Vendor Managed Inventory with Acorn (VMI)
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Vendor Managed Inventory turbocharges your inventory management and order fulfillment. Profit from more efficient ordering, reduced inventory and logistics processing costs, better replenishment and demand planning
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Vmi
This document discusses vendor managed inventory (VMI), where a supplier takes responsibility for maintaining a customer's inventory levels. It begins by defining VMI and comparing it to a traditional business model where the customer controls ordering. It then covers the different types of VMI execution, advantages like reduced costs and inventory, and disadvantages like over-reliance on one supplier. The rest of the document details how VMI works through data sharing and replenishment, provides examples of successful VMI like Walmart, and discusses metrics and challenges of VMI arrangements.
Vendor Managed Inventory
The document discusses Vendor Managed Inventory (VMI), where the vendor is responsible for maintaining the customer's inventory levels based on agreed terms. It provides benefits like reduced inventory levels and costs, improved supplier service, and reduced lead times. It also discusses pitfalls like system costs and how to manage them. As an example, it outlines how one company implemented VMI for forklift spare parts, reducing inventory costs, liability, and downtime through discounted pricing, reduced lead times, and zero inventory carrying costs.
Vendor managed inventory
Vendor Managed Inventory (VMI) is an approach where the manufacturer or vendor monitors and manages the inventory levels at the distributor or retailer. The key aspects of VMI are:
1. The vendor has access to the customer's inventory data and is responsible for maintaining the required inventory levels.
2. It optimizes supply chain performance by pushing decision making responsibility upstream to the vendor.
3. Benefits include lower inventory costs, fewer stockouts, improved information sharing and customer satisfaction.
Vendor managed inventory (VMI)
Vendor managed inventory (VMI) is a process where the vendor creates replenishment orders for their customers based on daily demand information received from the customer, rather than the customer sending purchase orders. The goal of VMI is to align business objectives and streamline supply chain operations by improving inventory turns, service levels, and sales through increased information flow between suppliers and customers. VMI can benefit both customers through reduced inventory and administrative costs and fewer stockouts, and suppliers through increased sales and reduced operating costs and stronger customer relationships. Keys to successful VMI include both trading partners being committed to collaboration, using a technology platform to support VMI processes, and obtaining experienced guidance for implementation.
Vendor managed inventory ppt
This document discusses different types of strategic partnering (SP) between suppliers and retailers, including quick response, continuous replenishment, advanced continuous replenishment, and vendor managed inventory. It provides examples of SP implementations between companies like Milliken and department stores, Walmart and suppliers, and Dillard's, JC Penney, and Walmart with their suppliers. The document also outlines advantages and disadvantages of SP, as well as requirements, issues, implementation steps, and examples of both successful and unsuccessful SP arrangements.
Introduction to Vendor Management Inventory
What is Supply Chain Management ? Integrating Management and information technology to flourish performance.
What Is Vendor Managed Inventory ?
1. Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. 2. VMI involves collaboration between suppliers and their customers which changes the traditional ordering process.
Schematic Diagram of VMI
WHY USE VMI ?
VMI removes the need for the customers to have significant safety stock. Lower inventories for the customer can lead to significant cost savings.
The customer can make profit from reduced purchasing costs. As the vendor receives data so the customer don’t need to produce purchasing costs ever.
Moreover, the need for purchase order corrections and reconciliation is removed which further reduces purchasing costs.
DUAL BENEFITS (both Supplier and Customer) 1. Less data errors and the overall speed of processing is increased. 2. Having aim to provide better service to the end consumer. 3. Purchase orders are generated on predefined basis. 4. Relation between suppliers and customers are getting strong enough.
Customer Benefits
1. A decrease in stockouts and a decrease in inventory levels. 2. Planning and ordering cost will be decreased. 3. Overall service level is elevated. 4. The customer is more focused in providing great service.
Suppliers Benefits
1. A reduction in customer ordering errors. 2. Promotions can be easily promoted to inventory plans. 3. Customers' point of sell data makes forecasting easier. 4. Philosophy to customer’s stock levels helps to identify priorities.
Comparison between VMI & RMI
Vendor Managed Inventory(VMI)
1. Vendor stocks the resources in suppliers premises. 2. Vendor is solely responsible for the stock availability. 3. VMI focuses on collaboration and share information between trading partners. 4. It is termed as a model of family business.
Retail Managed Inventory (RMI)
1. Supplier stocks the resources in buyer’s premises. 2. Retailer is solely responsible for the stock availability. 3. RMI always focused on improving forecasting. 4. It is termed as business model of business.
Vmi1
Vendor managed inventory (VMI) is a supply chain strategy where manufacturers are responsible for maintaining inventory levels at distributors. The manufacturer has access to the distributor's inventory data and generates purchase orders. VMI can reduce costs through lower inventories and smoother demand. Implementation requires agreement on replenishment and data exchange between suppliers and retailers. While VMI provided benefits for companies like Walmart and Procter & Gamble, obstacles to implementation include concerns about information sharing and operational changes required.
Vendor managed inventory
VMI is an inventory management strategy where the manufacturer monitors and manages inventory levels at the distributor/retailer. It shifts decision making responsibility upstream to better support integrated supply chain objectives. Typical benefits include lower inventory costs and better planning for manufacturers and fewer stockouts and optimal product mixes for retailers. Key success factors include top management commitment, effective information systems, trust between partners, and competent forecasting abilities.
