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Monday, December 14, 2009

EFFECTIVE SUPPLY CHAIN MANAGEMENT IS CRITICAL FOR A&D MANUFACTURERS. TRY THESE STRATEGIES TO HELP YOU SUCCEED

While enterprise resource planning (ERP) implementations are common for managing financials at the corpo- rate level, little coordination extends down to the shop floor to manage schedules and individual subprojects. This undermines initiatives to boost productivity and project efficiency.


WHAT ANALYSTS RECOMMEND

Legacy systems, originally implement- ed to fulfill company-specific processes in accordance with an individual inter- pretation of industry regulations and requirements, need to be replaced to implement industry-wide best-practice processes and to meet customer man- dates. The immediate issues are a lack of system connectivity and data access. Once these issues are addressed, com- panies can implement more sophisti- cated project life-cycle management (PLM) solutions to help them manage areas such as collaborative design. This will help improve innovation and speed time to market.

WHAT SAP OFFERS

SAP offers market-leading ERP and PLM capabilities that leverage the SAP NetWeaver platform to extend func- tionality across the entire enterprise. Companies benefit from a powerful exchange infrastructure to facilitate integration; master data management to share consistent data across the enterprise; and a sophisticated portal that enables uniform, role-based access to data, applications, and services.

IMPROVE ASSET AND INVENTORY MANAGEMENT CAPABILITIES

Inaccurate demand forecasting and supply planning lead to excess inven- tory and suboptimal use of capital assets such as plant equipment. Companies need better inventory management, especially for spare parts, to succeed in the aftermarket.

WHAT ANALYSTS RECOMMEND

Companies should move away from point solutions and integrate systems for more robust supply management activities. This requires supply chain management and capabilities for parts tracking and valuation. Customers in both commercial and defense sectors are now requiring radio frequency identification (RFID) devices to sup- port real-time asset and inventory tracking processes. This requirement means that manufacturers must approach asset management from a life-cycle cost perspective.

WHAT SAP OFFERS

SAP provides supply chain manage- ment and business intelligence that integrate into back-office ERP and PLM capabilities. This helps companies improve supply forecasts, reduce inventory-carrying costs, and even execute sophisticated processes such as collaborative inventory replenishment.

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