scm solutions. SCM: how to strengthen weak links in supply chains

In order to conduct business effectively, company employees are forced to track and process huge amounts of information. Naturally, the larger the company, the more clients and partners, the more acute the question of the need to use effective business tools becomes.

These tools include various information systems that automate the processes of accounting, planning and control.

With regard to transport and trading companies, the most popular information systems at present are:

• ERP systems (Enterprise Resource Planning) - they provide automation of planning and control of financial, human and production resources, the formation of production plans, inventory and procurement management.
• Companies adhering to the concept of CRM ( Customer Relationship Management), are actively implementing customer relationship management systems - CRM systems.
  Such systems are focused on supporting effective marketing, sales and customer service.
  CRM systems provide the necessary functionality not only to collect information about the client - the history of relationships with the company, his preferences and interests, but, more importantly, they contain powerful tools for analyzing the collected information and supporting managerial decision-making.
• The tasks of automation of warehouse processes management are solved by WMS class systems (Warehouse Management System).
  Accounting for the movement of goods in a warehouse, optimization of warehouse storage, order picking, inventory management - all these are tasks solved by WMS systems.
• For transport companies, and companies that use their own vehicles to move goods, the use of transport management systems is relevant - TMS systems (Transport Management System). Such systems automate the processes of planning, optimizing and controlling cargo transportation, organizing consolidated transportation, planning and generating routes, collecting statistics and analyzing data on transport logistics, monitoring transportation, and others.

As a rule, the functionality of the listed systems is implemented either in the form of the corresponding modules of the main EPR systems enterprise, or the company uses several specialized systems that are closely integrated with each other.

The maximum effect from the use of process automation systems is possible only if these systems operate in a single information space.

ERP - we plan production. This is not enough!

Now most companies that have implemented ERP-systems agree that automated planning systems do not solve all the problems of the enterprise. To minimize risks, costs, maintain competitive advantages in the current economic and market situation, it is necessary to plan and manage not only internal resources, but also be in close interaction with all participants in the production process.

Indeed, according to the analytics company Gartner Group, the most developed blocks of the ERP system are Finance, Human Resources, Production Management and Supply Chain Planning.

The Supplier Management and Supply Chain Execution blocks are also present, but provide the minimum functionality necessary to maintain data integrity.

This situation is quite understandable, because ERP systems were originally created for planning enterprise resources, primarily financial and production. Supply management is a non-core task for an ERP system. Supplier management and shipping fulfillment modules are present in the EPR system, typically to ensure minimal data integrity.

For clarity, let's turn to the figure, which schematically reflects the needs of the enterprise and what part of these needs are covered by information systems. The blue oval indicates the needs of the organization, most of them are solved by the ERP system, some tasks are solved by the CRM, SCM system, and so on. All these systems are integrated with each other and therefore intersect in the figure.

But it can be seen in the figure, and in practice it turns out that the functionality of information systems does not cover all the needs of the enterprise.

When determining which functions should be automated, one must remember the 80/20 principle, according to which 20% of effort (cost) gives 80% of the result. The remaining 80% of the effort is only 20% of the result.

That is, it is necessary to understand the milestone after which the cost of an additional increase in the functionality of the system does not give a significant effect.

When planning a corporate information system, the company's management must decide which of the systems are most in demand and, accordingly, should be the most developed from a functional point of view.

SCM - philosophy of working with partners

CRM is a business concept that puts the individual needs of the client at the forefront.

International consulting company PriceWaterhouseCoopers defines CRM as a strategy aimed at creating long-term and profitable relationships with the client through understanding their individual needs.

And, if CRM is a philosophy of working with clients, SCM is a philosophy of working with partners.

The concept of SCM implies the formation of such a distribution network, in which desired goods will be delivered to the right place at the right time with the least cost.

Achieving this goal is possible only with the effective integration of suppliers, manufacturers, distributors and sellers.

The supply chain management system is a process of organizing the planning, execution and control of the flow of raw materials, materials, work in progress, finished products, as well as providing efficient and fast service by obtaining operational information about the movement of goods.

In the current economic situation, tougher competition and growing demands for improved quality of service from customers, in order to maintain competitive advantages, companies need to optimize all value creation processes - from the supply of raw materials, to after-sales service for the end consumer and product disposal.

What are SCM systems

What is the difference between supply chain management systems and ERP systems?

The SCM system provides resource planning and information support throughout life cycle product - from the order for development to after-sales service and disposal, while the ERP system provides only the planning of resources needed for product development.

The ERP system provides planning and resource management for the creation of predefined types of products, allowing minor changes in the composition of products.

SCM system allows you to plan and manage resources when creating unique products.

According to analyst firms AMR Research, Forrester Research, the successful implementation of supply chain management systems gives companies such benefits as:

• profit growth;
• reducing the time and cost of order processing;
• reduction of time to market;
• reduction of purchasing costs, stocks and production stocks.

The supply chain management system creates a single information space for all companies involved in the production of a product, its transportation, sale and after-sales service. This increases the level of service and provides additional opportunities for the client, such as, for example, tracking the status of the order in real time.

