Backflush Costing

Cost Accounting

Just In Time

Production Cost

Activity-Based Costing - ABC

Cost of Revenue

Carrying Cost Of Inventory

Operating Cost

Inventory Management

Absorption Costing




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"Metrics That Matter: The Role of Financial Health in Supply Chain Resilience".


Reference: rapidratings.com

As global supply chains increase in complexity, companies need to balance risk and opportunity. The ability to foresee risks that can impact, and potentially disrupt, the supply chain is a necessity.
This webinar explores the most important metrics for successful supplier risk mitigation. Attend the webinar to hear from Supply Chain Insights and RapidRatings on findings from recent research on supply chain resilience.

 

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How blockchain will underpin the new trust economy

Reference: computerworld.com


Link: Rise of the smart machines: How concurrent planning and AI can help you win big in supply chain planning




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Sustainable supply chain management: Education, Entertainment, Hotels, Temporary Help, and Publishing Industries

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삼성전자, "SCM은 경영이고, 혁신이다"

Author : Reporter_ / Date : 2015.11.16 17:07 / Category : 기획

일자 : 2015년 6월

한국SCM학회 2015 SCM춘계발표대회 열어

삼성전자 경영혁신팀 박석민 상무 SCM학회 초청강연 진행

문의 및 제보 : logipress@hanmail.net



가트너가 2015년 전 세계 공급망 상위 25개 업체(Supply Chain Top 25)에 대한 조사 결과를 발표했다. 국내에서는 삼성전자가 유일하게 8위를 차지하며, 지난해 6위에 이어 올해도 10위권 내에 이름을 올렸다.

 

가트너는 올해 Supply Chain Top 25에 포함된 기업들의 공통점으로 바이모달 공급망 전략과 고객의 친밀성 증가, 신흥 디지털 비즈니스 모델의 3가지를 꼽았다. 바이모달 공급망 전략을 통해 비용 절감뿐만 아니라, 성과를 만들 수 있는 활동에 전개하고 있다. 고객의 만족도를 높이기 위해 고객과의 친밀성은 더 증가하고 있으며, 디지털 기능을 활용해 가치사슬의 성능도 높이고 있다.

 

삼성전자 경영혁신팀 박석민 상무는 5일 aT센터에서 한국SCM 학회가 주최한 ‘2015 SCM춘계발표대회 및 제6회 한국대학생 SCM경진대회’에 참석해 ‘삼성전자의 SCM’을 주제로 초청강연을 펼쳤다.


삼성전자, SCM 통해 이익 창출 할 것


박석민 상무는 이날 발표에서 “삼성전자의 SCM은 경영이고 혁신이다. SCM을 통해 이익을 창출하려는 의지와 확신이 있다”며 “SCM은 단순히 물류나 공장, IT최적화 등이 아니다”고 강조했다.

 

그는 기업이 경쟁력을 갖기 위해 갖춰야 할 세 가지를 꼽았다. 우선 양질의 제품과, 이를 고객에게 알릴 수 있는 소통이다. 기업의 성장 초기에는 이 두 가지만 있어도 시작할 수 있다. 그러나 기업이 더 성장하기 위해서는 오퍼레이션이 뒷받침되어야 한다. 기업이 글로벌화 되거나, 제품의 수가 다양해질 경우 문제가 발생하기 때문이다. 

 

박 상무는 “디지털화에서 제품의 차별화는 더욱 어려워진다. 이제는 제품을 어떻게 배송하느냐의 관점이다”며 “소비자 니즈에 맞춰서 얼마나 빠르게 배송해주느냐의 문제도 이제는 중요한 부분이다”고 설명했다.

 

특히 업무 프로세스 표준화, 변화 관리, IT시스템 인프라 구축이라는 세 가지가 조화롭게 움직여야 한다고 분석했다.

 

박석민 상무는 “이 정보들은 결국에는 사람을 움직이기 위한 것이다. 내가 일하던 방식을 바꿔야만 시스템을 100% 수용할 수 있다. 업무 프로세스와 시스템이 결합돼야 한다. 이 두 가지는 축이다. 어느 하나만 강조되면 시스템은 깨진다. 거꾸로 이렇게 만들어진 프로세스는 시스템에 의해서 제어가 되어야 한다. 그래야만 다음으로 넘어갈 수 있다. 시스템과 프로세스는 양축으로 보면 된다”고 강조했다.

