Effective supply chain management (SCM (1) (Software Configuration Management, Source Code Managem...

1. Supply chain management in paints and coatings.
Effective supply chain
management (SCM (1)
(Software
Configuration
Management, Source
Code Management)
See configuration
management.
(2) See supply chain
management.
) solutions can provide
paint and coatings
companies with a
means to control and
minimize costs while
improving customer
service. Development
of a responsive
business strategy
underscores all
successful SCM
implementations. In the
face of uncertain
demand, balancing the need for cost reductions with the flexibility critical to productive operation of
extended supply chains and the desire for increased risk management confronts most companies
today. Formulators also face the challenge of managing supply networks to consumer-oriented
markets and industrial customers through a number of different channels of distribution. Careful
selection of software, business practices, and data collection can result in dramatic improvements in
an organization's bottom line.
[ILLUSTRATION OMITTED]
Most major chemical companies, including suppliers of raw materials, additives, and resins resins,
n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials,
and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations.
?to the paint and coatings sector, as well as leading paint and coatings manufacturers themselves,
have implemented enterprise resource planning See ERP.
(application, business) Enterprise Resource Planning - (ERP) Any software system designed to
support and automate the business processes of medium and large businesses. ?(ERP (Enterprise
Resource Planning) An integrated information system that serves all departments within an
enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software

2. rather than proprietary software written by or for one customer. ) and supply chain management
systems in some form or another. However, many have not gained the maximum level of benefits
possible from their initiatives, and some have even taken actions that have inhibited their ability to
reap the greatest possible rewards for their efforts.
Supply chain management systems are designed to assist in the gathering and analysis of data to
enable accurate demand forecasting, which is then coupled with internal knowledge of production
and delivery capability and the desired level of profitability to design and implement an effective and
efficient supply chain process that extends from the supplier through to final delivery of product to
the customer. There are four aspects of SCM that paint and coatings companies are particularly
interested in, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3.
?Kevin Reid, a partner with consulting firm Noun 1. consulting firm - a firm of experts providing
professional advice to an organization for a fee
consulting company
business firm, firm, house - the members of a business organization that owns or operates one or
more establishments; "he worked for a
?Orr & Boss. These areas include forecasting, order processing and execution, warehouse
management, and distribution resource planning Distribution Resource Planning (DRP) is a method
used in business administration for planning orders within a supply chain. DRP enables the user to
set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory
requirements. . Simon Bragg, European research director with ARC Advisory Group, adds that
production planning Production planning
The function of a manufacturing enterprise responsible for the efficient planning, scheduling, and
coordination of all production activities.
?and scheduling, which reflects a company's unique production processes, is another critical issue.
"Overall, interest in the paint and coatings industry is centered around detailed plant planning and
scheduling with an online link to ERP systems for a current perspective on demand," says Stephen K.
Gaines, vice president, supply chain planning with Aspen Technology Aspen Technology
(NASDAQ:?AZPN) provides software and professional services to the manufacturing and process
industries which allows companies to model, manage, and control their operations.
AspenTech was founded in 1981 by MIT professor Dr.
, Inc. He adds that scheduling must be sufficiently detailed to represent key unique aspects of the
paint and coatings industry that include tank scheduling, shared resources Sharing a peripheral
device (disk, printer, etc.) among several users. For example, a file server and laser printer in a LAN
are shared resources. Contrast with shared logic. , and linkages between production and filling.
Forecasting demand, or demand planning, has received increasing emphasis recently as markets
have tightened, with some key ingredients for the paint and coatings sector being placed on
allocation. "Being able to forecast demand in order to increase service levels to customers while
minimizing the amount, and therefore cost, of inventory kept on hand is of significant interest," says
Mr. Reid. "More and more coatings companies are embracing the demand side of SCM, and are
using forecasting models to predict future sales. The key is in knowing when a product truly can be
forecast and when it cannot," he adds.
For DSM 1. DSM - Data Structure Manager.
An object-oriented language by J.E. Rumbaugh and M.E. Loomis of GE, similar to C++. It is used in
implementation of CAD/CAE software. DSM is written in DSM and C and produces C as output.