As an illustration of the need to improve the level of service, let's turn to a fairly well-known statistics:

• A dissatisfied consumer reports it to 10 other people, while a consumer whose complaint is resolved only reports it to 5 other people;
• For every recorded complaint, there are 10 dissatisfied consumers who prefer not to file a complaint;
• It takes up to 10 times more resources to attract 1 new customer than to retain an existing one;
• To smooth out 1 negative case, the consumer needs 12 positive ones;
• Most companies spend 95% of service time fixing problems, only 5% looking for root causes;
• By attempting to resolve consumer complaints, companies in 50% of cases only reinforce the negative impression.

Approaches to the implementation of a business process automation system

So, the company's management understands the need and is ready to implement the information system, what's next?

Implementation universal system rather expensive and lengthy process.

The company pays not only for licenses for workplaces, but also for the work of specialists who configure this system to suit the specifics of the company's business. Moreover, the more business processes differ from the so-called best practices (best practice), the longer and more expensive the project is.

In the case of a boxed solution, the company, as a whole, immediately receives the finished product.

Of course, some customization of the solution is performed, but it is not as laborious and expensive as in the first case.

This option is suitable for those companies that are willing to put up with the functional limitations of the boxed version and who are willing to slightly modify their work in such a way as to meet the requirements of the program.

The development of an individual solution in terms of cost and implementation time is, perhaps, somewhere between the first two options, but in comparison with them it has important differences.

1. The developed solution ideally matches the business processes of the company, since it is developed specifically for it;
2. Custom development allows you to implement the unique services of the customer, his know-how;
3. If the customer's specialists independently form the requirements for the solution, custom development allows you to save on expensive consulting;
4. The ability to reflect existing business processes in the solution without changing them;
5. The ability to quickly adapt the system to the changed business processes of the customer.
6. The use of open source in the solution allows the customer to create optimal interaction models. For example, the customer's specialists can create custom reports and data presentations of any complexity through direct access to the database, and order the developer significant changes business logic. And in the limit, the customer can completely abandon the external developer, entrusting the support of the system to his IT department.

Analysts and experts agree that in the current economic situation, the main trend in the development of the corporate software market will be import substitution.

And this means that companies that choose a team of implementers for their corporate information system will look more closely at domestic solutions and developers - with similar functionality of the system, the development and further support of domestic solutions will cost much less than imported counterparts.

The key feature of our company is that we develop individual solutions that are unique for each of our clients.

This approach allows us to fully reflect in the logistics information system those know-how, those unique business processes that constitute the competitive advantages of our customers.

interLogistics platform - rapid development of custom information systems

A platform for developing solutions for managing information, logistics processes and events interLogistics is a synthesis of our knowledge and experience in developing logistics software.

The interLogistics platform allows you to develop information systems that automate the processes of transport, production and warehouse logistics.

A feature of this platform is the ability to build systems that provide work in a single information space, support for a single data processing technology, centralized and decentralized data management, and the ability to integrate with third-party applications.

When developing information systems, we use high-performance database management systems and modern Oracle development tools - Oracle Database 10g/11g, Oracle Forms and others. The created solutions are distinguished by reliability, fault tolerance, scalability and the ability to quickly upgrade to meet the changing business processes of the customer.

On the basis of the interLogistics platform, the solution "Forwarder Standard" was created - a system for managing forwarding activities. The solution "Forwarder Standard" is designed to automate the planning and organization of freight traffic.

Tikhonov Alexey
LLC Integrated Programs, 2009

ESSAY

By discipline:

"Development of corporate information systems"

On the topic:

"SCM systems"

Saint Petersburg 2011

Introduction

Term Supply Chain Management- “supply chain / supply chain management” was proposed by American specialists (in particular, Arthur Andersen) in the early 1980s and subsequently gained great popularity. Since 1989, scientists from different countries have been trying to structure this concept.

One of the most common definitions of the supply chain, based on a generalization of the opinions of many leading foreign experts, is as follows: a supply chain is three or more economic units (legal or individuals) directly involved in the external and internal flows of products, services, finances and / or information from the source to the consumer.

Based on this definition, it can be concluded that supply chains come in three levels of complexity: direct supply chain, extended supply chain, and maximum supply chain. The direct supply chain consists of a company, a supplier and a consumer involved in the external and / or internal flow of products, services, financial and / or information flow.

1. SCM systems

From the late 1980s to the present, there has been no consensus among logistics and management specialists on the definition and content of the concept of "supply chain management". Many use the term as a synonym for "logistics" or "integrated logistics". However, now the emphasis in the interpretation of this concept is increasingly shifting towards an expanded understanding of Supply Chain Management - as a new business concept. This position is actively supported and developed by many American universities: the Cranfield School of Management (Great Britain, Institute of Transport and Logistics under the direction of M. Christopher), universities and training centers for logistics managers in Germany and a number of other logistics schools and communities.

