Download Supply Chain Management for Food and Agriculture

Supply Chain Management
for Food and Agriculture –
Software Platforms and
Functionality
Improve Cost, Efficiency, and Quality through
Supply Chain Management IT Integration
Cristian Herghelegiu, PMP,
Partner Account Manager,
Micosoft Romania
01 November 2006 - Bucharest
Regional
Competitiveness
Initiative
Agenda
• Agribusiness - Key challenges
• Typical Supply Chain Management
(SCM)
• SCM selected benefits
• Microsoft Dynamics solutions
• Summary & Actions…
Agribusiness players
• Producers & Vendors
(small, medium and
large)
• Fruits and vegetables
• Meat Industry
• Milk industry
• Beverage
•Technology level (or
absence)
• Integrated companies
(meat, alcohol)
•Purchase price
(pressure on vendors)
•Standards lacks, raw
materials quality
•Sales/Purchase
Prices
Agribusiness key challenges
•
•
•
•
Competition at all levels;
Operational margins – operational;
Prices (sales);
Standards and regulations– ability to sell in further
context;
• Level of investment;
• Human resources!
• Business Control!
What customers want*?
•
•
•
•
Precision
Accesibility
Partnership
Consultancy
*Gallup research
Challenges
Globalisation
Competition
Standards
Customer
requests
Technological
Evolution
Business results
Priorities
Innovative products
and services
Customer relationship
excellence
Operational excellence
Cost reduction
Suppliers relationship
excellence
How to hit priorities?
1. Business Acumen and vision!
2. Business tools to allow and support:
•
•
•
•
•
•
Focus on main business and not on
operations;
The best operational pattern;
Business Agility;
Affordable costs (ROI, TCO);
Easy adoption by the team (training time,
operational cost);
Easy to support (integrated with the rest of
platform);
Short definition of SCM
• Supply-chain management simply refers to the
management of the entire set of production, distribution,
and marketing processes by which a consumer is supplied
with a desired product.
“…a set of interdependent companies that work closely
together to manage the flow of goods and services along
the value-added chain of agricultural and food products, in
order to realize superior customer value at the lowest
possible costs” *.
Folkerts and Koehorst,
Challenges in international food supply chains: vertical co-ordination in the
European agribusiness and food industries. British Food Journal, 100, 385–
388.
Typical Supply Chain
Operational effectiveness
• Many aspects of SCM, are efforts to improve the
operational effectiveness of a chain:
– improved logistics, shared information systems, better information
flows, reduced transaction costs, preservation of product quality,
standards and integrity throughout the chain;
• Important in matching competitors;
• Increasingly SCM becomes necessary condition for access
to certain markets (export markets, supplying to
supermarkets);
• Will not guarantee a sustainable competitive advantage.
Basis Of Competition
The Past ...
The Future ...
Supply Chain
Product
versus
Product
versus
Supply Chain
Supply Chain Benefits
Manufacturing
Distribution
Retail
Consumer
Why SCM? – a vision at least…
•
•
•
•
•
•
•
Sales forecasting
Purchase planning | stock replenishment
Capacity planning
Capacity Load (resource allocation)
Minimize inventory (to Just in time)
Time to market
Delivery cycle and Logistics
• Overall: cost reduction, higher return on invested
capital, higher turn over… higher profitability
6 keys for successful SCM
•
Recent studies of supply chains in Australia
identified six key principles of successful SCM
(AFFA et al. 2002):
1. focus on customers and consumers;
2. the chain creates and shares value with all its
members;
3. making sure the product fits the customers’
specifications;
4. effective logistics and distribution;
5. an information and communication strategy that
includes all chain members
6. effective relationships that give leverage and shared
ownership.
Benefits of Supply Chain Planning
• Competitive advantages due to a greater quality of
service, shorter throughput times and cost savings.
• Lasting increase in customer satisfaction due to
increased delivery reliability and increased ability to
respond.
• Reduced costs due to
minimization of
warehouse stocks and
more efficient resource
planning.
• Increased efficiency
due to assisted decisionmaking (planning
algorithms, simulations)
and alert functions.
Benefits of Supply Chain Controlling
• Reduced costs as problems in the supply chain are
recognized and the appropriate measures set in motion
early on.
• Lasting increase in customer satisfaction due to
increased transparency and ability to react.
• Increased efficiency
due to the optimal
coordination of all supply
chain processes.