Recommended
Vmi
This document discusses vendor managed inventory (VMI), where a supplier takes responsibility for maintaining a customer's inventory levels. It begins by defining VMI and comparing it to a traditional business model where the customer controls ordering. It then covers the different types of VMI execution, advantages like reduced costs and inventory, and disadvantages like over-reliance on one supplier. The rest of the document details how VMI works through data sharing and replenishment, provides examples of successful VMI like Walmart, and discusses metrics and challenges of VMI arrangements.
Vendor Managed Inventory
The document discusses Vendor Managed Inventory (VMI), where the vendor is responsible for maintaining the customer's inventory levels based on agreed terms. It provides benefits like reduced inventory levels and costs, improved supplier service, and reduced lead times. It also discusses pitfalls like system costs and how to manage them. As an example, it outlines how one company implemented VMI for forklift spare parts, reducing inventory costs, liability, and downtime through discounted pricing, reduced lead times, and zero inventory carrying costs.
Vendor managed inventory
Vendor Managed Inventory (VMI) is an approach where the manufacturer or vendor monitors and manages the inventory levels at the distributor or retailer. The key aspects of VMI are:
1. The vendor has access to the customer's inventory data and is responsible for maintaining the required inventory levels.
2. It optimizes supply chain performance by pushing decision making responsibility upstream to the vendor.
3. Benefits include lower inventory costs, fewer stockouts, improved information sharing and customer satisfaction.
Vendor managed inventory (VMI)
Vendor managed inventory (VMI) is a process where the vendor creates replenishment orders for their customers based on daily demand information received from the customer, rather than the customer sending purchase orders. The goal of VMI is to align business objectives and streamline supply chain operations by improving inventory turns, service levels, and sales through increased information flow between suppliers and customers. VMI can benefit both customers through reduced inventory and administrative costs and fewer stockouts, and suppliers through increased sales and reduced operating costs and stronger customer relationships. Keys to successful VMI include both trading partners being committed to collaboration, using a technology platform to support VMI processes, and obtaining experienced guidance for implementation.
Vendor managed inventory ppt
This document discusses different types of strategic partnering (SP) between suppliers and retailers, including quick response, continuous replenishment, advanced continuous replenishment, and vendor managed inventory. It provides examples of SP implementations between companies like Milliken and department stores, Walmart and suppliers, and Dillard's, JC Penney, and Walmart with their suppliers. The document also outlines advantages and disadvantages of SP, as well as requirements, issues, implementation steps, and examples of both successful and unsuccessful SP arrangements.
Introduction to Vendor Management Inventory
What is Supply Chain Management ? Integrating Management and information technology to flourish performance.
What Is Vendor Managed Inventory ?
1. Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. 2. VMI involves collaboration between suppliers and their customers which changes the traditional ordering process.
Schematic Diagram of VMI
WHY USE VMI ?
VMI removes the need for the customers to have significant safety stock. Lower inventories for the customer can lead to significant cost savings.
The customer can make profit from reduced purchasing costs. As the vendor receives data so the customer don’t need to produce purchasing costs ever.
Moreover, the need for purchase order corrections and reconciliation is removed which further reduces purchasing costs.
DUAL BENEFITS (both Supplier and Customer) 1. Less data errors and the overall speed of processing is increased. 2. Having aim to provide better service to the end consumer. 3. Purchase orders are generated on predefined basis. 4. Relation between suppliers and customers are getting strong enough.
Customer Benefits
1. A decrease in stockouts and a decrease in inventory levels. 2. Planning and ordering cost will be decreased. 3. Overall service level is elevated. 4. The customer is more focused in providing great service.
Suppliers Benefits
1. A reduction in customer ordering errors. 2. Promotions can be easily promoted to inventory plans. 3. Customers' point of sell data makes forecasting easier. 4. Philosophy to customer’s stock levels helps to identify priorities.
Comparison between VMI & RMI
Vendor Managed Inventory(VMI)
1. Vendor stocks the resources in suppliers premises. 2. Vendor is solely responsible for the stock availability. 3. VMI focuses on collaboration and share information between trading partners. 4. It is termed as a model of family business.
Retail Managed Inventory (RMI)
1. Supplier stocks the resources in buyer’s premises. 2. Retailer is solely responsible for the stock availability. 3. RMI always focused on improving forecasting. 4. It is termed as business model of business.
Vmi1
Vendor managed inventory (VMI) is a supply chain strategy where manufacturers are responsible for maintaining inventory levels at distributors. The manufacturer has access to the distributor's inventory data and generates purchase orders. VMI can reduce costs through lower inventories and smoother demand. Implementation requires agreement on replenishment and data exchange between suppliers and retailers. While VMI provided benefits for companies like Walmart and Procter & Gamble, obstacles to implementation include concerns about information sharing and operational changes required.
Vendor managed inventory
VMI is an inventory management strategy where the manufacturer monitors and manages inventory levels at the distributor/retailer. It shifts decision making responsibility upstream to better support integrated supply chain objectives. Typical benefits include lower inventory costs and better planning for manufacturers and fewer stockouts and optimal product mixes for retailers. Key success factors include top management commitment, effective information systems, trust between partners, and competent forecasting abilities.