 

아울러 기준정보의 중요성에 대해서도 역설했다. 삼성전자가 가장 중요하게 여긴 부분은 ‘언어의 통합’이다. 용어의 통합과 회사 내 재화에 대한 실적, 재고 등이 명확하게 확인이 안 된 상태에서 진행되는 프로젝트는 큰 효과가 없다고 분석했다. 다소 시간이 걸리더라도 실적관리에 대한 명확한 구축이 필요하다고 설명했다.

 

삼성전자 역시 1990년대는 공장 최적화에 초점을 뒀다. 출하계획을 얼마나 잘 관리하느냐가 관건이었다. 하지만 2000년대부터 글로벌화 되면서 판매까지 영역을 넓혔다. 판매를 위해 고객이나 거래선에 얼마나 물건을 잘 전달해주느냐가 핵심이 됐다. 재고의 움직임 최소화가 곧 경쟁력이 된 셈이다. 2010년 이후에는 제품이 최종 소비자에게까지 전달되는 포인트 관리에 나서고 있다. 

 

출처 : <코리아쉬핑가제트>



출처: http://logipress.tistory.com/157 [Logipress]

TrinityRail forgoes operational forecasting with a sense and respond supply chain


Reference: kinaxis.com


Faced with increasingly complex manufacturing, extended backlogs and independent business cycles, global railcar provider TrinityRail struggled to overcome manual processes based on Excel, and demand forecasts that continually missed the mark. By implementing Kinaxis RapidResponse, TrinityRail was able to get rid of operational forecasting altogether, creating a truly responsive supply chain as a result. 


European Business Model

  • Buy and Sell
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  • Principal - Commissionaire model

Principal Toller Agent Model

Commissionaire Structures

VAT Control Framework


Reference: softwareadvice.com

Buyer's Guide

by Lisa Hedges,

Content Analyst 

Last Updated: September 26, 2017 


Pharmaceutical manufacturers must contend with the conflicting requirements for complying with regulations from up to a half dozen federal agencies—with the need to maintain security, particularly during the development and testing phases. And then they have to put out consistent, quality product at the end of the day. While large, multi-billion dollar firms dominate the headlines, there are still a large number of smaller firms that make either a single pharmaceutical, ingredients for other manufacturers or specialize in medications with expired patents.


What Is Pharmaceutical Manufacturing Software?

Three of the most critical features companies are looking for in their pharmaceutical manufacturers software are:


  • Inventory management: Since pharmaceutical ingredients and products are often controlled substances and must be secured, you can imagine the importance of a detailed inventory system for tracking these controlled substances. Substances used in the process also often have limited shelf lives. As such, they need to be rotated and used in a timely fashion.

 

  • Production management/quality assurance: Production management must include recipe scaling for different batch sizes. Batch tracking, again for both ingredients and products, is mandated as part of recall management.

 

  • Regulatory compliance: There’s a ton of regulatory compliance pharma manufacturers have to wade through. Not only must the shipping be documented, but disposal must be secure, documented and non-polluting. Even manufacturing start-up is regulated for some compounds. New and updated pharmaceutical manufacturing systems should support the FDA’s process analytical technology (PAT) initiative.

In addition to these three critical capabilities, most pharmaceutical management systems also offer some forms of fulfillment system that addresses both the security and shipping labeling aspects, both of which are stricter than general fulfillment systems.


Accounts receivable is standard except that the sums involved can be in the millions of dollars and for some products the customers must be positively identified. Payroll and personnel are again standard, as are general ledger and accounts payable.


If pharmaceutical manufacturing operations are part of a parent firm, they are likely to be using part of an organizational enterprise resource planning (ERP) system. Small and medium firms may use stand-alone accounting modules but are more likely to use manufacturing-specific systems. Most manufacturers use premises-based systems, but security is more of a driver than is cost.


Common Features of Pharmaceutical Manufacturing Software

Pharmaceutical manufacturers should examine the following functions while considering their unique requirements:


Formulation management and batch sizing    The system should include formulation management, including ingredient substitution and batch scaling. Advanced systems can size batches to quantities of ingredients in stock. The system should provide for formulations of different strengths.


