Supply chain management system of ACI

Submitted by:
Group no. 6

Serial no. Name Id no.

01. Md. Rubel Miah 1320935
02. Md. Uzzal Bhuiyan 1221489
03. Amir Hossen Juwel 1320071
04. Arif Hossain 1110582

Submitted to:
Parvez Ahmed Sharif
Lecturer, School of Business
 Letter of Transmittal
7th December 2015

To

Parvez Ahmed Sharif

Lecturer, School of Business

Independent university Bangladesh

Basundhara, Dhaka

Subject: Permission to submit report on Supply Chain Management system of ACI

Dear Sir,

We are delighted to submit our research paper report on the Supply Chain Management System

of Advanced Chemical Industries Ltd. (ACI). We tried our best to provide as much as relevant

information regarding the research.

So we, therefore hope that, you will find everything regarding the report.

Sincerely,

MD. RUBEL MIAH

On behalf of the group

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Executive summary:
Supply chain management (SCM) is one of the key function in a company. It carries a huge

importance to the company. Because it deals with all the elements in a supply chain. The proper

management of a supply chain is a must to make a company successful and profitable. It

manages its suppliers, logistics, value chain process etc. and also establishes communication

among business and trading partners. It also includes inbound and outbound transportation,

warehousing, and inventory control which works as an umbrella. In a short we can call it the

heart of a company.

In this report we are going to discuss about the supply chain management system of ACI

Bangladesh. Which is currently one of leading and successful companies in Bangladesh. We

will be discussing about how they manage their supply chain that lead them to this level of

success.

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Contents
Letter of Transmittal ....................................................................................................................... 2

Executive summary:........................................................................................................................ 3

Introduction: .................................................................................................................................... 7

Methodology: .................................................................................................................................. 7

Limitations: ..................................................................................................................................... 8

Company profile: ............................................................................................................................ 8

Mission:........................................................................................................................................... 9

Vision: ............................................................................................................................................. 9

Values: .......................................................................................................................................... 10

Business units: .............................................................................................................................. 10

Pharmaceuticals: ....................................................................................................................... 10

Consumer brands & commodity products: ............................................................................... 10

Agribusiness:............................................................................................................................. 11

Subject matter analysis: ................................................................................................................ 11

What is the Supply Chain Management (SCM): ...................................................................... 11

Activities of SCM: ........................................................................................................................ 12

Distribution network configuration: ......................................................................................... 12

Distribution strategy: ................................................................................................................ 12

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 Information: .............................................................................................................................. 12

Inventory management: ............................................................................................................ 12

Cash flow: ................................................................................................................................. 13

What is the importance of Supply Chain Management: ........................................................... 13

Objectives of Supply Chain Management: ............................................................................... 14

Supply-Chain Principles: .......................................................................................................... 14

Supply chain of ACI: .................................................................................................................... 16

Key functional processes of ACI: ............................................................................................. 17

Procurement process: ................................................................................................................ 18

Outsourcing/partnership:........................................................................................................... 19

Order fulfillment: ...................................................................................................................... 19

Integrated demand planning and forecasting: ........................................................................... 19

Qualitative: ............................................................................................................................ 20

Time series: ........................................................................................................................... 21

Simulation: ............................................................................................................................ 21

Distribution: .............................................................................................................................. 21

Distribution network: ................................................................................................................ 22

Warehouse operations: .............................................................................................................. 23

Inbound processes: ................................................................................................................ 23

Outbound processes: ............................................................................................................. 24

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 Production logistics:.................................................................................................................. 24

Timing Strategies: ..................................................................................................................... 25

Main benefits of JIT a manufacturing in ACI include: ............................................................. 26

Supply chain management architectures of ACI: ..................................................................... 27

Supply chain management framework: .................................................................................... 28

A Warehouse management systems, or TMS: .......................................................................... 29

Software components: ................................................................................................................... 30

Distribution Software: ............................................................................................................... 31

Manufacturing Simulation Software: ........................................................................................ 32

Factory Simulation Software Helps With Following Activities: .............................................. 32

Advantages :.............................................................................................................................. 33

Increased efficiency: ............................................................................................................. 33

Warehouse organization: ...................................................................................................... 34

Updated data: ........................................................................................................................ 34

Data security: ........................................................................................................................ 34

Insight into trends: ................................................................................................................ 35

References: .................................................................................................................................... 35

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Introduction:
Supply chains encompass the companies and the business activities needed to design, make,

deliver, and use a product or service. Businesses depend on their supply chains to provide them

with what they need to survive and thrive. Every business fits into one or more supply chains and

has a role to play in each of them. The pace of change and the uncertainty about how markets

will evolve has made it increasingly important for companies to be aware of the supply chains

they participate in and to understand the roles that they play. Those companies that learn how to

build and participate in strong supply chains will have a substantial competitive advantage in

their markets.