What is a vendor-managed inventory system?
In VMI, the inventory at the buyer’s end is managed and monitored essentially by the supplier/vendor or the upstream supply chain partner.
Read this post by apparel industry expert, Mausmi Ambastha, to understand the concept better.
Warehouse
This document discusses warehouse management. It defines warehousing as receiving, storing, and preparing goods for reshipment. Warehouses serve important functions like storage, movement of goods, and preparation for customers. There are different types of warehouses including private warehouses owned by companies and public warehouses available for hire. Key considerations in warehouse design include product flow, space requirements, and location. Centralized and decentralized approaches each have benefits and drawbacks for efficiently serving customer demand.
Vendor Managed Inventory (VMI)
Leverage information to remove cost and time from the supply chain, while delivering better service to the end customer
SUPPLY CHAIN PERFORMANCE MEASUREMENT
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
Unit 4 logistics performance lscm (13 pages)
This document discusses benchmarking logistics performance. It defines benchmarking as measuring performance against best practices to facilitate improvement. There are three types: internal benchmarking within a company; external benchmarking against other companies; and competitive benchmarking against industry peers. The document provides examples of logistics performance metrics that can be benchmarked, such as capacity, utilization, productivity, reliability, and costs. Benchmarking involves gathering performance assessments to develop improvement plans.
introduction to logistic
Supply chain management involves planning and managing the flow of goods and services from raw materials to end customers. The key objectives are improved customer value and satisfaction to gain a competitive advantage. It has evolved from separate functional silos to integrated internal and external networks. The basic elements are demand forecasting, planning, procurement, production, warehousing, transportation, distribution and returns. Strategic fit among the supply chain design, capabilities and competitive strategy is important for high performance. Challenges to achieving fit include increasing product variety, shorter lifecycles, demanding customers and globalization.
Best practises of inventory optimization
Companies that optimize their inventory reduce inventory items and stock levels, avoid associated carrying costs and obsolescence write-downs. Want to know the best practices to optimize your inventory, check the presentation-
(CPFR)
CPFR (Collaborative Planning, Forecasting and Replenishment) is a business practice that combines the intelligence of multiple trading partners to improve supply chain efficiency and customer demand fulfillment through information sharing, joint forecasting, and coordinated logistics. The goal of CPFR is to transform supply chains from an ineffective "push" system to a demand-driven "pull" system, reducing costs for retailers and manufacturers while increasing sales, inventory levels, and customer service. CPFR provides templates and standards for collaboration between supply chain partners at various stages from planning and forecasting to execution and analysis.
Cycle inventory
This document discusses managing inventory and cycle inventory in supply chains. It describes how cycle inventory is held to take advantage of economies of scale and reduce costs. Cycle inventory is the average inventory that builds up because supply chain stages purchase in lot sizes larger than customer demand. This adds to the average time products spend in the supply chain. The optimal lot size balances ordering, holding, and transportation costs to minimize total supply chain costs.
The Role of the Internet in Supply Chain Management - PPT
This document presents a project on the role of the internet in supply chain management. It discusses objectives of supply chain management including adding value and improving performance. It reviews literature on types of IT use in SCM including transaction processing, supply chain planning and collaboration, and order tracking. It also discusses the importance of information flow in integrated supply chain management.
Warehouse Storage Policy Simulation
This is the research presentation of Simulation based storage policy in a unit load warehouse, to identify optimum storage policy for different inventory scenarios
Transportation in supply chain
Transportation plays a key role in supply chain efficiency and responsiveness. Different modes of transportation like ship, truck, rail, air, and pipeline are used to move products from locations of production to locations of consumption. The choice of transportation mode involves tradeoffs between transportation costs, inventory costs, and customer responsiveness. An effective transportation network is tailored based on factors like customer characteristics, product attributes, and infrastructure constraints.
The State of 3PL Industry
Third party logistics (3PL) providers offer various integrated logistics services for customers. The 3PL industry has evolved from basic transportation and warehousing services to providing value-added services and taking on broader supply chain responsibilities. A 2008 survey found that the top services used were transportation, warehousing, and freight forwarding. While outsourcing provides benefits like cost savings and expertise, concerns include loss of control and security issues. Integrated logistics and green supply chain initiatives were emerging trends impacting the industry.
International procurement strategies
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This document discusses the implementation of a vendor managed inventory (VMI) system between a global energy management specialist company and its distributors. Key benefits included decreased stockouts and inventory levels for distributors through improved forecasting, as well as workload and cost reductions. The VMI system provided visibility into sales data to help manufacturers plan production more efficiently. The implementation led to stronger partnerships between companies in the supply chain.
Supply Chain Performance
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
Purchase organisation
The document discusses the purchasing department and its functions. It notes that the purchasing department is responsible for acquiring necessary materials, minimizing costs, evaluating and approving vendors, tracking orders, and checking invoices. The goal of the purchasing department is to obtain high quality materials at the lowest cost while maintaining good vendor relationships. It also discusses different forms of purchasing departments and the purchasing process.
