SCM - system At the same time it belongs to the B2B class and to the family of corporate applications designed to improve the efficiency of business processes. Supply chain management systems scm-related inventory management means

In my essay, there is a question about supply chain management based on the concept of Supply Chain Management (SCM), because this concept has been overlooked. With this concept, you can reduce production costs and increase production profits. SCM is a logistics technology that allows it to optimally allocate resources associated with the management of material (commodity) or information flows. It corresponds to the basic logistics subsystems and information and software modules, as a rule, supported by a corporate information system (CIS), which implements, for example, the ideology of MRP II / ERP or SCRP systems. Modern management practice is characterized by an intensive transition from the management of individual logistics functions or operations to management business processes as the most appropriate objects for the implementation of the concept of integrated logistics.

Until recently, the SCM concept was seen as synonymous with “integrated logistics”, carried out outside the central company and involving customers and suppliers. Logistics has always focused on supply chains from where a product is manufactured to where it is consumed.

The SCM concept allows solving the problems of integrated management of functional areas of logistics and coordination of the company's logistics process in logistics, depending on the business platform. ERP systems with the SCM module allow to increase the order processing speed by 6 times and double the customer satisfaction with the parameters of the logistics service. With the help of SCM, tasks such as planning, coordination, production, delivery of goods and services are solved.

ConceptSCM

Supply chain management systems are designed to automate and manage all stages of the supply of the enterprise and to control the entire movement of goods at the enterprise. The SCM system allows you to significantly better meet the demand for the company's products and significantly reduce logistics and procurement costs. SCM covers the entire cycle of raw materials procurement, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: manufacturing, supply, location, inventory, transportation, and information.

As part of an SCM system, two subsystems can be conditionally distinguished:

  • SCP - Supply Chain Planning. SCP is based on advanced scheduling and scheduling systems. SCP also includes systems for collaborative forecasting. In addition to solving operational management tasks, SCP systems allow strategic planning of the supply chain structure: develop supply chain plans, simulate various situations, assess the level of operations, compare planned and current indicators.
  • SCE - real-time supply chain execution.

Supply chain management (SCM)

  • Supply Chain Management (SCM) is a process of planning, execution and control in terms of reducing the costs of the flow of raw materials, materials, work in progress, finished goods, service and related information from the point of origin of the application to the point of consumption (including import, export , internal and external displacements), i.e. until the full satisfaction of customer requirements. The essence of the concept of "supply chain management" is the consideration of logistics operations throughout the entire life cycle of products, ie. the process of development, production, sale of finished products and their after-sales service.
  • Supply chain management is a business strategy that effectively manages material, financial and information flows to ensure their synchronization in distributed organizational structures.

There are 7 main principles of SCM:

Objectives, principles and elementsSCM

The term SCM (Supply Chain Management) has been widely used in the West for over 15 years, but until now no one can give a more or less clear definition. Many people view SCM from an operational point of view, meaning SCM is material flow. Some consider SCM as a management concept, while others understand SCM as the implementation of this concept in an enterprise. The following are the most popular SCM concepts:

SCM is a set of approaches that facilitate the effective integration of suppliers, manufacturers, distributors and sellers. SCM, taking into account the service requirements of customers, allows you to ensure that the right product is available at the right time in the right place with minimal costs.

SCM is the process of organizing the planning, execution and control of the flow of raw materials, materials, work in progress, finished products, as well as providing an efficient and fast service by obtaining operational information about the movement of goods. With the help of SCM, the tasks of coordinating, planning and managing the processes of supply, production, warehousing and delivery of goods and services are solved.

The supply chain is a set of links interconnected by information, money and commodity flows. The supply chain starts with the purchase of raw materials from suppliers and ends with the sale of finished goods and services to the customer. Some links may be wholly owned by one organization, others - by counterparty companies (customers, suppliers and distributors). Thus, a supply chain usually includes several organizations.

Supply chain management systems are designed to automate and manage all stages of the supply of an enterprise and to control the entire movement of goods in the enterprise. The SCM system allows you to increase the demand for the company's products, and reduce the cost of its production. SCM covers the entire cycle of raw materials procurement, production and distribution of goods. Researchers usually identify six main areas that CSM holds:

  • production - the company decides what and how to produce;
  • supplies - when making a fundamental decision to build or enter the supply chain, the company must determine what it will produce on its own and which components (components, goods or services) it will buy from third-party firms;
  • location - decisions about the location of production facilities, warehousing centers and sources of supply;
  • inventory - the main purpose of inventory management - insurance against unforeseen events, such as a surge in demand or delay in deliveries;
  • transportation - transportation solutions. They depend on the location of the supply chain participants, inventory policies and the level of customer service required. It is important to determine the correct ways and effective methods of operational management of transportation, since these operations account for about 30% of total supply costs, and it is precisely with delays in delivery that, on average, more than 70% of errors in the distribution of goods are associated;
  • information - the effective functioning of the supply chain is impossible without the prompt exchange of data between all its participants.

The supply chain has two main functions:

  1. The physical function of the supply chain is visible to anyone: materials turn into parts, and those into finished products, and all this in one way or another moves in space.
  2. The intermediary function of the supply chain is less obvious, but no less important - what the consumers need must come to the market.

Naturally, both functions come with some overhead. During the execution of a physical function, production, transportation and storage costs arise. The intermediary function implies a different kind of costs. When supply exceeds demand, it is necessary to cut prices and sell at a loss, and when demand exceeds supply, lost revenue and dissatisfied customers appear.

SCM tasks

  • service improvement
  • optimization of the production cycle
  • decrease in stock
  • increasing the productivity of the enterprise
  • increased profitability
  • production process control

SCM solutions create optimal plans for the use of existing technological lines, detailing what, when and in what sequence should be produced, taking into account the limitations of capacities, raw materials and materials, batch sizes and the need to change equipment for the release of a new product. This helps to achieve high demand satisfaction at the lowest cost.

