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Our Answers to questions from participants of the webinar on
“Inventory Level Optimization and Better Supply Chain Visibility through Superior S&OP Practices" on December 17th 2008, 3 P.M. Indian Standard Time (IST)
How does it impact capital expenditure?
In the S&OP process, plans ranging from 6 months to 18 months are viewed critically. Their resource requirements is checked through the Bill of Resources. Eventually we have a Loading Chart for each time period comparing the Resources Available and Resource required.
Issues relating to Capital Investments become eminent through these Loading Charts and decisions on these critical issues are hence addressed well in advance.
What is the size of insustry which can afford running a good S&OP program?
Typically any organization with sales in excess of Rs 150 crores or so would require a good S&OP program to foster growth and reduce cost of goods sold.
What what type industries generally will have this kind of program?
S&OP is irrespective of industry type. Any industry where there is a purchase-to-pay and an order-to-cash cycle would warrant an S&OP program
Is the promotional products which come along with the main product?
Promotional products could be the main product itself like in the case of trade offers where a product is given free on purchase of a certain number of the product.
It could be gift items or sample items manufactured or purchased separately. Either way planning for these should be a part of the forecasting and S&OP process
Stock avaliability, is it the finished product you are referring which customer can see?
It could be Finished Product or stocks at an intermittent stage in a Assemble to Order environment. More important than the customer actually seeing the product, it is the ability that Customer Service gets of promising the product to the customer by a particular date or the Available to Promise
Sp
Last Updated On:12/29/2008 6:35:01 PM
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4PL Offerings
Aqua MCG Supply Chain Outsourcing Management Services
It is time to re-structure and re-think business.
It has become necessary for businesses worldwide to focus resources on revenue-generating activities and offload processes that lie outside core competencies. The host of benefits this will bring are extremely relevant to current times, where costs are of primary concern. Supply Chain outsourcing will drastically reduce overall supply chain costs which form a major chunk of revenue costs.
We deliver end-to-end and seamless supply chain integration of flow of goods & information. This means complete visibility, synchronization and broad-based business process capabilities for our customers. One of AQUA MCG’s key differentiator is our strength in implementation and change management capabilities as the client transitions from its current logistics process to a new SC outsourcing management mode of operation.
Based on our your specific needs and business goals, we offer a ‘single window’ accountability along with planning, control, physical & technology processes. This includes whole or part of our capabilities across the supply chain - logistics, distribution, special packaging, shelfing, inventory/merchandise management, procurement & reverse logistics. We ensure efficiency improvements year on year through process optimization and continuous measuring of process conformance. Besides the execution of basic operational services that we will provide, the core tactical services like business function wise planning and control will also be looked into. The complete supply chain integration [planning, sourcing, making, delivering, repair/returns] will all be managed.
Value for you fro
Last Updated On:5/29/2009 4:48:38 PM
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Enterprise Solutions
If you are an organization which is at that phase of growth where the operations is becoming complex, distributed locations, information not available at the right point of time, then one of the biggest issues you are probably facing is that significant effort being spent on responding to requests. What you probably need is the right Enterprise Solution that connects across the organization.
The decision making process for an Enterprise Solution is an extended one since customers are never sure about the value that they will derive from implementing such solutions. We understand this and try to take a ‘Business Case’ approach to decision making. We help you make that decision with as much objective assessment as possible.
While most people associate Enterprise Solutions with an ERP package, we believe that it is only the first step in ensuring organization-wide business process standardization. At Aqua MCG, we look at Enterprise Solutions as any technology that cuts across departments to achieve an objective that could help in one of the following:
- Strategic Planning – By providing information and allowing informed decision making
- Operational Excellence – By allowing a seamless flow of the business process through the various parts of the chain
- Control and Compliance – By helping to put in the right control mechanisms (workflows, reporting), these solutions help in bringing better governance
At Aqua MCG, we offer a comprehensive set of solutions to address enterprise-wide requirements across the above spans.
Our Offerings
ERP Consulting
If your firm is contemplating an ERP implementation and needs help in identifyin
Last Updated On:6/26/2009 6:50:44 PM
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Supply Chain Processes in India
Among the many supply chain processes, the three ranked the highest by resp
ondents were: Customer service, Demand
management & Inventory management.
In inventory management, the inventories looked at are raw
materials, WIP, finished goods, goods in transit, accounts receivable, accounts payable, inventories at CFAs/DCs, distributors & retailers.
In India, the primary inventory replenishment process is the push system versus the pull system. It is often quoted in the industry that up to 85% of companies adopt the push system.
In a push-based supply chain, products are pushed through the channel, from the production side up to the retailer. The manufacturer sets production at a level based on historical buy patterns. However, it takes longer for a push-based supply chain to respond to changes in demand, which may result in overstocking or bottlenecks & delays (the bullwhip effect), unacceptable service levels & product obsolescence. On the other hand, in a pull-based supply chain, procurement, production and distribution are demand driven so that they are coordinated with actual customer orders, rather than forecasted demand.
PUSH-BASED MODEL
PULL-BASED MODEL
The major divisions of logistics costs in India are: cost of materials, labour, production operations, inbound / outbound transportation, warehousing, primary/secondary movements and distributor’s margin. Delivering on these costs is itself a challenge and added to that companies must deliver on profitability & responsiveness.
Delivering on all three i.e. cost, profitability and responsiveness can therefore be the real test. In the surveys of many nations it was found that the reduction in cost has been replaced by the focus on quality in the top three objectives. And to meet these multiple objectives, supply chain leaders have realized that supply chain effectiveness requires more than
Last Updated On:7/14/2010 3:51:31 PM
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