Logistics and supply chain management.sreesh
The document discusses various topics related to logistics and supply chain management. It begins with defining logistics and its components, as well as factors that affect logistics. It then defines supply chain and the goal of supply chain management. Next, it discusses paradigms in supply chain management and the role of modularization. It also covers the role of procurement and distribution management in supply chain management. Finally, it discusses the differences between logistics and supply chain management, and defines supply chains and their networks.
INTRODUCTION TO THE CONCEPT OF SOURCING
Emphasis on sourcing is not something new within the business environment. A research institute conducted a study on strategic sourcing for 25 senior operation managers in the United States of America, and concluded that “the one dictum that would still be valid a half-a-century from now is the policy of buy low, sell high”. Strategic sourcing is not necessarily the act of buying low and selling high, rather it looks in to the sustainability of what was bought low and equally the sustainability of what was sold high. Majority of today’s businesses, only look for opportunities to make fast cash without having a second thought on the consequences of their operations in the future. Strategic sourcing is primarily about the first part of this lecture.
Supply chain risk management
Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".
SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability.
Just in time
The document discusses the Just-In-Time (JIT) philosophy and its implementation. It begins by defining JIT as a philosophy of continuous improvement focused on prevention over correction through company-wide quality focus. It then provides details on: the origins and key aspects of JIT; how it differs from traditional production methods through reduced inventory and improved visibility; its implementation across total quality management, production, suppliers, inventory, and human resources; communication techniques used; types of waste addressed; and challenges to implementing JIT. Examples of companies successfully using JIT principles, like Toyota, Dell, and Harley Davidson, are also provided.
Idc digital-universe-2014
The Digital Universe is growing exponentially and will reach 44 zettabytes by 2020. By this time, emerging markets will generate 60% of the Digital Universe, up from 40% in 2013. While consumers generate most of the data, enterprises are responsible for managing and using 85% of it. The Internet of Things is a major driver of growth, with the number of connected devices increasing from 20 billion in 2013 to 32 billion in 2020. This data explosion creates opportunities for companies to develop new business models and gain better insights if they focus on extracting value from high-priority "target-rich" data.
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What is a vendor-managed inventory system?
In VMI, the inventory at the buyer’s end is managed and monitored essentially by the supplier/vendor or the upstream supply chain partner.
Read this post by apparel industry expert, Mausmi Ambastha, to understand the concept better.
Warehouse
This document discusses warehouse management. It defines warehousing as receiving, storing, and preparing goods for reshipment. Warehouses serve important functions like storage, movement of goods, and preparation for customers. There are different types of warehouses including private warehouses owned by companies and public warehouses available for hire. Key considerations in warehouse design include product flow, space requirements, and location. Centralized and decentralized approaches each have benefits and drawbacks for efficiently serving customer demand.
Vendor Managed Inventory (VMI)
Leverage information to remove cost and time from the supply chain, while delivering better service to the end customer
SUPPLY CHAIN PERFORMANCE MEASUREMENT
This chapter discusses the importance of performance measurement in supply chains. It explains that establishing metrics allows companies to understand how they are performing and identify areas for improvement. Good metrics should be consistent with company strategies and focus on customer needs. The chapter provides examples of different types of metrics companies can use to measure costs, inventory levels, customer service, and overall supply chain performance. These metrics can be classified in various categories and should be integrated both within and across companies to effectively drive improvement.
Unit 4 logistics performance lscm (13 pages)
This document discusses benchmarking logistics performance. It defines benchmarking as measuring performance against best practices to facilitate improvement. There are three types: internal benchmarking within a company; external benchmarking against other companies; and competitive benchmarking against industry peers. The document provides examples of logistics performance metrics that can be benchmarked, such as capacity, utilization, productivity, reliability, and costs. Benchmarking involves gathering performance assessments to develop improvement plans.
introduction to logistic
Supply chain management involves planning and managing the flow of goods and services from raw materials to end customers. The key objectives are improved customer value and satisfaction to gain a competitive advantage. It has evolved from separate functional silos to integrated internal and external networks. The basic elements are demand forecasting, planning, procurement, production, warehousing, transportation, distribution and returns. Strategic fit among the supply chain design, capabilities and competitive strategy is important for high performance. Challenges to achieving fit include increasing product variety, shorter lifecycles, demanding customers and globalization.
Best practises of inventory optimization
Companies that optimize their inventory reduce inventory items and stock levels, avoid associated carrying costs and obsolescence write-downs. Want to know the best practices to optimize your inventory, check the presentation-
(CPFR)
CPFR (Collaborative Planning, Forecasting and Replenishment) is a business practice that combines the intelligence of multiple trading partners to improve supply chain efficiency and customer demand fulfillment through information sharing, joint forecasting, and coordinated logistics. The goal of CPFR is to transform supply chains from an ineffective "push" system to a demand-driven "pull" system, reducing costs for retailers and manufacturers while increasing sales, inventory levels, and customer service. CPFR provides templates and standards for collaboration between supply chain partners at various stages from planning and forecasting to execution and analysis.
Cycle inventory
This document discusses managing inventory and cycle inventory in supply chains. It describes how cycle inventory is held to take advantage of economies of scale and reduce costs. Cycle inventory is the average inventory that builds up because supply chain stages purchase in lot sizes larger than customer demand. This adds to the average time products spend in the supply chain. The optimal lot size balances ordering, holding, and transportation costs to minimize total supply chain costs.
