Monday, October 15, 2012

What is Supply Chain Management?



A supply chain is a network of supplier, manufacturing, assembly, distribution, and logistics facilities that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to customers.

This model organized and focused on the five primary management

  1. PLAN
  2. SOURCE
  3. MAKE
  4. DELIVER
  5. RETURN

A typical supply chain involves the following stages or entities

  1. Customers
  2. Retailers
  3. Distributors
  4. Manufacturer/Enterprise
  5. Vendors

What is Oracle’s SCM Solution for Customer

1. Design:
SCM start with designing & developing new products where Product specifications are created. Few Important applications play major role in this phase.

1.     Oracle Product Life cycle Management
2.     Oracle Advanced product Catalog
3.     Engineering & Bills of Materials

2. Market:
Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group. These are application potentially can be used.

1.     Telesales
2.     Trade Management
3.     Incentive Compensation
4.     Order Capture
5.     Oracle sales

3. Plan: 
Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service.

1.     Advanced Supply Chain Planning
2.     Global Order Promising
4. Sell & Manage Order: 
Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.

1.     Order management
2.     Advanced Pricing
3.     Configurator
4.     iStore

5. Procure:
Here you normally choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.

1.     Purchasing
2.     iProcurement

6. Manufacture:
Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.

1.     Cost Management
2.     Process Manufacturing
3.     Project Manufacturing
4.     Quality
5.     Work in Process

7. Fulfill & Release Management :
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.

1.     Shipping Execution
2.     Inventory Management
3.     Warehouse Management System
4.     Transportation Execution

8. Service & Maintain: 
Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

1.     Depot Repair
2.     Field Service
3.     Install Base
4.     Service Contracts

Oracle SCM Solutions
Oracle provides two streams to capture entire supply chain planning.
1.    Manufacturing: Consists of Inventory, Bills of Material & Work in process to capture details of every type of manufacturing like discrete, batch, mass production.
2.    Distribution: Consists of Inventory, Purchasing, and Order Management to capture entire procure to pay & order to cash business processes.

2 comments:

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