3. ?NeoResins, the key to demand planning is the achievement of better communication throughout the
supply chain. "We need a better understanding of our customers' product demand requirements and
our suppliers need to understand what our requirements will be," explains Mike Strong, supply
chain manager with DSM NeoResins. "In today's business Today's Business is a show on CNBC that
aired in the early morning, 5 to 7AM ET timeslot, hosted by Liz Claman and Bob Sellers, and it was
replaced by Wake Up Call on Feb 4, 2002. ?environment, where companies are holding less stock,
many products are sourced globally, raw materials can be in tight supply, and costs are increasing in
all areas of the supply chain, it is more important than ever to have a good handle on demand so that
we can meet our customers' needs and at the same time not spend resources on inventory that is not
needed," he adds. DSM NeoResins has implemented a globally integrated ERP system and a sales
and operation planning (S & OP) process.
Paint and coatings companies serving the building and construction market are more closely related
to consumer products companies in this aspect of their business than other chemical manufacturers.
"Finished goods inventory management, retail customer demand responsiveness, product lifecycle
Product lifecycle or product life cycle is the course of a product's sales and profits over time. The
five stages of each product lifecycle are product development, introduction, growth, maturity and
decline. ?management, and seasonal capacity planning Determining the required future
configuration of hardware and software for a network, datacenter or Web site. There are numerous
capacity planning tools on the market used to monitor and analyze the performance of the current
hardware and software. ?are all typical focus areas for paint and coating companies that generic
chemicals companies can ignore," notes Andrew Sanford, director of supply chain planning, Aspen
Technology, Inc. (AspenTech).
In the U.S. at least, the supply chain strategy adopted by the paint and coatings industry is one of
postponement, according to Colin Masson, with AMR (1) (Adaptive Multi-Rate) A variable rate
speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA).
Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at
transmission rates from 4.75 to 12. ?Research. Paint companies manufacture base colors, and tinting
tint??
n.
1. A shade of a color, especially a pale or delicate variation.
2. A gradation of a color made by adding white to it to lessen its saturation.
3. A slight coloration; a tinge.
4. ?does not take place until the point of sale. Therefore, formulators are supplying to the consumer.
According to Aspen Technologies, as much as 80% of larger paint and coating providers are now
trading through retail consumer channels.
There are, of course, numerous channels of distribution ("big box" retailers, company stores, small
general shops), which adds complexity to the supply chain. However, unlike with most chemical
companies, point-of-sale data and information on upcoming marketing promotions is available to the
manufacturer. Even the large discount stores are increasingly providing data to paint companies in
order to improve their supply chain management. "With the increased visibility into demand and
access to multiple streams of data, paint and coating formulators--and to some extent their
suppliers--are better situated to anticipate and forecast demand more accurately, and can reduce
inventory levels because there is less unexpected variability," notes Mr. Masson.

4. Being close to the consumer can have its drawbacks, though. "It should be noted that there has
been, and continues to be, an overall increase in demand variability throughout the industry, with
seasonality, changing fashion, greater numbers of brands, broadened color palettes Also called a
"color lookup table," "lookup table," "index map," "color table" or "color map," it is a commonly used
method for saving file space when creating 8-bit color images. , and customers looking for Looking
for
In the context of general equities, this describing a buy interest in which a dealer is asked to offer
stock, often involving a capital commitment. Antithesis of in touch with. ?specialized spe?cial?ize??
v. spe?cial?ized, spe?cial?iz?ing, spe?cial?iz?es
v.intr.
1. To pursue a special activity, occupation, or field of study.
2. ?services," Mr. Masson adds. "Formulators need to be prepared to ramp up Ramp Up
To increase a company's operations in anticipation of increased demand.
Notes:
A company might 'ramp up' operations if they just signed a contract creating substantially more
demand for their product.
See also: Demand, Economies of Scale ?and slide back production at appropriate times and optimize
optimize - optimisation ?inventory for the different distribution channels." In addition to the
requirement of being responsive to variable consumer demand, formulators are finding that their
retail supply chain partners are pushing inventory costs back to them. "Making the right product at
the right time without incurring carrying costs Carrying costs
Costs that increase with increases in the level of investment in current assets. ?or excessive
manufacturing costs is more important than it has ever been," states Mr. Sanford.
