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‡ ³In the case of inventory
planning, we have already
increased our service
levels from 91% to 96%.
Recently, we have
surpassed our target of
98.5%.´
‡ Gary Brookes,
Head of supply chain,
AB Foods on Infor SCM
Demand Planning
  
‡ SCM is strategically
managing the
procurement, movement
and storage of materials
and related information in
such a way that current
and future profitability
are maintained through
cost effective fulfilment of
orders
 
‡ Independent business
function era-Till 1950s
‡ Limited internally
integrated business
function era-1960-1970
‡ Internally integrated
business function era-
1980s
‡ Externally integrated
business function era-
1990s

‡ Logistics is all about
creating value
‡ Costs are significant
‡ Logistics customer service
expectations are
increasing
‡ Supply and distribution
lines are lengthening with
greater complexity
‡ It plays a key role in
strategy formulation
 
‡ It adds significant
customer value
‡ Customers want quick
and customised response
‡ Increasing importance in
non manufacturing areas
and service industry
‡ Effect on environment
|||

‡ Strategic Network Design

‡ Demand Planning
‡ Distribution Planning
‡ Manufacturing planning
‡ Production Scheduling
‡ Transportation & Logistics
‡ Warehouse Management
‡ Event Management
‡ Supplier Management
  !
‡ Determine the optimal facility location and
capacity requirements.
‡ Determine where and when to make, buy,
store, and move product through your
network to customers.
‡ Evaluate different transportation and
inventory strategies.
‡ Select the best vendors
‡ Modeling²Incorporate complex costs,
revenues and supply chain constraints to
model the best manufacturing and
distribution network.
‡ Optimization²Analyze your environment
to determine the optimal number, location,
and size of facilitates; the right inventory
levels; and make the best sourcing decision
possible.
‡ The result: You use your assets better,
reduce supply chain costs, decrease cycle
times, lower inventory levels, decrease
carbon emissions, and enhance customer
service.

" !
‡ Improve forecast accuracy
‡ Predict and shape customer
demand more efficiently and
effectively
‡ Create a single, global view of
true demand to improve sales and
operations planning
‡ Reduce inventory investments
and increase turns
‡ Reduce product obsolescence
‡ Lower production costs
‡ Have more successful product
launches
  #$ 
" !
‡ Increase customer order
fulfillment, while reducing
your inventory investment
‡ Improve visibility across
multiple systems and borders
‡ Respond faster to changes in
demand and supply
‡ Introduce vendor managed
inventory (VMI) programs for
leaner supply chain networks

$%$ !
" !
‡ Achieve high productivity
levels of the product types
and volumes customers
demand.
‡ Keep customer service levels
high.
‡ More efficiently manage
inventory.
‡ Lower operational costs.

$ |&$" !
‡ Achieve higher throughput
and faster cycle times.
‡ Lower manufacturing costs.
‡ Better respond to changing
demand and planned change
over.
‡ Increase on-time delivery
performance.
‡ Increase capacity utilization.
  '!  
‡ Lower logistics and
transportation costs 8-15%
‡ Increase asset turnover
‡ Reduce inventory carrying
costs
‡ Decrease customs fines and
penalties through better trade
compliance
‡ Strengthen customer service
&$
!
‡ Reduce inventory 5 to 20%
‡ Increase labor productivity
15 to 40%
‡ Improve shipping accuracy 2
to 5%
‡ Increase inventory accuracy
99+% at location level
‡ Boost perfect order rates
‡ Reduce direct operating costs
and increase overall revenue
(
!
‡ Supply up-to-date order
status information
‡ Improve delivery
performance
‡ Resolve problems before
they escalate
‡ Reduce the cost of goods
sold
‡ Decrease expense overruns
‡ Eliminate excess inventory
and avoid stock outs
|$" 
!
‡ Achieve technology-enabled
business process excellence
‡ Increase productivity and cash
flow
‡ Improve operational efficiency
and quality
‡ Increase supplier visibility
‡ Respond faster to change and
opportunity
‡ Enable innovation
‡ Profit from a strong, flexible,
lean supply chain