Technology

and the Supply Chain

Lee Zimmerman CFPIM, CIRM, CSCP

Materials & Logistics Manager, Gemalto

January 14th, 2010

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What is the most wasted resource in today’s

companies?

People

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Suppliers’ Under-utilized Value

Our suppliers:

- have a unique knowledge of our materials.

- can improve our product costs and technologies.

- can work with us beyond the individual purchase.

The buyer is at the heart of building this supplier partnership.

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Vocabulary

What is a Process Flow?

Shows description and sequence of steps to perform an activity

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Purchasing Process flow – Current State

Identify Potential Sources

Buying Organization Supplying Organization

Evaluate Competitive Bids

Review Demand

Requisition Material

Place Purchase Order

Create the Sales Order

Receive Purchase Order

Create & transmit packing list

Produce Product

Ship ProductVerify incoming Count & quality

Receive

Pay

Invoice

Receive Payment

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Vocabulary

What is a Value Added process?

Any activity that your customer would be willing to pay you to do.

What is a Value Stream Map?

A process map indicating which activities are value added.

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Purchasing – Value Stream Map

Identify Potential Sources

Buying Organization Supplying Organization

Evaluate Competitive Bids

Review Demand

Requisition Material

Place Purchase Order

Create the Sales Order

Receive Purchase Order

Create & transmit packing list

Produce Product

Ship ProductVerify incoming Count & quality

Receive

Pay

Invoice

Receive Payment

Confidential8

Removing and Automating Non-value added activities

Technology Activities Supported

On line Auctions and Portals and Trading

Exchanges

Reduce the time needed to identify and qualify

suppliers

Internet Databases (OLAP cubes)

Provide demand views to suppliers. Review

status of supply orders.

Confidential9

Removing and Automating Non-value added activities

Technology Activities Supported

Blanket Orders & Supply agreements

Reduce placement activity for orders

Vendor Managed Inventory or

Kanban signals

Reduce or eliminate placement activity for

orders

Confidential10

Removing and Automating Non-value added activities

Technology Activities Supported

Supply Chain Event Management alerts

Reduce monitoring time for buyers. Alert if

supplier activity falls outside of alerts ranges.

Electronic Data Interchange

Hands off transmission of PO and ASN

information

Confidential11

Removing and Automating Non-value added activities

Technology Activities Supported

Radio Frequency Identification / Bar

Codes

Hands off receipt of product

Electronic Funds Transfer

Hands off payment of suppliers

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Purchasing -Future Vision VS Map

Identify the preferred Source

Buying Organization Supplying Organization

Generate a Supplier Agreement Review Demand

Produce Product

Ship ProductImport EDI notice at receipt

Pay with EFT

Transmit an EDI shipping notice

Receive EFT payment

Any Questions?