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SCM── Some details

SCM── Some details. 國立中央大學 、 資訊管理系 范錚強 Tel: (03)426-7250 Fax:(03)427-1990 mailto: ckfarn@mgt.ncu.edu.tw http://www.mgt.ncu.edu.tw/~ckfarn 2005. Interactions among SC partners – in the past. Internal activities Sales forecasts, Product design, Inventory management, marketing, sales

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SCM── Some details

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  1. SCM──Some details 國立中央大學、資訊管理系 范錚強 Tel: (03)426-7250 Fax:(03)427-1990 mailto: ckfarn@mgt.ncu.edu.tw http://www.mgt.ncu.edu.tw/~ckfarn 2005 中央大學。范錚強

  2. Interactions among SC partners – in the past • Internal activities • Sales forecasts, Product design, Inventory management, marketing, sales • External activities • Procurement Supplier Focal Buyer 中央大學。范錚強

  3. Interactions among SC partners – trends • Increased external activities • Low frequency activities • Vendor selection, Collaborative product design • High frequency activities • Collaborative forecast, order processing, collaborative logistics Supplier Focal Buyer 中央大學。范錚強

  4. The “C” word – C-commerce • Collaboration • E.g. Pendulum swing in Taiwanese mass production business • 1. OEM – Original equipment Manufacturing • brand-name buyer designed products • 2. ODM – Original design and Manufacturing • Contract manufacturer designed products • CDM – Collaborative Design and Manufacturing • Collaboration 中央大學。范錚強

  5. Example: Procurement • Inter-firm Activities: • Negotiation, order placing, delivery, goods received and verification, payment • Collaboration: tightly coupled activities • Short AVL – approved vendor list • Product design – collaborative engineering • Forecast – CPFR (Collaborative Planning, Forecasts and Replenishment) 中央大學。范錚強

  6. Challenges from the Market • Problems facing the IT contract manufacturers in Taiwan • Customer requirements • 955 – 95% of all orders fulfilled within 5 days • Actions: VMI, resulting in higher inventory costs • Requirements in 2001: 983 • Requirements in 2003?? 1002 982 Requirements in 2005?? 中央大學。范錚強

  7. Traditional Production Model • Traditional BTS: Build to Stock • Sales forecast  production plan  procurement  production  FG warehousing  order taking  delivery • Slow movement of goods, capital tied up • Traditional BTO: Build to Order • Customer order  production scheduling  procurement  production  delivery • Long delivery cycle, lack of competitiveness 中央大學。范錚強

  8. Exploiting IT capabilities • Speed • Accessibility • Visibility • Opportunities: • Early involvement and early availability of information • Postponement of decisions 中央大學。范錚強

  9. Current Production Models • BTF/VMI– Build to Forecast • Customer rolling forecast  procurement  production scheduling  production  customer delivery notice  delivery to VMI • BTO • Customer rolling forecast  procurement  customer order  production scheduling  production  delivery • CTO/ATO: Configure to order, Assemble to order • Customer rolling forecast  procurement  production scheduling  production of components  customer order  final assembly  delivery 中央大學。范錚強

  10. What are the differences? • Customer ROLLING forecast • What do you do with the forecast? 中央大學。范錚強

  11. Example: A Shoe Manufacturer • Shortened Cycle time Order Procurement Production In the Past 12weeks 10weeks Current Rolling Forecast 4weeks 6weeks 12~13weeks 中央大學。范錚強

  12. Evolution of Collaboration • QR: Quick Response • 1984, garment retailers • Quick response to customer demand changes • Information sharing of Point-of-sales data • Effective in reducing lead time, inventory and obsolescence • ECR: Efficient Consumer Response • 1992, retailers of general merchandise • An extension of the QR concept • Covering Suppliers and manufacturers • VMI/SMI • Vendor/Supplier Managed Inventory • Change of ownership at buyer warehouse • Eliminating the buyer side warehouse 中央大學。范錚強

  13. CPFR: Collaborative Planning, Forecasting and Replenishment • Early 1990’s Wal-Mart 和 Warner-Lambert tried out CPAR • Evolution into CPFR (trademark of VICS: Voluntary Interindustry Commerce Standards Association) • New generation of CPFR in 2004 中央大學。范錚強

  14. CPFR • Supply Chain Visibility • Collaboration • Accurate forecast • Lower inventory Develop front-end agreement Create joint business plan Create sales forecast Identify and resolve exceptions Create order forecast Identify and resolve exceptions Order generation 中央大學。范錚強

  15. Business model: B 中央大學。范錚強 Source: www.cpfr.org

  16. Basic Concept: Exception Handling • Mutual long term commitment • Change of business relationship • From ad hoc, one shot to long term • Collaborative Planning • Joint business plan • Collaborative Forecast • Resolve exception • Collaborative Replenishment • Information sharing, visibility • Resolve exception 中央大學。范錚強

  17. Sales Retailer forecast too low Retailer forecast too high Time Accurate Forecast 中央大學。范錚強

  18. Differences at different stages using point-of-sales data to rapidly update forecasts for new products sharing of planning information automatic monitoring of sales, shared exception alerts Sales using the supplier’s forecast Time 中央大學。范錚強

  19. The technical solutions • B2Bi • RosettaNet • ebXML 中央大學。范錚強

  20. Fixed relationship B2B IOS • Inter-organization Systems Alternatives • Services provided by the Focal • Integrated with in-house ERP • Independent EC server (owned or ASP) • Linking the Focal with suppliers • Web-based • Information Exchange • Process integration • Outsourcing? • Technology? 中央大學。范錚強

