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Cristian Herghelegiu

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					Supply Chain Management
for Food and Agriculture –
Software Platforms and
Functionality




             Improve Cost, Efficiency, and Quality through
               Supply Chain Management IT Integration

                                                     Regional
                                                  Competitiveness
  Cristian Herghelegiu, PMP,                         Initiative
  Partner Account Manager,
  Micosoft Romania

  01 November 2006 - Bucharest
Agenda

• Agribusiness - Key challenges
• Typical Supply Chain Management
  (SCM)
• SCM selected benefits
• Microsoft Dynamics solutions
• Summary & Actions…
Agribusiness players

• Producers & Vendors     •Technology level (or
  (small, medium and      absence)
  large)
• Fruits and vegetables   •Standards lacks, raw
                          materials quality
• Meat Industry
• Milk industry           •Sales/Purchase
• Beverage                Prices


• Integrated companies    •Purchase price
  (meat, alcohol)         (pressure on vendors)
Agribusiness key challenges

• Competition at all levels;
• Operational margins – operational;
• Prices (sales);
• Standards and regulations– ability to sell in further
  context;
• Level of investment;
• Human resources!


• Business Control!
What customers want*?

•   Precision
•   Accesibility
•   Partnership
•   Consultancy




                        *Gallup research
 Challenges
               Globalisation



Competition                        Standards




Customer                         Technological
 requests                          Evolution


              Business results
Priorities
                   Innovative products
                      and services




Customer relationship                Operational excellence
     excellence                         Cost reduction




                  Suppliers relationship
                      excellence
How to hit priorities?

1. Business Acumen and vision!
2. Business tools to allow and support:

•   Focus on main business and not on
    operations;
•   The best operational pattern;
•   Business Agility;
•   Affordable costs (ROI, TCO);
•   Easy adoption by the team (training time,
    operational cost);
•   Easy to support (integrated with the rest of
    platform);
Short definition of SCM

• Supply-chain management simply refers to the
  management of the entire set of production, distribution,
  and marketing processes by which a consumer is supplied
  with a desired product.


“…a set of interdependent companies that work closely
  together to manage the flow of goods and services along
  the value-added chain of agricultural and food products, in
  order to realize superior customer value at the lowest
  possible costs” *.

                                                           Folkerts and Koehorst,
      Challenges in international food supply chains: vertical co-ordination in the
     European agribusiness and food industries. British Food Journal, 100, 385–
                                                                               388.
Typical Supply Chain
Operational effectiveness

• Many aspects of SCM, are efforts to improve the
  operational effectiveness of a chain:

   – improved logistics, shared information systems, better information
     flows, reduced transaction costs, preservation of product quality,
     standards and integrity throughout the chain;


• Important in matching competitors;
• Increasingly SCM becomes necessary condition for access
  to certain markets (export markets, supplying to
  supermarkets);
• Will not guarantee a sustainable competitive advantage.
Basis Of Competition


   The Past ...        The Future ...

                       Supply Chain
    Product
     versus               versus
    Product
                       Supply Chain
Supply Chain Benefits
Manufacturing   Distribution   Retail   Consumer
Why SCM? – a vision at least…

•   Sales forecasting
•   Purchase planning | stock replenishment
•   Capacity planning
•   Capacity Load (resource allocation)
•   Minimize inventory (to Just in time)
•   Time to market
•   Delivery cycle and Logistics

• Overall: cost reduction, higher return on invested
  capital, higher turn over… higher profitability
6 keys for successful SCM

•    Recent studies of supply chains in Australia
     identified six key principles of successful SCM
     (AFFA et al. 2002):

    1. focus on customers and consumers;
    2. the chain creates and shares value with all its
       members;
    3. making sure the product fits the customers’
       specifications;
    4. effective logistics and distribution;
    5. an information and communication strategy that
       includes all chain members
    6. effective relationships that give leverage and shared
       ownership.
Benefits of Supply Chain Planning

• Competitive advantages due to a greater quality of
  service, shorter throughput times and cost savings.

• Lasting increase in customer satisfaction due to
  increased delivery reliability and increased ability to
  respond.

• Reduced costs due to
  minimization of
  warehouse stocks and
  more efficient resource
  planning.

• Increased efficiency
  due to assisted decision-
  making (planning
  algorithms, simulations)
  and alert functions.
Benefits of Supply Chain Controlling
• Reduced costs as problems in the supply chain are
  recognized and the appropriate measures set in motion
  early on.

• Lasting increase in customer satisfaction due to
  increased transparency and ability to react.

• Increased efficiency
  due to the optimal
  coordination of all supply
  chain processes.