The term “supply chain management” arose in the late 1980s and came into widespread use in

the 1990s. Prior to that time, businesses used terms such as “logistics” and “operations

management” instead. Some definitions of a supply chain are offered below:

• “A supply chain is the alignment of firms that bring products or services to market.”—from

Lambert, Stock, and Ellram in their book Fundamentals of Logistics Management.

Methodology:
Methodology refers to the essential part of the study and the process of collecting information

and arranging it in terms of the relevant issues of the study. It is designed in a way so that it

correspondents to achieve the objectives of the study. The actual information provided in this

report was collected from two different sources, namely primary and secondary source. We have

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collected information regarding the product from secondary source (company website), and the

research data is a primary which was collected from an interview of the Manager of ACI.

Limitations:
Supply chain management of ACI is highly automated. It a lot of effort to develop a proper

suppmy chain management and every company has their privacy policy to stop it from getting

exposed to any other company. So, as a result , we could not get all the necessary informations to

complete the whole report. Therefore, some of the informations are provided based on the

Supply chain management of similar companies in the industry.

Company profile:
ACI(Advanced Chemical Industries Limited) was established as the subsidiary of Imperial

Chemical Industries (ICI) in the then East Pakistan in 1968. After independence the company has

been incorporated in Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers

Limited and also as Public Limited Company. This Company also obtained listing with Dhaka

Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9 March,

1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local management.

Subsequently the company was registered in the name of Advanced Chemical Industries

Limited. Listing with Chittagong Stock Exchange was made on 22 October 1995.

Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in

Bangladesh, with a multinational heritage. The company has diversified into four major Strategic

Business Units.

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Mission:
ACI’s mission is to enrich the quality of life of people through responsible application of

knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-

class products, innovative processes and empowered employees to provide the highest level of

satisfaction to its customers.

Vision:

 Endeavor to attain a position of leadership in each category of its businesses.

 Attain a high level of productivity in all its operations through effective and efficient use

of resources, adoption of appropriate technology and alignment with our core

competencies.

 Develop its employees by encouraging empowerment and rewarding innovation.

 Promote an environment for learning and personal growth of its employees.

 Provide products and services of high and consistent quality, ensuring value for money to

its customers.

 Encourage and assist in the qualitative improvement of the services of its suppliers and

distributors.

Establish harmonious relationship with the community and promote greater environmental

responsibility within its sphere of influence.

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Values:

 Quality

 Customer Focus

 Fairness

 Transparency

 Continuous Improvement

 Innovation

Business units:

Pharmaceuticals:

ACI carries the legacy of ICI- world renowned British Multinational in providing the people of

Bangladesh with quality medicines and healthcare products. Its state-of-the art pharmaceutical

plant represents Bangladesh's quest for a truly world class manufacturing facility. ACI's rich

heritage leads to innovative and higher value added formulations.

Consumer brands & commodity products:

The Consumer Brands Division boasts in having an unequivocal presence in consumers' heart

with the market leading brands like ACI Aerosol, ACI Mosquito Coil, Savlon. These are the

persistent performers in keeping the household clean and free from germs and harmful insects.

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Agribusiness:

ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock and Fisheries

and deals with Crop Protection, Seed, Fertilizer, Agri-machineries, and Animal Health products.

These businesses have glorified presence in Bangladesh.

Subject matter analysis:

Our topic is supply chain management & we’re going to describe about it in details.

