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Vendor-Managed Inventory
1. GPA - GMA Gestion Partagée et Gestion Mutualisée des Approvisionnements SharifahNorazehan SYED YASIN GEB master 2011
2. Summary Introduction GPA Definition and concept Process step-by-step Co-Managed Inventory GMA Definition and concept Process step-by-step Multipick and Multidrop Key points in implementation Softwares Study Case STMicroelectronics Cadbury/Sara Lee Conclusion 2 GPA-GMA SYED YASIN – GEB 2011
4. GPA : Definition and Concept Client accepts to delegate parts of its procurement activity and warehouse management to the supplier 4 GPA-GMA SYED YASIN – GEB 2011
5. 5 GPA : Process step by step GPA-GMA SYED YASIN – GEB 2011
6. GPA : Co-ManagedInventory another option of GPA involves a more actively collaboration between a supplier and its client client can modify order proposals 6 GPA-GMA SYED YASIN – GEB 2011
7. GMA : Definition and Concept Opportunities for several different suppliers to combine their logistic and supply chain structures Based on GPA Multipick/Multidrop 7 GPA-GMA SYED YASIN – GEB 2011
9. 9 GMA : Multipick/Multidrop Multipick : Responsibility is given to a group of suppliers to manage customer's inventories Multidrop : Delivery from a single point of departure, the supplier to a group of clients GPA-GMA SYED YASIN – GEB 2011
14. 14 STMicroelectronics 4 weeks for the customer to plan their demand 4 weeks for the supplier to build the order Total : 8 weeks requirements may change over the eight weeks diversified customer : each product co-designed with the customer. GPA-GMA SYED YASIN – GEB 2011
15. 15 STMicroelectronics Problems: Manualprocess to match demand and production capacities Process : time-consuming and sometimes inaccurate, inefficiencies in system Lateresponse to clients GPA-GMA SYED YASIN – GEB 2011
16. 16 STMicroelectronics Result : Increasedaccuracy of 50% GPA-GMA SYED YASIN – GEB 2011
17. Cadbury/Sara Lee Improve cash and cost management Product in the samesector and same transport requirements Use multipick solution 17 GPA-GMA SYED YASIN – GEB 2011
18. Cadbury/Sara Lee A warehouse in Neuville-aux-Bois 27 000m² for Cadbury 9000m² for Sara Lee Storage, orderpreparation and loading Improvement of stock decrease of 19% and in the quality of services 18 GPA-GMA SYED YASIN – GEB 2011
21. Evolve and grow19 GPA-GMA SYED YASIN – GEB 2011
22. Thankyou for your attention! Questions? 20 SharifahNorazehan SYED YASIN GEB master 2011
Editor's Notes
Three important aspecst in SCM: Quality, Cost and DeliveryAllthree aspects concernProcurement Management : how a companyacquiregoods or services at the best possible cost and in timeTo manage this : multiple points to look for and analyze – number of orders, accuracy of forecasting, cost (transport, packaging, loading)GPA and GMA : help companies to optimizetheirprocurement aspect
GPA : Gestion Partagée des Approvisionnement Client accept to delegate part of itsprocurementactivity and warehouse management to the supplier Supplier receives sales information directlyfromtheir client via EDI and procurementorders are developedbeforeproductcomes to the inventoryshortage pointSignificant change fromtraditionalprocurementprocess : deliveryisdoneat an exact date of a month or a period Five main steps in implementing GPA
Information about sales in client stores or POS is sent at the end of the day. Weprocessed the info at night and inventory report willbe sent via EDI. Supplier willreceive the report and calculate the client’sneedthensendtheirorderproposal. The client confirm the order and the productwillbedispatched to different stores and POS. Supplier send bill to the client.
Supplier works more closelywith the client
Based on GPA : part of procurment management isdelegated to the supplieradditional aspect : bringtogatherseveralsuppliersinvolve a logisticpartner
Client sendactivity report to each supplier involved. Supplier willestablishproposal but in addition to procurement aspect, itwilltakeintoaccount transport aspect. Sendproposal to client – client validate – sendproposal to LOGISTIC PARTNERS – Logisticpartner : manage the stock, prepareinventory and deliveryProducts sent to client’swarehouse
Diagram : schémaMultipick : procurement of productfromdifferentsuppliers are combinedinto one actionMulipick :
Communication : clearly communicate objectives and expectations of each partyReliability : secure transaction and communication – sensitive and confidential information from clientPrecision : precise information guarantee accurate forecast – no loss moneyTest : test before Go Live – make sure no communication or info transfer problemProcess : continuous process, not a short project – adjustment in time when there’s changesTime and money : implementation process takes time and costs
Generix : n°1 in France with EWR+ (Heineken, Unilever and St Amand les Eaux)Aldata : UK based for retail and wholesale (ex client : Thorntorn, Leclerc , Delhaize)TecCom : Germanautomotivemarket (client : Bosch, Jaeger and Valeo)Datalliance : US based – customer in variousfield : Siemens, Danone, Goodyear but only in US CTS : Consortium Traçabilité et Sécurité – GPA (OCS – Optimisation des Commandes et des Stocks), RFID – Whirlpool, Dior, Andros
Before GPA
June 2000 : implement a weekly collaborative forecasting and dailydynamicreplenishmentShipproducts in response to their client anticipatedconsumptionSynchronizesupply and demandShipmentrequestswereautomaticallygeneratedwhen stock arrives below certain level
Product in the samesector : foodSame transport requirement : temperaturebetween 11 – 15°C
Advantage : Reduce stock level : stock levelismanaged and controlled more easily Information is sent in real timeFasterprocess and less administrative work
