From planning to implementation and integration are the trend SCM

First, the current most advanced planning are embedded in the ERP system, at least some real technical benefits could not be displayed. When referred to the planning and implementation, some things have changed. Based on the strong real-time information available, a method is evolving, about the implementation of planning models and decision-making more free real-time mix. Supply chain planning is a generic term, a producer based on forecasts, the existing order and the necessary resources available, based on what products to determine when production software applications. Supply chain planning is different from the material resource planning, which allows multiple constraints simultaneously generated on the basis of planning. Supply chain planning is the key to a lot of time it takes to extract from businesses and other systems required data through the network to send data stored in the planning model, the simulation running and feedback of results. As technology continues to improve, these limitations are gradually being overcome. User, for example, a few hours to solve the original problem, now can be solved in 30 minutes. Therefore, the model and the actual situation of the supply chain closer to synchronization, allowing decision-making simulation run.

“Today, planning is still very meaningful”, Gartner Group analyst Jeff Woods said, “We are not concerned with planning objectives, but clearly the importance of improving the implementation of technology.”

In fact some people are from the opposite direction to consider dealing with the “balance” issue. Cooper Tire and Rubber Company in 2002 in close cooperation with i2 Technologies, almost completed the entire supply chain management suite. Cooper Tire's supply chain implementation project manager Bob Sager said: “In the past we did not do a good job planning, and now we have developed a system to perform the good. Today, however, the complexity of our business was not only dependent on the implementation of the a. “

Necessary but not sufficient

The same as any type of planning, SCP is driven by forecasts, AMR research institutions GregAimi described it as “guess work.” It is complex. Aimi said, “virtually the same as the input data, some companies have full use of the SCP, but not the core.”

Many people complain it is too complex and expensive, takes a lot of time and used for the implementation of the data value is complicated.

“Some criticism is fair”, SCP vendor Manugistics products and solutions Andrew Zoldan, vice president of administration, said, “but it is emerging markets, need to give people some interval of time. We are only at the beginning of the journey, and is likely to be supporting the project beyond the limits of such false starts. 10 years ago, people think the plan will be extended ERP and has been very adequate. Now the company began to understand that planning is not entirely adequate, and then also need to develop plans and implement accordingly. “

Supply chain execution is a relatively new subdivision applications, from warehousing and distribution management. As vendors have extended the follow-up applications, including transport, delivery orders and event management. When the SCP time frame is week, month and quarter, SCE is based on real-time processing hours and minutes.

SCE is still mainly tactical, distribution center, through purchase orders associated with the production, not closely connected to track production orders and production processes. However, SCE slightly by delaying strategy involves the production, distribution center in order to complete the work of semi-finished products to the customer, also need the original bill of materials.

Market, in sharp contrast with the SCP, SCE provider Manhattan Associates and RedPrairie Corporation in 2003, saw revenues increase. Recent AMR's Bruce Richardson to Manhatttan Associates described as “the most profitable and operation of the best” supply chain management company, revenue 197 million U.S. dollars, the annual net increase of up to 14%. Compared with ManhatttanAssociates, RedPrairie company more than a small, but they limit new market entrants to achieve a license revenues up 44% of total revenue as high as 72 million U.S. dollars.

Not now, when?

Several factors play a role focused on the implementation of the market at the same time. These factors, the key is no matter how trivial a plan, must ensure that a greater response rate and the protection of the weak links in the supply chain adaptability. Globalization and events such as 9.11 and the west coast dock strike only strengthened the basic insight.

Manhattan Associatn PrashantBhatia director of product management, said, “an event can trigger many other events in the supply chain.” That when unplanned, destructive events appear inevitable, “must be more attention on optimizing the supply chain, the implementation capacity of all resources – including business partners, to meet the needs of existing customers.”

SAP Supply Chain Business Development Director Robert Ferrari said this is particularly true for the transportation side, “the company more aware of the chance events must take the initiative and find out how to manage the destruction of the incident as soon as possible.”

Transportation costs are rising due to a gradual increase of control and rising fuel costs caused. SCE in the third-party logistics, the more database management (cross docking) and provide a greater delay in the final time (lastminute) flexibility.

In addition, the most important point may be: SCE's importance is heating up, this is because the G artner analysts ChadEschinger's “in-transit visibility of goods” are valued at the same time products greater emphasis on market-oriented, demand-driven strategy for effective control costs, optimize profit opportunities for clients.

“Concern De focus has been the Bianhua happen: the original attempts to describe the optimization of product assets, Gong Chang and machinery of the blueprint, instead of yes shift Le focus on the customer,” AMR's Aimi said the “demand-driven supply network is used to complete the optimization of profitability opportunities. “

SCP / SCE Integration

Supply chain management to change the development prospects of a word: integration. Analysts and suppliers are fully recognized in the planning and implementation will be greater integration between. For example, in a recent user conference, ManhattanAssociates the company announced a number of leading technology into the solution. Manugistics and i2 Technologies company has a transportation management solutions. “How will the implementation and planning of synthesis? How to make the plan produced? Need to analyze why there is a deviation implementation and planning, while a set of mechanisms to control the implementation of the” solutions for the implementation of i2's CEO Pallab Chatterjee says. “In the past the planning and implementation are separated”, RedPrairie company strategy leader Mike Dempsey said, “when the company should be in the implementation of programs, or in the planning of the simultaneous execution.” AMR's Aimi described it in a tight time schedule, planning and are based on the implementation of the same event. He pointed out that the use of promotions and discounts that would make the formation of the company needs more certainty.

Million dollar question is who will control this integration?

ERP vendors that companies need a supplier to provide top-down all the packages, a supplier said SCP ERP vendors were not a suitable model, SCE is not able to support truly independent module suppliers. SCE is the only supplier that they can take advantage of the gradual accumulation of expertise from top to bottom to ensure smooth supply chain vendors.

Everyone is trying to expand their territory, stressing their advantages and reducing their own weakness. If the supplier has provided sufficient functionality and promised more, ERP vendors are likely to install the platform for less complex products a success. SCP vendors are likely to play a role in both ends and not the middle, they provide a strong service and to explore key technologies and standards. Everyone agrees that SCE occurs between supplier consolidation, especially in the areas of warehouse management, this is because the warehouse has a space of discontinuity. Short-term co-operation is beneficial for everyone, and everyone is dependent on the sustained economic recovery.

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