Recognized American scientists in the field of Supply Chain Management D. Lambert and J. Stock define this concept as follows: supply chain management- integration of key business processes starting from the end user and covering all suppliers of goods, services and information that add value to consumers and other stakeholders. Expanding this definition, they point out that supply chain management is the integration of eight key business processes, namely:

Customer relationship management;

Consumer Services;

demand management;

Order fulfillment management;

Support production processes;

Supply management;

Managing product development and bringing it to commercial use;

Refund management material flows.

Until recently, the concept of SCM was actually considered as a synonym for "integrated logistics", carried out outside the central company and including consumers and suppliers. Judging by the definition of CLM, logistics has always focused on the supply chain, starting from the place of manufacture of the product and ending with the place of its consumption. As D. Lambert and J. Stock point out, the main discrepancy is due to the fact that logistics is often understood in two ways: as a narrow functional area of ​​the company's activities and as a larger business concept related to managing product flows and information along all supply chains. The interpretation of SCM logistics is similar to some of the arguments about the concept of "marketing", when it is understood both as a concept and as a functional area of ​​activity. In this regard, we can cite the words of one managing director of a large American company: “Marketing is too important a thing to be left entirely in the hands of the marketing department.” In the company, each employee must proceed from the needs of consumers. Because customer satisfaction is everyone's responsibility, the marketing concept is not limited to the marketing department.

According to ELA, "Supply Chain Management is an integral approach to business, revealing the fundamental principles of management in the supply chain, such as the formation of functional strategies, organizational structure, decision-making methods, resource management, supporting functions, systems and procedures."

The SCM concept allows solving the problems of integrated management of the functional areas of logistics and coordination of the logistics process of a company with "three parties" in logistics, depending on the business platform (B2B or B2C). The SCM module is present in the most advanced integrated corporate management systems, in particular ERPII / CSRP systems. Experience shows that ERP systems with the SCM module can increase the speed of order processing by 6 times and increase customer satisfaction with the logistics service parameters by 2 times.

A large number of studies and publications on this subject, specialized periodicals (for example, Supply Chain Management, UK) confirm the widespread use of the SCM concept (Supply-Chain Council, USA). International conferences are devoted to the same direction (for example, the annual conference of the Logistics Management Council called: Collaborative Relationships in a Changing Economy - “Cooperation Relationships in a Changing Economy”), etc.

Some domestic researchers consider SCM as logistical coordination. In particular, A.N. Rodnikov points out that SCM is the ordering of various logistics operations and the rules for their implementation.

In our opinion, the problem of coordination is the most important, but not the only one in the SCM approach. Another problem of integrated supply chain management is the optimization of the resources of the company and its logistics partners in the performance of the main functions of the LS. That is why the concept of SCM and software products are widely used in ERP / CSRP systems.

The task of effective supply chain management has always been faced by enterprises - regardless of their profile, national or territorial affiliation and the current economic model. The modern practice of supply chain management is inextricably linked with intra-company planning and resource optimization, therefore SCM is a concept that supports the company's corporate strategy and is part of ERP systems in the information technology aspect; moreover, the integrated logistics supply management is not an end in itself, but one of the most important elements of optimizing the company's business processes.

New information technologies in corporate ERP systems using the SCM concept are based on the application of the ideology of real-time supply chain management - management using common packet radio services GPRS and wireless WAP applications, etc.

The range of possible applications of the SCM concept is expanding as companies enter e-business. Logistics in this case becomes almost decisive in building long-term relationships with customers.

E-commerce has connected the buyer with the seller directly: intermediaries are often no longer needed, and the customer begins to understand how difficult and expensive the company's drugs are, and makes his choice, taking into account new factors. Companies, meanwhile, must learn to deliver directly to a much broader audience of customers, as in many cases going online means moving from wholesale to retail and from bulk to personal service. At the same time, sellers should not only be able to organize delivery, but also make every interaction with the client as convenient and simple as possible. E-business has unique technological capabilities personal service. The ability to manage the supply of a huge number of small lots, plus the individualization of relationships with customers - these are the modern criteria for the success of e-commerce and logistics. A new business strategy emerges. Now effective ways interactions with the client, allowing him to become a link in the supply chain and involving him in internal business processes, are developed using a single logistics strategy that allows you to manage customer relationships (Customer Relationships Management, CRM) and SCM.

Yet the potential e-business even on the basis of a single concept, CRM + SCM is not fully implemented. The information space has formed an ideal environment for interaction at a completely different level - the super-integration of companies. By opening transparent access to its system (SCM + CRM) for counterparties, the company “integrates them”. Partners, following the same idea of ​​openness, also integrate their counterparties into a single system.

As a well-known expert in the field of CIS S. Kolesnikov points out, Russian feature application of the SCM concept lies in the fact that from the very beginning of the reforms, all serious companies were engaged in the management of precisely the supply chains that they had to create "from scratch", and not from " simple sales', although some people still don't realize it. The inability or misunderstanding of the essence of managing a complex business has resulted in many companies leaving the market.

