In the international consumer market increasingly competitive, how to integrate through the supply chain, enterprise resource management in all sectors of the supply chain collaboration, reduce costs and to improve the operational efficiency of enterprises and thus the price war, business development and marketing of advantages of mutual interest for Chinese and foreign enterprises. As an internationally renowned multinational Colgate-Palmolive to its existing SAP system plays an important role in promoting development, but it does not meet, “Colgate global supply chain system” is still guiding the well-known multinational companies in information technology high-speed ahead with the road.
Headquartered in New York, Colgate-Palmolive is an asset of 94 billion global consumer products company in the worldwide manufacture and sale of numerous consumer products, including toothpaste, soap, Cleaning Products And pet supplies. For the integrated management of their supply chain, the company was established in November 1999 Colgate global supply chain management system. Colgate hopes to capitalize on its core SAPR / 3 solution to further improve the global supply chain management, retailers and customers to improve service, reduce inventory and increase profitability.
Focus on supply chain To solve the above problem, Colgate set up a “Colgate global supply chain system.” In this system, Colgate identified three key supply chain strategy. First is the introduction of VMI (vendor inventory control) project, a substantial reduction in channel inventory and cycle time. Second, the Colgate implemented a cross-border resource planning, to develop regional models for the global pattern. This mode transition can increase the predictive ability of enterprises to reduce the profit share, pool of assets, balance the company’s global business. Finally, Colgate will also implement a collaborative program with the downstream business systems to manage the supply chain market demand and the coordination of activities.
At Colgate-house, the company will provide daily VMI consumer demand and inventory information to complement the consumer centers. VMI’s current focus in North America, where VMI manages five factories from 40% of the container, covering 40 distribution centers, 12 consumer area, including all Colgate products. mySAPSCM make Colgate a more precise fit between supply and demand and ultimately reduce finished goods inventory, increased orders and production have been completed in order to achieve rate, shorten the additional cycle time.
VMI business processes from the consumer distribution centers every day inventory and demand information is passed to the mySAPSCM, the number of orders on the need for statistical supplement. mySAPSCM to comprehensive information on the productivity of enterprises in order to determine the production demand and supply shortage. Subsequently, additional orders through EDI back to the consumer to confirm, to address customer requirements. As in North America and other regions of the implementation of VMI, Colgate gained the benefits will grow exponentially.
Global resource utilization Colgate’s cross-regional resource use systems (CBS) demand and the global resource information will be integrated so that the previous monthly forecast into weekly supplement orders. Colgate input rapidly effective, including the rate of increase in shipments, FCL rate of increase in the number of additional cycle of decline in orders, stocks fall in. In the new business model, the supplier directly responsible for the distribution center’s resources to supplement Colgate. The new supply system is driven by customer order flow, and by Colgate’s distribution centers around the world delivered directly to the supplier.
CBS business control procedures supported by the mySAPSCM, according to the daily demand signals and inventory replenishment orders on the calculation, so that supply and demand is more consistent, more responsive to special order requirements, while reducing the impact of inaccurate forecasts, thereby reducing the finished goods inventory, reduced order cycle times add significantly improved the internal order complement and users in the middle order and the achievement rate of completed orders. In addition, by using the powerful replenishment system, Colgate also increases the order of the realization rate and capital efficiency.
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