What is the Supply Chain Management (SCM):

The best companies around the world are discovering a powerful new source of competitive

advantage. It's called supply-chain management and it encompasses all of those integrated

activities that bring product to market and create satisfied customers. The Supply Chain

Management Program integrates topics from manufacturing operations, purchasing,

transportation, and physical distribution into a unified program. Successful supply chain

management, then, coordinates and integrates all of these activities into a seamless process. It

embraces and links all of the partners in the chain. In addition to the departments within the

organization, these partners include vendors, carriers, third party companies, and information

systems providers.

Within the organization, the supply chain refers to a wide range of functional areas. These

include Supply Chain Management-related activities such as inbound and outbound

transportation, warehousing, and inventory control. Sourcing, procurement, and supply

management fall under the supply-chain umbrella, too. Forecasting, production planning and

scheduling, order processing, and customer service all are part of the process as well.

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Importantly, it also embodies the information systems so necessary to monitor all of these

activities.

Activities of SCM:

Distribution network configuration:

Number, location and network missions of suppliers, production facilities, distribution centers,

warehouse cross-docks and customers.

Distribution strategy:

Questions of operation control (centralized, decentralized, shared), delivery scheme, e.g., direct

shipment, pool point shipment, cross docking, direct store delivery (DSD), closed loop shipping;

mode of transportation, e.g., motor carrier including truckload, less than truckload (LTL); parcel;

transportation control etc.

Information:

Integration of process through the supply chain to share valuable information, including demand

forecast, inventory, transportation, potential collaboration etc.

Inventory management:

Quantity and locations of inventory, including finished goods, work in process and raw

materials.

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Cash flow:

Arranging the payment terms and methodologies for exchanging funds across entities within the

supply chain.

Figure: Supply chain management

What is the importance of Supply Chain Management:

To remain competitive, companies must seek new solutions to important Supply Chain

Management issues such as modal analysis, supply chain management, load planning, route

planning and distribution network design. Companies must face corporate challenges that impact

Supply Chain Management such as reengineering globalization and outsourcing.

Supply chain management plays a vital role in the organizational activities and an essential

element to operational efficiency which can be applied to customer satisfaction and company’s

success. It’s much like the backbone of the business that manages critical issues of the

organization such as rapid growth of multinational corporations, global expansion and

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environmental concerns which indirectly affects the corporate strategy. Some other benefits of

SCM are-

 Reduced inventory cost

 Information sharing between partners

 Increased customer satisfaction

 Improves process integration

 Increases efficiency in manufacturing

 Maintains better trust between partners

 Improves quality and gives higher profit margin

Objectives of Supply Chain Management:

The fundamental objective is to "add value". Supply Chain Management becomes a tool to help

accomplish corporate strategic objectives:

 Reducing working capital

 Taking assets off the balance sheet

 Accelerating cash-to-cash cycles

 Increasing inventory turns etc.

Supply-Chain Principles:

If supply-chain management has become top management's new "religion," then it needs a

doctrine. Andersen Consulting has stepped forward to provide the needed guidance, espousing

what it calls the "Seven Principles" of supply-chain management. When consistently and

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comprehensively followed, the consulting firm says, these seven principles bring a host of

competitive advantages.

1. Segment customers based on service needs: Companies traditionally have grouped

customers by industry, product, or trade channel and then provided the same level of

service to everyone within a segment. Effective supply-chain management, by contrast,

groups customers by distinct service needs--regardless of industry--and then tailors

services to those particular segments.

2. Customize the Supply Chain Management network: In designing their Supply Chain

Management network, companies need to focus intensely on the service requirements and

profitability of the customer segments identified. The conventional approach of creating a

"monolithic" Supply Chain Management network runs counter to successful supply-chain

management.

3. Listen to signals of market demand and plan accordingly: Sales and operations

planning must span the entire chain to detect early warning signals of changing demand

in ordering patterns, customer promotions, and so forth. This demand-intensive approach

leads to more consistent forecasts and optimal resource allocation.

4. Differentiate product closer to the customer: Companies today no longer can afford to

stockpile inventory to compensate for possible forecasting errors. Instead, they need to

postpone product differentiation in the manufacturing process closer to actual consumer

demand.

5. Strategically manage the sources of supply: By working closely with their key

suppliers to reduce the overall costs of owning materials and services, supply-chain

management leaders enhance margins both for themselves and their suppliers. Beating

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 multiple suppliers over the head for the lowest price is out, Andersen advises. "Gain

sharing" is in.