SCM advantages

A procurement management process that has the following benefits:

  1. an improved online communication process between participants in the supply chain through the use of the Internet and other supply chain tools based on the use of information technology
  2. reduction of transaction costs

As part of an SCM system, two subsystems can be conditionally distinguished

1) SCP - (English Supply Chain Planning) - supply chain planning.

SCP is based on advanced scheduling and scheduling systems. SCP also includes systems for collaborative forecasting. In addition to solving operational management tasks, SCP systems allow strategic planning of the supply chain structure: develop supply chain plans, simulate various situations, assess the level of operations, compare planned and current indicators.

2) SCE - (Supply Chain Execution) - execution of supply chains in real time.

Supply chain management is a business strategy that provides effective management of financial, economic material flows for the provision and distribution of organizational structures.

Rice. 1.

The hierarchy of decisions made when choosing a location for lawyers and notaries, banks, etc.

SCM in Russia

The activity planning system, widely known in our country under the abbreviation MRP II, has become publicly accepted over its 15 years, having greatly changed the center of its application and expanded its sphere of influence thanks to all kinds of changes. These changes are also known as ERP systems. Their history in the west goes back about 15 years. But over time, one major transformation took place. Namely, information technologies have become available and popular for enterprises and are widely used in practice.

Logistics in Russia is actively developing today. This is especially felt in the development of transport and logistics infrastructure, the construction of a large number of logistics centers, the development of the logistics provider market, the growing interest of the top management of companies in the implementation of the concept and technologies of supply chain management (SCM), the introduction of advanced information systems and software applications that support logistics and SCM.

The authors consider and analyze the main trends in the formation of the logistics service market in Russia, the growth rates of warehouse and transport services, and provide forecasts for the development of logistics infrastructure in the context of the Transport Strategy of the Russian Federation for the period up to 2020. Considerable attention is paid to the development of the network and the placement of transport and logistics centers on the territory of the federal districts of Russia.

Most of the enterprises operating in the Russian market today are concerned with cutting costs, finding cheap loans to replenish their working capital, and looking for additional resources to support their business. At the same time, many owners and top managers of companies underestimate the capabilities of logistics and supply chain management as tools to reduce total costs, optimize the cost / service level balance, often focusing only on reducing operating logistics costs at any cost.

Integrated logistics and SCM tools are specifically designed to optimize the resources of companies and supply chains as a whole, through the correct use of the concept of total costs, synchronization of plans of counterparties in supply chains, the use of the latest technologies for managing logistics operations in conditions of risk and uncertainty in the external environment.

In a crisis, leading companies optimize resources through a rational choice of the ratio of "insourcing-outsourcing" of logistics activities, integrate logistics business processes in the supply chain on the basis of a common information and computer platform, forming a strategic innovation system.

The introduction of SCM optimization methods and modern integrated logistics technologies into business practice allows firms to significantly reduce the use of scarce resources: reduce inventories, accelerate the turnover of working capital, reduce production costs and operating costs, provide the most favorable cost / level of logistics service ratio for the company in unstable economic environment.

The current economic situation shows the conditions in which integrated logistics and SCM for Russian companies should turn into a strategic resource that requires a high level of diverse and in-depth knowledge of personnel. Therefore, training and retraining programs for company personnel, in particular in the field of logistics, should not only not be curtailed, which is happening almost everywhere, but, on the contrary, should be increased.

In addition to traditional logistics services, the importance of training top logistics managers within the framework of a social program is growing, which is confirmed by the results of an analysis of the demand for highly qualified specialists.

Output

In conclusion, it must be said that when optimizing and when optimizing chains, in any case, you can improve your skill. To remain competitive, an organization must perform well on a daily basis. Forecasts for the future show that the efficiency and quality of products will increase more and more every year.

The SCM organization is very important to the organization. Ensuring its effective and stable functioning determines the management of all links of this process, identifies and uses new opportunities for the activities of the enterprise without errors.

04/14/2005, Thu, 09:04, Moscow time

After a brief downturn, the Supply Chain Management (SCM) market began to grow again. Over the past year alone, several dozen solutions of this class have been implemented in Russia. However, the use of SCM systems is fraught with certain difficulties, such as the closeness of dealers and high logistics costs for small batches.

SCM and ERP: Together or Apart?

SCM systems rightfully belong to the class of corporate information systems, along with ERP and CRM solutions. Moreover, many modern ERP solutions have a built-in module for supply chain management. In this regard, disputes often arise regarding the place of the SCM system in the information infrastructure of the enterprise. Should the SCM system be external (in relation to the ERP solution provider) and only then be integrated into the existing ERP system at the enterprise, or is the SCM module supplied with the ERP solution the best option? This is not an easy question, as each of these options has its own pros and cons.

Obviously, if there is an SCM module built into the ERP system, the customer will not have to incur additional costs associated with solving integration problems. It is worth noting that the solution of such difficulties, according to experts, is one of the most costly items (it is assumed that SCM and ERP systems from different manufacturers are integrated), and a very difficult task for the IT department.

At the same time, an SCM system from a company specializing in solutions of this class has significantly more functionality and customization flexibility than an ERP system manufacturer with its own SCM module. Indeed, supply chain optimization solutions from a supplier of an integrated enterprise resource management product have a limited functional set associated with the replicability of the solution and the lack of industry expertise.

It is worth noting that many analysts consider the availability of industry solutions to be one of the key factors when choosing a system supplier and system integrator. Good industry practice allows you to maximize the optimization of an SCM solution for the needs of a particular business.

Comment on the topic for CNews gave Lev Fleitman, Director of the Department of Management Systems, Service Plus.

CNews: In what cases should SCM be chosen as an ERP system module, and in what cases - as an external solution?

Lev Fleitman: Implementation practice shows that both options are viable, the difference lies in how much the solution is adapted to the needs of the customer and what timeframe for implementation the system supplier can offer. In most cases (over 70%) in Russian practice, they use solutions based on ERP, which are developed and implemented together with an enterprise automation system. This solution is created within the framework of enterprise management automation, while there are "minuses" - this system must be created practically from "scratch", and "pluses" - the specifics of the enterprise will be taken into account. For example, Service Plus, having extensive experience in automating trade and manufacturing enterprises, implements SCM based on MBS-Axapta modules, which is optimal for such companies. The purchase of an external system will require additional investments and costs for integration with the main accounting system.

