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Achieving Competitive Advantage Through Supply Chain Management Advanced Planning and Scheduling Systems May 25, 2022 This information is confidential. Do not disclose outside DTT. Agenda 1. The Evolution of the Supply Chain 2. Advanced Planning and Scheduling Systems How They Work The Vendors This information is confidential. Do not disclose outside DTT. The Supply Chain enpasses a number of key business processes involved in managing the flow of materials, information, and funds from the initial suppliers to the ultimate consumer. Retailing Delivering Distributing Producing Supplying … the concept of supply chain management is relatively simple. Materials Information amp。 Funds Materials Information amp。 Funds Materials Information amp。 Funds This information is confidential. Do not disclose outside DTT. However, in the real world, multiple suppliers, multiple plants, multiple distribution points and multiple customers significantly plicate material and information flows... Retailing Delivering Distributing Producing Supplying This information is confidential. Do not disclose outside DTT. … And, given that supply chains cross multiple panies, walls have been built that prevent full and timely information flow. Retailing Delivering Distributing Producing Supplying This information is confidential. Do not disclose outside DTT. Breaking down these walls and integrating the supply chain is critical. However, to date, most supply chain initiatives have been inwardly focused. Only recently, manufacturers are beginning to embrace the total supply chain as a means to achieving petitive advantage. ? Phase 1 Process Integration (., reengineering the ordertocash process). ? Phase 2 IntraEnterprise Integration (., sales strategies coordinated with supply chain capabilities). ? Phase 3 InterEnterprise Integration (., collaborative forecasting amp。 replenishment between retailers and suppliers) This information is confidential. Do not disclose outside DTT. ? Stage 1: Separate best of breed applications dedicated to specific business processes (1970s) G/L Payroll A/P Purchase Order Mgmt. Order Entry Inventory Mgmt. Financials Manufacturing Distribution Enterprise Resource Planning (ERP) Supply Chain Technology has evolved over the past several decades. Today’s ERP systems are transactionbased applications with limited decisionsupport capability. ? Stage 3: Enterprisewide applications (early to mid 1990s and still ongoing) ? Stage 2: Suites of integrated applications for functional processes (1980s) This information is confidential. Do not disclose outside DTT. ERP or Legacy Systems Demand Planning Production Planning amp。 Scheduling Distribution/ Supply Planning Transportation Planning/ Management APS Definition ? ERP or legacy interfaced decision support technology which uses advanced algorithms, (., LPs, IPs, mixed – IPs, heuristics, theoryofconstraints, etc.) to model supply chain constraints and enable intelligent supply chain planning/decision making. APS Characteristics ? Allows plex supply chain representation and rapid SC model reconfiguration ? Enables concurrent, dynamic planning, and “whatif” simulations using memory resident processing ? Possess scaleable object architectures capable of running large dataintensive models Advanced Planning and Scheduling Systems (APS) Are the Next Step of the Evolution for Providing Decision Support Capabilities. This information is confidential. Do not disclose outside DTT. Asset Intensive Supply Chain ? Setup/sequence dependencies ? Capable to promise ? Capacity utilization ? Bottleneck utilization Material Intensive Supply Chain ? Capabletopromise requirements ? Excess inventory ? Obsolescence ? Changes to orders ? Engineering change Distribution Intensive Supply Chain ? Large number of SKUs ? Complex distribution/ transportation requirements ? Excessive inventory ? Customer service While we tend to draw all supply chains the same, there are many types of supply chains each with their own unique challenges. ., Pulp amp。 Paper ., HighTech ., Consumer Products This information is confidential. Do not disclose outside DTT. How Do You Know If You Have Supply Chain Management Problems? ? Customer Service Concerns Customer plaints, loss of share, delivery problems, customer surprises ? Materials Management Difficulties High inventory buffers/obsolescence, high transportation costs, supplier shortages, lost purchasing discounts ? Manufacturing