December 2003 YAS

Supply Chain Management

SCM

December 2003 YAS

AgendaIntroduction

Process Flow of Material in SCM

Why Supply Chain Management

Benefit of Supply Chain Management

Supply Chain Management Integration

Aramco Supply Chain Management

December 2003 YAS

IntroductionSupply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed)

Purchasing Materials Planning (MRP) Inventory Management Physical Inventory Material Master Logistics Transportation Other Applications Interfaces

December 2003 YAS

Why Supply Chain Management

Amount spent on materials is higher than other inputs

Materials offer considerable scope for reducing cost and improving profit

Materials add value to the product

Quality and product depend on material

Efficiency of any organization depend upon the availability of right material in right quantity at right time and right place

December 2003 YAS

Process Flow of Material Procurement in SCM

Customer Demand

Material Requirements

Planning

Quotation &

Bidding

Purchase Order

VENDOR

Receiving

Customer

issues

Warehouse

Direct Charge

Start

Stock

PurchaseRequisition

TRANSPORT

Purchase Order

Agreement

Purchase with agreement

Standalone PO Purchase

Booked Available Quantity

Physical Inventoryissues Customer

December 2003 YAS

Supply Chain Management Integration

Supply Chain Management SCM

Plant Maintenance

Project System

Sales & Distribution

Production Planning

Quality Management

Asset Management

Cost Control

Financial Accounting

December 2003 YAS

Inventory Optimization

Controlling of Indirect Cost

Minimize Risk of Inventory Loss

Reduction in Loss of Time and Direct Labor

Minimize Risk of Production Time Loss

Benefit of Supply Chain Management

December 2003 YAS

PurchasingContractPurchase OrderPurchase RequisitionSubcontracting Vendor Master Info Records Source List Quotation B2B (A web-based procurement system )

ARAMCO Supply Chain Management

December 2003 YAS

Materials Planning (MRP)MRP TypeLot –Size Calculation Mass Planning RunSingle Planning Run Planning ResultsForecastingChecking Rule

ARAMCO Supply Chain Management

December 2003 YAS

Inventory ManagementGoods ReceiptsGoods IssuesGoods TransferMaterial ReservationManaging ReservationMaterials DocumentsReporting

ARAMCO Supply Chain Management

December 2003 YAS

Physical InventoryPhysical Inventory DocumentsInventory CountDifferencesSpecial Physical Inventory ProcedureMaintain Physical Inventory

ARAMCO Supply Chain Management

December 2003 YAS

Material MasterMass Material Record Creation (Different Material Type)Single Material Records CreationMaterials Records ExtensionMaterials Record Flag for deletion Material Type ChangeMRP ProfileForecast Profile

ARAMCO Supply Chain Management

December 2003 YAS

LogisticsInbound DeliveryOutbound DeliveryShippingWarehouse Management Goods ReceiptsGoods IssuesGoods Transfer

ARAMCO Supply Chain Management

December 2003 YAS

TransportationStocker DistributerProof of CollectionProof of Delivery

Other ApplicationsIT Assets System (None Capital)Service Award System (SAS)Personal Effect Tracking System (PETS)Reclamation and Sales System (RSS)Security Sensitive Equipment Inventory Tracking SystemSecurity Material Inventory Tracking system

InterfacesAviation SystemHealthCare SystemHuman Resources SystemSAP R/3 Portal Interfaces

ARAMCO Supply Chain Management

December 2003 YAS

Applications Supported by SCM Div.Purchase Requisitions Reservations Vendor EvaluationPurchase Orders Consignment MFC Supplement Stock Purchases Physical Inventory MFC Purchase Order Consumable Purchases Reorder Point Planning SFC Supplement Subcontracting Lot –Size Calculation SFC Purchase Order Material Master Planning Run Service Entry SheetVendor Master Planning Results Business Intelligence Contract Services Reporting Info Records Shopping Cross Modular IntegrationSource List Approval Process Electronic Contracting Network IntegrationQuota Arrangement B2B Cataloging (SRM MDM) Medical/Aviation/HCM Solution IntegrationLocal Development Integration Webmethod mappings and integrationsConcurrent Development Contract Update Service Master

SAMS DevelopmentIntegration with Supplier ASC only (EDI) Services Vendor Master

PO Acknowledgement Bid Slate Contracting Procurement Tracking System (CPTS)Update PO Status Request for Quotation (RFQ) Proponent Procurement Tracking System (PPTS)Update PO ETA Contract Creation Entry Sheet Vendor PortalGoods Receipts Contract Supplement Services Work Certification Goods Issues Contract Release Purchase Order Services Work VerificationStock Transfers Change Order SAP R/3 Portal Interfaces Service Entry Sheet IT Assets System Service Award System (SAS) Personal Effect Tracking System (PETS) Reclamation and Sales System Overseas Contract Services Processes

ARAMCO Supply Chain Management

December 2003 YAS

Thank YouSystem Demo