SCM (Supply Chain Management)

Improve demand forecast accuracy and escape the inventory-delivery dilemma

VEXPLOR SCM has 7 built-in AI/ML algorithms (ARIMA, Prophet, LSTM, XGBoost, LightGBM, Transformer, Ensemble). It leverages not only historical order data but also 6 external data sources including POS, IoT, weather, and promotions for demand sensing.

Here is what changes specifically:

• Auto-retraining: Prediction models periodically incorporate new data to self-improve accuracy. The model registry compares version-by-version performance and automatically selects the most accurate model. Even without manual algorithm tuning by forecast analysts, the system operates the optimal model for the data patterns.
• Anomaly detection with automatic response: When sharp demand fluctuations are detected, safety stock adjustments or emergency orders are triggered automatically. Personnel do not need to be glued to monitoring screens. Three automatic branches (safety stock adjustment, emergency order, manual review request) are evaluated upon anomaly detection.
• Differentiated management based on ABC/XYZ classification: Different forecasting methods and inventory policies are applied based on item characteristics. The inefficiency of applying the same safety stock policy to A-class and C-class items is eliminated. Cross-analysis with XYZ classification (demand variability) enables inventory strategy segmentation into a 9-cell matrix such as AX (high-value, stable demand) and CZ (low-value, volatile demand).
• EOQ optimization: Economic Order Quantity (EOQ) calculation finds the balance point between ordering costs and inventory holding costs. This is not theoretical EOQ but dynamic EOQ reflecting actual consumption patterns and lead times.

Manage suppliers with data and improve collaboration efficiency

Supplier management is systematized across 10 domains (basic information, certifications, on-site audits, scorecards, collaboration, contracts, milestones, change history, escalation, categories).

• 6-dimension scorecard evaluation: Quality, delivery, cost, responsiveness, innovation, and sustainability are quantitatively evaluated. This applies the BSC (Balanced Scorecard) approach to supplier management.
• Systematized on-site audits: Three audit types are defined — registration, periodic, and special audits — with score-based determination results management.
• Collaboration portal: Suppliers can directly perform 6 types of collaboration including order confirmation, delivery schedule adjustment, and quality feedback. Work previously conducted through phone calls and emails is now managed within the system with full audit trails.
• Strategic classification: Based on the Kraljic Matrix, purchasing categories are classified as strategic/leverage/bottleneck/routine to establish category-specific sourcing strategies.

Automate seamlessly from purchase request to payment

The entire procurement process is connected through workflows, reducing manual steps and ensuring traceability.

• Purchase request-to-PO automation: Purchase requests that pass the approval matrix are automatically converted to POs through catalog matching. Approval routes are predefined by amount and item category, reducing approval delays.
• 5 types of electronic bidding: RFQ, RFP, reverse auction, sealed bid, and negotiation — select the sourcing method that matches the procurement nature. Supplier responses are compared in a 3-tier structure (RFQ - RFQ Items - Responses) by item.
• Automatic 3-way matching verification: Purchase orders, goods receipts, and invoices are automatically reconciled to identify discrepancies in advance. Payment scheduling and payment execution are separated, supporting cash flow planning.
• RFQ change history tracking: All changes to quotation requests are maintained as history records, proving sourcing process transparency during audits.

Manage the entire import purchasing process in one system

From import orders through customs clearance to cost finalization — all handled without a separate system.

• 7 Incoterms supported: Cost allocation is automatically applied based on FOB, CIF, CFR, DDP, EXW, FCA, and DAP conditions.
• LC management: 4 types of LC and amendment history are managed within the system.
• Automatic Total Landing Cost calculation: CIF + customs duties + freight + fees are aggregated to automatically calculate the actual landed cost. Cost analysis per import shipment is instantly available.
• FTA origin management: Certificate of origin issuance and tariff reduction branching are supported to increase FTA utilization rates.
• Export shipping process: From strategic goods control through commercial invoice (CI), packing list (PL), bill of lading (B/L), to certificate of origin — all export documents are managed as a complete set.

Transform S&OP into a data-driven decision-making process

The standard 4-step process — demand review, supply review, pre-S&OP, and executive S&OP — is built into the system.

