Several studies conducted since 2000 indicate that supply chain malfunctions such as production or shipment delays can have an immediate and long-term impact on a manufacturer`s profitability and, ultimately, share price.
To alleviate this situation, supply chain event management (SCEM) has emerged as a new discipline, one which can have a real and enduring impact on a company`s business operations.
In line with this, JD Edwards has announced new SCEM capabilities for its Production and Distribution Planning (PDP) solution to enable companies to detect and resolve operational issues in real-time before they impact the bottom line.
The new capabilities include multidimensional communication between suppliers, customers and trade partners and instantaneous response tools that allow managers to modify production and distribution plans when needed to accommodate changing business conditions.
The PDP solution, part of the JD Edwards 5 product family, creates optimal supply chain plans based simultaneously on distribution, manufacturing, sourcing constraints and costs. Through a collaborative Web client, JD Edwards SCEM provides customers and suppliers with access to the PDP applications and supply plans via the Internet.
The SCEM capabilities can be used to enable high-value business processes such as dynamic sourcing and vendor-managed inventory.
SCEM is becoming increasingly important in monitoring networks of delivery vehicles, distribution centres, factories and raw material suppliers and in providing the tools to respond to operational issues before they result in excess cost or lost revenue.
"We chose JD Edwards` integrated production/distribution planning as part of a larger enterprise-wide initiative in which we are replacing our legacy systems with JD Edwards` full product line of integrated ERP and advanced planning applications," says Ronny Saelens, programme manager at Nampak, Africa`s largest and the most diversified packaging manufacturer in the world.
"As a result of the new applications, we expect to gain greater visibility into our supply network and the ability to anticipate and respond to changing business conditions while delivering superior customer service."
With multidimensional communication between the PDP user and outside partners and suppliers, interaction with the extended supply chain is simplified and improved. Select partners can edit PDP-generated planning information through a collaborative Web client so changes are reflected in the most recent production and distribution schedules.
The SCEM capabilities allow users to make recommendations and modify rules and responsibilities in real-time, involving all parties in decision-making. Unlike batch planning solutions, there is no lag time between an event and a response using the real-time collaborative architecture of PDP for SCEM.
These systems generate alerts, enabling production and distribution managers to respond to deviations from the plan before they adversely impact the bottom line.
"Successful supply chain planning requires true collaboration and the ability to react to unscheduled changes in a timely fashion," says Dave McDonald, solutions consulting manager at JD Edwards South Africa.
"JD Edwards` SCEM capabilities give customers a holistic view of the extended supply chain by inviting partners and suppliers to share in planning, and they allow users to make important changes and react to unplanned events in real-time."
The supply chain event manager reflects the look and feel of JD Edwards` other Web-based applications. This enables seamless navigation between applications, leading to increased ease of use, and it facilitates the automation of end-to-end business processes where the user may need to interact with multiple JD Edwards 5 applications.
Consistent with other JD Edwards 5 planning applications, the supply chain event manager allows for data integration with Microsoft Excel, allowing planners to continue using the desktop productivity tools of their choice. Excel can be used as a real-time update and reporting tool in conjunction with PDP.
Share
Editorial contacts