Thus, we can suggest the following, if there is a complete and customized SCM contour in a separate system, taking into account the specifics of the work and having the ability to integrate with the ERP system of your enterprise, it makes sense to evaluate the possibility of purchasing it, but in most cases it is better to limit yourself to the implementation of the modules available in your ERP system.

CNews: Among the main problems of implementing the SCM concept at the enterprise, experts point out high costs when working with small batches and closeness of dealers. How can these difficulties be resolved?

Lev Fleitman: For those organizations for which small batches are essential, a solution based on a logistics module of ERP-systems of the middle class - Axapta, Navision is best suited. Using this module, you can build a logistics and CRM system in a fairly short time and with minimal costs. In addition, it is possible to use a CRM-system service module, for example, the MS CRM Service module from Microsoft CRM, which allows you to solve an individual "transport problem" of a company based on the available transport capacity. In this case, the cost of a complex solution and its implementation will be significantly lower than a full-fledged SCM system.

To overcome the closeness of dealers, the optimal solution is to implement a logistic circuit based on CRM-systems modules, for example, the Microsoft CRM sales automation module. When creating an enterprise automation project, the business processes of the logistics contour are refined in such a way that the functionality of the CRM-SCM bundle covers the needs of the company as much as possible. This solution ensures the work of the company, implementing interactions with the dealer network. Thus, it becomes possible for the distributor company to control the process of communication with the dealer company, assessing the current situation and predicting the prospects for interaction.

CNews: Thank you.

In addition, the fact that more and more supply chain management systems have the means to integrate with the largest and most well-known ERP systems can be attributed to the "favor" of an external SCM solution provider. At the same time, it is not uncommon for a large ERP vendor to buy an SCM solution provider and integrate its products into its system.

Despite the complexity of integration tasks, SCM and ERP systems from different vendors are often used within a single enterprise information environment. Thus, 70% of world implementations of one of the world's largest manufacturers of SCM systems - i2 company - are integrated with SAP solutions, another 10% - with Oracle software products. There are also examples of integration with systems from J.D. Edwards and several other ERP vendors. In Russia, the experience of integrating SCM systems with 1C solutions is gaining great value.

While overall information technology literacy has clearly increased in recent years, supply management systems are often confused with resource planning systems. There are certain prerequisites for this: both SCM and ERP systems are ultimately focused on improving business efficiency and reducing costs. Nevertheless, competent organization of supply and delivery, despite all the complexity of the task and the emerging problems, is only part of the optimization of business processes. At the same time, efficient supply and procurement management is impossible without proper planning of all other company resources.

Possible options

The key issue for many companies is the need for an SCM solution as such. Indeed, which enterprises should implement an SCM system and when? Many experts believe that such solutions are needed only by large companies with an extensive distribution network, for example, retail chains, transport companies, etc. Nevertheless, implementation of certain modules of SCM systems often allows even small companies to organize their work more competently and efficiently. There are known cases of implementation of SCM modules even in an online store (a distributed resource scheduling solution was used).

However, practically no company in the world, not to mention the Russian market, has a truly comprehensive SCM solution that implements both operational and tactical functions of supply chain management in full. In most cases, the SCM system is used for procurement and work with suppliers. Additional software solutions for warehouse management are often used - WMS systems (Warehouse Management System).

According to experts, SCM systems are necessary for those companies in whose business the costs of working with suppliers and distributors make a significant contribution to the cost of shipped products, which significantly depends on the industry affiliation of the company. In recent years, the maximum number of implementations of SCM solutions has been in the heavy industry (metallurgy) and retail trade networks. In addition, distribution companies account for a significant share of SCM systems consumers.

It is noteworthy that each market sector has its own key suppliers of SCM systems. This fact once again confirms the opinion that the availability of industry solutions from a supplier and / or integrator is a significant plus. For example, in the construction industry, Ariba (Buyer's solution) and CommerceOne (CommerceOne SRM software package) are the best known, and in the area of ​​procurement, according to Forrester Research, Clarus (eProcurement solution), i2 (RightWorks), iPlanet (BuyerXpert ) and MRO Software (Maximo Buyer).

The Russian market for SCM solutions can be easily divided into two camps: localized solutions from well-known foreign manufacturers and domestic developments. It should be noted that most of the localized solutions are part of one of several ERP systems widely used in Russia, for example, Microsoft Axapta. The SCM modules of the Renaissance system are also used.

However, the integration of an SCM system into an ERP solution is widely used in domestic developments. Thus, the systems "1C", "Boss-corporation", "BEST-enterprise", "Galaktika", "Parus" include additional software solutions for supply chain management. Among the Russian developers of specialized SCM systems, one can single out the "AKS Algorithm", "DataKrat", "IVS", "Service Plus", etc.

According to the analytical company ARC Advisory Group, the global market for SCM systems will grow until 2008 and will reach $ 7.4 billion by that time. The average growth rate will be 7.4% per year. For comparison, in 2003 the supply management systems market was valued at $ 5.1 billion.

Not so simple

Despite the assurances of the suppliers about the need to implement SCM systems and a significant economic return, there are many difficulties on the path of deploying a full-fledged solution and its effective use. The cost of an SCM system from a well-known manufacturer is quite high and, depending on the complexity of the implementation project, can reach, according to experts, the cost of an average ERP system.

In addition to the unfavorable price factor, it is worth noting that there is still no effective system for the delivery of small cargoes. In this regard, companies (especially those working in the field of e-commerce) incur unreasonably high costs for organizing logistics for small consignments of goods.