• Scenario analysis: Multiple scenarios can be compared by adjusting demand/supply variables. Questions like "What if a key supplier delays delivery by 2 weeks?" can be answered with data.
• Cross-departmental data integration: Sales demand data, procurement supply data, and production capacity data are consolidated on a single S&OP screen. Time previously spent on meeting preparation can be redirected to decision-making.

Difference in implementation approach

Conventional ERP-based SCM implementations typically require 6 months to over a year for consulting, design, development, testing, and stabilization. VEXPLOR deploys SCM solution templates on a no-code platform, enabling a standard-process-based SCM system to be operational within weeks.

What this means in practice:

• Customization flexibility: Screen layouts, field additions, and workflow condition changes can be performed without coding. Changes that require ABAP developers in SAP can be made directly by business users.
• Changes during operation: When business conditions change, processes can be adjusted immediately. There is no need to submit change requests and wait in development queues.

Difference in solution integration approach

In existing systems, integrating SCM with ERP, WMS, and TMS requires middleware (RFC, IDoc, ESB) setup taking weeks to months. In VEXPLOR, data integrity between solutions is guaranteed through FK (Foreign Key) references within a single database.

VEXPLOR SCM currently integrates with 5 solutions: ERP (items/orders/purchase vouchers), WMS (ASN/receiving instructions/dock reservation), TMS (transportation/reverse logistics), QMS (receiving inspection/NCR), and APS (demand planning/MRP explosion).

Difference in cost structure

The major cost drivers for global SCM solutions are license fees, implementation consulting fees, and maintenance fees. Because VEXPLOR is built on a no-code platform, implementation consulting costs are drastically reduced, and external development resources are not needed for operational changes.

Difference in risk management

Supply risks are classified into 4 types (supply disruption, quality degradation, price volatility, regulatory change) and managed through an impact-probability matrix. A Risk Register is built into the system, enabling tracking of the entire risk identification-assessment-response-monitoring cycle.

Difference in subcontract management

Common manufacturing subcontracting processes (consigned material issuance, subcontract orders, subcontract cost settlement) are handled within SCM. Without a separate subcontract management system, consigned material outbound-processing-inbound-settlement is fully tracked. Integration with the APS (production planning) solution enables subcontract capacity to be reflected in production plans.

Difference in returns management

Returns are systematized in 4 stages: acceptance-inspection-disposition. Return reason classification, disposition method determination based on inspection results (reuse, repair, scrap, return to sender), and reverse logistics processing linked to TMS are managed as a single process. Return data is automatically reflected in supplier scorecards, improving supplier evaluation accuracy.

Improved on-time delivery rate

The combination of AI demand forecasting and the S&OP process enables advance detection of demand-supply mismatches. Automatic safety stock adjustment and emergency order triggers upon anomaly detection reduce delivery delays caused by supply disruptions.

Improved inventory turnover

Differentiated management based on ABC/XYZ classification and improved AI forecast accuracy simultaneously reduce excess inventory and stockouts. Inventory policies tailored to item characteristics are automatically applied, reducing unnecessary safety stock.

Procurement process efficiency

The entire cycle from purchase request through approval, PO, receipt, inspection, to payment is automated through workflows. Reduced manual steps and eliminated approval delays shorten procurement lead times. Automated 3-way matching also reduces payment errors.

Supplier management efficiency

Quantitative evaluation through scorecard-based assessment clarifies supplier selection criteria. Early identification of low-performing suppliers and focused development of top suppliers raise the overall level of the supply base.

Import cost visibility

Automatic Total Landing Cost calculation enables accurate per-shipment actual cost determination. Tariff reduction opportunities through FTA origin management are also systematically tracked.

Cost reduction through spend analysis

UNSPSC-based category classification and spend analysis make spending patterns transparent. Strategic sourcing and supplier consolidation based on this data can deliver indirect cost savings.

Price management transparency

Price contracts, escalation (raw material price-linked price adjustments), price comparison, and blanket POs are all managed in the system. Especially for long-term contracts with escalation clauses, automatic price adjustment based on raw material price changes reduces errors and disputes from manual price management.

For transparency, areas not supported in the current version are explicitly stated.