Available to promise, capable to promise    Available to promise (ATP) and capable to promise (CTP) are measures of manufacturing capacity. The system should calculate the ATP and CTP for any stock item, accounting for ingredients on hand and any work in process.


Lot tracing and recall management    Each lot must be identified and tracked. The ingredients of each batch must be tied to their individual batch number as well.


Recall management    Recalls are initiated for two reasons. First, a problem in the process causes a product to become tainted or contaminated. Second, an ingredient is tainted or contaminated. In either case, the system needs to identify all of the affected batches and the customers that received those batches.


Hazard Analysis Critical Control Points (HACCP) compliance    The system should support reporting for Hazard Analysis Critical Control Points (HACCP), in accordance with HACCP Principle 7: “Establish record-keeping and documentation procedures.”


FDA compliance    The FDA is empowered to regulate standard and homeopathic pharmaceuticals; the standards for labeling are similar but have unique differences. The system should correctly label standard and homeopathic products as necessary.


Drug Enforcement Agency (DEA) compliance    If the pharmaceutical manufacturer makes products or uses ingredients regulated under the Controlled Substances Act, it is subject to oversight from the DEA. The system should document compliance with the act and have access to a current database of controlled substances, regulated chemicals and analogues.


Environmental Protection Agency (EPA) compliance    If the pharmaceutical manufacturer makes or uses products listed under the Toxic Substance Control Act, the substance may be regulated by the EPA. The system should maintain all compliant records as well as preparing a pre-manufacture notice before a new compound is created.


Quality assurance    The system should support quality assurance (QA) testing. The protocols should be documented and implemented through the system. The QA system should randomly identify samples for testing and compare test results against norms. Advanced systems will feature dashboards that will alertadministrators to problems with quality.


Process analytical technology support    The system should identify critical process parameters and define their affect on critical quality attributes as part of quality assurance testing.


Code of Federal Regulations 21 Part 11 compliance    Strictly speaking, no software package can be 21 CFR Part 11 compliant because the rule stipulates administrative and procedural controls as well as technical implementation for electronic and hybrid record keeping. However, it can support 21 CFR Part 11 by completely implementing the technical requirements.


Current Good Manufacturing Practice (cGMP) compliance    cGMP compliance is required for many regulatory agencies at the state and federal levels as well as for insurance purposes. The system should produce required compliance reports.


Yield variances    The system should track actual yield versus expected yield for each batch. The system should report excessive variance based on user-defined thresholds and indicate if variances are so large that regulating agencies should be notified.


Packing & drumming    The inventory system must be able to value and price items in different container sizes. It must also identify or generate suitable labels for containers.


Inventory storage planning    Some pharmaceuticals require a specific storage environment. The inventory system and receiving systems should notify workers about any special requirements.


Expiration tracking    Both pharmaceutical ingredients and pharmaceutical products can have limited shelf lives. The system needs to track expired and close-to-end-of-life inventory.


Shipping    Many pharmaceuticals have restrictions on shipping either via USPS or common carrier. In some cases, the contents of a package may not be listed on outside labeling. The system should identify any special requirements and produce appropriate shipping labels.

Best practice in pharma supply chain management

Reference: pharmaphorum.com

Patrick LemoineJanuary 23, 2017


Pharma needs to utilise the latest technology to maintain agility, and hence competitiveness, across the supply chain, says Patrick Lemoine.


The pharmaceutical industry has been one of the best-performing industries of the past decades with pharma companies excelling in many disciplines (research and development, manufacturing, sales and marketing) while maintaining the highest safety and quality standards. As a result, both sales and profits have risen more than in most other industries.


Yet, in recent years, the industry has been facing significant challenges:


  • The competitive intensity has significantly increased with the fast rise of generics.

  • Overall, the product portfolio has grown more complex, with more niche products for new markets.

  • For over-the-counter (OTC) products, large drugstore chains are imposing the same high standards (e.g. on-shelf availability, promotions) as they do to consumer product companies.

  • Healthcare providers and government reforms continue to put strong downward pressure on prices.

  • Quality regulations, the rise of counterfeited drugs and the serialisation mandate are forcing pharma companies to make their supply chains more robust to ensure full traceability.

All of this is putting new demands on the supply chain to help address these challenges and bring products to market cost-effectively and at the required service level.


