Inventory management related to scm means. Supply chain management system SCM (Supply Chain Management). What is SCM

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, Arthur Andersen) in the early 1980s and subsequently gained great popularity. Since 1989 scientists different countries try to structure this concept.

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

Based on this definition, it can be concluded 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 leadership 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;

Support production processes;

Supply management;

Managing product development and bringing it to commercial use;

Returnable material flow management.

Until recently, the SCM concept was in fact 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 along all supply chains. The interpretation of SCM logistics is similar to some reasoning about the concept of "marketing" when it is understood as both a concept and 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's definition, "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 you to solve the problems of integrated management of functional areas of logistics and coordination logistics process firms 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 adoption of the SCM concept (Supply-Chain Council, USA). The same direction is devoted to international conferences(for example, the annual conference of the Logistics Management Council entitled: Collaborative 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. The 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 Technology v corporate systems ERP using the SCM concept is 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 complex 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, as in many cases, going online means moving from wholesale to retail and from mass 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 the supply of a huge number of small batches plus the individualization of customer relationships are the modern criteria for success. ecommerce and logistics. A new business strategy emerges. Now, effective ways of interacting with the client, allowing him to become a link in the supply chain himself 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.

Yet potential e-business even on the basis of a single concept, CRM + SCM is not fully implemented. 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 unified 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 lies in the fact 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 from " 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 "distributed", but a single 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 produced; it is supplied 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 that are 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 a "feedback" can consist, for example, in the fact that in one store they sell computers with large disks, and in another - with modern video cards and large memory, therefore, the assortment software for these stores should be different. We also need different cases and monitors, if the company focuses on "standard 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 warehouse system. service centers, exchange funds or system wholesale warehouses food products of mass demand, for example, sugar, salt, cereals and similar products, which are little subject to special requirements for packaging and are poorly differentiated in quality. The DRP concept has been introduced for a long time, for example, in such software products as with 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 purchase and sale process as a kind of "production").

Typical tasks that the SCM module solves in the CIS are:

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

circuit optimization 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 by system integrators of the SCM module 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 supporting thin 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 focus from management separate types resources for 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 solving the main goals of improving the quality of customer service and reducing costs throughout 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 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 systems for advanced planning and formation calendar charts... 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) - execution of supply chains in real time.

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 residues, 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 makes it possible to increase profits by 50-130%. An efficient supply chain can be strategic competitive advantage both manufacturer and 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-divisional forecasting by division becomes easier, and the movement of goods between divisions, 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 covers 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 the 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 along the entire chain in on-line mode and process returns in various departments increases 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 for data analysis, control key indicators performance KPIs, including those related to supply, and finally, creating a strategy map to link the KPIs into a 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 a company in last years has undergone significant changes. Previously, it was based on a linear approach to the analysis of logistics processes, in which each enterprise focused 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;

Supply Chain Management, SCM) are designed to automate and manage all stages of the supply of the 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 - (eng. 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 - (eng. Supply chain execution) - execution of supply chains in real time.

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 imports, exports, internal and external movements), 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 life cycle products, i.e. the process of development, production, sale of finished products and their after-sales service.
Supply chain management is a business strategy that provides effective management of material, financial and information flows to ensure their synchronization in distributed organizational structures.

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 stock 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 residues, transport capacities, various restrictions and business rules.

Links

Wikimedia Foundation. 2010.

See what "Supply Chain Management" is in other dictionaries:

Supply chain management- (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work in process inventory, and finished goods ... ... Wikipedia

supply chain management- ➔ management * * * supply chain management UK US noun [U] (ABBREVIATION SCM) PRODUCTION, COMMERCE the activity of being in charge of and controlling the process of getting a product from the place where it is made to customers ... Financial and business terms

Supply-Chain-Management- Gegenstand des Supply Chain Managements sind komplexe und dynamische Lieferanten und Kundennetzwerke. (vgl. Wieland / Wallenburg, 2011) Der Ausdruck Supply Chain Management (SCM) bzw. Lieferkettenmanagement, deutsch auch Wertschöpfungslehre,…… Deutsch Wikipedia

