...SUPPLY CHAIN MANAGEMENT WITH SAP REFLECTIONS DAY 3 JANUARY 2012 DAY 3 KEY TAKEAWAYS * Basic data is created at the enterprise (client) level. General data is at the client level and is therefore the same for the entire enterprise. Purchasing data is created at the purchasing organization level. MRP’s are created at the plant level. * A company code is the smallest organizational unit for which accounting can be carried out. The balance sheet and income statement are generated at this level. With no cost center, there would be no accounting data. * The Organizational Structure for Financial Accounting (FI) consists of Client (entire enterprise), Company Code, and Credit Control Area. * The Material Management Organizational Structure consists of Client, Company Code, Plant, Valuation Area, Storage Locations, Purchasing Organization, and Purchasing Group. * Reconciliation Accounts are part of the General Ledger. Examples are Accounts Receivable (customers) and Accounts Payable (vendors). Entries to these accounts are system generated. * Account Groups include Balance Sheet Accounts, Reconciliation Accounts, and Income Statement/Profit and Loss Accounts. They are grouped by similar characteristics. * The Vendor Master can be created in accounting or in purchasing. The vendor master can also be created centrally, in which it will be created in both accounting and purchasing. * The Fiscal Year Variant determines the organization’s...
Words: 2158 - Pages: 9
...Thinking, viewed 5 September 2012, http://youtu.be/pEIXE9DI9e4.) System thinking is useful to global supply chains because it is an approach to problem solving, by viewing “problems” as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. System thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can be best understood in the context of relationships with each other and with other systems, rather than in isolation.() The company that this analysis will focus on is Coca Cola company, in particular it will focus of the challenges they face in globalisation, industry specific challenges, some risk and failure points, system thinking and the product life cycle. The coca cola enterprise is a globalised company with an iconic brand name that is known around the world. It is a global business with “17 manufacturing facilities spread out around the world, it produces 11 million bottles and cans per year and employs over 13,500 employees”.(http://cokecce.com) The risk associated with globalisation can be broken down in four sections. Supply, demand, operational and security risks. (metzgar ) states “Supply risk which is the distribution of outcomes related to adverse events in inbound supply that effect the ability of the focal firm to meet customer demand ( in terms of both quantity and...
Words: 1603 - Pages: 7
...crossroads about what to do with the situation. Key Issues and Problems The first and most obvious problem was that most to all of the projects were somehow funded on the old process or at the very least received little funding, however with the new process in place, projects with a rank of a 2 or 3 are rarely selected to receive funding which many considered unfair. Additionally, many argued the fact that IT infrastructure projects are not forced to withstand the same process and were treated separately was not reasonable and again was unfair. Another implication was that a project which is critical to the company and its global supply chain management was left only partially funded. The company’s multiyear SAP implementation was only midway finished and additionally needed full funding to stay on track, which in turn caused major conflict with the supply flow people. A potential problem that Dr. Matulovic may be faced with is that the leader of each business unit was a member of the Executive Leadership Team (ETL) and so therefore was aware and tempted to align project goals to be considered important to the company in order to improve the chances of acquiring funding. This gives little emphasis on individual business...
Words: 695 - Pages: 3
...1. INTRODUCTION 1.1 DISTRIBUTION Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. 1.2 DISTRIBUTION CHANNEL It is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones. Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. Distribution channels are probably the most visible aspect of any company’s marketing efforts. A recent estimate puts the number of retail out lets in India at 5 million. The retail industry provides livelihood to more than 15 million people in the country. If one included in this the number of distributors, wholesalers, agents including the army of life insurance agents,...
Words: 2232 - Pages: 9
...Colgate-Palmolive CreatiNg a glObal SuPPly CHaiN the Colgate-Palmolive Company sells oral care, personal care, home care, and pet nutrition products in over 200 countries and territories. Since implementing its first SaP® solution in 1994, Colgate has significantly improved global visibility for its supply chain management processes, automated many of these processes, improved supply chain decision making, increased the speed to market for its products, and reduced costs. SAP Business Transformation Study Consumer Products Oral, Personal, and Home Care and Pet Nutrition CONteNt 3 4 7 9 10 11 13 14 Colgate-Palmolive Creating a Global Supply Chain Supporting an International Enterprise Helping Ensure Supply Chain Success Reducing Total Cost of Ownership Transforming Business Processes Future Road Map Building a Firm Foundation Colgate-Palmolive better Data Quality, timeliNeSS, aND aCCeSSibility QuiCk faCtS Industry Consumer products – oral, personal, and home care and pet nutrition Revenue uS$15.3 billion Employees 36,000 Headquarters New york City Web Site www.colgate.com SAP® Solutions and Services SaP® Supply Chain management application Implementation Partner SaP Consulting organization Implementation Best Practices • involved global cross-functional business and it teams • appointed a global owner to drive process standardization across subsidiaries • tested real-life scenarios and used pilots in significant markets before global rollouts • Worked closely...