  21. 資料庫 Focal(1) back ERP Server EC Server XML格式 ERP 中央大學。范錚強

  22. ERP Server EC Server XML format 資料庫 資料庫 ERP EC Independent service providers ASP CSP 轉出檔案 Focal(2) 中央大學。范錚強

  23. EC interface EC Server DB DB EC Linking with Suppliers(1) ERP/MIS ERP Browser 中央大學。范錚強

  24. B2Bi Process Integration Supplier Rosettanet/XML Focal XML ERP EC Server (Enterprise Ver.) Internet EC Server (Standard Ver.) ERP XML RosettaNet PIPs 中央大學。范錚強

  25. Alternatives AP1 ASP B2B Server ERP AP2 SCM Browser1 Portal Browser2 In-house Service Provider Users 中央大學。范錚強

  26. Interchange of information • Data • Data files, coding • Need “Data interchange” standards • Message • The information on a traditional document reflecting a single activity (e.g. order, confirmation, delivery) • Need “Message interchange” standards • Process • The process involved in a single activity • Process integration 中央大學。范錚強

  27. Data Interchange • Paper documents, computer files, spreadsheets • Paper, fax, magnetic media, network (e.g FTP) • Normally by batch • EDI • Transaction data for a single transaction • Traditionally run on proprietary networks • International message standards: UN/EDIFACT • EOI- EDI over Internet • HTML • XML 中央大學。范錚強

  28. Markup Language • “Markup” is a method of conveying metadata (that is, information about a dataset). • Markup Language use string literals, or “tags”, to delimit and describe this data. • Ease of reading, printing and exchange • printer typesetting, proofreader, punctuation, ASCII, C, RTF • SGML: Standard Generalized ML 中央大學。范錚強

  29. Example: HTML Document <HTML> <H1 ALIGN=CENTER>Hardware</H1> <FONT FACE size=2>Notebook</FONT> <FONT FACE size=2>IBM</FONT> <FONT FACE size=2>Synnex</FONT> <FONT FACE size=2>John</FONT> 中央大學。范錚強

  30. Example: XML Document “extended” data tags <?xml version="1.0" encoding="Big5" ?> <產品搜尋> <摘要>搜尋字串：“超薄手提電腦”，共找到 2 筆</摘要> <產品> <貨號>12478943</貨號> <品名>IBM 240</品名> <定價>$58,455</定價> <說明頁 網址="http:/www.ibm.com.tw/product/nb/tp240">ThinkPad 240</說明頁> </產品> <產品> <貨號>83424723</貨號> <品名>Dell A123</品名> <定價>$58,999</定價> <說明頁 網址="http://www.dell.com.tw/product/nb/a123">NB A123</說明頁> </產品> </產品搜尋> 中央大學。范錚強

  31. XML advantages • Open, platform-independent • Vocabulary: Definitions of TAGS for different Application Domain • An XML vocabulary is a description of XML data that is used as the medium for information exchange, often within a specific domain of human activity(business, chemistry, law, music, for example) • Program Readable Note: XML is not a programming language, nor an object-based system, nor an operating system. It is a powerful, elegant technique for thinking about, exchanging, and presenting data in a platform-independent manner. 中央大學。范錚強

  32. XML and Browser • XML – changes in internal structure of browsers • HTML Interpreter  XML Parser • A normal Hypertext web-page becomes Application page • Application Software  Browser Software • XML– XML data can be processed by application systems, instead of a browser 中央大學。范錚強

  33. Client Side of Web-XML Browser URL Application Present-ation Module Parser Document Handler Valid- ater XML File HTTP Server 中央大學。范錚強

  34. RosettaNet • RosettaNet is a consortium of major Information Technology, Electronic Components and Semiconductor Manufacturing companies working to create and implement industry-wide, open e-business process standards. • Cluster 0: RosettaNet Support • Provides administrative functionality • Cluster 1: Partner, Product and Service Review • Allows information collection, maintenance and distribution for the development of trading-partner profiles and product-information subscriptions 中央大學。范錚強

  35. RosettaNet • Cluster 2: Product Information • Enables distribution and periodic update of product and detailed design information, including product change notices and product technical specifications • Cluster 3: Order Management • Lets partners order catalog products, create custom solutions, manage distribution and deliveries, and support product returns and financial transactions • Cluster 4: Inventory Management • Enables inventory management, including collaboration, replenishment, price protection, reporting and allocation of constrained product 中央大學。范錚強

  36. RosettaNet • Cluster 5: Marketing Information Management • Enables communication of marketing information, including campaign plans, lead information and design registration • Cluster 6: Service and Support • Provides post-sales technical support, service warranty and asset management capabilities • Cluster 7: Manufacturing • Enables the exchange of design, configuration, process, quality and other manufacturing floor information to support the "Virtual Manufacturing" environment 中央大學。范錚強

  37. RosettaNet PIP • Partner Interface Process (PIP) • message guidelines and XML DTD's (Document type definition). • Understand what the PIP number represents. • A PIP number has 3 parts:  a number + a letter + another number.  Example: 3A4 • The first number represents the Cluster.   PIP 3A4 is in Cluster 3. • The letter represents the Segment.  PIP 3A4 is in Segment A of Cluster 3. • The second number is a sequential number which completes the PIP number.  PIP 3A4 is the 4th PIP in Segment A of Cluster 3. 中央大學。范錚強

  38. RosettaNet 3A4 PIP 中央大學。范錚強

  39. ebXML Mission To provide an open XML-based infrastructure enabling the global use of electronic business information in an interoperable, secure, and consistent manner by all parties. 中央大學。范錚強

  40. Individual Transaction Choreography 中央大學。范錚強

  41. ebXML Repository

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