Supply Chain Management- Der Begriff Supply Chain Management (SCM) bzw. Lieferkettenmanagement bezeichnet die Planung und das Management aller Aufgaben bei Lieferantenwahl und Beschaffung, Umwandlung und aller Aufgaben der Logistik. Insbesondere enthält es die…… Deutsch Wikipedia

supply-chain management- The management of the links between an organization and its suppliers and customers to achieve strategic advantage. Many specialist companies now offer to manage the whole of the supply chain, on behalf of manufacturers. Supply chain management ... ... Big dictionary of business and management

Supply chain management- Gestion de la chaîne logistique Pour les articles homonymes, voir SCM. Ne doit pas être confondu avec Gestion de configuration logicielle. La gestion de la chaîne logistique (GCL) (en anglais supply chain management, SCM) est l activité qui… Wikipédia en Français

Supply Chain Management- 1. Begriff: S.C.M. bezeichnet den Aufbau und die Verwaltung integrierter Logistikketten (Material und Informationsflüsse) über den gesamten Wertschöpfungsprozess, ausgehend von der Rohstoffgewinnung über die Veredelungsstufen bis hin zum ... ...

supply chain management- / sə plaɪ tʃeɪn ˌmænɪdʒmənt / noun the management of the movement of goods and the flow of information between an organization and its suppliers and customers (NOTE: Supply chain management covers the processes of materials management, logistics, ... ... Marketing dictionary in english

supply chain management- A cross functional approach to procuring, producing, and delivering products and services to customers. The broad management scope includes sub suppliers, suppliers, internal information, and funds flow. See also supply; supply chain ... Military dictionary

supply chain management- ● en loc. f. DECI Voir SCM ... Dictionnaire d "informatique francophone

Books

Supply Chain Management in the Drug Industry. Delivering Patient Value for Pharmaceuticals and Biologics, Hedley Rees. This book bridges the gap between practitioners of supply-chain management and pharmaceutical industry experts. It aims to help both these groups understand the different worlds they live in ...

Growing rapidly, demonstrating the important role that software solutions play in effective supply chain management.

The total SCM market revenue for 2013 was $ 8.944 billion (including purchasing apps), up 7.4% from 2012 revenue. No procurement applications - only on products such as WMS (warehouse management systems), TMS (transportation management systems), etc. - in 2013 the market earned $ 6.1 billion, exceeding the figure for 2012 by 9%. According to Gartner's estimates, the compound annual growth rate from sales of SCM products will be 9.9% over the next 5 years, reaching $ 9.8 billion by 2018.

Top 5 market leaders were:

SAP- $ 2.138 billion, with profit growth of about $ 400 million or about 20% thanks to the addition of Ariba to its product range;
Oracle- $ 1.455 billion;
JDASoftware- $ 445 million;
ManhattanAssociates- $ 167 million excluding profit from sales of physical equipment, with a combined revenue of $ 414 million;
ToolsGroup - $ 275 million ;
Epicor- $ 159 million;

Here, we especially wanted to point out that such a spread in numbers should not scare or cause distrust in such market players as JDA, ToolsGroup, ManhattanAssociates and Epicor. These are O companies that specialize exclusively in supply chain management software. They have proven their worth, the statement that "SAP and IBM are not a panacea", they can be trusted and they offer no less interesting, effective solutions, which are more acceptable to customers in terms of cost. Especially, we believe these companies may be relevant in Russia and the CIS countries.

The most important trends in the development of the industry

In the past year, the following trends were observed in the categories ERP (Enterprise Resource Planning Systems) and SCP (Supply Chain Planning); WMS (warehouse management systems); TMS (Transportation Management Systems); and MES (Manufacturing Execution Systems).

ERP/ SCP/ SCM

Planning systems recorded 10% growth last year and $ 3.4 billion in profits. The following trends were observed in this category:

It's all about stocks . Last year, there was interest in optimizing inventory, resulting in an 11% increase. This is the result of companies' continued interest in reducing investment in inventory while maintaining or increasing investment in service levels.
Another good year for S & OP (sales and operational planning). For the second consecutive year, S&OP applications, which closely link supply chain work with marketing and sales work, recorded 20% growth. These applications allow you to extract information from various sources and use it for real-time action. With the help of S&OP analytics, applications can create a script in a matter of hours, which previously took days with spreadsheets.
Cooperation on a multi-business platform . Companies are increasingly looking to take advantage of their supplier and customer networks. SAP's acquisition of Ariba, which serves 1.5 million companies, is the clearest example of this trend. One such vendor can be highly integrated enough to bring together buyers and suppliers in a given industry. It also contributes to greater business transparency.
Popularity of cloud technologies ... The cloud computing environment is growing at about 25% per year. More and more companies are migrating some of their operations to the cloud. However, in today's marketplace, the cloud is more used for networked applications such as transportation and procurement management.
Positions ERP intensify . As in the past year, ERP vendors such as SAP, Oracle, Infor and Epicor continue to hold their market share. Manhattan leads the way in revenue, but other ERP vendors are expanding their customer base at a pace faster than market development. Thanks to their reliable WMS solutions, these companies can already recruit very large clients, because if given client already uses an ERP solution from a vendor, implementation of a WMS solution from the same vendor is much easier.
One platform . Companies have long sought to optimize silos in their operations such as transportation and distribution. Now they are interested in doing all the different functions on one platform so that they can be synchronized and optimized. Manhattan and SAP have been developing similar platforms for a long time, unlike other developers who offer separate integration solutions.
Work planning . This is a new kind of application developed by Manhattan and JDA that allows you to organize work at all stages (from receipt of an order, selection of components on order to transportation): schedule work, ensuring that the necessary work force and equipment at the right time and in the right place.

WMS

The warehouse management systems market grew by 3% in 2013, reaching just over $ 1.1 billion, and continues to grow.

Union WMS / WCS . As companies increasingly automate their manufacturing, especially in the area of multi-channel commerce, the distinction between WMS (Warehouse Management System) and WCS (Warehouse Control System) is increasingly blurring, and users are beginning to value WCS more than ever before.

The transportation management software market grew 12% in 2013, reaching revenue of approximately $ 820 million.

Development of TMS for small shipping companies . Over the past year, medium-sized carriers' transportation costs have grown from $ 25 million to $ 100 million. The industry is currently looking for a leading strategy to serve small and medium sized carriers.
More analytics . Several leading TMS developers today offer scripting tools that go beyond traditional scheduling. For example, what will be the most profitable way of transportation, if the fuel surcharge increases by 10%, or what will be the required capacity of this enterprise in 4 months, so that you can agree with the transport agency today.
Mobility . Software solution providers are moving away from custom hardware that needed to be installed in the cab of a truck. Instead, applications are being developed that run on smartphones and tablets. Less bulky, they offer a more modern interface and can take advantage of social media.

Gartner estimated revenues from MES solutions last year at $ 1.6 billion, approximately $ 100 million more than in 2012. ERP solutions developers who add MES to their portfolios also have a significant contribution to this. The key incentive is the desire to achieve the promotion of information within the manufacturing enterprise.

The clearest example is the example of a food and beverage company that in its first year, by improving visibility in the use of its raw materials, managed to save $ 800,000 by adjusting the amount of raw materials used in each batch. This is an example of Manufacturing Intelligence that helps you achieve quick profitable results in a year, rather than going through a long MES process of operational management.

the site is working to raise awareness of the business community about such important areas of procurement and supply chain management. Purchasing, delivering, delivering to the client is not an easy task. Dozens of foreign companies are actively creating new products to optimize their work. Before it is too late, we propose to jump on the bandwagon of the departing train and use effective developments to increase competition and generate profit.

If you need help finding software for supply chain management, .

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The concept of supply chain management (management stages, tasks, advantages, functions, strategies). Supply chain evolution. SCM in the West, foreign market for solutions: ERP systems. SCM with Russian specifics and the domestic market of solutions (examples).

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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 execution of supply chains.

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, services 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, i.e. the process of development, production, sale of finished products and their after-sales service.
Supply chain management is a business strategy that provides effective management of 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 more than 15 years, but to this day 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 flows 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.

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;
deliveries - when making a fundamental decision to build or enter the supply chain, the company must determine what it will produce on its own, and what 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:

The physical function of the supply chain is visible to anyone: materials are turned into parts, and those into finished products, and all this in one way or another moves in space.
The intermediary function of the supply chain is less obvious, but it is 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, there is lost revenue and unhappy customers.

SCM tasks

service improvement
optimization of the production cycle
decrease in warehouse 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 benefits

A procurement management process that has the following benefits:

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
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 socially 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 preoccupied with reducing costs, finding cheap loans to replenish working capital looking for additional resources to support the 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 overall 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 must become a strategic resource requiring a high level of diverse and in-depth staff knowledge. 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 social program, which is confirmed by the results of the 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.