The Role of the Internet in Supply Chain Management - PPT
This document presents a project on the role of the internet in supply chain management. It discusses objectives of supply chain management including adding value and improving performance. It reviews literature on types of IT use in SCM including transaction processing, supply chain planning and collaboration, and order tracking. It also discusses the importance of information flow in integrated supply chain management.
Warehouse Storage Policy Simulation
This is the research presentation of Simulation based storage policy in a unit load warehouse, to identify optimum storage policy for different inventory scenarios
Transportation in supply chain
Transportation plays a key role in supply chain efficiency and responsiveness. Different modes of transportation like ship, truck, rail, air, and pipeline are used to move products from locations of production to locations of consumption. The choice of transportation mode involves tradeoffs between transportation costs, inventory costs, and customer responsiveness. An effective transportation network is tailored based on factors like customer characteristics, product attributes, and infrastructure constraints.
The State of 3PL Industry
Third party logistics (3PL) providers offer various integrated logistics services for customers. The 3PL industry has evolved from basic transportation and warehousing services to providing value-added services and taking on broader supply chain responsibilities. A 2008 survey found that the top services used were transportation, warehousing, and freight forwarding. While outsourcing provides benefits like cost savings and expertise, concerns include loss of control and security issues. Integrated logistics and green supply chain initiatives were emerging trends impacting the industry.
International procurement strategies
Creating Opportunities and Leveraging World Class Tools to build effective synergies
Continuous replenishment and vendor managed inventory
This document discusses the implementation of a vendor managed inventory (VMI) system between a global energy management specialist company and its distributors. Key benefits included decreased stockouts and inventory levels for distributors through improved forecasting, as well as workload and cost reductions. The VMI system provided visibility into sales data to help manufacturers plan production more efficiently. The implementation led to stronger partnerships between companies in the supply chain.
Supply Chain Performance
This document discusses improving supply chain performance by linking it to the balanced scorecard. It outlines current supply chain measures and perspectives in the balanced scorecard. It then proposes linking the two by identifying performance measures that align the internal, financial, innovation/learning, and customer perspectives of the balanced scorecard with goals like unit cost reduction, time reduction, waste reduction, and flexible response in the supply chain. Aligning key performance indicators across these perspectives can help optimize supply chain performance.
Purchase organisation
The document discusses the purchasing department and its functions. It notes that the purchasing department is responsible for acquiring necessary materials, minimizing costs, evaluating and approving vendors, tracking orders, and checking invoices. The goal of the purchasing department is to obtain high quality materials at the lowest cost while maintaining good vendor relationships. It also discusses different forms of purchasing departments and the purchasing process.
Logistics and supply chain management.sreesh
The document discusses various topics related to logistics and supply chain management. It begins with defining logistics and its components, as well as factors that affect logistics. It then defines supply chain and the goal of supply chain management. Next, it discusses paradigms in supply chain management and the role of modularization. It also covers the role of procurement and distribution management in supply chain management. Finally, it discusses the differences between logistics and supply chain management, and defines supply chains and their networks.
INTRODUCTION TO THE CONCEPT OF SOURCING
Emphasis on sourcing is not something new within the business environment. A research institute conducted a study on strategic sourcing for 25 senior operation managers in the United States of America, and concluded that “the one dictum that would still be valid a half-a-century from now is the policy of buy low, sell high”. Strategic sourcing is not necessarily the act of buying low and selling high, rather it looks in to the sustainability of what was bought low and equally the sustainability of what was sold high. Majority of today’s businesses, only look for opportunities to make fast cash without having a second thought on the consequences of their operations in the future. Strategic sourcing is primarily about the first part of this lecture.
Supply chain risk management
Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".
SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability.
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The document discusses the Just-In-Time (JIT) philosophy and its implementation. It begins by defining JIT as a philosophy of continuous improvement focused on prevention over correction through company-wide quality focus. It then provides details on: the origins and key aspects of JIT; how it differs from traditional production methods through reduced inventory and improved visibility; its implementation across total quality management, production, suppliers, inventory, and human resources; communication techniques used; types of waste addressed; and challenges to implementing JIT. Examples of companies successfully using JIT principles, like Toyota, Dell, and Harley Davidson, are also provided.
Idc digital-universe-2014
The Digital Universe is growing exponentially and will reach 44 zettabytes by 2020. By this time, emerging markets will generate 60% of the Digital Universe, up from 40% in 2013. While consumers generate most of the data, enterprises are responsible for managing and using 85% of it. The Internet of Things is a major driver of growth, with the number of connected devices increasing from 20 billion in 2013 to 32 billion in 2020. This data explosion creates opportunities for companies to develop new business models and gain better insights if they focus on extracting value from high-priority "target-rich" data.
Inventory management
Role of Inventory is very important in any business operations without thinking of its size, structure and market value.
Inventory helps in smooth functioning of the business..
vendor managed inventory
The document discusses the advantages of vendor managed inventory (VMI) and order consignment for a manufacturing company that uses raw materials.
For VMI, it notes better customer service, stabilized purchase orders, reduced data errors, strengthened supplier relationships, and lessened inventory management burden. However, VMI can also be rigid, expensive to set up, and vulnerable to hacking.