The emergence of the theory and practice of SCM in the world is associated with the progress of information technology, which has allowed even multinational corporations to conduct operations and analyze activities on-line. Naturally, this required an understanding and formalization of the global business management methodology, as well as the development of appropriate tools. Since 1999, support for supply chains has become an almost mandatory requirement for software products designed to automate trade and holding structures. Such products must support configurations that allow automation objects to be placed in several physically remote territories with separation of financial (accounting) accounting (support for several legal entities), as well as support a “distributed”, but single legal entity with all the ensuing requirements for a distributed database structure . In many cases, a thin client option is also needed to provide jobs in remote warehouses or, for example, for remote ordering or monitoring in representative institutions.

Supply chain analysis is of particular importance in the following cases:

Specific supply requirements for each country (region) - special components or materials. For example, in Southeast Asia, children's knitwear with an embroidered pattern is made, it is shipped everywhere - from the North to South Pole. Naturally, for Saudi Arabia and Canada, the pattern should be different, for which it is necessary to involve specialists from the respective countries. In addition, the "Christmas" gift set should include gifts that are perceived as such in each respective country, they need to be ordered, delivered, packaged.

The now popular CFM (Customer Focused Manufacturing) concept is “customer-focused” production. As a matter of fact, the given example can also be referred to this category. However, the "focus" of CFM is not just to tailor the product to the needs of a particular buyer, but to constantly maintain "feedback" with the buyer and adapt the supply chain to his needs. Such a "feedback" may consist, for example, in the fact that one store sells computers with large disks, and the other - with modern video cards and large memory, therefore, the assortment of software for these stores should be different. You also need different cases and monitors if the company focuses on " standard solutions, the differences will be significant. Such "priorities" can change significantly, sometimes within one or two months.

"Global" multinational company. "Focus" - not meeting the specific needs of consumers in a particular country, but the problem of managing global distribution and reducing overall operating logistics costs. It is interesting to distinguish between the concepts of Supply Chain Management and DRP - Distribution Requirements Planning (distribution resource planning), which allows you to plan the "replenishment" of a distributed warehouse system, not only from the "central" warehouse, but also by moving goods between warehouses of the same level, including by moving from store to store, without reducing the operating cost and establishing feedback. Such an approach will be optimal for replenishing the system of warehouses of service centers, exchange funds or the system of wholesale warehouses of food products of mass demand, such as sugar, salt, cereals and similar products, which are little subject to special packaging requirements and are poorly differentiated in quality. The concept of DRP has been introduced for a long time, for example, in such software products as SA - PRMS, as well as in custom systems. The peculiarity of the system is that it works quite well with off-line information. In principle, it can be successfully implemented in Excel.

The essence of supply chain analysis is quite simple:

the cost of the goods is formed throughout the entire supply chain, "manifests" only at the last stage - when sold to the end consumer;

the cost of goods is critically affected by the overall efficiency of operations, including transport and marketing, throughout the entire supply chain, and not just a specific sale;

the most manageable in terms of cost are just the initial stages - production, and the most sensitive - the last - sale.

The introduction of the SCM concept was the same revolutionary step as the transition to the MRPU concept in production management (which, in fact, is equivalent if we consider the buying and selling process as a kind of “production”).

Typical tasks that the SCM module in CIS solves are:

formation of a network structure of warehouses for raw materials and finished products to reduce operational logistics costs;

optimization of the scheme of transport operations / routes (in terms of costs);

selection of a manufacturer of goods for delivery to a specific regional market, etc.

Unfortunately, the term Supply Chain Management cannot be considered to have taken root completely. In particular, supply chain management should be distinguished from distribution management. This concept has been embodied in various software products, so when choosing a solution, you must carefully familiarize yourself with the specific functional implementation. In our opinion, there is some limitation in the interpretation by system integrators of the SCM module as part of the ERP / CSRP systems in terms of the tasks listed above. Meanwhile, it is necessary to understand that SCM is, first of all, a new business concept aimed at optimizing resources with the integrated interaction of all participants in the LAN. New approaches to business management automation are characterized by the mutual penetration of the ideologies of SCM, ERP / CSRP and APS.

In particular, S.N. Kolesnikov notes that the concept of Supply Chain Management and CSRP complement each other. The first focuses on "global" logistics and related "external" processes in relation to production, the second - on "internal", in particular on fine order management and advanced cost management, thanks to the interpretation of the product business cycle as an "extended" production cycle , and - what is important - not "goods in general", like MRP, but "goods in a specific order", which exactly corresponds to the ideology of Supply Chain Management.

Considering that the "core" of the supply chain is the manufacturer (in the global interpretation - the value-added manufacturer), we can say that the concept of CSRP is the concept of the production core of Supply Chain Management. Combining these two concepts into a single system will allow reaching a new qualitative level of business resource management systems. Automated systems that support fine-grained order and supply chain management can provide significant competitive advantages.