• Competitive advantage
  due to the systematic
  recording and controlling
  of the complex
  relationships in the
  supply chain network.
 • Productivity, from each entity to whole
   organization
 • Empowerment: simple access to business vital
   information
 • Expertise


Microsoft Dynamics Microsoft Dynamics Microsoft Dynamics
                                                           „Microsoft Green“
      CRM                 NAV                 AX
  Integrated solutions

                                         Enterprise             Categorii de solutii:
  Categorii de solutii:                 Enterprise
                                          Resource              Enterprise Reporting,
   Financiar, Resurse                    Resource
      Umane, Salarii,
                                        Management              BI, KPI
                                       Management
        Mijloace Fixe                     (ERP)



                                       Analytics


Categorii de solutii:
    Automatizarea                                                      Categorii de solutii:
         lanţului de                                                   Automatizarea
     aprovizionare          Supply                                     vanzarilor, Marketing,
 Gestiune, Stocuri,                                    Customer
                                                       Customer        Service
                             Chain
                           Business
    Automatizarea                                     Relationship
                                                      Relationship
          serviciilor     Management
                          Operations                  Management
                                                      Management
                            (SCM)                        (CRM)
The Breakthrough
The Strategy




               Microsoft

               Dynamics
• 23 years in business
  applications
• 9,300 partners
• Over 298,000
  customers worldwide*


* Includes Microsoft Dynamics, Microsoft FRx, Microsoft Forecaster,
Microsoft Retail Management, Microsoft Small Business Financials and C5 customers
                              The Challenge       Finance



  Julia,
 Systems
                                                 Operations
                         Sara,
             Benjamin,   CFO
             Marketing

  Kevin,                                      Sales & Marketing
Account Mgr.


               Karl,
             Logistics
                                                     IT

                    Penny,
  Inga,             Payroll
Purchasing
                                • Familiar Look & Feel
                                • All level integration with
                                  Microsoft Outlook
                                • Role based


           April


“Very few know how many verifications and what work is
required within the payment process. "
Platform integration




     Secure the investment in technology
Trusted decisions




The right information, at the right time and in the
                   right format
       Specializare/Verticalizare
       • Microsoft Dynamics – platforma                                                                                               Focus pe industrii
         ideală pentru verticalizare                                                                                                    Retail
       • Sute de soluţii disponibile în                                                                                                 Transport şi Logistică
         prezent                                                                                                                        Producţie
                                                                                                                                            Discretă
       • Flexibilitate pentru partener –                                                                                                    De proces
         valoare adaugata pentru client                                                                                                     High Tech
       • Productivitate pentru partener                                                                                                     Modă
                                                                                                                                            Utilaje
                                                                                                                                            Alimente, Băuturi, Tutun
                                                                                                                                            Componente electrice şi
                                                                                                                                            electronice
                                                                                                                                            Sisteme de calcul
                                                                                                                                            Mobilă
                                                                                                                                        Distribuţie
                                                                                                                                            Alimente & Băuturi
                                                                                                                                            Produse de consum
                                                                                                                                            Produse industriale
            Military                        Patent                                         Physi-           Relief        Private
                                                                                                                                        Servicii
Vertical




                         Pharma-cies                  Restau-rants    Municipa-lities

                                                                                                                                            Financiare – Leasing, Asigurări
            vehicles                       Lawyers                                         cians            Orgs          Schools


            Motor        Specialty                                       Govern-          Health-         Not-for-
           Vehicles       Retail
                                         Law Firms     Hospita-lity
                                                                          ment             care            Profit
                                                                                                                         Educa-tion
                                                                                                                                            IT - Computer & Software
                                                                                                                                            Management & Consultanţă
            Core Manu-                                                                  Core Professio-              Core Public
                                                                                                                                        Închirieri
                                       Core Retail         Core Distribution
             facturing                                                                   nal Services                  Sector
                                                                                                                                        Dealership Auto
Core




           Financial Management                      CRM                           SCM                           Analytics
Portofoliul Microsoft Dynamics in Romania




                         • Suita de aplicatii pentru managementul firmelor si
                           institutiilor incluzand functionalitati de management
                           financiar, SCM, CRM si planificare si control bugetar


                         • O suita CRM completa incluzand automatizarea fortei
                           de vanzari, marketing si managementul contractelor de
                           service




                        •   Management financiar pentru intreprinderi mici
                        •   Managementul firmelor de retail si POS
                        •   Managementul contactelor, contabilitate si servicii
                            online, integrate in pachet cu Microsoft Office
Model de Business Indirect
                                  Microsoft
                                  Business
                                  Solutions
Produse,
                                                      Vânzări,
Branding, Marketing
                                                      Informaţii de piaţă
Suport & Metodologie

                                     Birou MBS
                                        local
Localizare,                                                   Vânzări,
Produs & Marketing local                                      Informaţii de piaţă
Suport, Certificare şi training
pentru parteneri
                                     Reţea de parteneri

Analiză, Design,                                                        Vânzări,
Configurare, Dezvoltare,                                                Informaţii de piaţă
Implementare, Training
Suport
                                                 Clienţi
Conclusions

• In new agro-industry development, building a
  supply chain has been demonstrated to be just as
  critical to the success of the industry as
  establishing adequate agronomic and pest-
  management practices;

• Microsoft Dynamics offers the integrated solution
  in order to optimize the operational, financial and
  customer and supplier related operations.
Actions



• Contact us at:
  – www.microsoft.com/dynamics


• Contact us and our partners at:
  – www.microsoft.ro/dynamics
cristian.herghelegiu@microsoft.com

				
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