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December 2003 YAS
Supply Chain Management
SCM
December 2003 YAS
AgendaIntroduction
Process Flow of Material in SCM
Why Supply Chain Management
Benefit of Supply Chain Management
Supply Chain Management Integration
Aramco Supply Chain Management
December 2003 YAS
IntroductionSupply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed)
Purchasing Materials Planning (MRP) Inventory Management Physical Inventory Material Master Logistics Transportation Other Applications Interfaces
December 2003 YAS
Why Supply Chain Management
Amount spent on materials is higher than other inputs
Materials offer considerable scope for reducing cost and improving profit
Materials add value to the product
Quality and product depend on material
Efficiency of any organization depend upon the availability of right material in right quantity at right time and right place
December 2003 YAS
Process Flow of Material Procurement in SCM
Customer Demand
Material Requirements
Planning
Quotation &
Bidding
Purchase Order
VENDOR
Receiving
Customer
issues
Warehouse
Direct Charge
Start
Stock
PurchaseRequisition
TRANSPORT
Purchase Order
Agreement
Purchase with agreement
Standalone PO Purchase
Booked Available Quantity
Physical Inventoryissues Customer
December 2003 YAS
Supply Chain Management Integration
Supply Chain Management SCM
Plant Maintenance
Project System
Sales & Distribution
Production Planning
Quality Management
Asset Management
Cost Control
Financial Accounting
December 2003 YAS
Inventory Optimization
Controlling of Indirect Cost
Minimize Risk of Inventory Loss
Reduction in Loss of Time and Direct Labor
Minimize Risk of Production Time Loss
Benefit of Supply Chain Management
December 2003 YAS
PurchasingContractPurchase OrderPurchase RequisitionSubcontracting Vendor Master Info Records Source List Quotation B2B (A web-based procurement system )
ARAMCO Supply Chain Management
December 2003 YAS
Materials Planning (MRP)MRP TypeLot –Size Calculation Mass Planning RunSingle Planning Run Planning ResultsForecastingChecking Rule
ARAMCO Supply Chain Management
December 2003 YAS
Inventory ManagementGoods ReceiptsGoods IssuesGoods TransferMaterial ReservationManaging ReservationMaterials DocumentsReporting
ARAMCO Supply Chain Management
December 2003 YAS
Physical InventoryPhysical Inventory DocumentsInventory CountDifferencesSpecial Physical Inventory ProcedureMaintain Physical Inventory
ARAMCO Supply Chain Management
December 2003 YAS
Material MasterMass Material Record Creation (Different Material Type)Single Material Records CreationMaterials Records ExtensionMaterials Record Flag for deletion Material Type ChangeMRP ProfileForecast Profile
ARAMCO Supply Chain Management
December 2003 YAS
LogisticsInbound DeliveryOutbound DeliveryShippingWarehouse Management Goods ReceiptsGoods IssuesGoods Transfer
ARAMCO Supply Chain Management
December 2003 YAS
TransportationStocker DistributerProof of CollectionProof of Delivery
Other ApplicationsIT Assets System (None Capital)Service Award System (SAS)Personal Effect Tracking System (PETS)Reclamation and Sales System (RSS)Security Sensitive Equipment Inventory Tracking SystemSecurity Material Inventory Tracking system
InterfacesAviation SystemHealthCare SystemHuman Resources SystemSAP R/3 Portal Interfaces
ARAMCO Supply Chain Management
December 2003 YAS
Applications Supported by SCM Div.Purchase Requisitions Reservations Vendor EvaluationPurchase Orders Consignment MFC Supplement Stock Purchases Physical Inventory MFC Purchase Order Consumable Purchases Reorder Point Planning SFC Supplement Subcontracting Lot –Size Calculation SFC Purchase Order Material Master Planning Run Service Entry SheetVendor Master Planning Results Business Intelligence Contract Services Reporting Info Records Shopping Cross Modular IntegrationSource List Approval Process Electronic Contracting Network IntegrationQuota Arrangement B2B Cataloging (SRM MDM) Medical/Aviation/HCM Solution IntegrationLocal Development Integration Webmethod mappings and integrationsConcurrent Development Contract Update Service Master
SAMS DevelopmentIntegration with Supplier ASC only (EDI) Services Vendor Master
PO Acknowledgement Bid Slate Contracting Procurement Tracking System (CPTS)Update PO Status Request for Quotation (RFQ) Proponent Procurement Tracking System (PPTS)Update PO ETA Contract Creation Entry Sheet Vendor PortalGoods Receipts Contract Supplement Services Work Certification Goods Issues Contract Release Purchase Order Services Work VerificationStock Transfers Change Order SAP R/3 Portal Interfaces Service Entry Sheet IT Assets System Service Award System (SAS) Personal Effect Tracking System (PETS) Reclamation and Sales System Overseas Contract Services Processes
ARAMCO Supply Chain Management
December 2003 YAS
Thank YouSystem Demo