Supply Chain Management

Distribution Logistics
Supply Chain Management
Manufacturing Management
Supply Management
Business Process Re-Engineering
Training & Development

DLMD Consultancy Limited.

Supply Chain Management

Since its first appearance Supply Chain Management has been considered the domain of Operations Management, but we at DLMD Consultancy know it as a Strategic function that works hand-in-hand with an organisations Financial and Marketing forces.

To understand this better let’s look at the functions.

Demand management
'Demand Management' can be considered as having four DRIVERS, these are:

  1. Order Penetration – This is how far into an organization a customer order impacts. An order for Make-To-Stock products reaches the Distribution area, Assemble-to-Order to Manufacturing, Make-to-Order Purchasing and the existing Vendor network, Engineered-To-Order may mean exploring new suppliers and technologies.
  1. Customer Service Level Requirement – With the Order Penetration established a Customer Service Level can be established. This covers Lead-Time reliability, reaction times, emergency order and back order policy, etc.
  1. Forecasting – This can range from a direct forecast from a customer to an elaborate statistical technique. BUT we at DLMD consultancy know that for a forecast to work the processes behind it and associated to it need to be considered. This means such things as forecast responsibility, forecast versus actual performance and linkage to the organizations Budgetary Cycle.
  1. Budgetary Cycle – Much of the data derived from Demand Management will contribute to an organizations budgetary cycle BUT the budgetary cycle has the responsibility to define the scope and horizons to which Demand management can implement its forward planning.

It should be remembered that it is Demand Management that sets the organizations capability to promise customer orders and is responsible for monitoring the consumption and rate-of-consumption of forecasts. Demand Management’s output is the Driver of the ‘Supply Chain Planning’ activities.

Supply Chain Planning

‘Supply Chain Planning’ is the elaboration of the three major planning areas of Operations Management, i.e. Distribution & Transportation Planning, Inventory Management and Production Planning.

Distribution & Transportation Planning – This is concerned with the optimisation of the physical movement, (inbound and outbound), and storage of stocks throughout the distribution network. Among the concepts deployed here are Master Ship Scheduling (MSS), Distribution Requirements Planning (DRP), Equal Time Supply and Fair Share Allocation.

Inventory Management – Is responsible for setting inventory parameters, such as order points and lot sizes as well as the stock levels and replenishment plan within the distribution network. In a ‘Spares Parts’ environment it may also take responsibility for sub-assembly inventory levels to support production planning.

Production Planning – Is responsible for the delivery of Finished Goods or assemblies to distribution while optimising the resources of available capacity and materials. A variety of concepts are available to ‘Production Planning’ to assist in the process of performance optimisation, these include Master Production Scheduling (MPS), Material Resource Planning (MRPII), Just In Time (JIT), Theory of Constraints (TOC) or Advanced Planning & Scheduling (APS).

We at DLMD Consultancy have developed a ‘Business Control Model’ that identifies the work and information flows and considers these concepts.

Upon this background the "Effective Supply Chain Programs" are designed, set up and implemented by DLMD Consultancy.


Customer and supplier integration
The key to optimising the Supply Chain, is in companies looking and working beyond their own boundaries: in streamlining the total network, both the customer and the supplier plays an essential role. The concepts of Collaborative Planning, Forecasting and Replenishment (CPFR), Vendor Managed Inventory (VMI) and Efficient Customer Response (ECR) are all party to the goal of 'Customer and Supplier Integration', but we at DLMD Consultancy stress: “The true value of integration is not in the capture of information BUT in the actions taken on this information”.

DLMD’s Consultants not only advise on the execution of the concepts, but also focus on the integration process itself: where the power links are in the chain, the target participants from all parties, the accrued benefits of sharing and how to deal with risk.


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