• Competitive advantage
due to the systematic
recording and controlling
of the complex
relationships in the
supply chain network.
• Productivity, from each entity to whole
organization
• Empowerment: simple access to business vital
information
• Expertise
Microsoft Dynamics Microsoft Dynamics Microsoft Dynamics
CRM
NAV
AX
„Microsoft Green“
Integrated solutions
Enterprise
Enterprise
Resource
Resource
Management
Management
(ERP)
Categorii de solutii:
Financiar, Resurse
Umane, Salarii,
Mijloace Fixe
Categorii de solutii:
Enterprise Reporting,
BI, KPI
Analytics
Categorii de solutii:
Automatizarea
lanţului de
aprovizionare
Gestiune, Stocuri,
Automatizarea
serviciilor
Supply
Chain
Business
Management
Operations
(SCM)
Customer
Customer
Relationship
Relationship
Management
Management
(CRM)
Categorii de solutii:
Automatizarea
vanzarilor, Marketing,
Service
The Breakthrough
The Strategy
Microsoft
Dynamics
• 23 years in business
applications
• 9,300 partners
• Over 298,000
customers worldwide*
* Includes Microsoft Dynamics, Microsoft FRx, Microsoft Forecaster,
Microsoft Retail Management, Microsoft Small Business Financials and C5 customers
The Challenge
Finance
Julia,
Systems
Operations
Benjamin,
Marketing
Sara,
CFO
Kevin,
Account Mgr.
Sales & Marketing
Karl,
Logistics
IT
Inga,
Purchasing
Penny,
Payroll
• Familiar Look & Feel
• All level integration with
Microsoft Outlook
• Role based
April
“Very few know how many verifications and what work is
required within the payment process. "
Platform integration
Secure the investment in technology
Trusted decisions
The right information, at the right time and in the
right format
Specializare/Verticalizare
Core
Vertical
• Microsoft Dynamics – platforma
ideală pentru verticalizare
• Sute de soluţii disponibile în
prezent
• Flexibilitate pentru partener –
valoare adaugata pentru client
• Productivitate pentru partener
Military
vehicles
Motor
Vehicles
Pharma-cies
Specialty
Retail
Core Manufacturing
Financial Management
Patent
Lawyers
Restau-rants
Law Firms
Hospita-lity
Core Retail
Municipa-lities
Physicians
Relief
Orgs
Government
Healthcare
Not-forProfit
Core Distribution
CRM
Core Professional Services
SCM
Private
Schools
Educa-tion
Core Public
Sector
Analytics
Focus pe industrii
Retail
Transport şi Logistică
Producţie
Discretă
De proces
High Tech
Modă
Utilaje
Alimente, Băuturi, Tutun
Componente electrice şi
electronice
Sisteme de calcul
Mobilă
Distribuţie
Alimente & Băuturi
Produse de consum
Produse industriale
Servicii
Financiare – Leasing, Asigurări
IT - Computer & Software
Management & Consultanţă
Închirieri
Dealership Auto
Portofoliul Microsoft Dynamics in Romania
• Suita de aplicatii pentru managementul firmelor si
institutiilor incluzand functionalitati de management
financiar, SCM, CRM si planificare si control bugetar
• O suita CRM completa incluzand automatizarea fortei
de vanzari, marketing si managementul contractelor de
service
•
•
•
Management financiar pentru intreprinderi mici
Managementul firmelor de retail si POS
Managementul contactelor, contabilitate si servicii
online, integrate in pachet cu Microsoft Office
Model de Business Indirect
Produse,
Branding, Marketing
Suport & Metodologie
Microsoft
Business
Solutions
Vânzări,
Informaţii de piaţă
Birou MBS
local
Vânzări,
Informaţii de piaţă
Localizare,
Produs & Marketing local
Suport, Certificare şi training
pentru parteneri
Reţea de parteneri
Analiză, Design,
Configurare, Dezvoltare,
Implementare, Training
Suport
Vânzări,
Informaţii de piaţă
Clienţi
Conclusions
• In new agro-industry development, building a
supply chain has been demonstrated to be just as
critical to the success of the industry as
establishing adequate agronomic and pestmanagement practices;
• Microsoft Dynamics offers the integrated solution
in order to optimize the operational, financial and
customer and supplier related operations.
Actions
• Contact us at:
– www.microsoft.com/dynamics
• Contact us and our partners at:
– www.microsoft.ro/dynamics
[email protected]