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Supply Chain Management Gina Hishin Regional Product Manager Microsoft Corporation What Is “Distribution?” Suppliers/Vendors Distribution Company Manage inventory buffers without excess or shorts: • 100’s of SKU’s & multiple sites • Timely, efficient replenishment • Demand spikes (promos, events) Customers Corporate Accounts Mfg/Kitting Warehouse Central DC Buy goods ahead of demand: • Multiple suppliers • 100’s of SKU’s • Long lead times Buy Side Private Fleet Common Carrier Satellite, Regional & Overflow DCs 3PL W/H Operations Large retailers Provide High customer service • Quote/accept/reject orders; Small retailers, track ordercompanies, status and • Schedule shipments customers • Pick-pack-ship all order line items (ordre fill rate) Sell Side Customer Service (ATP e.g.) Inventory “Available to Promise” Inventory PO’s “Available to Promise” allocated to Planned Orders ? orders On-Hand inventory ? Customer Service Suppliers In-Transit Orders Distribution Center Customer Orders & inquiries? Sales Self-service (Web) Can the enterprise address the needs of customers: • To promise orders based on all available inventory? And keep that promise? Customers Supply Chain Management Sales Order Processing Multi-departmental order processing workflow Complete Integration with Purchasing Series Automated Returns from Invoice Documents * Process Holds for customers over their credit limit * Customer Priority Ranking Supply Chain Management Sales Order Processing cont’d Effective Distribution Management Advanced Distribution Control distribution while improving efficiency and profitability Advanced Picking Maximize flexibility by tailoring inventory selection methods ATP – Available to Promise Meet customer needs with accurate order management Extended Pricing Compatibility Supply Chain Management Inventory Extended Pricing Multi-bin capabilities Cycle Counting ABC Analysis Serial and Lot Tracking capabilities Historical Stock Status Report * Minimum Shelf Life * Lot Number Consolidation * Cradle-to-Grave Serial/Lot Tracking * Allocated/On-order quantity drill-downs Supply Chain Management Purchase Order Processing Invoice and Receipt Matching Facilities Automated Purchase Order Generator Workflow Management Purchase Order Rollup Facility Revalue Inventory for Cost Variances Landed Costs POP Returns * Blanket Purchase Orders * Contract Number and Expiration Dates * Ship to Address per Purchase Order line * Multiple Manufacturing Part Numbers Encumbrance Management * Allows you to track encumbrances at any point in time. Helps ensure funds will be available when payment is due Reduces the time it takes to track expenses Uses encumbrance accounting as an aid to fund managers in budgetary control Provides immediate tracing upon entering transactions Can help avoid overspending of specific accounts with automated messages Facilitates effective cash planning and control Supply Chain Management Requisition Management Employees can enter online requisitions Automated routing for approval Online approval hierarchy Single PO can be created from multiple requisitions Multiple views provided for employees, supervisors and accounting department Ensures requisitions are entered against the appropriate budget What are the customers needs? “DP is strategic to us as we need to deplete previous-year models just as the new models begin shipping.” “New products” “Ensure capability!” “Sales people are being measured on their ability to reach specific goals.” “We have to be better at predicting the future demand to avoid stockouts.” “We need to provide better forecasts to reduce production lead time.” What is Demand Planning? The process of estimating future demand with a known confidence Helps businesses: Position goods for which there is demand Reduce inventory Improve customer satisfaction Reduce operating costs Precursor to other business planning activities: Production planning Purchasing and replenishment Resource planning Logistics planning Demand Planner helps … Minimize stock outs & delays Increase Customer Service Levels Reduce inventory Reduce operating costs Customer Testimonial “Colorbök needed an ERP solution that was both scalable and easy to adapt to our rapidly growing needs. Microsoft Great Plains helped our firm achieve record shipments in the first month after ‘go live’ date.” - Stuart P. Hall (MSIE/OR) – CFO, Colorbök Supply Chain Management Operations Working at Peak Efficiency Demo Scenario Transform time-consuming processes into tasks that can be executed quickly and accurately… Quote Available To Promise? Qty Available? Order Yes No Qty to Deliver Qty to Back Order Order Customer Inventory - Pick - Pack - Ship Fulfill Order BO General ledger PO Sell Side Buy Side … automatically created from Sales Order PO Approve Req. Enter Requisition Transfer Approve PO Receive Invoice Receive Goods Inventory Creditors General Ledger To learn how Microsoft Business Solutions can help your business, click here. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.