This paper introduces the optimal design of enterprise supply chain, and discusses in detail the optimal design ideas of ERP supply chain, traditional supply chain and supply chain business process based on advanced planning system (APS).
Keywords: traditional supply chain management, enterprise resource planning supply chain management, advanced planning and scheduling supply chain management
With the deepening of reform and opening up and the improvement of market economy, enterprises gradually move towards the market and join the torrent of fierce competition in the market. The fierce competition makes them realize that the scale effect of enterprise groups, sincere cooperation with partners and the pursuit of common interests are the magic weapons to survive, fight and win in the torrent. With the rapid development of science and technology, the modern marketing concept centered on customers has gradually replaced the marketing concept centered on production and products, and made them realize that enterprises can find customer needs with keen insight, and use various advanced technologies in the shortest time to meet this demand with the lowest cost and best service, so that they can stand out in the fierce market competition.
In recent years, in order to meet the needs of the times, market and competition, manufacturers, distributors and agents have introduced the concept of supply chain management. The concept of supply chain was put forward in the early 1980s, but the real development was in the late 1990s. SupplyChain is translated from English "supply chain" and supply chain management is translated from English "SupplyChainManagement(SCM)". The market competition in 2 1 century is no longer the competition between enterprises, but the competition between supply chains. Only by forming a supply chain with other enterprises can any enterprise gain the initiative in competition. Traditionally, most enterprises think that they exist independently of other enterprises and compete with them for survival. The confrontation between suppliers and upstream and downstream is often more than cooperation, and many enterprises still seek to reduce costs or increase profits at the expense of other members of the supply chain. Many enterprises don't realize that simply shifting their costs to the upstream or downstream can't make them more competitive (maybe effective in the short term), because all the costs have to be passed on to the final consumers by the market. Leading enterprises realize the mistake of this traditional concept and try to improve the competitiveness of the whole supply chain by increasing the value provided to consumers and reducing the cost of the whole supply chain.
Why does it take days and months from raw materials to finished products, while the manufacturing time is only a few minutes and hours? Why is the retailer's inventory generally around 10 weeks, while the manufacturer has weekly manufacturing capacity? Why do operators always evaluate the value of production instead of meeting the needs of customers? Why do you always feel that the demand is inaccurate? Demand and supply always do not match? The answer is simple, the supply chain is not synchronized and there is no optimization.
First, the traditional supply chain planning model
Traditional supply chain planning has three modes: vertical mode, horizontal mode and comprehensive mode. In vertical mode, we can see that the mode setting is complicated, and it is convenient to calculate only with DRP, but the speed is slow; In the horizontal mode, we can see that the setting of this mode is relatively simple, but the calculation is more complicated (MRP/MPS/DRP). Comprehensive mode is a common mode in daily life. A single organization uses internal MPS/MRP and external organizations use DRP. We can see that the setting is simple and the calculation is flexible.
Second, the supply chain planning of ERP
The supply chain planning of ERP is to plan all organizations, use DRP to plan distribution channels, support centralized and distributed plans, and expand their plans to customers and suppliers; DRP is a planned distribution center or customer, which can define and execute single or multiple organizational plans and query the supply chain in reverse. BOD supports a variety of settings, including inside and outside the enterprise, and defines the priority and effective date of each supply; It is necessary to define the supply chain network, supply plan, allocate materials to the distribution list (BOD), and plan the supply chain in synchronous sequence (non-optimization).
Thirdly, supply chain optimization based on APS.
1. Scope and content of supply chain optimization based on APS
Maximize customer and consumer satisfaction. Meet customer needs and customer service at the lowest cost. Reduce uncertain supply and demand. Through capacity constraints, supply constraints, transportation constraints and so on. It also includes non-physical constraints, such as customers or priority areas (automatic allocation of limited supply), safety stock and batch size. Combine all the demands in the supply chain, such as sales forecast, customer orders and supplementary orders, and all the supply channels in the supply chain, including raw material inventory, semi-finished goods inventory, confirmation of distribution orders, confirmation of production orders and confirmation of purchase orders. APS uses this information at the same time to compare the demand information with the existing constraints, and when the three elements are not met, it will immediately generate a warning message. Through the supply chain, such as dozens of factories, dozens of distribution centers and hundreds of sales channels, we can balance and optimize demand, supply and various constraints in real time. This means that once there is an unexpected change, changing demand, supply and constraints, APS can immediately see its impact.
