performance
1414
Focus - Evaluate - Act
Intended Improvement:
Focus Find and list the issues you want to improve
Evaluate Define an associated KPI
Act Build “action lists” pointing people to their improvement actions
Working Capital Service & Revenue Operating Cost Data Quality
1515
Focus - Evaluate - Act: Example Production Order Delivery
Intended Improvement:
Focus
Evaluate
Act
Delivery Reliability Improvement
KPI - historical delivery reliability
List of late production and process orders
Angle with late process/production orders that can be delivered
from stock
1616
Focus - Evaluate - Act: Example Future Excess Stock
Intended Improvement:
Focus
Evaluate
Act
Lower Excess Stock Level
Overview of all stocks
Overview of potential future excess stock
Potential excess stock: can these orders be cancelled
1717
Focus - Evaluate - Act: Example “Perfect Order”
Intended Improvement:
Focus
Evaluate
Act
Higher “First Time Right” Processing of Orders
KPI - perfect order: percentage of orders cancelled
Look at the reasons for turnover losses
Analyze the cancelled sales order per rejection code
1818
Content
Key Business Challenges
Every Angle Use Cases for SCM
Every Angle Business Value for SCM
Customer Reference Cases for SCM
Position the Business Process●1
●2
●3
●4
●5

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Optimize Supply Chain Management with Every Angle's Data-Driven Insights

  • 2. 22 Content Key Business Challenges Every Angle Use Cases for SCM Every Angle Business Value for SCM Customer Reference Cases for SCM Position the Business Process●1 ●2 ●3 ●4 ●5
  • 3. 33 Financial administrative processes Human resource management Finance and Controlling Operational processes Order To Cash Supply ChainProcure to Pay Plan CustomerSupplier DeliverFGMakeSource RM Supply Chain RM Make Plan FG Plant Maintenance SCM in a Simplified Business Process Model
  • 4. 44 Content Key Business Challenges Every Angle Use Cases for SCM Every Angle Business Value for SCM Customer Reference Cases for SCM Position the Business Process●1 ●2 ●3 ●4 ●5
  • 5. 55 SCM Process Goals, Key Challenges and Use Cases Goals for SCM Maximize customer service Every Angle Use Cases ●Business ResultsBusiness Results Every Angle Business ValueKey Challenges The right product in the right quantity and in the right condition with the right documentation to the right place at the right time at the right price. ● Higher customer service level. ● Lower work in progress. ● Lower costs.Complexity Responsiveness vs Effectiveness Process Dynamics Market changes, new product laun- ches, changing priorities, etc. Lack of insight ● Manage customer service levels. ● Supply chain efficiency. ● Production statistics. ● Manage stocks.
  • 6. 66 Content Key Business Challenges Every Angle Use Cases for SCM Every Angle Business Value for SCM Customer Reference Cases for SCM Position the Business Process●1 ●2 ●3 ●4 ●5
  • 7. 77 Improvement Focus Areas in SCM Improve data quality Planning Quality batch release Perfect order delivery The right product to the right customer at the right time and at the right price Streamline end-to-end processes Warehousing & inbound Transportation Compliance Increase customer service level Component availability
  • 8. 88 Improvement… Starting from Standard Angles Focus Act Evaluate
  • 9. 99 Important Every Angle Functionalities for SCM Functionality description Goods flow measurement • Analytics of revenue, purchased and produced goods and intercompany deliveries over time dimensioned in any available property like plant, material group or type, sales or purchase organization, country, planner, distribution channel, order category or type, or any other dimension from the SAP database. • Planned, actual and target cost analytics for work orders, projects and WBS elements. Delivery performance • Delivery reliability in purchase, customer delivery, intercompany deliveries and production orders (taking into account partial confirmations, deliveries and returns). • Service level. Like delivery reliability, but judged to the “Requested” instead of “Promised” date. • Lead times and lead time differences in purchase, intercompany and customer deliveries and production orders. • Complaint measurements in customer deliveries, production, intercompany deliveries and purchase. Stock situation • Actual stocks, dead stocks, excess stocks and stock shortages. • Weeks on hand, stock coverage date, safety stock coverage, stock run out date. • Projected stock situation. • Unneeded procurements in production, purchase and intercompany, both planned and ordered. Order network analytics • Bottleneck types in production, intercompany deliveries, customer deliveries, and purchase, including predicted bottlenecks based on actual goods flow status, and including effect-cause-effect analytics in supply chains. • Delivery situation, including delivering and dependent order types, number and reliabilities. • Calculated delay, reason for delay. • Reschedule advises when the needed date and the due date of open orders differ. Data reliability and GRC • Old work orders, reservations, plan orders, sales orders, purchase orders, forecasts, requisitions and requirements. Invalid and incomplete data. • GRC checks like duplicate partners and SOD violations. • Incomplete data in material master, BOMs and routings.
