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ERP Supply Chain Management

13 important questions on ERP Supply Chain Management

Supplier Relationship Management (SRM)

refers to a company's comprehensive approach to managing interactions with its suppliers, SRM personnel are responsible for maintaining regular contact with suppliers, determining their needs, and letting them know what their own needs are.

Supplier Performance Management (SPM)

is a tool for sharing data between buyers and suppliers. Buyers can assess supplier performance using a host of metrics, including quality, delivery, cost and responsiveness in an effort to cut cost, reduce risks a drive continuous improvement.

Warehouse Management System (WMS) =

supports the day to day operations in a warehouse. it includes logic to control the movement of the inventory into, out of and through the warehouse and provides the exact location of inventory in the warehouse.

WMS will facilitate picking methods such as;
Two step picking
wave picking
serpentine picking

Two step picking --> warehouse employees pick the required materials for a group of customer orders (useful in small package shipping environment)
Wave picking --> customer deliveries are organized based upon common characteristics such as route, carrier or scheduled time of departure.
Serpentine picking --> the systems directs warehouse staff up on aisle and down the next snaking motion, which optimizes the movement of workers through the warehouse

WMS can provide number of options for maintaining inventory accuracy
- Wall to wall inventory
- Cycle counting
- Dynamic cycle counting

wall to wall inventory = regularly scheduled physical inventory count
cycle counting= continually counting inventory, every item in the warehouse counted at least several times over the course a year (small inventory)
Dynamic cycle counting = allows normal warehouse operations to continue during bin counts without the requirement for bins to be blocked

Material requirements planning (MRP) =

A software- based production planning and inventory control system. It assists production managers in scheduling and placing orders for items of dependent demand.

Which 4 objectives MRP has to meet;

1. materials are available
2. finished goods are available
3. maintain the lowest possible raw material and finished goods inventory levels
4. Plan manufacturing activities, delivery schedules and purchasing activities.

Input of MRP
- Master production schedule (MPS)
- Bill of Material (BOM)
- Inventory status report

Master production schedule (MPS) -->a plan detailing what finished goods to produce, in what quantities and at what dates.
Bill of material (BOM) --> the list of materials necessary to make a finished product.

Inventory status report --> contains information about the on-hand balance of inventory including raw materials, subassemblies and even finished goods.

Output MRP
- Purchasing plan
- Capacity plan

Purchasing plan --> details what needs to be purchased and when POs should be released so that the materials will be received in time to support production
Capacity plan --> detail the star and completion dates for planned orders while taking into consideration the availability of production personnel and machines.

Plant Maintenance (PM) =

helps organization increase the availability of plant assets (bedrijfsmiddelen), reduce the number of breakdowns through preventive maintenance, coordinate and employ personnel to complete maintenance an malfunction work orders and reduce the costs of maintenance and inspections.
Goals for implementing PM: - Extend the useful life of equipment - Minimize downtime and maximize uptime of equipment - Improve communication and collaboration between production and maintenance staff - Monitor equipment performance and utilization- Lower costs of maintenance, production, and labor costs - Comply with safety and emission regulations

Supply Chain Technology =

seeks to eliminate much of the guesswork between suppliers, manufacturers, retailers and customers by enabling more visibility up and down the supply chain. Companies must overcome various obstacles in order to fully realize the value, such as:
1. Gaining trust from suppliers and partners
2. Resistance to change
3. Making mistakes at first

Radio frequency identification (RFID); consist of tiny computer chips called tags that are embedded in products and packaging, allowing them to be tracked via wireless networks by an transceiver.
two types of tags
1. active tags
2. passive tags

active tags has a internal battery that constantly transmits data
passive tags do not have a battery and only transmits data when the transceiver activates them by coming within a certain range

Vendor Managed Inventory (VMI)

Is a process for organizing inventory replenishment in which the buyer of goods sends its supplier information about sales and inventory levels and allows the supplier to make decisions about restocking.

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Enterprise information systems

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ERP Supply Chain Management

13 important questions on ERP Supply Chain Management

Supplier Relationship Management (SRM)

Supplier Performance Management (SPM)

Warehouse Management System (WMS) =

WMS will facilitate picking methods such as; Two step picking wave picking serpentine picking

WMS can provide number of options for maintaining inventory accuracy - Wall to wall inventory - Cycle counting - Dynamic cycle counting

Material requirements planning (MRP) =

Which 4 objectives MRP has to meet;

Input of MRP - Master production schedule (MPS) - Bill of Material (BOM) - Inventory status report

Output MRP - Purchasing plan - Capacity plan

Plant Maintenance (PM) =

Supply Chain Technology =

Radio frequency identification (RFID); consist of tiny computer chips called tags that are embedded in products and packaging, allowing them to be tracked via wireless networks by an transceiver. two types of tags1. active tags 2. passive tags

Vendor Managed Inventory (VMI)

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WMS will facilitate picking methods such as;
Two step picking
wave picking
serpentine picking

WMS can provide number of options for maintaining inventory accuracy
- Wall to wall inventory
- Cycle counting
- Dynamic cycle counting

Input of MRP
- Master production schedule (MPS)
- Bill of Material (BOM)
- Inventory status report

Output MRP
- Purchasing plan
- Capacity plan

Radio frequency identification (RFID); consist of tiny computer chips called tags that are embedded in products and packaging, allowing them to be tracked via wireless networks by an transceiver.
two types of tags
1. active tags
2. passive tags