Optimize costs and services through the entire supply chain. Establishing an effective model with APS is an effective customer response (ECR), which enables the cooperation between manufacturers and retailers to provide better value services to consumers.
Reduce non-value-added activities in the supply chain. BPR was carried out before APS was implemented. Use JIT management concept to eliminate waste and reduce preparation time, documents and administrative management.
Frequently adding too complicated management schemes in the supply chain will still increase the cost. Management plan depends on sales forecast, however, there are many inaccurate factors in sales forecast itself, so strengthening sales may realize the accuracy of sales forecast. However, suppliers, manufacturers and distributors in the supply chain do not have sufficient supply capacity, production capacity and transportation capacity. In this way, the sales plan will cause the sales loss of the enterprise and exceed the cost. It is actually efficient to put forward a complicated scheme without solving the basic problem.
Demand information and service demand should be transmitted to the upstream and enjoyed with minimal distortion. Use APS to balance long-term demand, supply and constraints by planning time zones, and at the same time see the supply chain problems that occur. Because of the real-time and two-way replanning ability, planners have the ability to perform various simulations to meet the optimization plan. These simulations provide real-time response. For example, what should my safety stock level be? Is this the lowest cost solution? Are the resources I use optimized? Does this plan meet my customer service level? Did I maximize my profit? What can I promise?
Synchronizing supply and demand is an important goal of service and cost. There are several factors that affect this matching: (1) mass production. (2) to maintain the high efficiency of production, rather than meet customer needs. (3) Non-synchronization leads to high inventory level and frequent changes in inventory level.
Reliable and flexible management is the key to synchronization. Reliable and flexible operation should mainly focus on production and distribution. The role of sales and marketing is to find demand.
2. A set of core competencies on which 2.APS depends
To achieve these advanced planning functions, APS relies on a set of core functions:
The speed of calculation. Memory-based computing structure is 300 times faster than MRPII/DRP. This calculation process can be continuous and gradual. This completely changed the calculation mode of MRPII/DRP batch processing.
All supply chain constraints can be considered at the same time. When each change occurs, APS will simultaneously check the capacity constraints, raw material constraints and demand constraints. Unlike MRPII/DRP, each plan only considers one type of constraint. This ensures that supply chain planning is effective at all times.
Constraint-based planning-hard constraints and soft constraints.
APS can spread to both upstream and downstream.
Implement problem solving and supply chain optimization algorithms in interactive planning environment. It has the ability to make an effective plan that reflects all constraints. In addition, a plan that can generate the maximum profit.
3. Relationship among 3.APS, SCM and ERP
APS is the core of supply chain management, which can replace ERP forecast plan, DRP, MPS, MRP, CRP and production plan. APS can't manage goods receiving, raw material consumption, delivery, invoicing, document management, finance, production order issuing, purchase order issuing and customer order receiving. APS cannot handle data maintenance, such as material master file maintenance, BOM maintenance, process path maintenance, supply and equipment maintenance, capacity table and priority maintenance of suppliers, customers and resources.
To sum up, the optimization of enterprise supply chain management is to re-plan the supply chain in real time after emergencies, to ensure the feasible scheme of continuous optimization, and to ensure that the supply chain system is recalculated and financially optimized according to predefined business rules.
References:
[1] Weng Xingang. Fundamentals of logistics management [M]. Beijing: China Materials Publishing House, 2006+075.
[2] Li Yanfeng, Zhang Lijuan. Modern logistics management [M]. Northeast: Dongbei University of Finance and Economics Press, 2005, 8+0.
[3], Lin, Electronic commerce and modern logistics [M]. Beijing: Peking University Publishing House, 2005.276.
[4] Huo Hong. Logistics Department, supporting materials [M]. Beijing: China Materials Publishing House, 2004.58-59.
Precautions:
1, APS: advanced planning system, which has synchronization, real-time, constraint ability and simulation ability for all resources, whether it is materials, machinery and equipment, personnel, supply, customer demand, transportation and other factors that affect the planning; Both long-term and short-term plans have been optimized, compared and implemented. It adopts a memory-based computing structure and can be used for continuous computing.
2.DRP: Distribution requirements planning refers to a planning method that can effectively meet the market demand and minimize the allocation cost of logistics resources. It is the application of MRP principle and method in goods distribution.