The SCM module and related financial tools allow you to create a "virtual business" from a distributed system of several companies, covering the full life cycle of a product, or, conversely, divide one company into several "virtual businesses". At the same time, each "virtual business" can support the full range of "virtual management systems" specific to the whole company. However, such a system works correctly only if the entire “virtual” logistics network formed by the company is “transparent”.

chain management supply logistics

2. Benefits of SCM

When organizing SCM, there is a shift in emphasis from management certain types resources to integrated optimization of all business processes:

· customer relationship management;

· customer service;

· demand management;

· order fulfillment management;

· support of production processes;

· supply management;

· product development management;

· management of return material flows, etc.

At the same time, business process management is subordinated to the solution of the main goals of improving the quality of customer service and reducing costs throughout the supply chain.

For everyone, the ideal situation would be to ensure 100% availability of goods on store shelves, the maximum level of service quality and no costs. But this is unattainable, and SCM gives the company the opportunity to find the optimal balance between such parameters as quality, timing and price.

Practice shows that the implementation of SCM allows you to achieve a number of positive points, such as:

· increase in the company's profit from 5 to 15%;

· reduction in cost and order processing time from 20 to 40%;

· reduction of production costs from 5 to 15%;

· a significant increase in the quality of service;

· reduction of warehouse stocks from 20 to 40%;

Supply chain management systems are designed to automate and manage all stages of the supply of the enterprise and to control the entire movement of goods in the enterprise. The SCM system allows you to significantly better meet the demand for the company's products and significantly reduce logistics and procurement costs. SCM covers the entire cycle of purchasing raw materials, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: production, supply, location, inventory, transportation, and information.

As part of the SCM system, two subsystems can be conditionally distinguished:

· SCP - (English Supply Chain Planning) - supply chain planning. SCP is based on advanced planning and scheduling systems. SCP also includes systems for the collaborative development of forecasts. In addition to solving operational management tasks, SCP systems allow for strategic planning of the supply chain structure: developing supply chain plans, simulating various situations, evaluating the level of operations, comparing planned and current indicators.

· SCE - (English Supply Chain Execution) - execution of supply chains in real time.

Composition of SCE systems (DRP)

· Company sales forecast- forecasting weekly / daily sales of goods;

· Inventory Management- optimization planning of guaranteed stock, current stock, etc. taking into account the chosen inventory management model for each product category;

· Top-up management- optimization planning of deliveries within the company's logistics network, taking into account planned sales, deliveries from the manufacturer, the availability of residues, transport capacities, various restrictions and business rules.

SCM vendors

· IFS Applications

· OpenERP

· 7Hills Business Solutions

· I2 Technologies

· SAP AG

· Oracle Corporation

· JDA

· HighJump Software

· Manhattan Associates

· Industrial and Financial Systems

· info

· Management Dynamics Inc.

· Kewill

· Beroe-inc

· Kinaxis

· CDC Software

“According to AMR Research and Forrester Research, with the introduction of SCM, companies receive such competitive advantages as reducing the cost and time of order processing (by 20-40%), reducing procurement costs (by 5-15%), reducing time to market ( by 15-30%), inventory reduction (by 20-40%), reduction in production costs (by 5-15%), profit increase by 5-15%./RE, 7 February 2006

“Optimizing supply chain management in Russian company allows you to increase profits by 50-130%. An efficiently built supply chain can become a strategic competitive advantage for both the manufacturer and the retailer. It allows you to achieve such a low cost that the company will be able to force competitors out of the market without losing profitability.

Stefan Derting, director of the Moscow office of the Boston Consulting Group

. IFS Application

The concept of supply chain management (SCM) implemented in IFS includes three elements:

·

· Supply Chain Implementation (SCE)

· Supply Chain Performance Tracking (CPM).

Supply Chain Planning (SCP)

Supply chain planning covers the flow of demand and how companies, organizations and individual departments interact with each other during the supply chain. Applications offers easy-to-use functionality to support every step in supply chain planning. Role-based access control is supported. Through customizable portals, employees have quick access to internal and external purchasing and ordering data while maintaining information security. Demand planning and multi-level forecasting across departments become easier, and the movement of goods between departments, including internal offsets and cost sharing, is no longer a problem.

What's more, the notification management functionality automatically notifies key supply chain events, allowing users to focus more on those tasks that add value.

Supply Chain Implementation (SCE)

The implementation of the supply chain covers the movement of materials, goods and services, information and financial flows both up and down the entire chain.

If you wish, you can carry out centralized orders for a number of departments, achieving best prices. The global catalog of goods and materials will ensure the unification of the same materials for different departments and make data on stock levels more transparent. Regardless of whether the movement of goods is carried out within the organization or outside, it is equally easy. And thanks to full integration with ERP modules (finance, production, etc.), all data is entered only once.

Support for working with foreign suppliers and customers and determining the availability of goods / demand for a specified date (Available-to-Promise - ATP) also increases the efficiency of the supply chain. The ability to see on-line the status of the order throughout the chain and process returns in various departments allows you to increase the flexibility of the organization and the speed of response.

With the ability to process customer and supplier payments across multiple group companies, data consolidation, and internal billing capabilities, IFS Applications supports relationships in complex holding structures.