Words: 4514 - Pages: 19
...Giant B2B Portal Supply Chain Management Habiel. Zakariah, Faculty of Computer and Mathematical Science, UiTM Shah Alam, Selangor, Malaysia habiel86@yahoo.com.my GCH Retail (M) Sdn. Bhd is Malaysia's leading retailer. The group offers customers value-for-money through low-cost, efficient distribution of high quality foods and consumer goods in its supermarkets, superstores and hypermarkets. It also provides health and beauty products via its pharmaceutical retail outlets. In Malaysia, Giant is synonymous with everyday low prices, big variety and great value and recognized for offering the most vibrant, comfortable and complete shopping environment. With over than 150 outlets all over Malaysia including Brunei, the needs of systematic system is essential in order to make sure daily business transaction going smooth without interruption. This paper will focus on the Supply Chain Management (SCM) as this is one of main parts in the retail business. From APICS Dictionary it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally”. Previously in the daily business process, all the outlets in Giant used fax as a medium to communicate with the suppliers. At this time request orders is send via fax machine when outlet wants to do the ordering. Here...
Words: 1102 - Pages: 5
...Supply Chain Management According to APICS, a supply chain is a “Global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution and cash.” The Basic Supply Chain consists of three units….Supplier, Producer and Customer Four basic flows connect these entities together: 1. The flow of physical materials and services from suppliers to producer to customer 2. The flow of cash from the customer back “upstream” toward the supplier 3. The flow of information back and forth along the chain 4. The reverse flow of products returned for repairs, recycling or disposal.(This is called reverse supply chain and is handled by reverse logistics.) Value Chain (Vs) Supply Chain A Value Chain can be any series of activities that increases the value of a product or service as it passes through stages of development and distribution before reaching the end user. Supply Chain is but one part of value Chain. In basic terms, your supply chain consists of your suppliers, your customers and of course, yourself—the producer. Your extended supply chain adds your supplier’s supplier and your customer’s customers to create your extended supply chain. In order to maximize your competitive advantage you need to strengthen your whole supply chain (the extended supply chain) and turn-it into a value chain. Converting supply chains into value chains is a powerful strategy. Supply chains consist of weak bonds and can be broken...
Words: 2365 - Pages: 10
...1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned? 7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality. An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative...
Words: 2460 - Pages: 10
...2. 2. • Summit Electric Supply Co., Inc. engages in the wholesale distribution of electrical equipment, supplies, and solutions for the electrical professionals in the United States and internationally. • This company is one of the top wholesale distributors. Summit obtains finished goods from manufacturers and sells them to electrical contractors working on projects ranging from small construction job to sophisticated industrial projects. • This company was known as middle on the supply chain, so it must be able to handle high volume of transactions and swift inventory turnover. • However, the information built in the 1980s could not keep up with the business growth, it could only handle a fixed number of locations and limited the range of numbers that could be used on document. Introduction 3. 3. Question 1 : Which business processes are the most important at Summit Electric Supply ? • The company is known as a one of the top distributors, Supply chain management played the most important business process at Summit Electric. Supply chain management (SCM) is the management of the flow of goods. • It includes the movement and storage of raw materials work-in-process inventory, and finished goods from point of origin to point of consumption. 4. 4. Why ? • The reason business processes are the most important is both manufacturers and end users rely on distributors to efficiently bring products to market. • As the ‘middle men’ of the supply chain, distributors thrive on high...
Words: 1489 - Pages: 6
...CASE STUDY December 2002 Procter & Gamble: Building A Smarter Supply Chain Issue/Solution To remain profitable, consumer products manufacturers must find ways to optimize the performance of their supply chains. They need to support marketing promotions better and avoid frustrating consumers with out-of-stock situations in the store. Situation • Procter & Gamble realized it needed a “consumer-driven supply network” to stay ahead in the consumer packaged goods industry. Retailing’s “first moment of truth” is a key focus area for P&G. When the shopper reaches the shelf, is the product there? • Discoveries • • Links between supply chain and CRM processes are critical. Business leads, technology follows. But the technology must be proven, practical and scalable. Even with immature solutions, it is possible to get rapid payback on streamlined demand and fulfillment processes for critical products. A harmonized ERP applications backbone is a basic requirement. • • Recommendations • Secure management support before you start redesigning your supply network. Don’t let politics condemn the initiative to failure. Leverage the value IT can bring in connecting demand and supply side business processes. Simplify your applications architecture to allow collaborative business processes and cope with changes in network alliances. • • Dig Deeper • • • Related Research from GartnerG2 Gartner Core Research Methodology Maria Jimenez with Derek Prior ...
Words: 3062 - Pages: 13
...1- How do CCHBC's supply chain management practices help them to achieve their four major strategic aims? Coca Cola HBC’s efficient and competent supply chain management is aimed at fulfilling its four strategic goals of availability, affordability, acceptability and activation thereby continuously meet the changing demands of customers and the market place. Extensive planning by all concerned depts. viz production, marketing and operations is involved in designing a cost effective and result oriented supply chain. Historical data about consumer behavior is used to forecast demands on a weekly basis. Production planning based on long term forecasting is futile in present dynamic markets and hence the demands forecasts are continuously reviewed and discussed with production, operations and marketing and advertising departments. A consensus is reached on a figure which satisfies company’s profit motive without taxing the production unit’s capacity or compromising customer service in terms of availability of the right product at the right place at the right time. Cooperation and effective communication of all the team members is vital to such a flawless planning process. An efficient supply chain relies heavily on its retailers, suppliers and other members involved in logistics. The company strives to maintain good relations with all members of supply chain to understand needs of its intermediate customers so as to optimize costs along entire supply chain and reach its ultimate...
