Showing posts with label impact to material cost. Show all posts
Showing posts with label impact to material cost. Show all posts

Tuesday, September 8, 2020

Comprehensive overview of total supply chain management

    Here, I would like to share my view of total supply chain management. It consist of overall supply chain from beginning to the end. 

    This is a very interesting topic to know about.... It could mainly apply to manufacturing as an overall.


Below is a mind map of the total supply chain management. The resolution might not be that good. If you need a pdf copy or a mind map copy (using simple mind apps format), please email me. 




And here are the outline. If you need a well formatted word file or PDF file, please email me. 

Total Supply Chain Management

o What is supply chain management

It is a management knowledge

It is a chain, from beginning to the end

It is a full stretch of knowledge from getting the supply to the buyer

o What are the topics in supply chain management

Sourcing

• Supplier & potential supplier

• Supplier selection

• Terms & conditions

o Pricing

o Invoicing

o Payment terms

• Quality requirement

• Types of suppliers

o Direct manufacturer

o Distributorship

o Representatives

o Overall

B2B

Design

• From R&D

• The purpose

• Where use application

Logistics

• Freight management

o Freight in

o Freight out

o Types of freight

Air

Ocean

Road

• Warehousing

o Receiving

o Storage

o Outgoing

o Return of goods

o 3PL

• Customs

• Trade & Compliance

Procurement

• Direct materials & indirect materials

o What is direct materials

o What is indirect materials

• PO placement

• When to buy

• Product quality

• How many to buy

• Types of procurement

o Buy to forecast

o Buy to PO

• Types of materials model

o Consigned

Full or partial

Pros & Cons

o Turnkey

Full or partial

Pros & Cons

o Buy/Sell

o Drop ship

o Customer managed

o High value

o Attrition

Material costing

• Standard pack

• EAU

• Negotiation

• Distribution

• Consolidation pricing for negotiation

o By material itself

o By supplier

o By mother company

o By total spend

• Types of cost optimization

o Annual re-pricing

o Rebate

o Many more creative ways

Materials planning

• What type of attrition

• What is required

o When to bring in

o When to use

ERP

• Will be discussed in another topic

Production Planning

• Function

o Build the product in the shortest time possible

o Optimize capacity & ship out once completed building

o When to build

o When to ship

o Minimize waste

o Counter check ineffeciency

• Resolve capacity constraints

• Types of build

o Build to forecast

o Build to PO

• Forecast

Inventory management

• Keep the lowest possible inventory

o Pros & cons

• Ties up cash

• Expiry date

• A balanced model?

• Inventory tracking & reporting

Reverse Logistics

• What is this? 

o Return & Repair

o Upgrades

o Rework

o Refurbishment

o Warehousing & safekeeping

• Value added services

• Usually, the cost is high

o Why is total supply chain management so important?

It is a chain

• All are inter-related

Impact as an overall

To discuss more

o Areas not covered here

Quality

• Quality management system

o Quality standards

ISO

Aerospace

FDA

Medical

Military

Telco

• Incoming Quality

Engineering

• R&D

• Process

• Manufacturing

• Supplier quality

• Facility

• Test

• Industrial engineering

Production

Supplier quality management

Finance

• Account Payable

• Account Receiveable

• Bad debts

• Returns

• Rebates

Customer management

Customer quotation

Customer contract

IT

HR

Customs

Trade & compliance


    I hope you enjoy reading this article. If you wish to know more on this topic, please email me. 

    Thank you for taking the time in reading this article. Your feedback is highly appreciated. 


Thanks & best regards,
Ronald Gan








Thursday, March 13, 2014

Inventory Revaluation

Inventory Revaluation means that you revalue your inventory to even out the price. This is generally due to 2 different pricing for the inventory.

Why do you need to know this, and more importantly why do you need to do this?
If you do not do this and if you are buying/selling your materials with different prices on every month or every quarter or even every day, chances are that you will either make or lose money. And the best part is, you can't even explain why you make a lot of money, or lose a lot of money at first glance.

Example of items that I believe could be categorized to the below timelines:
Revalue Every quarter: Electronics products such as computers, laptops,
Revalue Every month: FMCG (Fast Moving Consumer Goods).
Revalue Every week: Food, Commodity (coffee, wheat, rice, soy, barley, potato, etc)  & vegetables in a free market. (Driven by Demand & Supply)
Revalue Every day: Gas in a free market, ForEx & Stock Market. (Driven by Demand & Supply)

I have taught the concept of Inventory Revaluation in 5 different companies in Asia. I have used very easy to understand but very clear examples for my sharing/coaching session. For those who are interested, please let me know.

When I worked out my explaining graphics in a nice way, I will write more on this topic. For now, this is just the tip of the iceberg on Inventory Revaluation. The graphics will explain the matter much clearer.

I will also share how to establish a robust Inventory Revaluation Process.

And..... why are we talking about this in manufacturing program management blog?
Well, program management owns everything. Every step that could be taken to avoid losses will be highly appreciated by the senior management.


Stay tuned.....