6. Develop a supply-chain-wide technology strategy: As one of the cornerstones of

successful supply-chain management, information technology must support multiple

levels of decision making. It also should afford a clear view of the flow of products,

services, and information.

7. Adopt channel-spanning performance measures: Excellent supply-chain measurement

systems do more than just monitor internal functions. They adopt measures that apply to

every link in the supply chain. Importantly, these measurement systems embrace both

service and financial metrics, such as each account's true profitability. The principles are

not easy to implement, the Andersen consultants say, because they run counter to

ingrained functionally oriented thinking about how companies organize, operate, and

serve customers. The organizations that do persevere and build a successful supply chain

have proved convincingly that you can please customers and enjoy growth by doing so.

Supply chain of ACI:

The company maintains strategically located sales centers in nineteen different locations across

the country. It has developed an advanced distribution system through its skilled and trained

manpower and a large fleet over eighty vehicles. The distribution system is fully equipped for

handling continuing volume of diverse range of products from the various businesses.

The company maintains strategically located sales centers in nineteen different locations across

the country. It has developed an advanced distribution system through its more than 300 skilled

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and trained manpower and a large fleet over 80 vehicles. The distribution system is capable of

handling continuing volume of diverse range of products from the various businesses.

The company's distribution centers are highly streamlined, computerized and automated. They

are capable of maintaining a cold chain for some specialized range of products such as vaccines

and insulin. The combination of this advanced and multidimensional capabilities made it

possible to handle hundreds products efficiently.

Key functional processes of ACI:

Like every other big companies ACI and it’s supply chain management is developed some major

functions. Such as-

 Customer relationship management

 Customer service management

 Demand management

 Order fulfillment

 Procurement

 Manufacturing flow management

 Product development and commercialization etc.

The supply chain and its procurement process is designed in a way which is efficient and very

cost effective.

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Procurement process:

The procurement process begins with the identification of needs. In this very first step the

company measures how much raw materials are required for production. Then the company goes

for RFP. Requests for Proposals (RFPs) are structured methods for organizations to receive

competitive bids for needed products and services, and can be an invaluable source of new

business opportunities for the company. Then the company asks for tender from different

supplier. It’s a popular way of selecting suppliers. Then the company analizes the tenders and

selects their supplier. Then begins another importan task, negotiation and clarification. In thie

step both the company and suppliers sets the terms and conditions of the deal & finalizes the

contract. Once the contract is made then both parties manages their contact with each other to

make the process smoother. Finally, if everything goes smoothly, the procurement process is

completed and keeps on repeating.

Figure: Procurement workflow process of ACI

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Outsourcing/partnership:

This is not just outsourcing the procurement process of materials and components, but also

outsourcing of services that traditionally have been provided in-house. The logic of this trend is

that the company will increasingly focus on those activities in the value chain where it has

distinctive advantages, and outsource everything else. This movement has been particularly

evident in logistics where the provision of transport, warehousing and inventory control is

increasingly subcontracted to specialists or logistics partners. Also, managing and controlling

this network of partners and suppliers requires a blend of both cultural and local involvement.

Hence, strategic decisions need to be taken centrally, with the monitoring and control of supplier

performance and day-to-day liasion with logistics partners being best managed at a local level.

Order fulfillment:

A key effective supply chain management of ACI is to meet customer requirements in terms of

order fulfillment. Effective order fulfillment requires integration of the firm’s manufacturing,

logistics and marketing plans. ACI has developed partnerships with key members of the supply

chaon to meet customer requirements and reduce total delivered cost to customers. The main

objective of ACI is to ensure that orders are placed with appropiate amout of time available to be

filled. The supply chain management system allows the company to constantly see what is on

stock and making sure that the right quantities are ordered to replace stock.