Supply chain performance tracking: functionality for top managers

By facilitating supply chain planning and implementation, IFS Applications goes much further. The IFS/Enterprise Performance (BSC) module integrated into the system includes all the necessary functionality for analyzing data, monitoring key performance indicators (KPIs), including those related to deliveries, and, finally, creating a strategy map to link KPIs into a balanced scorecard (balanced scorecard, BSC). In addition, the IFS/Demand Planning module will allow you to make more accurate forecasts. IFS/Collaboration Portals can be used to access the operational data of suppliers, dealers and customers.

Supply chain management covers more than just logistics:

· By striving for high customer value at optimal cost, you create a competitive advantage.

· The solution covers the entire chain, from the first supplier to the end customer

· Closely related to the organization's relationship with customers (CRM) and suppliers (SRM)

· May include many independent organizations and their business processes

· Combines information flows related to demand, sales, finance, production, etc.

4. SAP

The concept of company supply chain management in last years has undergone significant changes. Previously, it was based on a linear approach to the analysis of logistics processes, in which each enterprise set the optimal use of resources to meet the needs of the client as the main task. Today, the traditional approach does not fully meet the requirements of reality - primarily because of the constant volatility of market conditions and the very structure of the technological chain. The most progressive logistics management methodology is the concept of adaptive logistics networks. The consumer is at the center of such a network, and the efficiency and, consequently, the competitiveness of an enterprise are determined not only by the optimal use of its capacities, but also by the efficient operation of the entire ecosystem of partners.

Adaptive logistics networks are communities of enterprises focused on meeting the needs of the end customer and managing their logistics in accordance with these needs on the basis of a wide exchange of information.

The main differences between an adaptive supply chain and linear supply chain management are:

Focus on end users and adaptability to changing needs of all partners in the logistics network.

Planning and execution of operations in the logistics network is based on meeting the needs of end users.

Consistency of actions of all partners in the logistics network through the exchange of information in real time.

SAP Supply Chain Management helps you achieve all of these goals by providing:

transparency of the entire logistics complex, including the location of goods and vehicles, capacity utilization and transportation channels;

The concept of supply chain management (management stages, tasks, benefits, functions, strategies). The evolution of supply chains. SCM in the West, foreign market of solutions: ERP systems. SCM with Russian specifics and the domestic market of solutions (examples).

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thesis, added 09/20/2016

Supply chain management systems (SCM) are designed to automate and manage all stages of the supply of an enterprise and to control the entire movement of goods in an enterprise. The SCM system allows you to significantly better meet the demand for the company's products and significantly reduce logistics and procurement costs. SCM covers the entire cycle of purchasing raw materials, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: production, supply, location, inventory, transportation, and information.

Supply chain management (Supply Chain Management - SCM) is a process of planning, execution and control in terms of reducing the costs of the flow of raw materials, materials, work in progress, finished products, services and related information from the point of origin of the application to the point of consumption (including import, export , internal and external displacements), i.e. until complete customer satisfaction. The essence of the concept of "supply chain management" is the consideration of logistics operations throughout the entire life cycle of products, i.e. the process of development, production, sale of finished products and their after-sales service.

Supply chain management is a business strategy that ensures effective management material, financial and information flows to ensure their synchronization in distributed organizational structures.

Information systems used for supply chain management can be divided into two groups:

• - systems for strategic and tactical planning (Supply Chain Planning - SCP);
• - systems for real-time execution management (Supply Chain Execution - SCE).

According to analysts, the differences between SCP and SCE systems are gradually blurring, as the developers of the former are constantly adding real-time information processing functions to them. SCP/SCE systems are available both as standalone solutions and as part of complex ERP systems.

SCP-systems are based on systems for advanced planning and scheduling (Advanced Planning and Scheduling - APS or Advanced Planning and Optimization - APO). APS-systems are designed to develop a calendar schedule for replenishment of stocks for all nodes of the supply chain and the formation of requirements for the production and transportation of the necessary products. The basis for this is current information about demand forecasts, inventory levels, delivery times, the relative location of trading partners, etc. When this information changes, the APS system allows

quickly analyze the changes and make the necessary adjustments to the schedule of deliveries and production. For example, when new orders appear, you can literally within a few minutes study the possibility of fulfilling it and prepare the corresponding requests for production and transportation.

The first group also includes systems for the joint development of forecasts. They target supplier-buyer trading pairs and compare demand forecast information from customers with supply forecasts from suppliers. The result is a balanced forecast agreed upon by both stakeholders. These systems are based on the Collaborative Planning, Forecasting and Replenishment (CPFR) standard developed by the VICS (Voluntary Interindustry Commerce Standards) association.

In addition to solving operational management tasks, SCP systems allow for strategic planning of the supply chain structure: developing supply chain plans, simulating various situations, evaluating the level of operations, comparing planned and current indicators.