In addition, pharma companies are increasingly relying on a global network of R&D partners, suppliers, logistics providers and contract manufacturing organisations (CMOs) to develop, test, produce, ship and distribute their products. Using specialised outsourcing partners for key supply chain activities provides companies with significant cost and flexibility benefits. Few large pharma companies are not outsourcing to some degree.


However, this new outsourced model brings additional complexity. How do you run a supply chain tightly that is increasingly virtual? How do you run an outsourced supply chain when the in-house enterprise resource planning (ERP) system(s) only see(s) what is inside the four walls of the company? How do you manage workflows that involve exchanging information with outside parties across the multiple tiers of your supply chain?


Redefining supply chain management

Following other industries, like high-tech and consumer goods, pharma companies need to focus on the following five initiatives:


Connect and collaborate using a business network. A digital business network is the foundation of a multi-enterprise supply chain, connecting all outside supply chain partners electronically via the cloud. Unlike the old model of creating point-to-point connections, this is a true, multi-tier network – connecting everyone, like the Internet does, and allowing all partners to work in sync. This enables both end-to-end visibility and the collaboration needed to support business interactions among the different actors. Such a network is like an ERP system, but for the entire supply chain. Without such a platform, it is almost impossible to get the level of real-time visibility and coordination among all supply chain partners that is needed.


Understand true demand. Demand forecasts are only an educated guess of what future demand will be. For their OTC business, the most innovative pharma companies are following consumer products companies: capturing vast amounts of demand-related information which is then fed into sophisticated demand sensing solutions to better predict true demand. This means going all the way to point-of-sale (POS) data or even using signals like weather forecasts or flu trends via social media. This improved demand picture is then propagated to all supply chain partners, ensuring that the pharma company, suppliers and CMOs are all aligned. Demand sensing brings significantly higher on-shelf availability and lower inventories.


Control the quality at the CMOs. Pharma companies need to ensure end-to-end traceability. As external parties, such as CMOs, are increasingly involved, pharma must have visibility into partners’ manufacturing operations to track product quality across the multi-tier, multi-enterprise supply chain. This means connecting to their CMO’s manufacturing execution systems (MES) to capture relevant data at all stages of production. This provides very granular factory transaction visibility to track material flows, lot genealogy, processing steps and associated parameters, such as yields or test results – critical information to ensure traceability. This is a requirement for any serialisation initiative.


Quickly re-plan across the network. Another requirement is to detect and respond quickly to changes in the demand and supply picture. With business networks, companies can see the end-to-end supply chain, not only in-house operations. However, traditional planning systems lack the fast problem resolution and decision-support capabilities required to manage trade-offs and suggest alternative scenarios offered by state-of-the-art planning applications. These tools allow rapid evaluation of new information – be it a supply disruption or an unexpected demand change – and easily compare alternative plans to select the best option. The new plan is then shared with all supply chain partners via the business network.


Better manage distribution. Pharma companies are increasingly relying on external partners for transportation, warehousing and other value-added services. Ensuring product availability means tightly managing distribution partners. This includes getting complete downstream inventory visibility and sophisticated inventory strategies. Proactive management means allocating to the different channels to optimally and profitably deliver the right products to the right customers and make reliable delivery commitments. This is key when competing for shelf space at drugstore chains and pharmacies.


Supply chain operating network

New strategies use the experience of consumer product companies but take into account the specifics of the pharma industry. A cloud-based network to enable end-to-end visibility and collaboration among supply chain partners, combined with dedicated decision-support applications that leverage the data in this network is the best set-up. The benefits are substantial:


  • Up-to-date, end-to-end supply chain visibility – ‘one version of the truth’ shared across all partners

  • Full quality control of CMOs – as required for traceability and serialisation

  • Higher on-shelf availability, generally with lower inventories

  • Through smarter channel allocations, better margins and ultimately higher market share

The early adopters are already capturing these benefits, putting themselves ahead of their peers.


About the author:

As VP Product Marketing, Patrick Lemoine is in charge of E2open’s product positioning and company messaging. He has more than 20 years of supply chain experience, as well as a deep knowledge of the high-tech and automotive industries.


He started his career as a consultant with McKinsey and Co and spent the last 15 years in the enterprise software space with companies such as i2, LogicTools, and SAP.


He holds an MBA from Stanford University.

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