Another important reason that seriously complicates the full implementation of an SCM system is the closed nature of dealers. For the effective use of the SCM solution, it is necessary for dealers to conduct all current operational activities in the general corporate system of the parent distributor company. Many experts call this problem one of the key factors in the slowdown in the development of this sector of the IT market. The fact is that when the results of operating activities (in fact, information on sales) are provided, the SCM system automatically generates the dealer's accounts payable to the distributor company. Thus, the dealer immediately disappears from the potential to use the credit in accordance with his own considerations.

There are a number of smaller problems that in one way or another make it difficult to effectively deploy an SCM solution in an enterprise: late bills, different principles for calculating tariffs, etc. Nevertheless, competent supply chain management is a key factor for many companies, and therefore the number of SCM systems deployments in the world is constantly growing. It is worth noting that such foreign giants as Wal-Mart and Procter & Gamble began using SCM technologies back in the late 1980s.

With regard to automation of supply management, the domestic market is no exception. Several dozen SCM-class solutions were implemented in Russia last year. Such systems were used by such large retail chains as Pyaterochka and Perekrestok.

SCM solutions make it possible to better meet the demand for the company's products, as well as reduce logistics costs. According to experts, a well-implemented SCM system helps to reduce the costs of purchasing and storage in the warehouse by 5-35%, reduce the cost and time of order processing - by 20-40% and increase profits - by 5-15%.

ESSAY

By discipline:

"Development of corporate information systems"

On the topic:

SCM systems

Saint Petersburg 2011

Introduction

Term Supply Chain Management- “supply chain / chain management” was proposed by American specialists (in particular, by Arthur Andersen) in the early 1980s and subsequently gained great popularity. Since 1989, scientists from different countries have been trying to structure this concept.

One of the most common definitions of the supply chain, based on the generalization of the opinions of many leading foreign experts, sounds as follows: a supply chain is three or more economic units (legal entities or individuals) directly involved in external and internal flows of products, services, finance and / or information from source to consumer.

Based on this definition, we can conclude that supply chains come in three levels of complexity: direct supply chain, extended supply chain and maximum supply chain. A direct supply chain consists of a company, a supplier and a consumer involved in the external and / or internal flow of products, services, the flow of finance and / or information.

1. SCM systems

From the late 1980s to the present, there is no consensus among logistics and management specialists about the definition and content of the concept of "supply chain management". Many people use this term as a synonym for "logistics" or "integrated logistics". However, now the emphasis in the interpretation of this concept is shifting more and more towards an expanded understanding of Supply Chain Management - as a new business concept. This position is actively supported and developed by many American universities: the Cranfield School of Management (Great Britain, Institute of Transport and Logistics under the direction of M. Christopher), universities and logistics managers training centers in Germany and a number of other logistics schools and communities.

Recognized American scientists in the field of Supply Chain Management D. Lambert and J. Stock define this concept as follows: supply chain management- the integration of key business processes, starting from the end user and covering all suppliers of goods, services and information that add value to consumers and other stakeholders. Expanding this definition, they point out that supply chain management is the integration of eight key business processes, namely:

Customer Relationship Management;

Customer Service;

Demand management;

Management of order fulfillment;

Production process support;

Supply management;

Managing product development and bringing it to commercial use;

Returnable material flow management.

Until recently, the SCM concept was actually seen as synonymous with “integrated logistics”, carried out outside the central company and involving customers and suppliers. Judging by the CLM definition, logistics has always focused on supply chains that start from the place of manufacture of the product and end at the place of consumption. As D. Lambert and J. Stock point out, the main discrepancy is due to the fact that logistics is often understood in two ways: as a narrow functional area of ​​the company's activities and as a larger business concept related to the management of product flows and information throughout all supply chains. The interpretation of SCM logistics is similar to some reasoning about the concept of "marketing" when it is understood both as a concept and as a functional area of ​​activity. In this regard, one can cite the words of one managing director of a large American company: "Marketing is too important a thing to completely leave it in the hands of the marketing department." In the company, every employee must proceed from the needs of consumers. Since customer satisfaction is everyone's responsibility, the marketing concept is applied beyond the marketing department.

According to ELA, "Supply Chain Management is an integrated approach to business that reveals the fundamental principles of supply chain management, such as the formation of functional strategies, organizational structure, decision-making methods, resource management, supporting functions, systems and procedures."

The SCM concept allows solving the problems of integrated management of functional areas of logistics and coordination of the company's logistics process with "three parties" in logistics, depending on the business platform (B2B or B2C). The SCM module is present in the most advanced integrated corporate management systems, in particular ERPII / CSRP systems. Experience shows that ERP systems with the SCM module can increase the order processing speed by 6 times and double the customer satisfaction with the parameters of the logistics service.

A large number of studies and publications on this topic, specialized periodicals (for example, Supply Chain Management, UK) confirm the widespread use of the SCM concept (Supply-Chain Council, USA). International conferences are devoted to the same direction (for example, the annual conference of the Logistic Management Council called: Collaborative Relationships in and Changing Economy - "Cooperation relationships in a changing economy"), etc.

Some domestic researchers consider SCM as logistic coordination. In particular, A.N. Rodnikov points out that SCM is the ordering of various logistics operations and the rules for their implementation.

In our opinion, the problem of coordination is the most important, but not the only one in the SCM approach. Another problem of integrated supply chain management is the optimization of the resources of the company and its logistics partners when performing the main functions of drugs. That is why the SCM concept and software products are widely used in ERP / CSRP systems.

The task of effective supply chain management has always been faced by enterprises - regardless of their profile, national or territorial affiliation and the current economic model. Modern practice of supply chain management is inextricably linked with internal planning and resource optimization, therefore SCM is a concept that supports the corporate strategy of the company and is part of the ERP systems in the information technology aspect; Moreover, integrated logistics management of supplies is not an end in itself, but one of the most important elements of optimizing the company's business processes.

New information technologies in corporate ERP systems using the SCM concept are based on the application of the ideology of supply chain management in real time - management using general packet radio services GPRS and wireless WAP applications, etc.

The range of possible applications of the SCM concept expands as companies enter e-business. In this case, logistics becomes almost decisive in building promising relationships with customers.