[ILLUSTRATION OMITTED]
[ILLUSTRATION OMITTED]
That is where supply chain planning comes into play. Supply chain planning involves all aspects of
producing and delivering goods to customers to meet demand, while optimizing production
processes and inventory levels. "A production and delivery schedule is developed that matches
forecasted demand with the ability to make/source the product in the most efficient, cost effective,
and profitable way possible," explains Mr. Masson. Order processing and execution are important
because the lead times customers expect are getting shorter and shorter, Mr. Reid notes. The sales
and operation planning (S & OP) process provides the link. S & OP combines the knowledge gained
from analysis of sales and marketing data (order information, point-of-sale data, weighted sales rep
forecasts, planned marketing promotions, vendor managed inventory Vendor Managed Inventory
(VMI) is a family of business models in which the buyer of a product provides certain information to
a supplier of that product and the supplier takes full responsibility for maintaining an agreed
inventory of the material, usually at the buyer's ?data, etc.) with an understanding of what the
company can make, how quickly it can be done, and how profitably.
Production planning includes procurement The fancy word for "purchasing." The procurement
department within an organization manages all the major purchases. ?and delivery of raw materials
from suppliers to production facilities, as well as scheduling of production runs given a variety of

5. constraints CONSTRAINTS - A language for solving constraints using value inference.
["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al,
Artif Intell 14(1):1-39 (Aug 1980)]. ?such as capacity, equipment availability, set up time, and
desired profitability. Many types of product wheels come into play (such as a color wheel or
packaging sequence) that require production of the smallest possible batch sizes in the least amount
of time in order to meet demand and move through the predetermined pre?de?ter?mine??
v. pre?de?ter?mined, pre?de?ter?min?ing, pre?de?ter?mines
v.tr.
1. To determine, decide, or establish in advance: ?sequence as quickly as possible in case
adjustments must be made. The need to make numerous changeovers must be avoided as it
contributes to reduced productivity and capacity utilization Capacity Utilization measures the rate at
which a firm makes use of their capital productive capacities, such as factories and machinery.
Capacity Utilization generally rises when the economy is healthy and falls when demand softens. ,
and therefore increased cost.
Other manufacturing aspects must be considered as well, notes Mr. Masson, including mixing and
blending issues, maintenance, production of color not of the white race; - commonly meaning, esp. in
the United States, of negro blood, pure or mixed.
See also: Color ?cards and swatches, and sample management. "Paint and coating manufacturing is
fraught fraught??
adj.
1. Filled with a specified element or elements; charged: an incident fraught with danger; an evening
fraught with high drama.
2. ?with real-world costs and constraints that cannot be ignored by supply chain solutions," adds Mr.
Sanford. Examples include multiple potential production lot sizes and product routings, tightly
synchronized syn?chro?nize??
v. syn?chro?nized, syn?chro?niz?ing, syn?chro?niz?es
v.intr.
1. To occur at the same time; be simultaneous.
2. To operate in unison.
v.tr.
1. ?batch production Batch production is a manufacturing process used to produce or process any
product in batches, as opposed to a continuous production process, or a one-off production. The
primary characeristic of batch production is that all components are completed at a workstation
before they , vessel-to-vessel piping constraints, and extensive setup See BIOS setup and install
program. ?costs and constraints. Mr. Sanford also comments that "the capability to model these
constraints is not optional."
Multi-plant sourcing is yet another issue that paint and coatings companies must manage as part of
their complex supply chains. "These companies have many stocking units, innumerable formulations,
and they must maintain consistent production quality not only from lot to lot within one facility, but
from plant site to plant site across the world," notes Mark Wells Mark Wells (born September 18,
1957 in St. Clair Shores, Michigan) is a retired American ice hockey forward. He is best known for
being a member of the Miracle On Ice 1980 U.S. Olympic hockey team won the gold medal. , supply

6. chain solution principle with SAP AG (company) SAP AG - (Systeme, Anwendungen, Produkte in der
Datenverarbeitung - German for "Systems, Applications and Products in Data Processing") A
company from Germany that sells the leading suite of client-server business software. The US
branch is called SAP America. , which focuses on the process industries.
