Friday, 24 October 2008

Supply Chain Optimization

Simply stated; Supply Chain Management is to ensure optimum time and place utility of a product.

Time and place: ensuring the availability right qty of a product at the right time:

1. Component at a assembly line to satisfy production sequence of a finished product
2. Semi-finished item needed for final assembly manufacture
3. Consumer goods at a supermarket
4. Spare parts for a an automobile/computer/aircraft

Optimum: ensuring time and place utility in a cost effective manner:

* Cost: ensuring lowest possible cost to store/move/transport an item
* Effectiveness: Ensuring correct product, correct quantity without any damages and correctly identified (packaging and labelling). Customer Service (internal and external) is a key measure of effectiveness.

To achieve the above, the following fundamentals elements related to time and place utility are critical for a Supply Chain Expert to apply the SAP SCM suite:

What , how and when to produce

How much to make and how much to store

Where best to do what activity

How and when to move product

The information need to make the above decisions.

The objective of the SCM blog is to provide insight regarding the application of the SCM suite provided by SAP in order to order to increase throughput while simultaneously reducing inventory and operating expenses at the desired customer service level. The following topics will be addressed within this blog:

► SCM in General
► SCM Design
► SCM Planning
► SCM Execution
► SCM Control/Performance

1 comment:

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