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Supply Chain Department

ASIA
Pharmaceutical
Industries
Eng. Shawqi A. Al.Batran
Supply Chain Manager
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Supply Chain-Definitions
Supply Chain Management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and
service packages required by end customers.
Supply Chain Management spans all movement and storage of raw
materials, work in process inventory, and finished goods from point of origin
to point of consumption.
SCM is a cross functional interenterprise system that uses information
technology to help support and manage links between some of a companys
key business processes and those of its suppliers, customers, and business
partners.
Supply chain management has generated much interest in recent years for
a number of reasons. Many managers now realize that actions taken by one
member of the chain can influence the profitability of all others in the chain.
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Supply Chain
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Supply Chain Department Structure
Supply Chain
ERP
Department
Procurement
Department
Demand
Planning
Department
Supply
Planning
Department
Tenders
Department
Warehouses
CAPEX
Department
Logistics
Department Objectives
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Create an awareness of the supply chain structure including
organizations, capabilities, strengths, weaknesses and opportunities for
Improvement.
Build a stronger supply chain through the development of bonded and
collaborative relationships with business partners
Increase supply chain end-to-end visibility with real time communications of
inventory requirements, orders, shipments, payments and performance.
Improve forecast, planning and replenishment accuracy
Reduce costs and increase profits through increased efficiencies,
negotiations and compliance
Reduce inventory levels through inventory management disciplines
Improve service levels through performance management
Get the right product in the right place at the right time with the right quality

Implementing ERP System
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Ordering RM
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ERP Systems
Enterprise resource planning (ERP) integrates
internal and external management information
across an entire organization, embracing
finance/accounting, manufacturing, sales and
service, etc.
ERP systems automate this activity with an
integrated software application. Its purpose is to
facilitate the flow of information between all
business functions inside the boundaries of the
organization and manage the connections to outside
stakeholders.
What is ERP
Two common things that people usually talk
about ERP are ERP system and ERP software.
ERP system refers to all components required
to establish the system, such as ERP software,
IT Infrastructure, business process and so on.
Thus, ERP software is part of the ERP system.
But sometime people do not distinguish ERP
system and ERP software.
Enterprise Resource Planning (ERP)
Why Do We Need an ERP System?

Increased operational effectiveness & Productivity
Timely and targeted information feedback system for
decision support
Efficient inventory management
Improved Planning
Improved customer service
Compliant to cGMPs /21 CFR Part 11
Control of your finances top to bottom
ERP Modules
There are many ERP modules in ERP software
solution. Each ERP software module
corresponds to a major functional area of an
organization. Generally it includes, modules
for material purchasing, inventory control,
product planning, product distribution,
tracking the order, financial ERP module,
accounting, marketing, quality and human
resource
A "module" is a group of related programs performing a major function within an ERP
ERP Process Flow
S
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l
e
s

F
o
r
e
c
a
s
t
Sales Forecast
Production
Planning & Control
Scheduling
P
a
c
k
a
g
in
g
Production
Stores
Warehouse
(Finished Products)
Dispatch
Master
Recipe
Workcentre
Hierarchy
Shop Floor
In-Process
Control
cGMP
guidelines
Computer Aided
Manufacturing
Routing
Capacity
Planning
Materials
Management
(Inventory)
BOM
cGMP
guidelines
Inspection
Plan
Inspection
Record
Audit Report
cGMP
Warehouse
Management
System
Finished
Goods
Raw Material
Qurantine,Approved,
Rejected
Purchase
Management
Finance
Management
Costing
Receivable
Payable
Process
Flow
Quality
Assurance
ERP Vendors
Do you know how many ERP vendor worldwide?
They are more than fifty and could be more than
one hundred including local ERP software.
Which ones are considered as Top ERP vendor?
Most people will tell that SAP is the most top ERP
vendor because one of the reasons is they have
had a lot of enterprise scale clients.
ERP Market Share and Vendor
Evaluation
Vendor Sales by Industry
Vendor Sales by Industry

Vendor Sales by Industry
Vendor Sales by Industry
Vendor Sales by Industry
ERP Selection Criteria
Selection Template
Materials requirement planning
MRP
The main objective of MRP is to guarantee material
availability.

MRP is required to procure or produce the required
quantities on time for internal purpose or for SALES.

WHY MRP ?
Optimizing service level
Minimizing costs and capital lockup.
MRP 1
MRP 2
MRP 3
MRP 4
Stock Requirements List
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