E-commerce connected the buyer with the seller directly: intermediaries are often no longer needed, and the customer begins to understand how difficult and expensive the company's drugs are, and makes his choice, taking into account new factors. Companies, meanwhile, need to learn how to directly ship goods to a much wider audience of customers, since in many cases going online means moving from wholesale to retail and from queuing to personalized service. At the same time, sellers should not only be able to organize delivery, but also make each interaction with a customer as convenient and simple as possible. E-business has unique technological capabilities for personal service. The ability to manage large quantities of small batches plus personalized customer relationships are the modern criteria for e-commerce and logistics success. A new business strategy emerges. Now, effective ways of interacting with the client, allowing him to become a link in the supply chain and involving him in internal business processes, are developed using a unified logistics strategy that allows you to manage customer relationships (Customer Relationships Management, CRM) and SCM.

And yet, the potential of e-business, even on the basis of a single CRM + SCM concept, is not fully realized. The information space has formed an ideal environment for interaction at a completely different level - the superintegration of companies. By providing counterparties with transparent access to its system (SCM + CRM), the company “integrates them”. Partners, following the same idea of ​​openness, also integrate their counterparties into a single system.

As noted by the well-known expert in the field of CIS S. Kolesnikov, the Russian peculiarity of the application of the SCM concept is that in fact, from the very beginning of the reforms, all serious companies were engaged in the management of supply chains, which they had to create "from scratch", and not with "simple sales ”, Although until now some have not realized this. Inability or misunderstanding of the essence of managing a complex business has resulted in many companies leaving the market.

The emergence of the theory and practice of SCM in the world is associated with the progress of information technology, which has allowed even multinational corporations to conduct operations and analyze activities on-line. Naturally, this required the comprehension and formalization of the global business management methodology, as well as the development of appropriate tools. Since 1999, the support of supply chains has become an almost mandatory requirement for software products intended for the automation of trade and holding structures. Such products should support configurations that allow placing automation objects on several physically remote territories with separation of financial (accounting) accounting (support for several legal entities), and also support a "distributed", but a single legal entity with all the ensuing requirements for a distributed database structure ... In many cases, a thin client option is also required to provide workplaces in remote warehouses or, for example, for remote ordering or monitoring in representative offices.

Supply chain analysis is of particular importance in the following cases:

Specific supply requirements for each country (region) - special components or materials. For example, in Southeast Asia, children's knitwear with an embroidered pattern is made; it is shipped everywhere - from the North to the South Pole. Naturally, for Saudi Arabia and Canada, the drawing should be different, for which it is necessary to involve specialists from the respective countries. In addition, the "Christmas" gift set must include gifts perceived as such in each respective country, they must be ordered, delivered, wrapped.

The now popular concept of CFM (Customer Focused Manufacturing) is “customer-oriented” production. As a matter of fact, the given example can also be classified in this category. However, the “focus” of CFM is not simply to adapt the product to the needs of a particular customer, but to constantly maintain “feedback” with the customer and adapt the supply chain to his needs. Such "feedback" may consist, for example, in the fact that computers with large disks are sold in one store, and computers with modern video cards and large memory are sold in another, therefore, the range of software for these stores should be different. We also need different cases and monitors, if the company focuses on "typical solutions", then the differences will be significant. These "priorities" can change significantly, sometimes within one or two months.

A "global" multinational company. Focus is not about meeting the specific needs of consumers in a particular country, but about managing global distribution and reducing overall operating logistics costs. It is interesting to distinguish between the concepts of Supply Chain Management and DRP - Distribution Requirements Planning, which allows you to plan the "replenishment" of a distributed warehouse system, not only from a "central" warehouse, but also by moving goods between warehouses of the same level. including by moving from store to store, without reducing the operating cost and establishing feedback. This approach will be optimal for replenishing the system of warehouses of service centers, exchange funds or the system of wholesale warehouses for food products of mass demand, for example, sugar, salt, cereals and similar products that are not subject to special packaging requirements and are poorly differentiated in quality. The DRP concept has been introduced for a long time, for example, in software products such as CA - PRMS, as well as in custom systems. The peculiarity of the system is that it works quite well with off-line information. In principle, it can be successfully implemented in Excel.

The essence of supply chain analysis is quite simple:

the cost of the goods is formed throughout the entire logistics chain, "appears" only at the last stage - when sold to the end consumer;

the cost of goods is critically influenced by the overall efficiency of operations, including transport and marketing, along the entire supply chain, and not just a specific sale;

the most manageable from the point of view of cost are just the initial stages - production, and the most sensitive - the last - sale.

The introduction of the SCM concept was as revolutionary a step as the transition to the MRPU concept in production management (which, in fact, is equivalent if we consider the process of buying and selling as a kind of "production").

Typical tasks solved by the SCM module in CIS are:

formation of the structure of a network of warehouses for raw materials and finished products to reduce operational logistics costs;

optimization of the scheme of transport operations / routes (in terms of costs);

selection of a manufacturer of goods for delivery to a specific regional market, etc.

Unfortunately, the term Supply Chain Management cannot be considered to have taken root completely. In particular, supply chain management should be distinguished from distribution management. This concept has been embodied in various software products, so when choosing a solution, you must carefully familiarize yourself with a specific functional implementation. In our opinion, there is some limitation in the interpretation of the SCM module by system integrators as part of ERP / CSRP systems in terms of the tasks listed above. Meanwhile, it is necessary to understand that SCM is, first of all, a new business concept aimed at optimizing resources with the integrated interaction of all participants in the drug. New approaches in business management automation are characterized by mutual penetration of SCM, ERP / CSRP and APS ideologies.

In particular, S.N. Kolesnikov notes that the Supply Chain Management concept and CSRP complement each other. The first focuses on “global” logistics and related processes “external” to production, the second on “internal” ones, in particular on fine order management and advanced cost management, thanks to the interpretation of the product business cycle as an “extended” production cycle , and - what is important - not "goods in general", like MRP, but "goods in a specific order", which exactly corresponds to the ideology of Supply Chain Management.

