Transcript Information Systems in Logistics and Transportation

Technological intermediaries
as
third party service providers
Bjørn Jæger
SCM-IT Research Group, HiMolde, May 26 2010
Outline
• Background and motivation
• Project description
• Demonstrator and compendium
• Conclusions and future work
Background
• 2000 - today: ongoing eProcurement project
– Started with Wise – STX Europe (Langsten)
• Fall 2007: Grant: Call for developing qualifications
and expertise of special importance to the MidNorway region
– Ved Økonomisk og administrativt forskningsfond Midt-Norge
– Title: ”Effektivisering av verdikjeden for olje- og gassvirksomheten i
Midt-Norge”
– Kompetanseprosjekt - skal utvikle kompetanse i regionen
– Part 1: Ruteplanlegging og forsyning til off-shore virksomheten
– Part 2: Informasjonslogistikk (Information Logistics)
Characteristics of Mid-Norway
• Oil and Gas
– E.g: Ormen Lange Gas field (100 km offshore)
• Can support 20% of Britain's gas needs for up to 40
years
• Worlds longest Sub-Sea pipeline to Easington,
England
• All installations are sub-sea
• Revenues ~ 200 mill NOK per day
• Maritime
– Ocean transport, ship's equipment, shipbuilding,
shipbrokering, financing, insurance, classification
and maritime offshore oil-related activities
– The Norwegian-controlled offshore fleet is the
second largest in the world after the United States
• Fish, Aluminium
… cont. Characteristics of Mid-Norway
• Company structure
– Few large enterprises with national and
multinational ownership
– Many regionally owned SMEs
• SMEs supports the large multinational
companies
• Value created mostly exported out of
the region
Challenge for regional SMEs
• Customers are large multinational
enterprises who:
– Face increased competition in global markets
– Have state-of-the-art technology
– Are e-Mature: many processes automated,
well integrated ERP systems, global actors
shopping in global markets
• SMEs need to e-Transform to stay attractive
Regional demand for
competencies
• Investigation by Næringsforeningen i
Trondheim
– 65 Oil&Gas regional SME supplier companies
asked what is needed to succeed
– The two main issues were:
• Having competitive products & services (62%)
• Having the right competencies (47%)
Information Logistics
Motivation
Increase regional owned SMEs
share of the values created in
the region
Information Logistics
Research Question
How can universities help regional
SMEs to develop their
competencies to increase or
maintain their share of the values
created?
Build competence based on other
successful projects
Use principles from the Bits&Pieces
solution by Wise Consulting
Wise Consulting is a technological
intermediary categorized as a third
party service provider
Project deliverables
1. Demonstrator
Develop a demonstrator for a selected regional SME
2. Compendium
Develop a teaching compendium for how to set up
a technological intermediary as a third party service
provider
Demonstrator
• Steps to eTransform a regional SME
supplier to comply with a large buyer
• Selected regional owned SME supplier:
– MJ: Molde Jarnvareforretning AS www.molde-jarnvare.no
– Approx 100 workers
– Serve Shipyard Industry
– Large customer: STX Europe - Langsten
MJ Business Concept
• MJ will be a one-stop supplier of
machinery, tools, fasteners and industrial
equipment.
• MJ aims to maintain a leading position as
a supplier of its range of goods to
industrial concerns.
John Sandøy, CEO
Customers
Many of our biggest customers are
high-tech industrial firms operating in
the international market, with its
growing competitiveness and everincreasing demands for quality and
efficiency at all stages. One of these
stages is well-organized logistics and
modern warehousing. This is precisely
where MJ’s strength as a business
partner lies. Our 2-box-system is a
cost-effective and efficient storage
system which has so far been adopted
by 20 or so firms in the region. Each
system is tailor-made to suit the client.
“The right product at the right time” is a
motto and subsequence of perhaps
Norway’s most exciting industrial
partnership – our association with the
innovation and productivity to be found
in the wealth of fields connected to
marine/offshore and land-based
industry.
Products and Suppliers
• MJ has always aimed at providing
leading market products from its
own warehouse. With 40,000
articles in stock, we are able to
give the very best of service to our
customers at all times by offering
same day delivery. Other standard
items can be in the customer’s
hands between one and four days
of receiving the order.
