Vendor-Managed Inventory

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Transcript of Vendor-Managed Inventory

GPA - GMA

Gestion Partagée et Gestion Mutualisée des Approvisionnements

Sharifah Norazehan SYED YASINGEB master 2011

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Summary1. Introduction2. GPA

A. Definition and conceptB. Process step-by-stepC. Co-Managed Inventory

3. GMAA. Definition and conceptB. Process step-by-stepC. Multipick and Multidrop

4. Key points in implementation5. Softwares6. Study Case

A. STMicroelectronicsB. Cadbury/Sara Lee

7. ConclusionGPA-GMA

SYED YASIN – GEB 2011

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Introduction

•Procurement management :▫Number of orders▫Number of suppliers▫Accuracy of forecasting▫Cost

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

GPA-GMASYED YASIN – GEB

2011

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GPA : Definition and Concept

Client accepts to delegate parts of its procurement activity and warehouse

management to the supplier

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Key points

Software

Study case

STMicroelectronics

Guinness GB

Discussion

Installation

TrainingTest

Go Live

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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GPA : Process step by stepIntroduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

GPA-GMASYED YASIN – GEB

2011

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GPA : Co-Managed Inventory

•another option of GPA

•involves a more actively collaboration between a supplier and its client client can modify order proposals

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

GPA-GMASYED YASIN – GEB

2011

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GMA : Definition and Concept

•Opportunities for several different suppliers to combine their logistic and supply chain structures

•Based on GPA

•Multipick/Multidrop

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

GPA-GMASYED YASIN – GEB

2011

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GMA : Process Step-by-StepIntroduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

GPA-GMASYED YASIN – GEB

2011

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GMA : Multipick/MultidropIntroduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

Multidrop : Delivery from a single point of departure, the supplier to a group of clients

Multipick : Responsibility is given to a group of suppliers to manage customer's inventories

GPA-GMASYED YASIN – GEB

2011

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Key points in implementation

Communication Precision

Reliability Test

Process Time and money

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Softwares

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Study Case

•GPA : STMicroelectronics

•GMA : Cadbury/Sara Lee

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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STMicroelectronics

•Fifth largest semiconductors producers

•Large products portfolio

•Clients : DELL, Nokia, Samsung

•Application : consumer electronics, telecommunications, smart cards and automobiles

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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•4 weeks for the customer to plan their demand

•4 weeks for the supplier to build the orderTotal : 8 weeks

•requirements may change over the eight weeks

•diversified customer : each product co-designed with the customer.

STMicroelectronics

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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•Problems: ▫Manual process to match

demand and production capacities

▫Process : time-consuming and sometimes inaccurate, inefficiencies in system

▫Late response to clients

GPA-GMASYED YASIN – GEB

2011

STMicroelectronicsIntroduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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STMicroelectronics

GPA-GMASYED YASIN – GEB

2011

Result : Increased accuracy of 50%

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Cadbury/Sara Lee

•Improve cash and cost management

•Product in the same sector and same transport requirements

•Use multipick solution

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Cadbury/Sara Lee

•A warehouse in Neuville-aux-Bois ▫27 000m² for Cadbury▫9000m² for Sara Lee

•Storage, order preparation and loading

•Improvement of stock decrease of 19% and in the quality of services

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Conclusion

• Advantages▫ Optimization of

forecasting and replenishment

▫ Improvement of service rate

▫ Continuous and smoother inventory flow

• Limits▫ Cost and budget▫ Time consuming▫ Changes in

organistaion

New concepts are created in SC▫ CPFR▫ Lean and Agile

SC

Set goals and vision

Measure performance

Evolve and grow

GPA-GMASYED YASIN – GEB

2011

Introduction

GPA

Definition and concept

Process Step-by-Step

Co-Managed Inventory

GMA

Definition and concept

Process Step-by-Step

Multipick/Multidrop

Key points

Software

Study case

STMicroelectronics

Cadbury/Sara Lee

Conclusion

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Thank you for your attention!

Questions?

Sharifah Norazehan SYED YASINGEB master 2011