In the past, Dow Corning’s IT systems developed on mainframe platforms were not able to meet the needs of today's manufacturing industry due to the decentralized system. Before the implementation of supply chain management, because the system can not be integrated, data is repeatedly input, and the data can not be analyzed in a timely manner to develop an effective plan, directly affecting the entire company's effective decision-making.
Seamless integration of key processes
Dow Corning first used SAP's R/3 as a back-end ERP system in the company's first step and implemented SAP's supply chain solution APO in the second step. This creates an end-to-end complete supply chain application environment within Dow Corning Corporation. From the initial order, to the production planning, warehouse process, shipping and delivery, all key processes up to the final billing receipt can be performed. Integration.
The balance of supply and demand in SAP APO is as follows:
Step one: demand planning
· Collect market information and reports (Communicate with Marketing and Sales)
· Generate demand forecast
·Also generate material demand forecasts based on historical consumption
·Balance the demand according to the model
Step Two: Supply Planning and Balance
Inputs: demand forecasting for step one and plant capacity
Output: Initial supply plan for finished products, which factory to produce; which customer or distribution center to supply; preliminary plans for semi-finished products and raw materials, which factory production, which supplier to supply
Balance: If there is no special information such as insufficient capacity or insufficient supply, go to Step 4
Step 3: Special Information Processing
· Special information and suggested solutions
·Solution decision
·Solution Simulation Step Four: Planned High Level Approval
·Supply plan approval
·Exceptional approval
Dow Corning implemented SAP APO from the system installation, prototype testing, and stress testing to the final launch. It took 9 months to complete the process.
Supply chain efficiency is greatly improved
With the SAP integrated software system, Dow Corning's entire supply chain has improved its efficiency. Now that Dow Corning has established a model of supply and demand balance across the company's global scope, by collecting and analyzing global real-time data, decision makers can easily coordinate the work of plants and employees, and can also conduct production and marketing on a global scale. Scheduling coordination of requirements. Planning and integration of the supply chain saves the cost of the entire supply chain, especially material costs.
Another objective of Dow Corning's implementation of supply chain management is to improve the quality of customer service. SAP's supply chain management solutions can provide targeted delivery advice and more accurately assess market share, thereby increasing the timeliness of delivery to ensure satisfactory customer service. In addition, the supply chain management solution can also optimize and rebalance forecasts by formulating standards such as transportation costs and shipping distances to further ensure timely delivery of accurate products when customers need them.
Changes brought about by supply chain management
· Reduce inventory by optimizing inventory and safety inventory levels and handle intercompany purchasing
· Reduce order cycle time and equipment preparation time, optimize production planning
Reduce production costs and increase resource utilization by consolidating orders within the planned timeframe
· Rational use of capabilities · Reduce forecast errors and improve delivery reliability
ATP (feasibility check): availability check based on lot eigenvalues ​​and lot allocation in multiple ERP systems
· Early warning management: managing exceptional information for abnormal situations SAP is a global leader in enterprise management software and collaborative commerce solutions. More than 80% of Fortune 500 companies have adopted SAP Business Solutions.
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