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Business
Process Automation
Human
Resource Management
ERP
(Enterprise Resource Planning)
Supply
Chain Management
Asset
Management
Fleet Management System What is supply
chain management?
Supply chain management
is the combination of
art and science that goes
into improving the way
your company finds the
raw components it needs
to make a product or service,
manufactures that product
or service and delivers
it to customers. The following
are five basic components
for supply chain management.
1. Plan-This is the strategic
portion of supply chain
management. You need a
strategy for managing
all the resources that
go toward meeting customer
demand for your product
or service. A big piece
of planning is developing
a set of metrics to monitor
the supply chain so that
it is efficient, costs
less and delivers high
quality and value to customers.
2. Source-Choose the
suppliers that will deliver
the goods and services
you need to create your
product or service. Develop
a set of pricing, delivery
and payment processes
with suppliers and create
metrics for monitoring
and improving the relationships.
And put together processes
for managing the inventory
of goods and services
you receive from suppliers,
including receiving shipments,
verifying them, transferring
them to your manufacturing
facilities and authorizing
supplier payments.
3. Make-This is the manufacturing
step. Schedule the activities
necessary for production,
testing, packaging and
preparation for delivery.
As the most metric-intensive
portion of the supply
chain, measure quality
levels, production output
and worker productivity.
4. Deliver-This is the
part that many insiders
refer to as "logistics."
Coordinate the receipt
of orders from customers,
develop a network of warehouses,
pick carriers to get products
to customers and set up
an invoicing system to
receive payments.
5. Return-The problem
part of the supply chain.
Create a network for receiving
defective and excess products
back from customers and
supporting customers who
have problems with delivered
products.
What does Vega D-Mille supply
chain management software
do?
Vega D-Mille Supply chain
management software is
possibly the most fractured
group of software applications
on the planet. Each of
the five major supply
chain steps previously
outlined composes dozens
of specific tasks, many
of which have their own
specific requirements.
Integrating the different
software pieces together
can be a nightmare. Perhaps
the best way to think
about supply chain software
is to separate it into
software that helps you
plan the supply chain
and software that helps
you execute the supply
chain steps themselves.
Vega D-Mille Supply chain
planning (SCP) software
uses fancy math algorithms
to help you improve the
flow and efficiency of
the supply chain and reduce
inventory. SCP is entirely
dependent upon information
for its accuracy. If you're
a manufacturer of consumer
packaged goods for example,
don't expect your planning
applications to be very
accurate if you can't
feed them accurate, up-to-date
information about customer
orders from your retail
customers, sales data
from your retailer customers'
stores, manufacturing
capacity and delivery
capability. There are
planning applications
available for all five
of the major supply chain
steps previously listed.
Arguably the most valuable
(and complex and prone
to error) is demand planning,
which determines how much
product you will make
to satisfy your different
customers' demands.
Supply chain execution
(SCE) software is intended
to automate the different
steps of the supply chain.
This could be as simple
as electronically routing
orders from your manufacturing
plants to your suppliers
for the stuff you need
to make your products.
Do I need to have ERP
software before I install
supply chain software?
This is a very controversial
subject. You may need
ERP if you plan to install
SCP applications because
they are reliant upon
the kind of information
that is stored in the
most quantity inside ERP
software. Theoretically
you could assemble the
information you need to
feed the SCP applications
from legacy systems (for
most companies this means
Excel spreadsheets spread
out all over the place),
but it can be nightmarish
to try to get that information
flowing on a fast, reliable
basis from all the areas
of the company. ERP is
the battering ram that
integrates all that information
together in a single application,
and SCP applications benefit
from having a single major
source to go to for up-to-date
information. Most CIOs
who have tried to install
SCP applications say they
are glad they did ERP
first. They call the ERP
projects "putting
your information house
in order." Of course,
ERP is expensive and difficult,
so you may want to explore
ways to feed your SCP
applications the information
they need without doing
ERP first.
Supply chain execution
applications are less
dependent upon gathering
information from around
the company, so they tend
to be independent of the
ERP decision. But chances
are, you'll need to have
the Supply chain execution
applications communicate
with ERP in some fashion.
It's important to pay
attention to SCE software's
ability to integrate with
the Internet and with
ERP or SCP applications
because the Internet will
drive demand for integrated
information. For example,
if you want to build a
private website for communicating
with your customers and
suppliers, you will want
to pull information from
SCE, SCP and ERP applications
together to present updated
information about orders,
payments, manufacturing
status and delivery.
In the current climate
of customer demand for
shorter and more accurate
delivery lead times the
documented benefits will
be as below
25% increase in productivity
50% reduction in inventory
50% reduction in work-in
process
80% improvement in on-time
delivery performance
If you still think you
need more information
just contact us with complete
detail. Vega group
(Vega D-Mille) will assist
and serve your needs.
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