  • 10. 1010 PPIs and Supply Chain Performance Measurement In a Supply Chain, throughput times and lead times are very important: ● numerous important dates ● different type of lead time measurements: ● planned/actual date differences ● planned/actual lead time differences Realized delivery date
  • 11. 1111 Use Cases Supply Chain Management ERP Data QualityDetect, Prioritize and Solve Warehousing Operational / Execution Operational Management Measure and Control Shipping and distribution • Stock overviews • % of slow movers • Average batch age • Warehouse delivery reliability • Perfect order measurements • Customer service level/delivery reliability • Overview of bottlenecks Warehousing • Detect and solve (future) stock excesses/shortages • Batch ageing • Value of blocked stock • Late deliveries • Prioritize deliveries • Detect and solve potential sales turnover losses • Data Correctness (i.e.warehouse parameters material master) • Data Completeness (i.e. slow / no movers to be deleted, batches (to be) expired ) • Data Consistency (i.e. warehouse units across WH) • Data Correctness (i.e. sales parameters in material master) • Data Completeness (i.e. duplicate customers). • Data consistency (i.e. deliveries in full pallets) • Shop floor control • Detect (unnecessary) delays • Detect potential future delays • Missing part overview • Data Correctness (i.e. planning parameters material master) (*) • Data Completeness (i.e. in-house produced materials without BOM / routing) • Data Consistency (i.e. pallet information in MM / BOM) • Factory (plant) output • Service level per factory • Scrap • Lead times Use Cases
  • 12. 1212 Content Key Business Challenges Every Angle Use Cases for SCM Every Angle Business Value for SCM Customer Reference Cases for SCM Position the Business Process●1 ●2 ●3 ●4 ●5
  • 13. 1313 Use Case and Business Case of Every Angle Use Case Improve Business Performance Higher service level against lower cost, improved working capital, improved cash flow, etc. Support Operations Management & Control Measure KPIs such as service level, delivery reliability, process accuracy, output, data accuracy, etc. Support day-to-day Operations execution Bottleneck detection, prioritization & solving Support SAP ERP data Quality Quality of Master data Quality of Transaction data Business Value Every Angle’s Use Cases for Execution Every Angle’s Use Cases for Operations Management Every Angle’s Business Value for Business Performance
  • 14. 1414 Focus - Evaluate - Act Intended Improvement: Focus Find and list the issues you want to improve Evaluate Define an associated KPI Act Build “action lists” pointing people to their improvement actions Working Capital Service & Revenue Operating Cost Data Quality
  • 15. 1515 Focus - Evaluate - Act: Example Production Order Delivery Intended Improvement: Focus Evaluate Act Delivery Reliability Improvement KPI - historical delivery reliability List of late production and process orders Angle with late process/production orders that can be delivered from stock
  • 16. 1616 Focus - Evaluate - Act: Example Future Excess Stock Intended Improvement: Focus Evaluate Act Lower Excess Stock Level Overview of all stocks Overview of potential future excess stock Potential excess stock: can these orders be cancelled
  • 17. 1717 Focus - Evaluate - Act: Example “Perfect Order” Intended Improvement: Focus Evaluate Act Higher “First Time Right” Processing of Orders KPI - perfect order: percentage of orders cancelled Look at the reasons for turnover losses Analyze the cancelled sales order per rejection code
  • 18. 1818 Content Key Business Challenges Every Angle Use Cases for SCM Every Angle Business Value for SCM Customer Reference Cases for SCM Position the Business Process●1 ●2 ●3 ●4 ●5