• Our comprehensive variety of
products and sub-suppliers is the
result of almost 80 years
experience, and our products are
recognized as the best on the
market.
Some trends & issues
•
Regional owned SMEs are bought by
multinational companies
•
Customers like STX Europe have many
shipyards and operates globally
•
Wise Consulting observe a change in buying
pattern – companies serving several locations
are preferred
•
Can regional SMEs like MJ maintain their
position?
Demonstrator in three steps for
Supplier MJ – Buyer STX Europe
Demonstrator built to show how a small
supplier can use an intermediary in the
eTransformation process
The supplier MJ delivers “bits&pieces”
(commodities) to buyer STX Europe
By master students Oskar Bævre, Børge Gjengstø and Stian
Kroknes and Bjørn Jæger
Bits & Pieces
• Commodities
– Many components each of low cost
– Standard components
• Buyer want to make procurement more
efficient
• Introduced eProcurement
• SMEs faced major challenge
• Use Intermediate to adopt
Demonstrator step one:
Make a working model of the Current
System for MJ-STX
1. Purchase Order sent via
web-service integrated
with ERP system
2. Purchase Order
received via webservices
6. MJ sends confirmation
to STX via e-mail to Wise
3. E-Mail notification of
arrived Purchase Order
4. Get Purchase Order manually via B&P Web Page
5. Print Purchase Order, Manually Register in PengVin,
do Picking and Pricing
Issues for MJ
•
•
•
•
Confirmation must be given within 1 hour
after the order is received.
These orders have the highest priority at the
inventory dep. since they have to be shipped
by trucks by 11 AM eventually the next day.
MJ stocks more than 40000 items, thus no
single person knows the stock situation for a
product by heart.
Orders arrive randomly any time of the day,
sometimes many arrives simultaneously
making it hard to pick the order before sending
the acknowledgement.
... cont. Issues for MJ
• Can not trust stock level to confirm order
before picking
• Takes time to do the picking before
confirming
• Can only handle a few customers
Demonstrator step two:
Make an automated end-to-end solution
1. Purchase Order sent via
web-service integrated with
ERP system
2. Purchase Order
received via webservices
3. Purchase Order sent
via web-service
4. Web service automatically receive Purchase Order, register it in
PengVin, generate picking & price confirmation and sends confirmation
back to stx via Wise
Demonstrator step three:
Make a secure communication channel
1. Purchase Order
sent and received via
web-services
2. Purchase Order sent
via web-service
Business sensitive
content messages
are encrypted by
web-service at STX
and decrypted by the
web-service at MJ
3. Web service automatically register in PengVin, generate picking & price
confirmation and sends confirmation back to stx via Wise
Compendium
Develop a teaching compendium for how to
set up a technological intermediary as a
third party service provider
Goal: Make a set of student assignments
both for non-programmers and
programmers
Compendium (in Norwegian)
By Beni Ruef and Bjørn Jæger
Kapittel 1: Innføring
Kapittel 2: XML og eProcurement
Kapittel 3: Rammeverk for eBusiness og eProcurement
Kapittel 4: Hensikten med oppgavene
Kapittel 5: Oppgave A: Varebørs
Kapittel 6: Oppgave B: Ikke-funksjonelle krav
Kapittel 7: Oppgave C: Implementering
Conclusions
• Adoption require e-knowledge at SMEs
• Project aim was to give regional
students e-skills that will have an
impact over time
• Security is currently not an issue
• Students?
EU 2010: "e-business"
is probably no longer
an adequate term to
capture the general
trend of applying ICT
systems in
commercial exchanges.
….
a distinction between
"e-business" and
"traditional business" is
no longer possible.
http://www.ebusiness-watch.org/
Future Work
• Study the Role of the Intermediary in
enabling regional SMEs for the global
business environment
– In Integrated value chains
– In more open value chains/networks
• Include Ownership of Data, Security &
Trust & Risk elements
Takk for
oppmerksomheten!
Some resources and definitions
• Ownership of data
– Open-Data Movement: Open-Cloud Manifesto by IBM
and 150 others: www.opencloudmanifesto.org
• Definition of competence used
– Competence is a combination of theoretical
knowledge and practical skills (action competence)
• SMEs and eTransformation
– Need to eTransform to maintain current business
– Once eTansformed, global markets are available