Warehouse management systems are important for minimizing inventory, reducing order costs, and
locating products for shipment, while distribution resource planning is important for meeting
customer delivery expectations, according to Mr. Reid. Logistics and distribution issues include
packaging size, modes of transportation, and location of distribution centers. Because paint
companies sell their product through so many different channels, and to the consumer and industrial
sectors, their supply chain solutions are highly complex. "The use of supply network design tools to
evaluate multiple supply designs for different channels can vastly reduce inventory and
transportation costs," notes Mr. Masson. "These tools also help address the myriad of other
considerations, such as labeling and regulatory compliance issues. They also make it easier to
modify the design when changes are required."
While planning/decision making is a critical aspect of a supply chain management solution, there are
other areas that need attention as well. "We consider and address four components of a total supply
chain management solution," says Mr. Wells. Planning is the first and involves several different
subcategories including demand planning, supply planning, supply network planning, and
production planning, which have been addressed here. Also important are execution, collaboration,
and coordination. "Execution refers to the implementation of business processes and operations
determined in the planning process. Collaboration with partners, suppliers, toll processors, and
customers in order to gather as much relevant data and maintain awareness of current performance
and potential future demand is another important feature of a successful SCM solution. Coordination
refers to the tracking of progress and actual gathering of information as material flows through
production and up through the value chain to final product delivery."
A company embarking on implementation of an SCM solution has already overcome a major hurdle
HURDLE, Eng. law. A species of sledge, used to draw traitors to execution. ?in the process--making
the decision to move forward with the initiative. "The paint and coatings sector is an industry that
has performed for many years by having knowledgeable people relied upon to make key planning
and scheduling decisions based on experience. Gaining the trust that SCM systems can be just as
reliable is a barrier to break," says Mr. Gaines.
Once committed to pursuing an SCM solution, an organization needs to be aware of the complexity
of the project it is undertaking. "Companies must choose whether to adapt the software to
accommodate their existing business processes, or modify their processes to fit the software,"
explains Mr. Reid. "Either way, there is significant investment required when managing the software
aspects of an SCM implementation." Mr. Strong recommends the former. "Companies need to
understand what their strengths are as well as what their customers' expectations are and make
sure they don't lose focus on the key facts when implementing the SCM program. Choosing the SCM
software that fits existing processes will help ensure that this focus is maintained," he explains.
SCM software itself is expensive and accounts for a large percentage of the cost of any solution,
which overall can run into the millions of dollars. Extensive training of users is also necessary and
contributes to the cost. In general, typical implementations of supply chain management solutions
take up to two years to complete, and longer than that to achieve a return on the investment.
When implementing an overall supply chain management solution for global operations Global
Operations is a first-person shooter computer game developed by Barking Dog Studios and

7. published by both Crave Entertainment and Electronic Arts. It was released in March of 2002,
following its public multiplayer beta version which contained only the Quebec map. , companies
need to become familiar with the specific supply chain issues facing it, identify opportunities for
improvement, determine required new business processes, and get management commitment to
those new processes and other changes. Only then should software be evaluated. "Taking the time to
develop this in-depth knowledge up front will have a large impact on the level of benefits gained
after implementation is complete," says Mr. Bragg.
Companies also need to develop common master data, terminology, and nomenclature
nomenclature?/no?men?cla?ture/ (no?men-kla?cher) a classified system of names, as of anatomical
structures, organisms, etc.
binomial nomenclature , and consistent work processes throughout the entire organization prior to
implementation of a SCM solution. "Names of data fields all need to represent the same type of data,
and processes all need to be the same, with the steps for addressing exception and problems also
the same, at every plant site," stresses Marty Etzel, director of solution marketing for chemicals with
SAP AG. "If people aren't all following the same rules and using the same data, too much time is
spent correcting problems and managing issues and not using data to plan, execute, collaborate, and
coordinate in a way that will drive out inefficiencies and increase service while reducing cost."
