INTRODUCTION FOR SUPPLY CHAIN COST ANALYSIS
Supply chain system is a process of interlinking all major key processes together. It is like a car with all the parts in the car coming together to complement each other. Without the engine, the car cannot move, likewise if the tires are missing. Even in the engine, all the different part must blend to each of the parts, otherwise, the engine will not start properly.
However, there is a need to measure how efficient the total supply chain operation works and perform and measuring the effectiveness of the supply chain system is important to understand the level of efficiency.
COURSE OBJECTIVES
By the end of the 2-day session, the learning curve achieve will enable the following:-
- UNDERSTAND the concept of supply chain system and its best practices
- UNDERSTAND the key cost and ratio analysis to improve supply chain operation
- UNDERSTAND the key measurement required to measure supply chain efficiency
- DEVELOP action plan to increase supply chain performances
WHO MUST ATTEND
- This training program is suitable for any person in top management or even senior level manager who need to understand the supply chain key concept and purpose.
METHODOLOGY
This training will involve the following area to enhance learning:
- Power point presentation
- Brain storming session
- Discussion on subject of learning
- Facilitating by trainer to enhance understanding of subject matter
- Notes will be provided
COURSE CONTENT
Module 1 – Introducing Supply Chain Management
- Definition & Fundamental of Supply Chain
- Key operational process in supply chain
- Qualifiers and Winning Principle of supply chain
- Best Practices in Supply Chain
Module 2 – Total Supply Chain Cost
- COGS key element, formula and purpose
- Distribution cost
- Objective of overall supply chain ratio
- Step to improving the ratio of total supply chain cost
- Calculation exercise
Module 3 –Direct Material Cost
- Direct material costs formula
- Understanding Direct Material cost
- Purpose and objective of calculating Direct Material cost
- Interpreting Direct Material cost
- Calculation exercise
Module 4 – Direct Labour Cost
- Direct Labour cost formula
- Understanding Direct Labour cost and its importance
- Interpreting Direct Labour cost
- Calculation exercise
Module 5 –Distribution Cost percentage versus Revenue
- Distribution cost formula
- Importance of Distribution cost analysis
- Interpreting Distribution cost
- Calculation exercise
Module 6 – Order Management cost
- Order management cost
- Order management GRC cost
- Order management labor cost
- Order management property, plant and equipment asset cost
- Purpose of order management cost analysis
- Importance of Order Management cost
- Calculation exercise
Module 7 – Fulfillment cost
- Formula for fulfillment cost
- Importance of understanding fulfillment cost
- Interpreting the fulfillment cost
- Calculating exercise
Module 8 – Other Operational expenses to supply chain improvement cost
- Formula for other operational expenses
- Importance of understanding other operational expenses cost
- Calculating exercise
Module 9 – Logistics Cost Analysis
- Sales of Logistics Cost Ratio
- Logistics expenses over other expenses ratio
- Cost of Logistics function ratio
- Purpose of the Logistics ratio
- Interpreting the ratio
- Calculating exercise
Module 10 – Inventory analysis
- Importance of Inventory analysis
- Inventory turnover ratio
- Days and weeks in stock ratio
- Average inventory calculation
- Reorder point calculation
- Inventory Velocity calculation
- SLOB calculation
- Out of stock calculation
Module 11 – Forecasting and forecasting accuracy
- Type of forecasting
- Forecasting accuracy measurement