Integrated demand planning and forecasting:

The company needs to knowledgeable about numerous factors that are related to the demand

forecast. Some of these factors are mentioned below-

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  Lead time of product

 Past demand

 Planned advertising

 State of the economy

 Planned price discounts

 Actions that competitors have taken

The supply chain of ACI links its forecast to all planning activities. These include capacity

planning, production planning and purchasing among others. This link exist at both the

information system and the human resource management level. As a variety of functions are

affected by the outcomes of the planning process, it is important that all of them are integrated

into the forecasting process. ACI had developed a different forecast for its production based on

its historical order patterns. To accomplish this integration, it’s a good idea for a firm to have a

cross-functional team, with members from each affected functions responsible for forecasting

demand and an even better idea is to have members of different companies in the supply chain

working togather to create a forecast. The supply chain management of ACI used different types

of forecasting methods that are classified according to the following three types-

Qualitative:

Qualitative forecasting methods are primarily subjective and rely on human judgement. They are

most appropiate when little historical data is available or when experts have market intelligence

that may affect the forecast. Such methods may also be necessary to forecast demand several

years into the future in a new industry.

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Time series:

Time-series forecasting methods use historical demand to make a forecast. They are based on the

assumption that past demand history is a good indicator of future demand. Thses methods are

most appropiate when the basic demand pattern does not vary significantly from one year to the

next. These are the simplest methods to implement and can serve as a good starting point for a

demand forecast.

Simulation:

Simulation forecasting methods imitate the consumer that gives rise to demand to arrive at a

forecast. Using simulation, a firm can combine time-series and casual methods to answer such

questions as: What will be the impact of a price promotion? What will be the impact of a

competitor opening a store nearby? Airlines simulate customer buying behavior to forecast

demand for higher-fare seats when there are no seats available at the lower fares.

Distribution:

The distribution resource planning (DRP) of ACI is a method used in business administration for

planning orders within the supply chan management. DRP enables the user of ACI to set certain

inventory control parameters and calculate the time phased inventory requirements. Distribution

resource planning of ACI provides a framework for determining the need to replenish inventory

by:

 Linking market requirements with manufacturing and demand management

 Relating current inventory positions and demand forecasts to production scheduling

 Matching material supply to manufacturing demand and customer demand to product

supply.
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ACI needs the following information to help the supply chain management:

 Demand in a future period

 Scheduled receipt at the beginning of a certain period

 On hand inventory at the beginning of a certain period

 Safety stock requirement

Before using DRP for planning and deployment, ACI must set up a distribution network. In order

to perform a DRP run, ACI must do the followings:

 Set up a distribution network, including identification of quota arrangements and lead

times

 Define MRP parameters in the material master record for all the materials

Distribution network:

ACI has their own distribution based on their needs. It represents the relationship between the

suppliers and the distribution centers. The network graphicilly maintains a material independent

distribution network. It defines more than one source of supply for one distribution center. It also

displays node types, production plants, central warehouses and customer distribution centers as

graphical icons. The distribution network of ACI includes:

 Supply priority

 Quota arrangement details

 Maximum quantity

 Planned delivery time

 Current inventory and in transit situation

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 Figure: Distribution network of ACI

Warehouse operations:

As a case of reducing company cost & expenses, warehouse management is carrying the

valuable role against operations. In case of perfect storing & office with all convenient facilities

in company level, reducing manpower cost, dispatching authority with on time delivery, loading

& unloading facilities with proper area, area for service station, stock management system etc.

ACI has their own warehouse management (WMS) to manage their warehouse operations. It

helps the company to perform tasks such as inventory control, tracking & the location of stock

items. They have a whole work unit to operate the software and control the warehouse activities.

Inbound processes:

 Receiving: Trucks arrive at the warehouse and the receiving team unloads the freight

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  Stocking

 Transportation of goods

 The orderly receipt of all materials coming to the warehouse

Outbound processes:

 checking that the required material is available for shipment

 scheduling the order picking and shipment activity

 confirmation of shipment

 invoicing and processing ogiginating orders

Figure: warehouse operations

Production logistics:

Logistics is one of the major function in a company. The main purpose of logistics can be

divided into two different categories, performance related & cost related. A few examples are-

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high due date reliability, short delivery times, low inventory level and capacity utilization. When

decisions are made there’s a trade-off between targets.

The term logistics describes logistic processes within the company. The losistics of ACI ensures

that each machine and workstations are getting the right quantity of right quality materials in the

right time. The concern is not the transportation itself, but to streamline and control the flow of

value-adding process and to eleminate non-value adding processes. Production logistics of ACI

operates in both existing and new operation plants. Manufacturing in an existing plant is a

constantly changing process. Machines are exchanged and new ones added, which gives the

opportunity to improve the logistics system even further. They have motivated their logistics

system by automating the process by their logistics automation system (LAS) which ensures

smooth work flow and value to the customer. Some example of automations are-

 Automated cranes

 Conveyors

 Industrial robots

 Automated storage and retrival system

 Wireless communication

 Integration software

 Operation control software

 Business control software etc.