[ILLUSTRATION OMITTED]
Air Products is one supplier to the paint and coatings industry that has maintained a focused effort
on supply chain management that has included the convergence of many work processes and
business rules across the company worldwide. "This was a huge effort considering the number of
diverse businesses that make up Air Products," says Pat Flora, supply chain manager--Polymers
North America North America,?third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq
mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ?with Air
Products. One of the biggest obstacles Air Products faced when implementing an SCM solution was
breaking down the functional silos within the company. "Work processes flow across functional
groups, so you have to optimize the whole work process, not just the part that is in a functional
group. The key benefit for me is visibility of data. You can't manage and improve your supply chains
unless you can see and measure how they are performing," he adds.
Responsiveness is fast becoming the watchword for successful SCM implementations. Paint and
coating companies need flexibility in their planning solutions in order to be able to respond to
changing demand. "When combined with extensive knowledge about its capabilities across the whole
supply chain, flexibility can enable a company to respond to and address unexpected events before
they ever become a problem for the customer," explains Mr. Wells. "Sense and respond to the
conditions and react in a manner most favorable fa?vor?a?ble??
adj.
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. ?to the business will soon be commonplace," notes Mr. Gaines. Legacy approaches to planning
and scheduling remain valid, but they need to be enhanced with real-time optimal response to
unpredictable demand events. In addition, real-time operating principles, which include true process
modeling and data reconciliation, are now becoming a part of the full SCM suite. Ray Adams of SAP
AG's industry business unit for chemicals adds that leading firms have efficient supply chains that
not only achieve cost savings, but are willing to change business processes in order to meet

8. variabilities in demand. "The most adaptive companies are the winners."
Aligning a?lign??
v. a?ligned, a?lign?ing, a?ligns
v.tr.
1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with
the curb. ?all aspects of the supply chain with overall business objectives is also critical to the
successful implementation of a SCM solution. "Both sales and production incentives must be aligned
with the business objectives. If done correctly, many times limitations in technology can be
surmounted sur?mount??
tr.v. sur?mount?ed, sur?mount?ing, sur?mounts
1. To overcome (an obstacle, for example); conquer.
2. To ascend to the top of; climb.
3.
a. To place something above; top. ?because the entire organization is working towards the same
goals," notes Mr. Masson. He adds that inefficiencies in the supply network often occur because of
disconnects within the organization between marketing, sales, and production. "SCM software tools
won't improve the situation as long as these disconnects remain."
According to an ARC study of various SCM solution implementations, selecting good project
managers that can sell upper level management on the value of the project is also important. ARC
also found that most successful implementations involved at least one or more team members with a
deep understanding of the SCM application's algorithms and implications for the company's business
processes. "Use of internal employees (rather than consultants) that know the manufacturing
processes and have industry-wide and company-specific knowledge will often result in faster
implementations with fewer mistakes, and greater personnel buy-in, which leads to greater benefits
in the long term," notes Mr. Bragg. Resolving obstacles as they arise and developing prototypes to
demonstrate the benefits to the sales force will also contribute to a more successful initiative.
Of the leading companies that have successfully implemented supply chain management solutions,
differentiation has been achieved through creativity and collaboration. "The real art is in being
creative in how to implement the postponement strategy, and also to find ways to make accurate
demand forecasts," says Mr. Masson. Establishing good relationships with customers so that they
are transparent with their sales and marketing data is also important. "Combining these two
approaches with good software tools allows companies to set themselves apart from the
competition," he adds.
Air Products believes in this approach. "We expect to see continued pressure to reduce costs, so we
have to be more creative in where we look," says Mr. Flora. "For example, we are beginning to work
more closely with customers to reduce our mutual supply chain costs. This type of collaboration will
be a source of many new opportunities," he explains.