Words: 644 - Pages: 3
... Simulation Models For Supply Chain Design By, Toney Randle November 14, 2011 B6110 XA Supply Chain Optimization and Outsourcing For Professor Judith Blando Argosy University Atlanta How good is Simulation Software? In the Real World Sounds like talk of some blockbuster movie like the Matrix or something. Looking a little deeper, there appears to be a sort of familiarity of flavors when one really looks deeper into the goings on with software when it is introduced in to a real world challenge. Can simulation software predict and create the perfect world for supply chain managers. Can the technology really live up to the hype? Some would say the technology is groundbreaking and has not yet reached its full potential. So, who is using the stuff? Is it making a difference in the real world? Let’s find out. There happens to be a product that’s a hit in the supply chain software market and some say its living up to the supply chain management hype. Software mogul, LLamasoft is reporting, “LLamasoft is a proven leader in supply chain modeling and analytics software. Every year, companies save millions of dollars and significantly improve their supply chain service levels using LLamasoft products and expert support services (Supply Chain Designer has a new leader, 2011).” The proclamation has been made. On top of that, the company boasts of the latest product, “Supply Chain Guru has achieved certified integration with SAP applications. The solution...
Words: 618 - Pages: 3
...Topic: Decision Support Systems for Supply Chain Management and Design A. Summary: Supply chain management (SCM) has evolved to become an integral part of the operations management. SCM can have tremendous impact on organizational performance in terms of cost, quality, flexibility an responsiveness in the global market. Companies are investing in data driven decision support application frameworks to help then response to the changing market condition and customer needs. A more defined organizational structure, performance metrics and decision support systems (DSS) in SCM is required to create competitive advantages for an organization. Since Information Technology/Information System (IT/IS) is an integral component of SCM, DSS is inevitable in making available the right information at the right time so that managers can make timely and more accurate decisions. However, there is no best known DSS type that is required to effectively manage a supply chain. A properly designed DSS will help decision makers to extract useful information from raw data, documents, personal knowledge and/or business models with the objective of identifying and solving problems, and making decisions. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. The DSS in supply chain management can be a model, communication, data, document and knowledge driven. Three fundamental components of DSS...
Words: 2843 - Pages: 12
...Nike I2 ERP Implementation Failure Case Study February 9, 2014 Shafer Minnick Morgan Correll Jeff Harvey Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies: Nike Brand Cole Haan Converse Hurley International Umbro Athletic Wear Nike Golf Jordan Brand This is a rather long and somewhat surprising list to many, based on some of these brands are portrayed as competitors in the daily consumer market. Nike products are sold in over 170 countries worldwide through their network of 700 retails stores. They have 38,00 Nike employees worldwide, based in those retail store, or one of 65 administrative offices or 10 plus Sales Offices or showrooms worldwide. Nike products are manufactured through a contract manufacturing partnership consisting of 900 contract plants worldwide using over 1 million contract employees. These same plants are managed by their local ownership, but Nike spends significant time and money coaching these plants in the Nike sustainable manufacturing plan. The Nike Strategy The Nike Business strategy focuses on Innovation. First the “Innovation to Serve the Athlete”-meaning they desire to design and produce the best products for athlete safety and performance. They want to be the leaders in new and improved products to advance athletic performance. Secondly, “Innovation to Grow the Company”- Nike wants...
Words: 3176 - Pages: 13
...A Modern Supply Chain for a Classic Beverage When it comes to the world’s most powerful brands, Coca-Cola is still number one. The iconic beverage maker, which has dominated the global soft drink market for more than a century, continued its 12-year reign at the top in 2011, according to Interbrand’s latest global rankings. For Coca-Cola, achievements like this are byproducts of a vision and an operating framework that is built on excellence. At Coca-Cola Enterprises (CCE), the exclusive Coca-Cola bottler for its territories in Western Europe, the company’s goal is to be the number 1 or strong number 2 choice in every category it competes in. But on the road to long-term, sustainable growth, CCE faces similar challenges to many other manufacturing and logistics businesses. A top priority is replacing dated systems with a modernized platform across markets to create a cohesive view of metrics and streamlined processes. Bottling iconic brands in Europe CCE is one of the world’s largest marketers, producers and distributors of Coca-Cola products. CCE buys concentrate from The Coca-Cola Company and combines it with other ingredients to create some of the most popular beverages in Belgium, Great Britain, France, Luxembourg, the Netherlands, Norway and Sweden. In 2010, CCE completed a significant transaction with The Coca-Cola Company, selling its North American operations, while retaining its European territories and acquired new bottling rights for Sweden and Norway. CCE’s...
Words: 863 - Pages: 4