Considering that the “core” of the supply chain is the manufacturer (in the global sense - the producer of added value), we can say that the CSRP concept is the concept of the production core of Supply Chain Management. Combining these two concepts into a single system will allow reaching a new qualitative level of business resource management systems. Automated systems that support fine-grained order and supply chain management can provide significant competitive advantages.

The SCM module and the corresponding financial tools allow you to create a "virtual business" from a distributed system of several companies, covering the full life cycle of a product, or, conversely, divide one company into several "virtual businesses". At the same time, each "virtual business" can support a full range of "virtual management systems" typical for the whole company. However, such a system works correctly only if the entire “virtual” logistics network formed by the company is transparent.

management chain supply logistics

2. Benefits of SCM

When organizing SCM, there is a shift in emphasis from the management of certain types of resources to the integrated optimization of all business processes:

· customer relationship management;

· customer service;

· demand management;

· management of order fulfillment;

· support of production processes;

· supply management;

· product development management;

· management of return material flows, etc.

At the same time, business process management is subordinated to the solution of the main goals of improving the quality of customer service and reducing costs across the entire supply chain.

For everyone, the ideal situation would be to ensure 100% availability of goods on store shelves, the highest level of service quality and no costs. But this is unattainable, and SCM gives the company the opportunity to find the optimal balance between parameters such as quality, timing and price.

Practice shows that the implementation of SCM allows you to achieve a number of positive aspects, such as:

· increase in the company's profits from 5 to 15%;

· reduction in the cost and time of order processing from 20 to 40%;

· reduction of production costs from 5 to 15%;

· a significant increase in the quality of service;

· reduction of warehouse stocks from 20 to 40%;

Supply chain management systems are designed to automate and manage all stages of the supply of an enterprise and to control the entire movement of goods in the enterprise. The SCM system allows you to significantly better meet the demand for the company's products and significantly reduce logistics and procurement costs. SCM covers the entire cycle of raw materials procurement, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: manufacturing, supply, location, inventory, transportation, and information.

As part of an SCM system, two subsystems can be conditionally distinguished:

· SCP - (English Supply Chain Planning) - supply chain planning. SCP is based on advanced scheduling and scheduling systems. SCP also includes systems for collaborative forecasting. In addition to solving operational management tasks, SCP systems allow strategic planning of the supply chain structure: develop supply chain plans, simulate various situations, assess the level of operations, compare planned and current indicators.

· SCE - (Supply Chain Execution) - real-time execution of supply chains.

SCE System Composition (DRP)

· Company sales forecast- forecasting weekly / daily sales of goods;

· Inventory Management- optimization planning of the guarantee stock, current stock, etc. taking into account the selected inventory management model for each product category;

· Replenishment management- optimization planning of supplies within the company's logistics network, taking into account the planned sales, supplies from the manufacturer, the availability of leftovers, transport capacities, various restrictions and business rules.

SCM vendors

· IFS Applications

· OpenERP

· 7Hills Business Solutions

· I2 Technologies

· SAP AG

· Oracle Corporation

· JDA

· HighJump Software

· Manhattan associates

· Industrial and Financial Systems

· Infor

· Management Dynamics Inc

· Kewill

· Beroe-inc

· Kinaxis

· CDC Software

“According to AMR Research and Forrester Research, with the introduction of SCM, companies gain such competitive advantages as a reduction in the cost and processing time of an order (by 20-40%), a reduction in purchasing costs (by 5-15%), and a reduction in time to market ( by 15-30%), a decrease in inventory (by 20-40%), a decrease in production costs (by 5-15%), an increase in profits by 5-15% "./ RE, February 7, 2006

“Optimization of supply chain management in a Russian company can increase profits by 50-130%. An efficiently built supply chain can become a strategic competitive advantage for both a manufacturer and a retailer. It allows you to achieve such a low cost that the company will have the opportunity to oust competitors from the market without losing profitability. "

Stefan Derting, Director of the Moscow office of the Boston Consulting Group

... IFS Application

IFS's supply chain management (SCM) concept includes three elements:

·

· Supply Chain Implementation (SCE)

· Tracking the performance of the supply chain (CPM).

Supply chain planning (SCP)

Supply chain planning encompasses the flow of demand and how companies, organizations and departments interact with each other during supply. Applications offers easy-to-use functionality to support every step of supply chain planning. Role-based access level differentiation is supported. Through customizable portals, employees have quick access to internal and external purchasing and ordering data while maintaining information security. Demand planning and multi-level forecasting across departments becomes easier, and the movement of goods between departments, including internal offsetting and cost allocation, is no longer a problem.

What's more, notification management functionality automatically alerts you to key events in your supply chain, allowing users to focus more on value-adding tasks.

Supply Chain Implementation (SCE)

The implementation of the supply chain encompasses the movement of materials, goods and services, information and financial flows both up and down the entire chain.

Optionally, you can place centralized orders for a number of departments, achieving the best prices. The global inventory of goods and materials will ensure the unification of the same materials for different departments and will make the data on the level of stocks more transparent. Regardless of whether the movement of goods is carried out within the organization or outside, it is equally easy. And thanks to full integration with ERP modules (finance, manufacturing, etc.), all data is entered only once.

Support for working with foreign suppliers and customers and determining the availability of goods / demand for a specified date (Available-to-Promise - ATP) also increases the efficiency of the supply chain. The ability to view the status of an order on-line along the entire chain and process returns in various departments allows to increase the flexibility of the organization and the speed of response.

With the ability to process customer and vendor payments for multiple group companies at once, data consolidation and internal billing capabilities, IFS Applications maintains relationships in complex holding structures.

Tracking supply chain performance: functionality for top managers

By making supply chain planning and implementation easier, IFS Applications goes much further. The integrated IFS / Enterprise Performance (BSC) module includes all the necessary functionality to analyze data, monitor key performance indicators (KPIs), including those related to deliveries, and, finally, create a strategy map (strategy map) to link KPIs into a balanced system of indicators (balanced scorecard, BSC). In addition, the IFS / Demand Planning module will allow you to make more accurate forecasts. IFS / Collaboration Portals can be used to access live data from suppliers, dealers and customers.

