SAP-scm( supply chain management)

SAP SCM can help transform a linear, sequential supply chain into a responsive supply network – in which communities of customer-centric, demand-driven companies share knowledge, intelligently adapt to changing market conditions, and proactively respond to shorter, less predictable life cycles. SAP SCM provides broad functionality for enabling responsive supply networks and integrates seamlessly with both SAP and non-SAP software. The application:

* Delivers planning and execution functions that are integrated by design
* Supports best practices and provides preconfigured software for enabling collaborative business, accelerating implementation, and reducing costs
* Is recognized by key industry analysts as the market-leading SCM application

What is JIT approach?

What is JIT?

Just-in-time manufacturing means producing the necessary items in necessary quantities at the necessary time. It is a philosophy of continuous improvement in which non-value-adding activities (or wastes) are identified and removed.

Putting this concept into practice means a reversal of the traditional thinking process. In conventional production processes, units are transported to the next production stage as soon as they are ready. In JIT, each stage is required to go back to the previous stage to pick up the exact number of units needed.

Benefits

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Reduced operating costs
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Greater performance and throughput
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Higher quality
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Improved delivery
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Increased flexibility and innovativeness

JIT Components

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Production Leveling
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Pull System
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Kamban (label or signboard) system
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Good Housekeeping
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Small Lot Production
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Setup Time Reduction
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Total Preventive Maintenance (TPM)
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Total Quality Control (TQC)
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JIT Purchasing
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Line Balancing
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Flexible Manufacturing
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Small-group Activities (SGA)

Case study........

Ford Motor Company:
Six Sigma Initiatives Streamline Operations

You can view the full case study material in this link...

http://www.penskelogistics.com/casestudies/ford.html

...hope it helps...

Systems elements of marketing logistics.....

Marketing logistics consists of two main components namely, Physical Supply (PS) or material management which is concerned with inward movement of raw material, components and spare parts, consumable stores, machinery, machinery, tools, etc. while the other element, Physical Distribution (PD), refers to that part of logistic systems which is concerned with the outward movement of finished products from the point of origin (for example, exporter's point) to the ultimate destination. The activities falling under the PS and PD are closely interlinked due to the reason that in a majority of the cases, the outward movement or physical distribution management of the products of the suppliers becomes the physical supply management of the importers or consumers at the other end or ultimate destination. Hence the system elements of marketing logistics are common both to Physical Supply (PS) and Physical Distribution (PD). These common elements are -

Raw material acquisition: Raw materials required for production are required to be brought in required quantities and at the right time so that uninterrupted production becomes possible and production can done in accordance with schedule. In addition, it is also necessary to purchase, transport and store fuels, maintenance materials, packaging materials, etc. in advance.

Inventory management: Every business needs to hold stocks of different products, raw, materials, consumable store, semi-processed and processed goods. These stocks or inventories (which are required to meet present and future demand) are the link between a customer's orders and a company's manufacturing activity, wherein customer order draws down inventory level manufacturing activity builds it up. A right balance is necessary as carrying of too much inventory is not cost-effective while too little stock may result in production problems.

Warehousing: Warehousing is essentially a storage function and is very important from marketing point of view. In many lines of business goods are produced considerably in advance of the time of sale and consequently they have to be stored for varying periods of time and thus bridging the time gap between production and demand. Functions of warehouse include receipt of goods, identification of goods by recording and numbering, sorting for appropriate storage, hold goods under protection until needed, marshal the shipment and prepare records and advice, etc.

Packaging and utilization: Packing and packaging play an important role in physical distribution system due to the reason that customer is interested in getting the product without any damage or loss. While preparing goods for shipment, care should be taken care that the same are properly packed, marked and labeled.

Transportation: It is the most important single element constituting the 'hub' of the whole logistic system on which the efficiency of other elements depends to a larger extent. It is an important responsibility in the physical distribution management both from cost standpoint and from service standard. The most important aspect of transportation decision concerns such issues as what modes of transport should be used because it is the chosen mode of transport which can either make or mar the time and cost efficiency of all other elements of marketing logistics.

Insurance: Risk management is another important element of the trade logistic management. Although an exporter is supposed to take care of risk management in terms of payment as well as cargo, in the case of physical distribution management, the later is of greater concern to him. For this, cargo insurance ( commonly known as 'marine cargo insurance' irrespective of the mode of transport).

Communication and control: Information is the lifeline of a logistic system because without accurate and correct information, the system cannot respond efficiently. Besides, timely and correct information acts as a key component in the planning operation and control of logistic system. Traditional methods of communication comprises mails, telegrams, cables, telephones etc. IT has now made it possible to convert many of the problems in transportation, inventory management, packaging and warehousing into computer language by means of which operation of the system as a whole can be examined through model building and simulation.

Physical distribution is a major cost in any global business and can often be a critical element affecting a business' competitiveness. Traditionally, logistic management has focused on efficiency and minimisation of costs. However, as service has become more important, management focus has now shifted to concentrate more closely on maximising the return on investment, and serving the customer more profitably.

The days of straightforward transport management are getting phased out and the business of today is entering the stage of 'Totally Integrated Logistics' - in which warehousing, material handling, inventory management and communication are all recognised as an integral part of the transportation process. But in India, the marketing logistics concept, relatively speaking, is a new subject. Since it is now being recognized as the most promising area of cost reduction in global business, Indian exporters need to be more aware about logistic planning in their business.