Order consignment allows for reduced stock outs, improved cash flow, customized supplies, and less capital tied up in inventory. But it carries risks of high storage costs, supplier dumping of excess stock, and losses for both parties.
Overall, while both approaches have downsides, their benefits in optimizing inventory availability and minimizing costs
Driving Improvements Through Supply Chain Optimization.
Kehat Shahar - Vice President of Supply Chain Planning at SanDisk
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The document discusses the key factors needed to start a new business: land, labor, capital, and enterprise. It also describes different methods of production including job production, batch production, and flow production. Finally, it examines how the use of new technologies like CAD, CAM, and automation have impacted production processes and quality control.
8 Ways To Cut Costs Using Vendor Managed Inventory
Companies in the technology industry are
being asked to do more with less. Department
leaders are expected to identify and implement
ways to reduce costs and extend the life of
capital investments. To that end, parts and
equipment inventory is often the largest single
asset and the largest expense.
Excellent inventory management is expensive,
and the true cost of inventory extends far
beyond the cost of the items and the cost
of managing the inventory.
Take a look at the benefits your company will gain using a third-party vendor for vendor managed inventory.
JIT inventory
The document discusses just-in-time (JIT) inventory strategies. It defines JIT as receiving goods only as needed in the production process to reduce inventory costs. JIT consists of JIT purchasing, manufacturing, and distribution. Examples of industries using JIT include fast food restaurants, florists, and computer manufacturers. The benefits of JIT include less space needed for stock, reduced costs, and increased cash flow. Potential disadvantages are risk of lost sales and high supplier dependence.
Marico ERP
Marico faced challenges with its growing supply chain including forecast accuracy of only 70% and distributors suffering stock-outs of 30% of SKUs. To address this, Marico implemented an integrated IT system including SAP, APO, BIW, MIDAS and MiNet. This provided real-time stock visibility, automated replenishment, and order generation. The results were operational improvements like reduced inventory and improved forecast accuracy. Going forward, Marico aims to capture retailer data through handheld devices to further strengthen its supply chain.
Vendor-Managed Inventory
This document discusses GPA (Gestion Partagée des Approvisionnements) and GMA (Gestion Mutualisée des Approvisionnements), which are supply chain strategies where suppliers take on more inventory management responsibilities for clients. For GPA, suppliers manage parts of a client's procurement and warehouse operations. GMA allows multiple suppliers to combine logistics for a client. The document outlines the processes for GPA and GMA and provides examples of companies using each strategy, including STMicroelectronics implementing GPA and Cadbury/Sara Lee using a GMA multipick solution. Benefits are improved forecasting accuracy and inventory flows, while challenges include costs, time requirements, and organizational changes.
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The document discusses key aspects of the expenditure cycle in businesses, including ordering, receiving, and paying for goods and services. It describes common inventory control methods like economic order quantity, materials requirements planning, and just-in-time. The ordering process typically begins with a purchase request followed by generation of a purchase order to select suppliers. Receiving ensures goods are properly checked into inventory. Payment activities process supplier invoices for payment.
Just in time
Just-in-Time (JIT) manufacturing is a philosophy developed by Toyota to eliminate waste and continuously improve productivity. It aims to reduce inventory costs by producing and delivering only what is needed for production. Taiichi Ohno at Toyota first implemented JIT in 1950. By reducing setup times and minimizing inventory, JIT strives to improve return on investment. General Electric and other companies adopted JIT principles in the 1980s under different names. JIT goals include eliminating disruptions, increasing flexibility and productivity, and delivering what customers want when they want it at lowest cost. Key steps involve introducing optimized production speeds, reducing stock to zero inventory, and designing plants and processes to avoid stoppages.
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This presentation deals with Marico's inbound and outbound supply chain. We discuss here the supply chain problems that Marico faced and the remedial steps it took to solve the problems. Use of IT (ERP/SAP solution) and disintermediation in supply chain appear as notable steps Marico undertook to solve its Supply Chain problems.
Erp implementation life cycle
The document outlines the key phases in an ERP lifecycle implementation process. It begins with pre-evaluation and screening of potential ERP packages. Next, a package is selected and a project plan is created, followed by a gap analysis. Then processes are reengineered and the system is configured. Teams are trained and testing is conducted before going live. Post-implementation, end users are trained and the system is maintained. The lifecycle highlights the stages all organizations go through when implementing an integrated ERP system.
Chopra3 ppt ch14
This chapter discusses sourcing decisions in supply chain management. It covers key topics like supplier scoring and assessment, selection methods like auctions and negotiations, designing contracts to improve performance and availability, and procurement processes. Effective sourcing can lower costs through scale, coordination, and flexibility. Contracts must balance incentives between buyers and suppliers to reduce distortion while improving profits. Sourcing analysis and supplier portfolio management can enhance strategic decision making.
Sapphire -Improve Supply Chain Efficiency With Vendor Managed Inventory
The document discusses vendor-managed inventory (VMI), where vendors own and manage inventory levels at customer sites. VMI can improve supply chain efficiency by reducing inventory costs, increasing visibility to demand, and allowing more frequent replenishments. The document outlines the benefits of VMI, considerations for implementing it, and how SAP software can be configured to support VMI processes and integration between vendors and customers.