The subgroup of SCE systems is represented by three types of software products:

• 1) warehouse management systems (Warehousing Management Systems - WMS) make it possible to control the occupancy of warehouse space, set the rules for sorting, packaging and warehousing goods, and assess the status of stocks in real time. WMS systems can be integrated with barcode processing equipment and automatic warehouse systems;
• 2) systems for transportation management (Transportation Management Systems - TMS) allow you to create an optimal plan for the transportation of goods and materials (taking into account the required delivery times, possible modes of transport, work schedules, etc.), prepare an optimal scheme for loading vehicles, track cargo on the way;
• 3) order management systems (OMS) help the buyer to create an order taking into account his individual requirements, allow you to evaluate the possibility of fulfilling the order and can offer alternative options (using data on the availability of products and planned receipts). In the event of a production need, the OMS system transmits information about the order to the APS system to assess the possibility of its execution. Once an order has been placed, the OMS system allows it to be tracked through all stages using information obtained from WMS, TMS and MES systems.

MES-systems (Manufacturing Execution System), although they are not directly related to SCE-systems, but in recent times are increasingly being integrated with supply chain management software, enabling

you can control the status of the order not only in the warehouse or during transportation, but also in production.

SCM solutions of various levels are presented on the domestic market within the framework of complex ERP systems Baan, OneWorld (J. D. Edwards), Oracle Applications, iRenaissance, AXAPTA, SyteLine, Vantage (Epicor Software), as well as domestic "Galaktika" and "1C: Enterprise" (look 1c reporting). SAP is promoting the mySAP.com Web solution, and IBM is promoting its own development, independent of ERP systems. There are also local SCM products.

There are quite a lot of examples of successful application of the SCM concept for doing business today. At the same time, there are two most common types of association of enterprises in supply chains:

• - strategic cooperation in the field of procurement;
• - strategic cooperation in the field of production.

The operating principles of the US supermarket chain Wal-Mart are already becoming classics of SCM in the field of purchasing. The implementation of this concept at Wal-Mart began with a collaboration with Procter & Gamble. Before these two giants started implementing SCM in the late 1980s, manufacturers and retailers were closed to each other in terms of sharing information at the planning level. The situation changed when software was developed that connected Wal-Mart's distribution centers and P&G's manufacturing facilities. The system allowed P&G to monitor at the store level on line. As items passed through the checkout, they were aware of changes in inventory at Wal-Mart's warehouses, allowing them to streamline the production and delivery process. The billing and payment system was automated. By reducing delivery times, inventory costs, and inventory losses, P&G was able to offer Wal-Mart a record low prices for your products.

At the end of the 90s of the last century, Levi's was experiencing a rather serious crisis, and the situation did not improve until Levi's launched a joint project with the same Wal-Mart and established an efficient supply chain. Until 2000, Levi's produced jeans when they saw fit, and the on-time delivery of goods to points of sale was 65%. Late delivery of goods often remained unpurchased. Wal-Mart's requirements for suppliers forced Levi's to develop an adequate electronic system accounting for goods, which allowed the relevant departments of the company to observe the dynamics of sales in real time at any retail outlet and receive information about what else needs to be produced. This opened up the possibility of ensuring timely delivery in retail chains with a level of 95%, i.e. 30% higher than before the introduction of SCM.

The operation of the largest German department store chain Galeria Kaufhof is also based on the principles of SCM, a feature of which is the use of RFID technology (Radio Frequency Identification - radio frequency identification). This technology

allows to provide a high level of information efficiency based on the use of special technical devices for contactless data transmission in all parts of the chain - from department store shelves to clothing design and design departments. At the moment, full information integration with the largest German company - the manufacturer of outerwear Gerry Weber has been implemented.

Strategic cooperation in the field of production on the principles of SCM in international practice is widespread in the form of subcontracting - a type of industrial cooperation based on the principles of outsourcing of work or processes. Its greatest distribution is observed in mechanical engineering, radio-electronic, electrical, light industry, as well as in the metalworking, plastics processing and electronic industries, where logistics chains account for 88.26% of the total production volume.

The supply chains for the automotive industry are of the greatest importance. Of the approximately 10,000 parts and components that make up a car, 9,980 (up to 80% of the value created) are produced by subcontractors. According to a study conducted in Japan, the transition to the scheme of organization of production and logistics according to the principles of SCM led to lower prices (36%), improved quality (28%), access to the latest technologies (22%), improved timeliness of deliveries (14%) .

Let's give some examples on the organization of the SCM system. Market giants such as Cisco and Toyota, thanks to SCM, have significantly reduced the time to manufacture products. Iohnson Controls, a Ford subcontactor, can take an order for a car seat and have it completed within four hours. As a result of focusing on lead times, a number of firms, including Wal-Mart, P&G, Flextronics, and others, have significantly improved their corporate performance.

In Russia, cooperation based on the principles of SCM is formed mainly in trade and at shipbuilding, aircraft and mechanical engineering enterprises, where the ideology of CALS technologies (continuity of product supply and support of its life cycle), based on developments in the field of creating information support systems, has become most widespread. processes occurring during the entire life cycle of products and their components. For example, active promotion trading network"Crossroads" to the regions prompted its management to undertake a large-scale modernization of the established logistics system by building an effective supply chain management system based on SCM, using world experience, and in particular, the experience of i2. After 6 months of operation of the SCM system (Exceed 4000 solution) in the Pyaterochka distribution center, the utilization rate of warehouse space increased by 40%, the order picking accuracy increased by 7.5 times (before the system was implemented, the order picking error was 5%, and after implementation - 0.65%), the efficiency of personnel and warehouse equipment increased by 25%. As a result, by the summer of 2004, Pyaterochka was able to reach a more global level of coordination of commodity and transport flows.

