ERP System for SCM

Challenge Summary

An Enterprise resource management software to implement vendor management inventory, optimise manpower, reduction in inventory of stock rated as non manufacturing index and sale of scrap

Challenge Scenario

The supply chain process in the mining industry needs to keep track of flow of items is required as there is unused inventory in the Vendor's account and there is no payment being done for such inventory. Also man power is to be optimised in maintaining the list of vendors and the logistic activities being done. Reduction in inventory is required once an item is marked under the non-manufacturing index as the item is obsolete and timely sale of scrap needs to be done which will help in efficient management of resources.

Profile of the End-User

Logistics / supply chain unit Manager

Functional Requirements of the End-User

  • To track the flow of items to vendors
  • Maintain the data base of vendors
  • Marking non manufacturing index items
  • Sale of scrap items

Functional & Operational Capabilities

  • Tracking flow of items from supplier to vendor
  • Maintaining database of vendors as well as their respective stocks
  • Marking the non manufacturing index items when they become obsolete
  • Predicting when a product will become obsolete from customer buying patterns.
  • Selling scrap items

Operational constraints

  • Acceptance of vendors to provide clean data
  • Changes to process / habits

Expected Tangible Benefits and Measurable Gains

  • Reduction in COP Inventory Carrying Cost is nullified through VMISpend being deferred to the date of consumption through VMIAutomation leading to System improvements
  • Timely realisation of value through Scrap sale
  • Real time tracking of supply to vendors and stock available from the vendors.

Performance Metrics or Outcomes

  • Bench mark with Group Co's
  • Fix KPI's for deployment of Shared services
  • Incentives to scrap customers by fixing timelines