Supply Chain Management Coordination.
Supply Chain Management
Coordination ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
Just In Time (JIT) Systems
Just In Time (JIT) SystemsWe Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program.
In this presentation we will discuss about the concept of just in time (JIT) production philosophy, types and concepts of JIT, objectives of JIT manufacturing, comparison between ideal production system and JIT production, characteristics of JIT system, JIT manufacturing vs. JIT purchasing. We will also discuss about major tools and techniques of JIT manufacturing, JIT implementation approach, problems regarding implementation of JIT, planning of a successful JIT system, obstacles faced for JIT conversion, operational benefits of JIT systems.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
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Supplay chain management ppt @ bec doms bagalkot
The document discusses supply chain management, defining it as the flow of materials, work-in-process inventory, and finished goods from suppliers to manufacturers to distributors and finally to customers. It notes the challenges of uncertainty in supply chains and techniques used to manage them, including forecasting, collaboration with partners, and reducing variability and lead times. Key benefits of effective supply chain management include improved delivery, lower inventory levels, and reduced costs.
Scm
The document provides an overview of supply chain management concepts including definitions, key components of the supply chain, challenges, and best practices. It describes the supply chain as involving suppliers, manufacturers, warehouses, distribution centers, and customers. Supply chain management aims to efficiently integrate these entities to minimize costs and satisfy demand. The document discusses challenges like uncertainty and the bullwhip effect. It also outlines the SCOR model as a framework for supply chain collaboration and performance improvement.
supply chain management
The document discusses the basics of supply chain management. It defines the supply chain as including suppliers, manufacturers, warehouses, distribution centers, and retail outlets, as well as the flow of raw materials, work-in-progress inventory, and finished products between these facilities. It also discusses supply chain management as a set of approaches to efficiently integrate these entities to minimize costs and satisfy demand requirements. Key challenges in supply chain management include uncertainty, complexity, and the bullwhip effect where demand variability increases as you move up the supply chain.
Larry Savage Jr Birmingham - What causes Supply Chain Complexity.pptx
Understanding the intricate web of complexities within supply chains is essential for businesses to thrive in today’s competitive market. You can refer to Larry Savage Jr Birmingham’s Suggestions for Dealing with Adversity in the Workplace, where you can find Ways to Handle Challenges in Your Work Environment. The true costs of these complexities often remain hidden, impacting day-to-day operations, material availability, and customer satisfaction. Let us discuss the root causes of these challenges and explore effective management strategies.
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The document discusses supply chain management. It defines a supply chain as including suppliers, manufacturers, warehouses, distribution centers, and retail outlets that facilitate the flow of raw materials, work-in-progress inventory, and finished products. It also discusses the challenges of managing supply chains due to uncertainty, and techniques for improving demand forecasting and reducing variability through collaboration and information sharing.
The Benefits of SAP SCM
Discover the amazing benefits of SAP SCM. This incredible software offers endless opportunities for growth and development in the field. By utilizing SAP SCM, you can enhance your skills and knowledge while staying ahead of the curve. Embrace this powerful tool and unlock a world of possibilities in the realm of supply chain management. Get ready to elevate your learning experience with SAP SCM!
Supply Chain Efficiency: A Blueprint for Cost Savings from Experts
Supply chain efficiency plays an important role in the modern business climate for an assortment of factors, including reducing expenses, getting ahead of the competitors, and pleasing clients. Supply chain efficiency improves not just responsiveness and agility but also reductions in operational expenses.
Deloitte - Supply Chain Strategy
The brochure provides an overview of the different offerings by Deloitte\'s Supply Chain Strategy department
Management Supply Chain
Supply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings.
Access ERP - Enterprise Resource Planning
This document summarizes the key features and benefits of the Access SupplyChain ERP solution. It describes modules for supply chain management, manufacturing, distribution, finance, sales, purchasing, and productivity. Customer testimonials praise benefits like increased efficiency, reduced costs, and improved visibility. Industries supported include aerospace, food/drink, pharmaceuticals, and engineering. The solution aims to optimize operations through integrated information and analytics.
Real-Time Inventory Management and Alerting
Healthcare providers face increasing pressure to improve patient care while reducing costs with shrinking budgets. While technology was seen as a solution, it often created data silos and quality issues, making it difficult to obtain meaningful insights. CXAIR claims to address these issues by combining disparate data sets into a single view of procurement data to provide visibility across all levels of spending and operations. This will help take back control of spending, solve data quality problems, create a unified view of siloed data sources, and identify cost savings opportunities with clear insights.
9-supply Chain Design. OPerations Management
The document discusses supply chain design and strategies. It begins by defining a supply chain and describing how materials and components move through different organizations and processes. It then discusses the goals of reducing costs and increasing performance through supply chain design. Different types of supply chain structures are described for services, manufacturing, and specific examples like a florist and manufacturing firm. The document also covers topics like inventory management, types of inventory, estimating inventory levels, and tactics for inventory reduction. Performance measures and strategic implications for efficient versus responsive supply chain designs are also summarized.