Timing Strategies:

In ACI as a manufacturing environment, lead time has the same definition as that of supply chain

management, but it includes the time required to skip the parts from the supplier. The shipping

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time is included because a manufacturing company needs to know when the parts will be

available for the company to process and have the part ready for manufacturing once it has been

received. The time it takes the company to unload a product from a truck, inspect it, and move it

into storage is non–trivial. With tight a manufacturing constraints or when the company is using

Just in time manufacturing it is important for supply chain to know how long their own internal

processes take. Lead time is made of -

Preprocessing lead time (also known as “planning time” or “paperwork): It represents the time

required to release a purchase order (if buy an item) or create a job (if a manufacturing an item)

from the time of the requirement.

Processing Lead time: It is the time required to procure or a manufacture an item.

Post processing Lead Time: It represents the time to make a purchased item available in

inventory from the time receive it (including quarantine, inspection etc.)

Main benefits of JIT a manufacturing in ACI include:

 Reduced setup time .cutting setup time allows the company to reduce or eliminate

inventory for “changeover “time .The tool used here is SMED (Single –minute exchange

of dies).

 The flow of goods from warehouse to shelves improves flow and its management.

 Employees with multiple skills are used more efficiently. Having employees trained to

work on different parts of the process allows companies to move workers where they are

needed .

 Production scheduling and work hour consistency synchronized with demand if there is

no demand for a product at the time , it is not made .this saves the company money .either

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 not having to pay works overtime or by having them focus on other work participate in

training .

 Minimizes storages space needed .

 Smaller chance of inventory breaking /expiring

Supply chain management architectures of ACI:

We present software component architecture for supply chain management across dynamic

organizational networker . the local management in the architecture is done by existing enterprise

resource planning (ERP) systems ,warehouse management systems (WMS

)and transportation management systems (TMS).The integral management in the architectures is

executed by supply chain engines (SCES).These software components make up a layer of system

for supply chain management running on top of ERP, warehouse management systems and

TMS. The SCES provide both the intelligence and the flexibility as required for the integral

management of dynamic supply chains .the software component architecture can be implemented

with technology for components ,interfaces and servicers as available in java Enterprises

,CORBM and Web Services .

For supply chain management across dynamic organization network , the basic ERP , Warehouse

management system and TMS (including EDI interfaces) are not enough .additional systems are

needed in the supply chain management architecture to support the coordination of logistics

processes which are distributed over different organization .supply chain management

architecture ,the system introduces software components on top of ERP ,warehouse management

system and TMS to provide extra intelligence is built the software components ,whereas the

component structure enables the required flexibility .

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We present software component architecture for supply chain management across dynamic

organizational networks. The lock management in the architecture is done by existing enterprise

resources planning ERP systems, warehouse management systems WMS and Transportation

management systems TMS.

Supply chain management framework:

Enterprise resource planning (ERP): systems integrate internal and external management

information across an entire organization embracing Finance /Accounting, manufacturing, sales

and service, customer relationship management, etc ERP systems this activity with an integrated

software application .in Unilever supply chain ERP provides specific functions like purchase,

materials management and sales are used by manufacturing abed trading companies the purpose

of ERP is to the facilitate the flow of information between all business functions inside the

boundaries of the organization and connections to outside stakeholders .

Fig: Supply chain management Architecture with ERP

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A Warehouse management systems, or TMS:

WMS, is a key component of the supply chain and primarily aims to control the movement and

storage of materials within a warehouse and process the associated transitions, including

shipping receiving, put a way and picking.

Transportation management system, TMS supply chain Execution deals with the movement

storage and distribution of goods through the entire supply chain .TMS with it’s specific

functions like transport booking ,planning and monitoring data which is used by the forwarders

and carriers .

Fig: Supply chain management with Transportation management system

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Software components:
The software component has interfaces for communication in the organization and across the

supply chain. The supply chain engines can be equipped with the following interfaces:

 system interfaces to other supply chain engines

For example, interfaces between distribution management engines to support integral distribution

management.