Companies that have implemented successful SCM solutions have achieved savings of hundreds of
millions of dollars through more accurate demand forecasting, increased production efficiency,
better sequencing, improved capacity utilization, and enhanced customer service. "SCM presents a
tremendous opportunity to make a business level difference now that back office functions are
reliable and largely in place," notes Mr. Gaines. AspenTech has seen reductions in operating costs
operating costs?npl -> gastos mpl operacionales??of 4-14% and increases in capacity of plant assets

9. of 6-12% for companies through SCM implementations utilizing its software packages. "While we
can't quantify Quantify - A performance analysis tool from Pure Software. ?improved customer
service, we do have several clients that have gained the ability to respond to large unexpected
changes in demand without significantly increasing costs," Mr. Gaines adds. Awareness of the big
picture must be maintained, though. "Companies must remember that in order to take advantage of
minimized inventories and fewer distribution sites, access to equipment and the capability to move
goods rapidly is required," notes Mr. Masson. In the end, effective supply chain management goes
directly to the cost structure, utilization of capital, and return on assets Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average
assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net
income/sales) multiplied by asset utilization (sales/assets). ?of a business, ultimately aiding in the
determination of the worth of the enterprise, according to Mr. Wells.
Those organizations with more advanced and mature supply chain management solutions in place
are currently exploring the areas of risk management and pricing management as further ways to
maximize the performance across their entire supply chains. "Risk management hasn't reached the
paint and coatings industry yet, but we expect it will be adopted by this sector soon," says Mr.
Bragg. Risk management involves the development of various possible scenarios, which are then
assigned probabilities of occurrence. A production arrangement is worked out that will enable the
company to meet all of the most likely scenarios. New technology that looks at order patterns more
intelligently and adjusts expectations appropriately is also being introduced to the market.
One trend of interest to Mr. Masson is the move back to less complicated supply chain management
systems, which rely on a pull-based approach and largely focus on demand. "Some people now have
the view that complex supply chain optimization Supply Chain Optimization is the application of
processes and tools to ensure the optimal operation of a manufacturing and distribution supply
chain. This includes the optimal placement of inventory within the supply chain, minimizing
operating costs (including manufacturing costs, ?systems take too long to set up, are difficult to
maintain, and don't adjust readily to changing conditions. These folks are looking to a simpler
system based on inventory collaboration with customers and suppliers," he explains. The challenge,
of course, is establishing that reliable collaboration. Currently it is difficult, because specific rules
and software are often required for each customer. Development of collaborative planning,
forecasting, and replenishment Collaborative Planning, Forecasting, and Replenishment (CPFR) is a
concept that aims to enhance supply chain integration by supporting and assisting joint practices.
CPFR seeks cooperative management of inventory through joint visibility and replenishment of
products throughout the ?(CPFR CPFR Collaborative Planning, Forecasting and Replenishment
CPFR Collaborative Planning, Forecasting, and Replenishment (merchandising)
CPFR Continuous Planning Forecasting & Replenishment
CPFR Calling Party Forced Release ) systems by major software vendors should address this issue.
This trend toward simplification may in part be due to difficulties companies have created for
themselves. A recent Deloitte Consulting LLP LLP - Lower Layer Protocol ?benchmarking study of
more than 750 global manufacturing companies, including many leading chemical manufacturers,
found that many key activities of companies geared toward reducing costs and expanding into new
markets are actually reducing the effectiveness of their supply chains.
In an increasingly more competitive environment, fewer companies are establishing close
collaboration with customers to improve demand planning. Expansion into low-cost regions is often
accompanied by local optimization optimization

10. Field of applied mathematics whose principles and methods are used to solve quantitative problems
in disciplines including physics, biology, engineering, and economics. ?of supply chains, but not
global optimization Global optimization is a branch of applied mathematics and numerical analysis
that deals with the optimization of a function or a set of functions to some criteria. General
The most common form is the minimization of one real-valued function ?across the entire
organization. While most companies indicate that innovation is the key to success, few have
introduced systems or tools to aid in the management of innovation or new production introduction
processes. Efforts to drive down costs are also reducing the flexibility of many supply chains, which
ultimately increases both risk and many hidden costs.
