Supply Chain. Business Productivity Solutions. GE Information Services. Logistics Management. Purchasing/ Supplier. Financial Services

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1 Business Productivity Solutions Marketing& Sales Purchasing/ Supplier Logistics Management Financial Services Supply Chain

2 Supplier s Manufacturin g Distributor s Customer Supply Chain Management What Is A Supply Chain?

3 SCM is the active control of the flow of goods from the acquisition (source) to consumption (POS or final disposition). It comprises the monitoring of all activities including: Planning Distribution Sourcing Payment Ordering Related information Storage A Definition

4 $5 to Buy $10 to Transform $20 from Sales Total SC Pipeline Length Company as a Bank

5 Supply Chain Business Process $5 to Buy $10 to Transform $20 from Sales Total SC Pipeline Length What about WHEN to get back money?

6 Manufacturing: Product Flow Vendor Purchase Transport Manufacture Transport Warehouse Transport Cust/Whse Transport Retail/ Store Sell/Store Planning: Information Flow MAP/ TRP MPS/ TRP DRP TRP QR/ QR/ QR/ RMP MRP DRP TRP DF SCM Architecture by Function

7 Vendor Purchase Transport Manufacture Transport Warehouse Transport Client S u p p l y C h a i n F l o w SCM Architecture by Proces

8 Supply Chain Business Process > Sales < Costs uality Cost Reduction Shorter Pipeline Length Improving Quality Supply Chain Productivity Driver

9 Stage 1: Functional Orientation (Present) Supplier Laboratory Purchasing Production Distribution Invoicing Customer Transportation Production Planning Material Control Customer Service Sales Marketing Stage 2: Process Orientation (Intermediate) Business Planning Operational Planning Sell Specify Procure Produce Order Deliver Stage 3: Process Integration (Goal) Sell Supply Plan Fulfill Source: Council of Logistics Proceedings Annual Conference Proceedings, p. 279, Supply Chain Integration Stages 9

10 Why Re-Engineering? Why is Re-Engineering/Design important now? Manufacturing of goods and delivery of services has changed, but business processes have not. Existing policies and practices are being questioned to see if they contribute to corporate objectives. The focus is on optimizing company s total results vs. unit/department goals. New enabling technologies facilitate the new processes. Why Re-Design?

11 Opportunities for Pipeline Compression UP-STREAM STREAM DOWN-STREAM SUPPLIERS INTERNAL intra-comp INTERNAL manufacturing INTERNAL intra-comp CUSTOMERS Partnership Programs Reduce non-value adding time Vendor Managed Inventory Total Pipeline Length Major Trends Driving Focus on SCM

12 Cost < Value > Information Replaces Inventory

13 Presence of Partnerships Established Currently being implemented Program likely in 2 years With suppliers With customers Relevant, but unlikely in 2 Not Relevant More partnerships with customers than suppliers Don't know Percent Less than 10% don t think it is important Source: UK Companies Look at Supply Chain Issues, Transportation & Distribution, February, 1995 Customer - Supplier Relationship

14 Those companies making a conscious effort to improve the working relationship with their suppliers are the ones that are successfully regaining parity with their foreign competition. Pierre Landry, VP Xerox A Partnership Model

15 Purchasing/ Procurement Inventory Management Logistics Management Direct Sales Force Channel Management GEIS Supply Chain Solution

16 Opportunities for Pipeline Compression UP-STREAM STREAM DOWN-STREAM SUPPLIERS INTERNAL intra-comp INTERNAL manufacturing INTERNAL intra-comp CUSTOMERS Partnership Programs Reduce non-value adding time Vendor Managed Inventory Total Pipeline Length Centralizing Information

17 Intra-Company Solution Information Manager OPEN*NET BNET Services for Sponsor GEIS Worldwide Network Products BNET Acrobat Dedicated Project mgr Implementation & Training Customization User s WS ARIS / DEUS Building Blocks Solution

18 Intra-Company Solution Centralized Sourcing Information - Electronic Product Catalog - Current Specification Library - Electronic Drawing Exchange - Business Policies, Practices, Procedures - Supplier Selection, Quality Information - Supplier Scorecards -... Intra-Sourcing Network

19 UP-STREAM PARTNERSHIP PROGRAMS Opportunities for Pipeline Compression UP-STREAM STREAM DOWN-STREAM SUPPLIERS INTERNAL intra-comp INTERNAL manufacturing INTERNAL intra-comp CUSTOMERS Partnership Programs Reduce non-value adding time Vendor Managed Inventory Total Pipeline Length Inter-Company Network

20 VMI Bidboard OPEN*NET Up-Stream Partnership Programs Information Manager EDI*EXPRESS BNET Services for Sponsor Action Consulting ASN Plus EPS $ Products BNET Acrobat Building Blocks Solution Dedicated Project Manager Implementation & Training Customization of Supplier WS ARIS DEUS Customization of Supplier WS

21 UP-STREAM PARTNERSHIP PROGRAMS Bidboard for posting RFQs & reviewing bids entered by suppliers OPEN*NET/UFTU for sending detailed specifications to suppliers & receipt of engineering designs from suppliers EDI*EXPRESS for posting RFQs to the Bidboard, sending POs, receiving acknowledgments, receiving invoices, sending catalog updates BNET BULLETIN BOARDS for selecting suppliers & maintaining RFQs -RFQ database / Electronic product catalog / Supplier information BNET for informal communications with suppliers Building Blocks

22 UP-STREAM PARTNERSHIP PROGRAMS VMI for sending point-of-sale information to suppliers Network connection to in-house applications Acrobat for posting & viewing graphics to suppliers via IM board EPS for paying suppliers electronically ASN Plus for generating accurate ASNs Building Blocks

23 Business Productivity Solutions Thank you!