Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 1 Logistical applications and optimizations

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 2 overview Introduction October 28 - definition of business processes November 11 - overview of logistical business processes December 02 - functionality of production processes January 20 - special problems within the supply chain handling December 16 - functionality of sales and distribution processes November 18 - functionality of purchase and supply processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 3 Review on the last session You have learned about the main functionality of production processes 1.Sales and operations planning 2.MRP 3.Planned orders 4.Production orders 5.Confirmation of production 6.Delivery to stock You have developed a production plan You have seen the main functionality of production optimization processes 1.Supply network planning 2.Detailed scheduling 3.Deployment 4.Transport planning You have learned about the vertical integration (MES)

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 4 About this lecture All sessions are split into 2 blocks: from 08:30 to 10:00 and from 10:15 to 11:45 Each session starts with a short review of the last lectures subjects Next I will give you a short theoretical overview of the days subject Each group will then present the results of their discussions I will present theoretical explanations for the discussed subjects Then I will show a example solution for a potential written test question Finally I will give a summary of the key messages for this session Next you probably will develop 3 different subjects in a brainstorming session in 3 groups

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 5 overview Introduction October 28 - definition of business processes November 11 - overview of logistical business processes December 02 - functionality of production processes January 20 - special problems within the supply chain handling December 16 - functionality of sales and distribution processes November 18 - functionality of purchase and supply processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 6 Functionality of sales and distribution processes Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 7 Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2 Functionality of sales and distribution processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 8 Functionality of sales and distribution processes, Part 1 Sales and distribution processes handle all activities dealing with the customers. Therefore a well designed sales and distribution IT process is a basic need to fullfill customers orders. Problems and potentials The coordination of sales and distribution processes with other core logistical processes such as purchase, disposition, and production is essential for a lean supply chain organisation. The customer relationship management discribes all activities to prepare sales and distribution activities and therefore is essential to assure future revenues.

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 9 Functionality of sales and distribution processes, Part 1 Understand the important inputs and outputs of each component Understand the main functionality of sales and distribution system Learning targets Understand the involved acting logical business units Understand the interaction with other processes Understand the main functionality of customer relationship management

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 10 Plant CustomerStoreTransport Supplier Supply chain processes Supply chain processes represent all main logistical activities for creation of value according to the business definition

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 11 Sales Production planning and scheduling Shipment and distribution Purchasing Logistical crossover processes Business support processes Supply chain processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 12 Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2 Functionality of sales and distribution processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 13 Sales and distribution Customer order Object determination Customer order checks Proceeding activities Availability checks Delivery Re-Disposition Unapproved customer order Approved customer order yes no

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 14 Order types Sales and distribution Standard order with due date Immediate order Cash Sales Free delivery Sample order consignment Returnable packing

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 15 Object determination Sales and distribution Partners Shipping points Routs Delivery scheduling pricing Account determination

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 16 Customer order checks Sales and distribution Credit limits Export controls Documents completeness

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 17 Proceeding activities Sales and distribution Interfaces to billing systems Interfaces to continuous controlling Demand transfer to disposition

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 18 Special orders Sales and distribution Variant configuration Assembly order Provision of material by the customer Make-to-order production Intercompany sales Third-party order

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 19 Availability checks Sales and distribution Delivery schedule Availability rules (consideration of disposition items) Check on stock Check on disposition list Alternative products Global ATP Reservation of defined lots

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 20 Sales and distribution Transforming customer order to delivery order Picking Packing QM check on outgoing material Shipping order to carrier Delivery Shipping documents Hazardous goods Goods issue

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 21 Transforming customer order to delivery order Sales and distribution Change of status Scheduling

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 22 Picking and packing Sales and distribution Selecting materila or lot out of stock Transfer to picking area for delivery preparation Assemble to delivery unit Multiple order delivery Transportation package Loading space optimization

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 23 QM check on outgoing material Sales and distribution QM check on site Quality certificate QM check on Transportation

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 24 Shipping order to carrier Sales and distribution Selecting the carrier type Selecting the carrier Routing Notification of arrival to customer

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 25 Shipping documents and hazardous goods Sales and distribution Selecting the needed documents and print Send documents to requested partners or authorities Print badges for hazardous goods

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 26 Goods issue Sales and distribution Goods leaving stock Transfer stock Basis for invoicing

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 27 Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2 Functionality of sales and distribution processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 28 CRM functionality Customer relationship management Customer & Market Insight Activity Management Complaint Management Sample Management Lead & Opportunity Price Management Campaign Management Dynamic Service Delivery Customer Segmentation Cost & Profit Allocation Reporting & Analysis Service Usage Tracking Budgeting Rolling Forecast Product Launch Sales Management

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 29 Summary and key messages, Part 1 Sales and distribution optimization deals with loading capacity optimization and with transportation and routing optimization Distribution is done by delivery departments CRM is indespensable as support for future revenue Sales and distribution handling are complex IT processes due to many legal needs

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 30 Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2 Functionality of sales and distribution processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 31 Sales and distribution Customer relationship management Short break Part 1 Demand planning Part 2 Functionality of sales and distribution processes

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 32 Functionality of sales and distribution processes, Part 2 Demand planning is the important entry to forecast future needs to produce or to purchase (except for make-to-order business) Problems and potentials Demand planning needs data as close to reality as possible. Therefore Demand planning is done in collaborative processes with at least the key customers Demand planning also needs to analyse the historie of demand and derives future demand on the assumption of continuity

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 33 Functionality of sales and distribution processes, Part 2 Understand the important inputs and outputs of each component Understand the needed components for a demand planning system Learning targets Understand the involved acting logical business units Understand the importance of standard interfaces to the ERP system

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 34 Support of sales departments in planning their future demands Increasing quality of forcast Integration of customers via collaborative planning Control of marketing targets Control of marketing activities Targets Demand planning ? today

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 35 Easy Aggregation of data Detailing as needed by the planning departments Konsistent planing Flexible changes on forecasts Advantages Demand planning

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 36 Quarterly plenning Historical data Continuous planning Show forecast Medium term planning heute Getting the data Demand planning Show forecast

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 37  Statistical Prognosen  Macros  Promotions  Aggregation and Disaggregation Is-Data Planned data BW Excel And more ….. SNP PP/DS ERP functions Demand planning

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 38 Consistent planing Top-Down, Middle-Out, Bottom-Up Drill-down and drill-up Automatical Aggregation und Disaggregation according to factors Simulation Analysis of accuracy of forecast Tools to compare is-data and planned data. Proceedings Demand planning

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 39 Demand planning Porecast Promotion Release of demand volumes to production (SNP, PP/DS) Production planning Primary requirements Capazitie planing Release of production plans Production margins Sales planning realistic Plans Alerts Planning cicle Demand planning

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 40 Summary and key messages, Part 2 DP is the mayor challenge to integrate forcast data into ERP systems The functionality of calculating the demand may vary according to the customers

Matthias Mekschrat h_DA WS 2011Logistical applications and optimizationsSlide 41 Thank you very much for your participation …… and see you on Friday, 20th of January Mary Christmas and a happy new year