SUPPLY CHAIN MANAGEMENT.pptx
This document discusses supply chain management. It defines supply chain management as handling the entire production flow from raw materials to delivering the final product to consumers. It identifies the key components of supply chain management as planning, sourcing, manufacturing, delivery and logistics, and returning. Effective supply chain management minimizes costs and waste through just-in-time systems. It is important for identifying potential problems, optimizing prices dynamically, and improving inventory allocation. The document outlines five features of effective future supply chain management: connected, collaborative, cyber-aware, cognitively enabled, and comprehensive systems.
UNIT 1 SCM INTRODUCTION PPT For Management
Supply chain management involves coordinating the production, handling, and distribution of goods from raw materials to end customers. It aims to maximize overall value and meet customer demand through efficient use of resources across manufacturers, suppliers, transporters, warehouses, retailers, and customers. Key objectives include reducing costs, improving customer service by delivering high quality products with minimal lead time, and maximizing efficiency across the distribution network.
Tsc case study.appliedmaterials supply chain
Applied Materials builds specialized manufacturing equipment containing over 2,000 components sourced from 400 global suppliers. They sought a solution to improve inbound delivery accuracy, reduce inventory costs, and handle over 30,000 purchase order changes weekly. TAKE developed a tailored supply chain collaboration solution integrating demand planning, procurement, shipping, and vendor managed inventory. This provided real-time visibility and control from initial order through just-in-time delivery, reducing costs by $22 million with a nearly 500% ROI.
Supply chain management software service in Gujarat
Supply chain management handles the whole production flow of all goods or services — starting from the raw components to delivering the final product to the customer. Supply chain management is an essential part of most businesses or organizations to get success in your business and gives customer satisfaction.
SCM provides clear visibility from end to end, monitoring the business flow, services, and goods from acquisition to manufacturing and delivery to the end consumer. Using the supply chain you can predict and meet the demand of the customers.
The Crucial Role of Supply Chain Management.pptx
The document discusses the crucial role of supply chain management. It defines supply chain management as the coordination of processes, resources, and information to ensure the seamless integration of various elements within a system. Efficient supply chain management ensures the timely procurement of raw materials, efficient inventory management, streamlined production processes, quality control measures, and on-time delivery to customers. It also discusses challenges like disruptions and the need for global coordination, providing the example of the COVID-19 pandemic's impact on supply chains. Overall, the document argues that supply chain management is indispensable for business continuity and long-term success by optimizing resource utilization and enhancing visibility and decision-making across the supply chain.
INTERNATIONAL SUPPLY CHAIN MANAGEMENT
This document discusses international logistics and supply chain management. It defines supply chains and logistics, and outlines the history and evolution of supply chain management. It describes key supply chain concepts like push and pull strategies, the bullwhip effect, and collaboration. It also examines supply chain drivers, processes, decisions, and emerging best practices. The overall document provides a comprehensive overview of modern supply chain management principles and strategies.
Supply Chain Defnition
Learn the Supply Chain Definition and find out why it is critical to an organization's success. A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
Find out more about Supply Chain and how it can help your business to perform better through our Supply Chain Optimization training in Malaysia, China, Dubai, Singapore, Indonesia, etc.
Visit us at http://SynerflexConsulting.com for more details.
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2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
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我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
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一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信：A575476】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
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1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
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选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
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Vendor Managed Inventory with Acorn (VMI)
- 1. INTRODUCING VMI VENDOR MANAGED INVENTORY
- 2. ACORN INDUSTRIAL COMPONENTS Vendor Managed Inventory turbocharges your inventory management and order fulfillment. Profit from more efficient ordering, reduced inventory and logistics processing costs, better replenishment and demand planning
- 3. OPTIMISE YOUR SUPPLY CHAIN By partnering with us, you can take advantage of our decades-worth of expertise in supply chain processes
- 4. EFFICIENCIES Metters, R, “Quantifying the Bullwhip Effect in supply chains”, Journal of Operations Management. Towill D.R. and McCullen, P., “The impact of an agile manufacturing programme on supply chain dynamics” Disney, Stephen Michael and Towill, Denis Royston. “The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains” x3 Increased inventory turnaround 25%+ 5%+Increase in profit Inventory & lead time reduction
- 5. STRATEGIC ADVANTAGES Eliminate administrative time & costs Shorten lead time with delivery coordination Minimise supply chain inventory
- 6. STRATEGIC ADVANTAGES Make your logistics more resilient Focus on core competencies & revenue Reduce downtime with supply efficiencies
- 8. IMPLEMENTING VMI ➢ Understand partner, stock & production line needs ➢ Select VMI provider ➢ Organise and count inventory ➢ Set order quantities ➢ Gather inventory data ➢ Store inventory data ➢ Run replenishment system ➢ Set up order creation
- 9. + Interested in VMI? Investigate partnering with us. Let us manage your inventory and deliveries and profit from the strategic advantages of VMI Find out more
- 10. +Headquartered in Sussex and established for over 30 years, Acorn Industrial Components solve OEM kitting and assembly, sourcing, and ad hoc procurement needs. Our goal is to develop long term relationships with all of our clients, adding value through services, as well as products Our clients seem to like it. We hope you do too. ABOUT ACORN
- 11. +Acorn Industrial Components British Precision Machining • Est. 1979 01444 462462 www.acornic.co.uk