The Deloitte Consulting LLP survey did find examples of successful companies that have established
close customer partnerships, maintained flexibility, optimized their supply chains across the global
organization and from sourcing to product delivery, and introduced systems for managing
production innovation and introduction. These "Complexity Masters" utilize many different supply
chain management tools to attain a more efficient and effective level of performance. Rohm and
Haas Rohm and Haas Company (NYSE:?ROH), a Philadelphia, Pennsylvania based company,
manufactures miscellaneous materials. A Fortune 500 Company, Rohm and Haas employs more than
17,000 people in 27 countries. The annual sales revenue of Rohm and Haas stands at about USD 8.2
billion. ?Company, OxyChem, Rhodia, and Dow Chemical Company The Dow Chemical Company
(NYSE:?DOW TYO: 4850 ) is an American multinational corporation headquartered in Midland,
Michigan. Overview
The Dow Chemical Company is currently the second largest chemical manufacturer in the World
(after BASF)[1]. ?were listed as examples of companies that meet these criteria.
by Cynthia Challener
JCT JCT Junction
JCT Jerusalem College of Technology
JCT Joint Contracts Tribunal (UK build contracts governing body)
JCT Journal of Coatings Technology
JCT John Christner Trucking
JCT Journal of Curriculum Theorizing ?COATINGSTECH Contributing Writer
RELATED ARTICLE: SCM Software Review
Most analysts name AspenTech, Manugistics, and SAP AG as the leading providers of supply chain
management software to the process industries, which includes paint and coatings. All three
companies have established supply chain management offerings for this sector that include
individual components for addressing the different planning and execution aspects of an SCM
solution.
AspenTech focuses on the process industries, and has many products designed to meet the broad
assortment assortment?/as?sort?ment/ (ah-sort?ment) the random distribution of nonhomologous
chromosomes to daughter cells in metaphase of the first meiotic division.
as?sort?ment
n. ?of production arrangements (batch versus continuous, for example) that are prevalent in theses
sectors. aspenONE[TM] Supply Chain Management for Chemicals, ApenTech's integrated SCM
solution, focuses on maximizing the flexibility and capacity of process plant assets while minimizing
the costs of operations, according to Mr. Gaines. "Our supply chain management footprint focuses

11. on linking these plant assets with ERP, logistics, and real-time process control systems for
maximizing customer service and market responsiveness, while minimizing the operating and capital
investment in plant assets. Our position is derived from direct experience in multi-plant paint and
coating implementations, as well as in implementations with suppliers to, and customers of, this
industry," he adds.
Mr. Sanford points to AspenTech's ability to perform detailed modeling of process plant assets using
models that accurately represent the way paint plants operate as the key to the success of their SCM
solution. "By linking this modeling capability to real-time business demands, AspenTech distinctively
ties plant operations to business needs. With the ability to respond to market opportunities or
disruptions in real time, our customers can make the best decisions within a timeframe for optimum
effect. At all times, we maintain the cross-functional visibility with communications to ERP, plant
operations, supply chain partners, and management cockpits, which allows the entire enterprise to
stay in sync. Finally, we apply scalability based on the needs of a specific plant in order to permit
flexibility in deployment," he states.
For the paint and coatings industry, AspenTech's strategy involves increasing the flexibility of
manufacturing assets and improving the ability to commit and deliver goods to the customer while
managing total cost. These activities are achieved through improved scheduling of decisions,
increasing visibility of the schedule and minimizing deviations from it, supporting brand
management, and extending the full consumer packaged goods Noun 1. packaged goods - groceries
that are packaged for sale
foodstuff, grocery - (usually plural) consumer goods sold by a grocer
plural, plural form - the form of a word that is used to denote more than one ?(CPG CPG
central pattern generators. ) supply chain to customers, suppliers, and contract manufacturers. The
aspenONE SCM for chemicals software includes over 10 modules that address the key aspects of
SCM management, including forecasting, production scheduling, distribution and inventory
management, enterprise/operations integration, and data management.
Most recently, AspenTech added a Supply Chain Analytics module to its suite of SCM tools in
response to customer requests to make the data in the supply chain business area available to other
applications and people through the web. Combined with AspenTech's Operations Manager See
datacenter manager. , the new module comprises a full supply chain cockpit This article is about the
flight deck of an aircraft. For other uses, see Cockpit (disambiguation).
