Overview

SMI Consulting Technologies helps enterprises optimize business processes to make more informed decisions for long-term growth. This is accomplished via ERP assessments and optimizations. Likewise, fragmented systems and disparate technologies are replaced. Manual processes are also automated.

SMI Consulting Technologies has expertise for various ERP and extended functionality software which include SAP, QAD, and Oracle. Lean and process improvements are generated via consulting/advisory, implementation, post go-live support, and managed services. This allow organizations to experience enhancements for demand-supply imbalances, inventory, quality, capacity, cycle time, and costing/budgeting.

Currently, several enterprises want better end-to-end visibility at all levels for customer orders, materials, products, and shipments. SMI Consulting Technologies addresses this need with supply chain planning and execution. Supply chain planning utilizes algorithms for predictive and prescriptive analytics to better balance demand and supply. Supply chain execution monitors and controls (in real-time) the physical movement and status of material/finished goods and financial information.

Supply Chain Planning

Supply chain planning’s objective is to better match demand with available supply. Planning consists of supply chain network optimization, demand forecasting, master production scheduling, and distribution requirements planning.

Supply chain network optimization maximizes service levels while simultaneously minimizing inventory, transportation, and warehouse cost. Based on desired service levels; the size, number, and location of facilities and corresponding inventory levels and transportation modes are determined.

Demand forecast accuracy improvements can reduce waste and increase revenue. Historical demand, current orders, demand shaping, and scenarios/simulations are used to reduce excess inventory, inventory carrying costs, and lost sales.

Master production scheduling (MPS) uses aggregate S&OP plans and other inputs to determine finished goods to assemble, at certain times, and with certain raw or WIP materials. The production plans or PSI (production, sales, and inventory) reports are tested for feasibility via rough cut capacity planning.

Distributions requirement planning (DRP) determines finished goods quantity, location, and timing to better meet forecasts and orders. The objective is to maximize the availability of product while simultaneously reducing order, transportation, and holding costs. DRP accomplishes this by developing replenishment plans for finished goods to reduce shortages. Its net replenishment requirements are used to create the MPS.

Benefits include:

Reduce Cost

Reduce order, inventory, facilities, and transportation costs and waste while maximizing customer service levels via supply chain network configuration optimization.

Improve Forecast Accuracy

Improve forecast accuracy to minimize lost sales from short, late, or no deliveries; safety stock; and demand/supply imbalances. Stock-out reductions and customer service improvements result in revenue growth.

Maximize Throughput

Increase throughput by optimizing 4Ms (material, manpower, machine, and method) to reduce resource constraints or bottlenecks and proactively anticipate uncertainties.

Increase Product Availability

Improve customer service and productivity, reduce inventory and transportation costs, and minimize finished goods shortages. Better balancing supply, demand, and inventory can result in an increase in revenue, profit, and customer satisfaction.

Sourcing and Procurement

Sourcing and procuring materials take place after the planning process and independent requirements or finished goods are determined. The master production schedule (MPS) serves as an input for material requirements planning (MRP). Then the MPS is exploded using bill of materials (BOM) to determine new planned receipts or planned orders for dependent demand (raw materials and WIP). Finally, capacity requirements planning (CRP) is ran to minimize unrealistic MRP plans. Detailed views of capacity for each work center are used to determine under/over-load levels.


Source for requirements comes from planners and purchase requisitions from other organizational users. These documents contain items, the quantity, and desired timeframe. Once approved, purchase orders are created to procure the items. Suppliers’ capacity, quality, performance, and delivery dates are monitored and/or managed to minimize downstream disruptions. Receipts of goods are inspected to ensure correct items, quantity, quality, and invoices before payment.

Standalone procurement software can integrate and extend the functionality of ERP. Additional and more advanced functions include spend analysis, sourcing, contract management, compliance, and supplier performance.

Benefits include:

Reduce Cost

Reduce purchasing, lead time, and inventory carrying costs; while improving working capital.

Increase Reliability

Increase supplier relationships, realistic promising, and shipping performance.

Automate Process

Automate purchasing to reduce errors, overhead, and paperwork.

Increase Compliance

Reduce maverick spend and spend leakage via contract compliance.

Manufacturing/Production

Planned orders for independent and dependent demand from MPS and MRP runs are fed into ERP’s short-term scheduling or an Advanced Planning & Scheduling (APS) ERP extension. These planned orders may contain a master schedule, BOM, routing files, priority rules, pick list, instructions, work center information, and machine setup and run time. Short-term scheduling converts the planned orders into production orders and purchase orders. It also determines the orders priority, sequence, and dispatch lists or shop schedules for production; based on available capacity, constraints, and desired due dates. The objective is to optimize efficiency and performance.

Next, ERP monitors, tracks, and analyzes manufacturing/production processes as they run. These can include production orders execution, raw material conversion into WIP and finished goods, and financial costing information.

ERP can also be integrated with a manufacturing execution system (MES). A MES monitors, manages, and controls production on a factory floor in real-time. The objective of a MES is to increase quality, improve productivity or performance, and reduce cycle time. Likewise, ERP integrated with MES better enables the on-time delivery of quality products in a cost-effective manner.

Benefits include:

Increase Throughput

Increase efficient use of assets for faster movement of materials, WIP, and finished goods within plants for faster throughput and increased capacity.

Speed to Market

Reduce supplier lead, processing, and customer wait times for quicker and more reliable delivery to customers and improved customer service.

Automate Data Collection

Automate time-consuming, costly, and error-prone manual data collection for improve decision making and visualization in dashboards and scorecards.

Increase Product Quality

Improve quality via accurate data collection and analysis for production deviations to improve compliance, reduce rejects, minimize recalls, and decrease containment response times.

Inbound/Outbound Logistics

ERP contains transportation management system (TMS), inventory management, and warehouse management system (WMS) functionality. For transportation management, capabilities can include route optimization, provider selection, and transport modes; based on lead time, stops, and cost. Fleet, materials, WIP, products, and KPIs can be tracked in real-time.

A yard management system (YMS) integrates transportation with warehouse operations to manage inbound (procurement) and outbound (shipping) flows. WMS functionality include monitoring and managing material receipt, movement, storage, and dispatch within facilities.

RFID, bar code scanners, and mobile computers may be used for automatic identification, data capture, and transmission to a central data warehouse. WMS extended functionality may include pick-to-light and voice-directed picking systems to speed up order preparation and loading.

TMS and WMS also work with customer relationship management (CRM) and order management systems (OMS) for order fulfillment. Order fulfillment entails order placement, receipt, processing, preparation, loading, and delivery.

OMS processes consist of order entry, credit checks, inventory allocation, invoice generation, and fulfillment location. A distributed order management (DOM) system is extended OMS functionality. It is used to allocate orders across a network of production, distribution, and/or retail locations to optimize cost and service levels.

A CRM stores and manages current and prospective customers’ interactions with sales, marketing, customer service, and technical support; in a single location. CRM and OMS work together to ensure relevant, current customer requirements and information are used to minimize errors, rework, and returns.

Finally, reverse logistics can be used to process returns to minimize waste. The objective is to receive, sort, stage, and determine which returns can be sent to inventory. Other items may be repaired, refurbished, remanufactured, and repackaged for secondary markets.

Benefits include:

Reduce Logistics Cost

Reduce transportation, warehousing, and inventory carrying costs via better decision making.

Increase Customer Service

Optimize the trade-off between minimal logistics cost and maximum customer service levels when fulfilling orders.

Increase Revenue

Increase customer retention with consistent, personalized experience across multiple channels and touchpoints.

Reduce Waste

Standardize return process, utilize asset recovery, and improve productivity.

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