The document discusses supply chain management (SCM) at Saudi Aramco. It defines SCM and describes the key components and processes in SCM, including material procurement, planning, inventory management, logistics and transportation. The document also outlines the benefits of SCM, such as reduced costs and inventory, and lists the specific SCM applications used at Aramco, such as purchasing, material master, and interfaces with other systems.

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Supply Chain Management
SCM

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Agenda
Introduction
Process Flow of Material in SCM
Why Supply Chain Management
Benefit of Supply Chain Management
Supply Chain Management Integration
Aramco Supply Chain Management

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Introduction
Supply chain management (SCM) is the oversight of materials,
information, and finances as they move in a process from supplier to
manufacturer to wholesaler to retailer to consumer. Supply chain
management involves coordinating and integrating these flows both
within and among companies. It is said that the ultimate goal of any
effective supply chain management system is to reduce inventory (with
the assumption that products are available when needed)
 Purchasing
 Materials Planning (MRP)
 Inventory Management
 Physical Inventory
 Material Master
 Logistics
 Transportation
 Other Applications
 Interfaces

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Why Supply Chain Management
Amount spent on materials is higher than other inputs
Materials offer considerable scope for reducing cost and
improving profit
Materials add value to the product
Quality and product depend on material
Efficiency of any organization depend upon the availability of
right material in right quantity at right time and right place

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Process Flow of Material Procurement in SCM
Customer Demand
Material
Requirements
Planning
Quotation
&
Bidding
Purchase
Order
V
E
N
D
O
R
R
e
c
e
i
v
i
n
g
Customer
issues
Warehouse
Direct Charge
S
t
a
r
t
Stock
Purchase
Requisition
T
R
A
N
S
P
O
R
T
Purchase
Order
Agreement
Purchase with agreement
Standalone PO Purchase
Booked
Available
Quantity
Physical
Inventory
issues Customer

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Supply Chain Management Integration
Supply Chain Management
SCM
Plant Maintenance
Project System
Sales & Distribution
Production Planning
Quality Management
Asset Management
Cost Control
Financial Accounting

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Inventory Optimization
Controlling of Indirect Cost
Minimize Risk of Inventory Loss
Reduction in Loss of Time and Direct Labor
Minimize Risk of Production Time Loss
Benefit of Supply Chain Management

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Purchasing
Contract
Purchase Order
Purchase Requisition
Subcontracting
Vendor Master
Info Records
Source List
Quotation
B2B (A web-based procurement system )
ARAMCO Supply Chain Management

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 Materials Planning (MRP)
MRP Type
Lot –Size Calculation
Mass Planning Run
Single Planning Run
Planning Results
Forecasting
Checking Rule
ARAMCO Supply Chain Management

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Inventory Management
Goods Receipts
Goods Issues
Goods Transfer
Material Reservation
Managing Reservation
Materials Documents
Reporting
ARAMCO Supply Chain Management

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Physical Inventory
Physical Inventory Documents
Inventory Count
Differences
Special Physical Inventory Procedure
Maintain Physical Inventory
ARAMCO Supply Chain Management

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Material Master
Mass Material Record Creation (Different Material Type)
Single Material Records Creation
Materials Records Extension
Materials Record Flag for deletion
 Material Type Change
MRP Profile
Forecast Profile
ARAMCO Supply Chain Management

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Logistics
Inbound Delivery
Outbound Delivery
Shipping
Warehouse Management
Goods Receipts
Goods Issues
Goods Transfer
ARAMCO Supply Chain Management

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Transportation
Stocker Distributer
Proof of Collection
Proof of Delivery
Other Applications
IT Assets System (None Capital)
Service Award System (SAS)
Personal Effect Tracking System (PETS)
Reclamation and Sales System (RSS)
Security Sensitive Equipment Inventory Tracking System
Security Material Inventory Tracking system
Interfaces
Aviation System
HealthCare System
Human Resources System
SAP R/3 Portal Interfaces
ARAMCO Supply Chain Management

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Applications Supported by SCM Div.
Purchase Requisitions Reservations Vendor Evaluation
Purchase Orders Consignment MFC Supplement
Stock Purchases Physical Inventory MFC Purchase Order
Consumable Purchases Reorder Point Planning SFC Supplement
Subcontracting Lot –Size Calculation SFC Purchase Order
Material Master Planning Run Service Entry Sheet
Vendor Master Planning Results Business Intelligence Contract Services Reporting
Info Records Shopping Cross Modular Integration
Source List Approval Process Electronic Contracting Network Integration
Quota Arrangement B2B Cataloging (SRM MDM) Medical/Aviation/HCM Solution Integration
Local Development Integration Webmethod mappings and integrations
Concurrent Development Contract Update Service Master
SAMS Development
Integration with Supplier ASC only
(EDI) Services Vendor Master
PO Acknowledgement Bid Slate Contracting Procurement Tracking System (CPTS)
Update PO Status Request for Quotation (RFQ) Proponent Procurement Tracking System (PPTS)
Update PO ETA Contract Creation Entry Sheet Vendor Portal
Goods Receipts Contract Supplement Services Work Certification
Goods Issues Contract Release Purchase Order Services Work Verification
Stock Transfers Change Order SAP R/3 Portal Interfaces
Service Entry Sheet IT Assets System
Service Award System (SAS)
Personal Effect Tracking System (PETS)
Reclamation and Sales System
Overseas Contract Services Processes
ARAMCO Supply Chain Management

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Thank You
System Demo