SCM Some details 國立中央大學資訊管理系范錚強 Tel 03 426 -7250

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 1

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

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 中央大學。范錚強 Buyer 3

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 4

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 5

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? ? Requirements in 2005? ? 中央大學。范錚強 6

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 7

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

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 9

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

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

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 12

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 13

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

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

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 16

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

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

The technical solutions B 2 Bi Rosetta. Net eb. XML 中央大學。范錚強 19

Fixed relationship B 2 B 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 20

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

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

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

B 2 Bi Process Integration ERP Supplier Rosettanet/ XML Focal XML EC Server (Enterprise Ver. ) EC Server Interne t (Standard Ver. ) XML ERP Rosetta. Net PIPs 中央大學。范錚強 24

Alternatives B 2 B Server ERP AP 1 ASP SCM Browser 1 Portal In-house AP 2 Browser 2 Service Provider 中央大學。范錚強 Users 25

Interchange of information 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 26

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 27

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 28

Example: HTML Document <HTML> <H 1 ALIGN=CENTER>Hardware</H 1> Notebook IBM Synnex John 中央大學。范錚強 29

Example: XML Document “extended” data tags <? xml version="1. 0" encoding="Big 5" ? > <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/tp 240">Think. Pad 240</說明頁 > </產品 > <貨號 >83424723</貨號 > <品名 >Dell A 123</品名 > <定價 >$58, 999</定價 > <說明頁網址 ="http: //www. dell. com. tw/product/nb/a 123">NB A 123</說明頁 > </產品 > </產品搜尋 > 中央大學。范錚強 30

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 objectbased 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 31

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 32

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

Rosetta. Net 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: Rosetta. Net 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 productinformation subscriptions 中央大學。范錚強 34

Rosetta. Net 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 35

Rosetta. Net 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 36

Rosetta. Net 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: 3 A 4 The first number represents the Cluster. PIP 3 A 4 is in Cluster 3. The letter represents the Segment. PIP 3 A 4 is in Segment A of Cluster 3. The second number is a sequential number which completes the PIP number. PIP 3 A 4 is the 4 th PIP in Segment A of Cluster 3. 中央大學。范錚強 37

Rosetta. Net 3 A 4 PIP 中央大學。范錚強 38

eb. XML 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 39

Individual Transaction Choreography 中央大學。范錚強 40

eb. XML Repository 中央大學。范錚強 41

SCM Some details 國立中央大學 資訊管理系 范錚強 Tel 03 426 -7250

SCM Some details 國立中央大學資訊管理系范錚強 Tel 03 426 -7250