Professional Documents
Culture Documents
Management
Assignment By:
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Maisam Salem
Table of Contents
Introduction
Sourcing suppliers &
Procurement
Inbound Logistics
Material flow
Information Flow
Inventory Management
Warehousing Facility
Cross docking
Transportation Modes
Outbound Logistics
Distribution
Retail Outlets
Reverse Logistics
Conclusion
References
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Introduction
largest if not the largest part of the total cost. Therefore, the
importance of sourcing and procurement is undeniable. Sourcing
is about the value-added process of selecting suppliers and the
particular cooperation scheme and which must be supported by
supplier performance information and a well-developed strategy
as well as market intelligence.
However procurement manages the big picture from purchasing
to supplier relationships not the least of how payment
arrangements are setup, procurement refers to the transactional
of the relationship and should be modernized as much as
possible in order to achieve efficiency.
Strategic Sourcing: can make or break a business the overall
goal of strategic sourcing which is to achieve sustainable cost
cuts, techniques to continuously wring value from their supply
chains and long-term supply stability and minimization of supply
risk.
Procurement Optimization: the main focus is on transactional efficiency
and squeezing process-related costs and inadequacies throughout the
purchasing cycle that begins with the identification of the need for the
material and end with its receipt.
.Supplier
the supplier performance and manner that impact on enterprise operations &
knowledge that can be gained only through existing processes that capture
and analyze supplier performance data. This data needs to be incorporated
into the selection and negotiation process to arrive at sourcing decisions that
actually ensure the lowest total cost.
The main reason that Apparel Group implements MRP areas is that when
they plan materials, which are essential in different shop floor areas, storage
locations or by subcontractors, separately from one to another they must
make sure it all takes affect later on.
As soon as they have activated materials requirements planning with MRP
areas, this type of MRP is active at client level, that is, MRP will be carried out
in this way in all areas.
As the system is specific to the Apparel industry, bills of material are defined as
colure, length and size for each finished product. Thus all data entry, reporting and
enquiry facilities.
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Process Flow
Apparel Group implements material requirements planning with MRP areas in
these three steps:
1. Planning file entries at MRP area level: The processes in material
requirements planning and the planning results remain unaffected and
less risk. During the conversion, the system creates a plant MRP area
for every plant as a background job.
2. Activate MRP with MRP areas in Customizing for MRP. This leads
the MRP area field to appear in the applications of MRP and in related
areas. When they enter the plant number the system automatically fills
the field with the number of the plant MRP area. The number of the
plant MRP area is the same as the plant number. This does not have an
effect on the planning run as the plant MRP area still corresponds to
the present plant.
3. Define an MRP area, for example, for a storage location. They then
assign the materials that are to be planned for this storage location
by creating an MRP area segment in the material master.
Materials requirement planning for this storage location is then carried
out one by one. The storage location stock is no longer included in the
available stock of the plant MRP area. Also receipt and issue elements
of this storage location (MRP area) are not taken into account in the
plant MRP area. Only they are taken into account in the MRP area of
the storage location.
Inbound Logistics is the activities of receiving, how they storing and how
many inside each store and disseminating incoming goods or material for
use.
Material flow includes any physical things, including products and their
material handling aids (pallets, crates, carnets, truck-trailers).
Capital flow includes the request to and use of financial for the material and
transportation, commitment to and actual exchanges of capital between
supply chain members. Also it includes the terms of these arrangements.
Information flow includes objects such as forecasts, product designs or
Bills of Materials (BOMs), organizational protocols (such as the procedure for
resolving disputes or errors), demand profiles and capacity profiles.
Information flow is not necessarily directly related to the flow of materials or
capital, it can be independent.
How
does
the
company
plan
its
Material
and
Information Flow?
Apparel Group maintains a controlled, cost-effective production flow because
they understand the importance of a reliable and controlled flow of materials
into their production process. Their inbound logistics services cover all
activities required to bring goods from a sourcing location to a warehouse, a
value added storage facility or production plant. They offer the flexibility to
meet changing deadlines and provide value-added services that reduce the
cost of production, securing quality materials and eliminating third-party
delays.
Their Inbound Logistics solutions help make manufacturing and assembly
lines run more smoothly and at lower cost:
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Sequencing the right materials to the production line at the right time
and maximize productivity
Quality control during inspections, removing and replacing substandard items and eliminating disruption.
Warehouse facilities
Warehouse facility is requiring meeting all of consumer needs. Also
warehouse is strategically design to address industry specific requirements.
Cross docking
Cross docking is known as part of logistics which is the unloading materials
from an incoming semi-trailertruck or railroad car and loading these
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materials directly into outbound trailers, trucks, or rail cars, with little or no
storage in between. It may be done to change type of transportation, to
combine material from different origins into transport vehicles or containers
with the same or with similar destination. Or to sort material intended for
different destinations.
Disadvantages of cross-docking
Transportation mode
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Outbound logistics
Distribution
Distribution of products takes place by means of channels. The channels are
sets of interdependent organizations which are involved in making the
product available for use. Merchants are intermediaries that buy and resell
goods. Agents and brokers are intermediaries that act on behalf of the
producer but do not take title to the product.
Retail outlets
Retail is the sale of goods and services from individuals or businesses to the
customer. Retailers are part of an integrated system called the supply chain.
The retailer purchases goods or products in large quantities from
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Conclusion
Well managed procurement ensures that supplies of the required quality are
available at the right time, place and cost. Supply chain managers help to
reduce waste by selecting inputs that generate less waste (and also lower
costs), and reduce costs and improve profitability bulk buying can provide
economies of scale.
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References
http://www.supply-chain-visibility.com/updated-supply-chain-visibilityframework/
http://www.manageengine.com/products/service-desk/asset-inventorymanagement.html?gclid=CM_OwJ7yi7oCFXMbtAodKgkAVA
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http://en.wikipedia.org/wiki/Mode_of_transport
http://www.ask.com/question/outbound-logistics-definition
http://en.wikipedia.org/wiki/Distribution_(business)
http://en.wikipedia.org/wiki/Retail
http://www.reverselogisticstrends.com/reverse-logistics.php
http://help.sap.com/saphelp_46c/helpdata/en/40/fd78d4e97011d1a6b20000e
83235d4/content.htm
http://www.businessdictionary.com/definition/inboundlogistics.html#ixzz2j2KIE4gS
http://ecsocman.hse.ru/data/474/089/1217/article4.pdf
http://scm-institute.org/our-relationship-based-business-model.htm
http://appareluae.com/index.html
http://www.soumu.go.jp/menu_seisaku/ict/u-japan_en/new_r_i01m.html
http://en.wikipedia.org/wiki/Material_requirements_planning
http://www.deloitte.com/view/en_GR/gr/services/consulting/supply-chainmanagement/2-sourcing-procurement/
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