Supply chain management covers more than just logistics:

· By striving for high customer value at optimal cost, you create a competitive advantage.

· The solution covers the entire chain, from the first supplier to the end customer

· Closely related to the organization's customer relationship management (CRM) and supplier relationships (SRM)

· May include many independent organizations and their business processes

· Combines information flows related to demand, sales, finance, production, etc.

4. SAP

The concept of managing the supply chain of the company has undergone significant changes in recent years. Previously, it was based on a linear approach to the analysis of logistics processes, in which each enterprise put the main task on the optimal use of resources to meet the needs of the client. Today, the traditional approach does not fully meet the requirements of reality, primarily due to the constant volatility of the market situation and the very structure of the technological chain. The most progressive logistics management methodology is the concept of adaptive logistics networks. At the center of such a network is the consumer, and the efficiency and, consequently, the competitiveness of the enterprise are determined not only by the optimal use of its capacities, but also by the effective work of the entire ecosystem of partners.

Responsive logistics networks are communities of enterprises that are focused on meeting the needs of the end customer and manage their logistics in accordance with these needs through a wide exchange of information.

The main differences between an adaptive logistics network and linear supply chain management are:

End-user orientation and adaptability to the changing needs of all partners in the logistics network.

The planning and execution of operations in the logistics network is based on meeting the needs of end users.

Coordination of actions of all partners in the logistics network through the exchange of information in real time.

The SAP Supply Chain Management solution helps you achieve all of these goals by providing:

transparency of the entire logistics complex, including the location of goods and vehicles, capacity utilization and transportation channels;

What is SCM



SCM - Supply Chain Management




The term SCM (Supply Chain Management) has been widely used in the West for more than 15 years, but there is still no consensus among logistics and general management specialists on the definition of this concept. Many people view SCM from an operational point of view, meaning SCM is material flow. Others consider SCM as a management concept, and finally, others mean by SCM the implementation of this concept in the enterprise. The following are the most popular definitions for SCM:


SCM is a set of approaches that facilitate the effective integration of suppliers, manufacturers, distributors and sellers. SCM, taking into account the service requirements of customers, allows you to ensure that the right product is available at the right time in the right place with minimal costs.


SCM is the process of organizing the planning, execution and control of the flow of raw materials, materials, work in progress, finished products, as well as providing an efficient and fast service by obtaining operational information about the movement of goods. With the help of SCM, the tasks of coordinating, planning and managing the processes of supply, production, warehousing and delivery of goods and services are solved.


The supply chain is a set of links interconnected by information, money and commodity flows. The supply chain starts with the purchase of raw materials from suppliers and ends with the sale of finished goods and services to the customer. Some links may belong entirely to one organization, others - to counterparty companies (customers, suppliers and distributors). Thus, a supply chain usually includes several organizations.


The rapid development of the market, tougher competition, the requirement to improve the quality of customer service, pose new challenges to companies. To maintain competitiveness and strengthen its advantages, a modern enterprise needs to optimize all value creation processes - from the supply of raw materials to the service of the end user. To solve these problems, the management of companies turns to SCM solutions.



Supply chain management includes the following steps:


PLAN


As part of this process, sources of supply are clarified, consumer demand is generalized and prioritized, inventories are planned, distribution system requirements are determined, as well as production volumes, supplies of raw materials / materials and finished products.

The task of producing or buying yourself should be solved at this stage. Decisions related to all types of resource planning and product lifecycle management are also made at this stage. These processes allow you to balance demand and supply to develop a course of action that best suits the requirements of Source, Make, Deliver


SOURCE (Purchasing)


This category identifies the key elements of procurement management, evaluates and selects suppliers, checks the quality of supplies, and concludes contracts with suppliers. It also includes the processes associated with the receipt of materials, such as: purchasing, receiving, transporting, similar control, putting on hold (storage before posting) and receipt. It is important to note that the actions to manage the supply of goods and services must correspond to the planned or current demand.


MAKE (Production)


This process includes the production, execution and management of the structural elements of make, implying control over technological changes, management of production facilities (equipment, buildings, etc.), production cycles, production quality, production shift schedule, etc. Specific production procedures are also defined: actual production procedures and cycles, quality control, packaging, storage and release of products (in-plant logistics). All components of the process of processing the original product into finished products must meet the planned or current demand.


DELIVER (Delivery)


This process consists of order management, warehouse management and transportation. Order management includes the creation and registration of orders, value formation, selection of product configuration, as well as the creation and maintenance of a customer base, along with maintaining a database of goods and prices, and management of debtors and vendors. Warehouse management involves a set of actions for picking and assembling, packing, creating a special packaging / label for the client and shipping goods. The transport and delivery management infrastructure is governed by channel and order management rules, product flow regulation for delivery, and delivery quality management.

All of these processes, including inventory management, transportation and distribution, must be brought in line with planned or current demand.


RETURN


In the context of this process, the structural elements of product returns (defective, surplus, requiring repair) are defined both from make to source and from deliver: determining the condition of the product, placing it, requesting a return authorization, scheduling returns, sending for destruction and recycling. These processes also include some elements of the after-sales service.


SCM processes can also be divided into two broad groups: Supply Chain Planning (SCP) and Supply Chain Execution (SCE). SCP includes strategic planning of the supply chain or business processes in its individual links. SCE - implementation of plans and operational management of links in the supply chain, such as transport or warehousing.


Optimization of supply chain management is designed to solve the following tasks:


1) Shortening the planning cycle and increasing the planning horizon by obtaining reliable and timely information;
2) Optimization of costs due to the ability to identify strategic counterparties, the optimal choice of purchased products and their suppliers, support of interaction with them in real time;
3) Decrease in production costs through optimization of product flows and efficient organization of information exchange between contractors. Real-time communication between different participants in the supply chain helps prevent bottlenecks in the production process;
4) Reducing storage costs by bringing production volumes in line with demand. This task is consistent with the concept of supply management Just-In-Time ("just in time");
5) Improving the quality of customer service is achieved through the efficiency and flexibility of the delivery process.



