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Supply Chain and Order Management


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Supply Chain and Order Management

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Supply Chain and Order Management

  2. 2. 2 Executive Summary Wingits Innovations is a Limited Liability Corporation headquartered in Bradley Beach, NJ. WingIt Innovations manufactures and markets the Wingit patented fastening solutions and structural bath accessories to the hospitality, health care and government verticals. The Wingit product line provides a means to comply with the Americans with Disabilities Act (ADA) guidelines. Additional markets might include Education, Residential and ―In-house‖ online order systems. There is a need for an integrated Supply Chain/ Order Management (SCM) System as Wingits continues to grow. This system will reduce inventory costs, provide for improved material flow, and increase customer satisfaction through more efficient order fulfillment. Currently, Wingits uses SQL Server, MS Access, and MS Excel to manage the SCM function. A new integrated SCM system will utilize the current SQL and Access databases as the basic data to manage the enterprise operations.
  3. 3. 3 1. Supply Chain Management (SCM) The Supply Chain Operations Reference SCOR® model is the global standard model for supply chain management. SCOR is organized around the five primary management processes of Plan, Source, Make, Deliver, and Return. Supply Chain activities can be grouped into strategic, tactical and operational level of activities A firm’s Supply Chain Management efforts start with the development and execution of a long-term supply chain strategy. This strategy should: Identify what supply chains the firm wants to compete in Help managers understand how the firm will provide value to the supply chain Guide the selection of supply chain partners, including suppliers, subcontractors, transportation providers, and distributors As Wingits understands what supply chains they compete in, it is valuable to map the physical flows and information flows that make up the supply chain. From these maps, Wingits can determine how they add value, and what information is needed to make the supply chain work in the most effective and efficient way. The supply chain strategy must be consistent within both the overall business strategy and within such areas as purchasing, logistics, manufacturing and marketing. The Supply Chain activities have to be clearly delineated for each operational function. Strategic activities: Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities. Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management Information Technology infrastructure, to support supply chain operations. Where to make and what to make or buy decisions Align overall organizational strategy with supply strategy
  4. 4. 4 Tactical activities: Sourcing contracts and other purchasing decisions. Production decisions, including contracting, locations, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone payments Operational activities : Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute) Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities. distribution centers, and other customers. Performance tracking of all activities
  5. 5. 5 Overview of SCOR Process Reference Model 2. The first step in implementing a Supply Chain Management System is to evaluate the business needs and processes to establish a baseline. Elements of the business process analysis include: o Systems currently in place o What IT systems are end users comfortable with o Forecasting o Planning/ Scheduling o Material sourcing/ Purchasing o Inventory Management o Pricing o Order fulfillment o The seven R’s of customer satisfaction: The Right product Delivered to the Right place In the Right condition and packaging In the Right quantity At the Right cost To the Right customer
  6. 6. 6 At the Right time. Business process analysis also guides the selection of supply chain partners, including suppliers, subcontractors, transportation providers, and distributors. 2. The SCM implementation will integrate the current Wingit databases: Supply chain/ order management migration and integration – SQL (Structured Query Language) Server as database for SCM. SQL Server Integrations Several methods are available to integrate SQL Server with an another system — i.e. SQL Server integration with MS Access, MS Excel, and commercial accounting and Supply Chain/ Enterprise Resource Planning (ERP) systems. Proper integration with SQL Server can significantly streamline business workflows. SQL Server Management Studio - A Microsoft Product. 3. After establishing a baseline for Wingits processes the SCM vendor can be selected. Business Process Integration: supply chain and order management software and implementation vendors: o Oracle o SAP o JDA o Ariba o Manhattan Associates o IBM o UPS o Quickbooks Enterprise
  7. 7. 7 The Top Five Supply Chain Management Software Vendors in 2010 4. After the integration vendor is chosen, the last step of SCM implementation and database integration is the actual deployment of the SCM system: Establish the Implementation Team Ensure that the team clearly understands the elements of SCM and fully recognizes why SCM implementation is necessary. Implement new business processes. SCM and software training. Deploy new software system and integrate SQL database. Measure performance of SCM system and make adjustments as necessary. The Top 5 SCM Revenues/ Market Share 1. SAP $1.33 billion / 19.5% 2. Oracle $1.22 billion / 17.9% 3. JDA Software $370 million / 5.4% 4. Ariba $250 million / 3.7% 5. Manhattan Assoc. $140 million / 2.0% (Note: 2010 Gartner estimates)
  8. 8. 8 5. Software Vendor SCM Models Oracle Supply Chain/ Order Management Model
  9. 9. 9 Manhattan Associates Supply Chain/ Order Management Model Manhattan SCALE, Supply Chain Architected for Logistics Execution, is an ideal blend of features, functionality and technology for organizations looking for a high-performing, affordable, and low-risk supply chain solution. Built on the Microsoft .NET development platform and the Microsoft Windows Server® and Microsoft SQL Server family of products, Manhattan SCALE’s ―scaled to fit, ready to run‖ infrastructure integrates Trading Partner Management, Yard Management, Optimization, Warehouse Management and Transportation Execution to create Whole-Chain Awareness -- a cost-effective, optimized supply chain solution suite with synthesized processes, data and workflows that offer end-to-end supply chain integration and visibility.
  10. 10. 10 New Wingits Markets Distributors: Lowes, ACE Hardware, Plumbing Distributors (i.e. L&H Plumbing) Homebuilders (i.e. Hovnanian) Nursing Homes ―In-House‖ Wingits website online ordering system Education Market: K-12; Higher Education State of NJ Term Contract NY State Term Contract