Supply Chain Management

Session XIX
Supply Chain Planning and Execution

Supply Chain
Processes

Supply Chain Supply Chain

Planning Processes Execution Processes
 Supply Chain Technologies
Supply Chain Planning
Network Design
Demand Planning
Supply Planning
Material Planning
Typical Processes Sales and Operations Planning
Safety Stock Planning
Inventory Planning
Production Planning
Detailed Scheduling
Distribution Planning
Transportation Planning
Vehicle Scheduling
Route Planning
Typical Solutions SAP APO, i2 Technologies, Oracle
APS, SAP ORACLE ERP
Supply Chain Execution
Inventory Management
Procurement
Vendor Management
Warehousing
Sales Order Management
Production Order Management
Shipping
Transport Execution
Quality Management
ERP – ORACLE and SAP
 Typical Supply Chain Planning Modules
Network Design
• Where new facilities shall be
opened ?
• Which ones should be
closed?
• What new product should be
produced
• How do I allocate customers
to Distribution centers
• What should be the capacity
for plants and warehouses /
DC’s
Inputs – Transportation costs, handling
costs, production costs, procurement costs,
storage cost, penalties, open/closure costs,
Govt. Subsidies, Penalties, GIS features
Demand
Planning
• Forecasting at different
levels – customer, segment,
region, country
• Consistent Planning –
Aggregation from customer
to country, products to
product group
• Forecasting value / qty
• Different periods – weeks,
months, quarters, years
• Statistical forecasting
• Parametric forecasting –
Growth rate : Ind, Prod,
CMP, Customers, Advt
Budget, Promotion etc.
• Consensus forecasting
• Collaborative forecasting
Supply Network
Design
• Production and material
planning for the entire
network, by taking material
availability constraints
across the entire network.
• Advance Planning and
Scheduling (APS) Tools
• Production capacity
• Handling capacity
• Storage capacity
• Transportation capacity
Production
Planning
• Medium term planning (day
level)
• Critical component planning
– Products with high lead
times
• Prioritization (Based on
penalties)
• Simulations and Scenario
analysis of alternate plans
Typical Supply Chain Planning Modules
Detailed
Scheduling
• Real time MRP
Requirements
• Automatic replanning
• Assembly line planning (For
example product
sequencing) based on costs
and time
Transportation
Planning
• Vehicle Scheduling – Obj :
Minimize number of vehicles
(Constraints – Size, Time,
Capacity)
• Route Optimization (Minimize
travelling distance)
• Truck load Handling (Ensure FTL)
• Constraints
• Vehicle type
• Handling resources
• Vehicle capacity
• Depot location
• Drop sequence
• Stacking constrants
• Opening / closing hours
• Maximum storage time
• Distance / Duration / Stop-Over
time
Collaborative
Planning
• Collaborative forecasting
• Collaborative replenishment
(based on PoS data)
• Collaborative product
development
• Advantaged of VMI
• Bull-whip effect is reduced
• Uniform production
• Lower admin costs
• Lower transportation costs
• Lower inventories
• Increased sales & service
GATP
• Global Available to Promise
• Cross-selling
• Up-selling
• Partial / Complete sourcing
from alternate location
• Rule based configuration for
alternative checking (for
example, transportation
costs)
• Factory calenders
Tetrapak Case
• World leader in packaging systems
• Started in Lund, Sweden 1951
• Oxygen free four-sided container for storing liquids
• Aseptic and stackable
• Easy to use

More than just packaging

• Sales of specialized production equipment
• Processing systems for blending, heating, pasteurizing, homogenizing and drying
• Dairy, cheese, ice-creams, soups
• Sales of software that control the production equipment

Tetrapak today
• 25000 employees
• Euro 11.5 Bn in sales
• 160 countries
• 190 bn packages annually

• 9000 Tetrapak packaging lines around the world

• 80000 processing systems
• 55 factories producing packaging materials and
• 5 R&D centres
Tetrapak Case
• Changing scenario
• Non-system suppliers
• Non-OEM spare part sellers
• PET Bottle and glass

• Response

Superior Quality and

Greater depth of
Sophisticated
analytics / insight into
automation
quality / efficiency losses
Performance
Higher resolution data Offer Outcome based
Service Contracts
Re-invent the Package

Organizing a Digital Supply

chain
Tetrapak Case – Foundations of a Digital Supply Chain

Connected
Workforce

Digital
Program
Advanced
Office and
Analytics
Data Center
of Excellence

Connected
Solutions
Tetrapak Case – Pillars, Resources and Capabilities
Pillars Resources Resources Capabilities

Outcome
Connected Sensors Manufacturing
based Service
Execution
Workforce RFID
Systems Contracts

Digital
Program
Advanced Predictive Mtce Mobile and
Office and Superior
Analytics Process Control Virtual Access
Data Center Digital Twins Solutions Performance
of Excellence

Connected Traceability
QR Code Mobile Apps
Solutions
Tetrapak Case – Moving Forward

Supply Chain Control Tower

Connected
Workforce Advanced Planning System
Transportation Management
Systems
Digital 80% of Global
Program Supply Chain
Advanced
Office and Data Resides The Logistics Blockchain
Analytics with Partners In collaboration with IBM, Maersk,
Data Center
Nestle (Food Trust)
of Excellence

Connected Cognitive Analytics

Solutions