Benefits of supply chain optimization


According to the largest analytical companies (AMR Research, Forrester Research), SCM provides companies with the following competitive advantages:
increase in profits from 5% to 15%;
reduction in the cost and time of order processing from 20% to 40%;
reduction of time to market from 15% to 30%;
reduction of purchasing costs from 5% to 15%;
reduction of warehouse stocks from 20% to 40%;
reduction of production costs from 5% to 15%


No other company seems to be as successful as Dell Computer in implementing the transparency framework on which a competitive strategy is built. It fulfills its obligations to consumers and guarantees its customers to deliver any order within five days. Through the use of the Internet, Dell Computer provides its suppliers with forecasts and is informed about the readiness of suppliers to meet the forecasts. Dell Computer's Web-based make-to-order model has become the basis for other manufacturing industries. GM also represents one of the most successful examples of radical change that has had an impact on the supply chain. The company has become a leader by restructuring its supply chain. Over the past seven years, GM has made sweeping changes to its global management structure, driven by the challenge of integrating the company's supply chain.


In conclusion, SCM optimization is a task that in many ways resembles the game of golf: no matter how well you play, in any case, you still have reserves to improve your skills. Plus, no matter how outstanding your performance in the past may have been, it doesn't matter to today's consumers. To maintain its competitiveness, an organization must perform well every day. As for future expectations, the importance of promptness, low transaction costs and product quality will only increase.

Supply Chain Management (SCM) - supply chain management Is a concept that integrates key business processes from the end user to all suppliers of goods, services and information that add value to consumers.

SCM - the concept extends from raw material suppliers through production, assembly, quality control, warehousing and further through distribution channels, wholesalers and retailers to the place of final consumption of products or services.

SCM - defines a management philosophy in which the delivery of products or services to the end user is viewed as a process. This process must be managed as a whole, regardless of the functions of the individual enterprise and the boundaries between enterprises, in order to ultimately add value to the business of all its participants.

Process integration is critical to the SCM concept. It focuses on supplying the end user with the product or service with the highest possible customer value at the lowest possible cost and in the shortest time on the market. This goal can only be achieved by an enterprise that works with suppliers and customers to optimize the overall trading relationship, not just its own parts of the process. The SCM concept emphasizes the fact that it is not enough to focus on on improving internal processes and functions because the business activities of an enterprise also involve a web of relationships far beyond the walls of the company. Therefore, the purpose and purpose of the SCM - concept is to manage and improve this complex web of relationships through the integration of connections, the provision and sharing of technology, information and resources.

Information systems that implement the SCM concept solve two groups of issues: operational and tactical.

1. Operational issues are related to the current activities of the enterprise, daily activities.

· Purchases, supply of production... Here SCM solves the problems of interaction with suppliers - their search, ordering, calculations. SCM should have an analytical module that allows you to determine what and how much to buy for direct production. Such conclusions are made on the basis of data on the forecast of demand for the company's finished products and information on production capacities - how much they are currently loaded, how much and for what time we produce finished products. Based on such data, the SCM system can automatically make purchases, keeping human action to a minimum.

· Warehouse management... A special system allows you to accumulate and display data on the quantity and placement of goods at each warehouse. The system controls all warehouse processes: waiting for the acceptance of goods, preparation of the warehouse, during storage it helps to take into account the peculiarities of both the warehouse itself and the characteristics of the goods. Helps to inform each warehouse worker about his tasks (radio equipment is used for this).


· Logistics management, optimization of transport operations. It allows you to calculate the cost of transportation by various means of transport, aggregation of customs costs, loading and unloading operations, tracking the timing of transportation, etc. One of the tasks of the system is to show the manager where the goods are located, the delivery time, etc.

· Sales, work with distributors... Special virtual trading platforms can be used to work with distributors through which their orders and settlements pass. The SCM system can also provide individual control over each distributor and monitor its profitability and reliability.

2. Tactical issues that determine relatively global positions in production and supply.

· The subsystem allows you to develop transport routes and plan the territorial location of the production workshop itself, storage facilities for materials and raw materials, as well as for finished products. For this, the system usually uses a special package for working with electronic geographical maps. Accordingly, the solutions will be applied based on the territorial location of the sales market and the supplier market, as well as logistics costs.

· The SCM system can help determine the optimal future output, and make appropriate tactical decisions about production capacity and expansion of production. Again, based on data on product demand and supply from suppliers.

· As a logical continuation - the system should determine the structure of stocks of raw materials and finished products to reduce operating costs, taking into account the support of uninterrupted production and shipment of finished goods.

SCM systems can be useful when marketers develop pricing policies, in the sense that the system can realistically estimate the cost of production. Since a full-scale SCM system “sees” the entire process of converting raw materials / materials into a final product, it can estimate the added value that was created during production, separate indirect and direct costs.

Ultimately, the goal of implementing SCM class systems is to increase the company's profitability by improving competitiveness, or, as they say, within the framework of strategic management. This is accomplished in two ways.

· Firstly, the SCM system allows you to significantly better meet the demand for the company's products. If the CRM system tells the company what and when customers demand, then the SCM system allows you to determine what and when the company should produce and purchase in order to meet this demand.

· Secondly, the SCM system can significantly reduce the cost of logistics and procurement. In the total cost of goods, such costs (depending on the industry) usually lie in the range of 10% -15%. Modern e-procurement systems and information systems for managing warehouses and logistics allow in some cases to reduce them to 1% -2%.

The concept is aimed at expanding functionality in the sphere of interaction of the enterprise with its customers CSRP (Customer Synchronized Resource Planning).

The corporate resources covered by the CSRP system serve such stages of production activities as the design of the future product, taking into account the specific requirements of the customer, delivery, warranty and service.

Thus, in the general case, ERP II - the system can be represented as in Figure 2.

 

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