Search Results for: erp

How to Use SubContracting in SAP APO

Executive Summary Subcontracting is a specific process where manufacturing is performed outside of the company’s plants. There are several subcontracting process flows. There is extra complexity to subcontracting that must be understood before implementing subcontracting in a system like APO. Subcontracting can be considered a type of bi-directional planning. Introduction Subcontracting, in supply chain management,…

Contract Clauses to Watch Out for In Indian Professional Service Agreements

Executive Summary Professional service agreements or independent contractor subcontractor agreements are tools in the consulting trade. With the entry of low quality and almost entirely Indian recruiting companies, the clauses in these contracts are increasingly out of synch with US and European standards and practices. Video Introduction Skip reading the introduction and watch the following…

The Reality vs Illusion of Make to Order and Forecasting

The Reality vs Illusion of Make to Order and Forecasting

Executive Summary Companies, promoted by consultants, continually propose that they would like to move to make to order. What goes unmentioned is that only a tiny percentage of companies can go to make to order. Why assemble to order is confused with make to order. Introduction At Brightwork Research & Analysis, we receive questions on…

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What Warehousing Environment is SAP EWM Design For?

Executive Summary SAP EWM has a very particular design based upon a third-party logistics provider rather than a shipper. This has had negative implications for customers but is not discussed by SAP consulting companies. Introduction This article will discuss how major SAP consultancies conspired with SAP to bring a completely inappropriate application called EWM to…

My Experiences with Dynamic or Extended Safety Stock

Executive Summary Dynamic safety stock in ERP and external supply planning systems is commonly desired to be activated by companies. Extensive testing and observations illustrate that the standard dynamic safety stock calculation is incorrect. In this article, we cover many topics around dynamic safety stock. Introduction to Dynamic Safety Stock This article covers the topic…

The Overestimation of the Benefits of 3PL Versus Private Fleets

Executive Summary Companies maintain private fleets and they have important advantages. The largest private fleets are concentrated in specific areas. Specific areas of logistics are more prone to outsourcing. Private fleets are shrinking. Interestingly, outsourced transportation is highly promoted while it is infrequent to promote private fleets. Introduction to the Overestimation of 3PL vs Private…

Forecasting References

References The complete list for the book “Supply Chain Forecasting Software.” ____________________________ Anbarci, Nejat, and Jungmin Lee, “Economic Bias of Weather Forecasting: A Spatial Modeling Approach,” Deakin University, 2008 Answering the Sales Forecasting Challenge for Manufacturers, Right90 Armstrong, J. Scott, “Forecasting by Extrapolation: Conclusions of 25 Years of Research,” University of Pennsylvania, Published in Interfaces,…

Supply Planning References

References  The complete list for the book “Supply Planning with MRP/DRP and APS Software” _____________________________ Abraham, Ajit and Goldberg, Robert. Evolutionary Multiobjective Optimization: Theoretical Advances and Applications (Advanced Information and Knowledge Processing). Springer. 2005 Baker, Kenneth. Optimization Modeling with Spreadsheets. Wiley, 2011. Bazara, Mokhtar S. and John J. Jarvis. Linear Programming and Network Flows. 4th…

Inventory Optimization and Multi Echelon References

References The complete list for the book “Inventory Optimization and Multi Echelon Planning Software.” ___________________________________ Abell, John B., Louis W. Miller, Curtis E. Neumann, and Judith E. Payne. DRIVE (Distribution and Repair in Variable Environments). RAND Corporation, 1992. Berners-Lee, Tim. Weaving the Web: The Original Design and Ultimate Destiny of the World Wide Web. New…

MRP, DRP, Heuristic, Allocation and Optimization Vendor Profiles

MRP, DRP, Heuristic, Allocation and Optimization Supply Chain Software Vendor Profiles The following supply chain enterprise software vendors are showcased in the Brightwork Research & Analysis supply chain planning book “Supply Planning with MRP/DRP and APS Software.” Each of the vendors makes more than just software that creates the supply plan, however, this book showcases…