Supply Chain Management, SCM) are designed to automate and manage all stages of the supply of the enterprise and to control the entire movement of goods in the enterprise. The SCM system allows you to significantly better meet the demand for the company's products and significantly reduce logistics and procurement costs. SCM covers the entire cycle of purchasing raw materials, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: production, supply, location, inventory, transportation, and information.

As part of the SCM system, two subsystems can be conditionally distinguished:

• SCP- (English) Supply chain planning) - supply chain planning. SCP is based on advanced planning and scheduling systems. SCP also includes systems for the collaborative development of forecasts. In addition to solving operational management tasks, SCP systems allow for strategic planning of the supply chain structure: developing supply chain plans, simulating various situations, evaluating the level of operations, comparing planned and current indicators.
• SCE - (English) Supply Chain Execution) - execution of supply chains in real time.

Supply Chain Management (SCM)

• Supply chain management (Supply Chain Management - SCM) is a process of planning, execution and control in terms of reducing the costs of the flow of raw materials, materials, work in progress, finished products, services and related information from the point of origin of the application to the point of consumption (including import, export , internal and external displacements), i.e. until complete customer satisfaction. The essence of the concept of "supply chain management" is the consideration of logistics operations throughout the entire life cycle of products, i.e. the process of development, production, sale of finished products and their after-sales service.
• Supply chain management is a business strategy that ensures the efficient management of material, financial and information flows to ensure their synchronization in distributed organizational structures.

Composition of SCE systems (DRP)

• Company sales forecast- forecasting weekly/daily sales of goods;
• Inventory Management- optimization planning of guaranteed stock, current stock, etc., taking into account the selected stock management model for each product category;
• Top-up management- optimization planning of deliveries within the company's logistics network, taking into account planned sales, deliveries from the manufacturer, the availability of residues, transport capacities, various restrictions and business rules.

see also

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See what "Supply Chain Management" is in other dictionaries:

supply chain management- (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work in process inventory, and finished goods… … Wikipedia

supply chain management- ➔ management * * * supply chain management UK US noun [U] (ABBREVIATION SCM) PRODUCTION, COMMERCE the activity of being in charge of and controlling the process of getting a product from the place where it is made to customers … Financial and business terms

Supply-Chain-Management- Gegenstand des Supply Chain Managements sind komplexe und dynamische Lieferanten und Kundennetzwerke. (vgl. Wieland/Wallenburg, 2011) Der Ausdruck Supply Chain Management (SCM) bzw. Lieferkettenmanagement, deutsch auch Wertschöpfungslehre,… … Deutsch Wikipedia

Supply Chain Management- Der Begriff Supply Chain Management (SCM) bzw. Lieferkettenmanagement bezeichnet die Planung und das Management aller Aufgaben bei Lieferantenwahl und Beschaffung, Umwandlung und aller Aufgaben der Logistik. Insbesondere enthält es die… … Deutsch Wikipedia

supply chain management- The management of the links between an organization and its suppliers and customers to achieve a strategic advantage. Many specialist companies now offer to manage the whole of the supply chain, on behalf of manufacturers. Supply chain management… … Big dictionary of business and management

supply chain management- Gestion de la chaîne logistique Pour les articles homonymes, voir SCM. Ne doit pas être confondu avec Gestion de configuration logicielle. La gestion de la chaîne logistique (GCL) (en anglais supply chain management, SCM) est l activité qui … Wikipédia en Français

Supply Chain Management- 1. Begriff: S.C.M. bezeichnet den Aufbau und die Verwaltung integrierter Logistikketten (Material und Informationsflüsse) über den gesamten Wertschöpfungsprozess, ausgehend von der Rohstoffgewinnung über die Veredelungsstufen bis hin zum… … Lexikon der Economics

supply chain management- /sə plaɪ tʃeɪn ˌmænɪdʒmənt/ noun the management of the movement of goods and the flow of information between an organization and its suppliers and customers (NOTE: Supply chain management covers the processes of materials management, logistics,… … marketing dictionary in english

supply chain management- A cross functional approach to procuring, producing, and delivering products and services to customers. The broad management scope includes sub suppliers, suppliers, internal information, and funds flow. See also supply; supply chain … military dictionary

supply chain management- ● en loc. f. DECI Voir SCM… Dictionnaire d "informatique francophone

Books

• Supply Chain Management in the Drug Industry. Delivering Patient Value for Pharmaceuticals and Biologics, Hedley Rees. This book bridges the gap between practitioners of supply-chain management and pharmaceutical industry experts. It aims to help both these groups understand the different worlds they live in…