System interfaces to local information systems, for example interfaces between the inventories

components, interfaces and services implementation technology is needed for the development

and deployment of the software components in the supply chain management architecture .the

technology used for the implementation of the supply chain includes application components

,interfaces of the components and common service for the components the supply chain engines

are the application components ,which can be distributed.

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 Fig: Software components platform in supply chain management

Distribution Software:

Manages everything from order processing and inventory control to accounting purchasing

and customer service supply chain management sales customer relationship management and

finance management .More sophisticated solutions can cover areas such as advanced forcasting

and warehouse

Management pick, pack and shipping , EDI or electronic data interchange trade spend

management and more . Distribution software helps company s to manage internal and external

resources efficiently by

Minimizing stock outs but ensuring overstocking doesn’t occur as well.

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Manufacturing Simulation Software:

Manufacturing simulation software products are used for modeling analyzing and visualizing a

factory s

Performance by changing resource availability and capacity , lot sizes production demand ,

queuing rules

, etc . Factory simulation products enable representation of systems dynamics and uncertainty

using statistical distribution . They provide tools for designing experiments and out put analysis

.Applications

Include assemble line simulation cell simulation , Material handling simulation ,packaging

simulation

Paint shop simulation , plant simulation , warehouse simulation and more.

Factory Simulation Software Helps With Following Activities:

 Capital equipment justification .

 Effects of downtimes and setup times.

 Flexible automation decisions .

 Lean manufacturing applications.

 Make versus buy decision .

 Material handling equipment selection.

 Manpower requirement analysis .

 Traking inventory as it is transport between location .

 Receiving items in to a warehouse or other location .

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  Picking, packing and shipping items from a warehouse.

 Keeping track of product sales and inventory levels.

 Cutting down on product obsolescence and spoilage.

ACI primarily uses inventory management software to create work orders and bills of materials.

This facilitates the manufacturing process by helping manufecturers efficiently assemble the

Tools and parts they need to performe specific tasks .For more complex manufacturing jobs,

Manufecturers can create multilevel work orders and bills of materials, which have a time line

Of process that need to , happen in the proper order to build a final product. Other orders that

Can be created using inventory management software for tracking assets, receiving new invent

Ory and additional tasks business in other industries use it for .

Advantages :

There are several advantages to using inventory management software in a business setting

Cost saving. In many cases , a company s inventory represents one of its largest investment

Along with its work force and locations. Inventory management software helps companies

By minimizing the amount of unnecessary parts and products in storage . It also helps

Companies keep lost sales to a minimum by having enough stock an hand to meet demand.

Increased efficiency:

Inventory management software often allows for automation of many inventory tasks.

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For example , software can automatically collect data conduct calculation and create records.

This not only results in time saving , cost saving but also increase business efficiency. Inventory

management software helps the organization by following activities.

Warehouse organization:

Inventory management software can help distribution , whole saler s optimize their warehouse. If

certain products are often sold together or more popular than others , those products can be

grouped together or placed near the delivery area to speed up the process of picking , packing

and shipping to customar.

Updated data:

Up to date real time data on inventory conditions and levels is advantage inventory management.

Software gives companies. Company executives can use the software through a mobile device

laptop or pc to check current inventory numbers . This automatic updating of inventory records

allows business to make information.

Data security:

With the aid of restricted user rights , company managers can allow many employees to assist in

inventory management . They can grant employees enough information to receive products make

orders transfer products and do other tasks without compromising company security. This can

speed up the inventory management process and save managers time .

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Insight into trends:

Tracking where products are stocked , which suppliers they come from , and the length of time

they are stored is made possible with inventory management software. By analyzing such data

companies can control inventory levels and maximize the use of warehouse space. Firms are

more prepared for the demands and supplies of the market, especially during circumstance such

as a peak season on a particular month . Through the reports generated Inventory management

software ,firms are also able to gather important data that may be essential to develop even better

system in the future.

References:
https://www.aci-bd.com/

http://www.emeraldinsight.com/doi/abs/10.1108/09600030810882816

http://searchmanufacturingerp.techtarget.com/definition/supply-chain-management

http://www.supplychainbrain.com/content/index.php

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