A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the
aircraft. ?application which can also provide supply chain information into any portal or application.
SAP AG also has an industry focus, utilizing the extensive experience of it personnel, many of whom
have come directly from the chemical--and more specifically--the paint and coatings industry. "The
depth and focus that SAP places on different industries enables us to provide a 'best practices'
offering that includes ERP and supply chain management software that can be configured
con?fig?ure??
tr.v. con?fig?ured, con?fig?ur?ing, con?fig?ures
To design, arrange, set up, or shape with a view to specific applications or uses: ?to the specific
needs of individual companies," says Mr. Adam.
According to Mr. Etzel, SAP has been developing solutions for the chemicals industry for over 30
years. As a result, its supply chain solution, mySAP SCM, is fairly mature, and the company is
involved currently in building out deeper and deeper into industry functionality. The software suite

12. offers three major facets necessary for building an adaptive supply chain network: synchronization
(1) See synchronous and synchronous transmission.
(2) Ensuring that two sets of data are always the same. See data synchronization.
(3) Keeping time-of-day clocks in two devices set to the same time. See NTP. ?of supply and demand
so that the entire supply chain is paced to actual demand; creation of an adaptive fulfillment
ful?fill?also ful?fil ?
tr.v. ful?filled, ful?fill?ing, ful?fills also ful?fils
1. To bring into actuality; effect: fulfilled their promises.
2. ?network that includes RFID (Radio Frequency IDentification) A data collection technology that
uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or
"code plate," is made up of an RFID chip attached to an antenna. ?(radio frequency identification See
RFID. )-enabled sense and respond capabilities; and network-wide visibility, collaboration, and
analytics tools that include event management and result in greater transparency (1) The quality of
being able to see through a material. The terms transparency and translucency are often used
synonymously; however, transparent would technically mean "seeing through clear glass," while
translucent would mean "seeing through frosted glass." See alpha blending. ?throughout the supply
chain. Specific modules address the four key areas of supply chain management, including supply
chain planning, execution, collaboration, and coordination.
"SAP's SCM packages are designed for adaptive companies, or companies that desire to have the
ability to make decisions in an integrated fashion, considering all aspects of the business' sales,
marketing, financial, and operations activities," he continues. In order to create this adaptive
business environment, SAP's sales and operation planning tools are evolving so that they more
resemble integrated business planning tools. SAP also offers multidimensional
mul?ti?di?men?sion?al??
adj.
Of, relating to, or having several dimensions.
mul ti?di?men ?decision support and supply chain planning software that enables companies to
quickly respond to unexpected supply chain events. "Our supply chain event manager includes an
alert system that sends e-mail notifications when a potential problem occurs anywhere throughout
the supply chain, including on the supplier and customer ends. With this alert system, companies are
able to address issues before they ever become a problem for the customer," Mr. Etzel explains.
SAP's Transportation Planning Transportation planning is the field involved with the siting of
transportation facilities (generally streets, highways, sidewalks, bike lanes and public transport
lines). ?& Vehicle Scheduling program also helps paint and coatings companies manage the
complexities associated with the distribution and delivery of goods, whether by rail or tanker truck,
or with in-house or third-party providers.
SAP, along with AspenTech and many other vendors, is also involved in the development of S-95, an
international standard for defining the interface between business and manufacturing systems that
will enable "plant-to-business integration." The company has built requirements of the standard into
its solutions, including new manufacturing intelligence dashboards that provide plant personnel with
role-specific information, alerts, and performance indicators. SAP is also working with Intel to
encourage the adoption of RFID, focusing on direct data exchange between reader hardware and
business applications so that information can be fed directly into SAP, and ultimately used in mySAP
SCM for real-time monitoring and response capabilities. The company is working with partner
Vendavo to integrate price optimization tools into its supply chain management solution that will
enable users to improve margins through better management of product portfolios. Overall, SAP is

13. migrating completely from its client server environment (SAP R/3) to its SAP NetWeaver web-based
capability.
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