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: [email protected]

http://www.mgt.ncu.edu.tw/~ckfarn 2003 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 Buyer 中央大學。范錚強 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 Buyer 中央大學。范錚強 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??

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Traditional Production Model

Traditional BTS: Build to Stock Sales forecast  procurement  warehousing  production plan  production  order taking  FG delivery Slow movement of goods, capital tied up Traditional BTO: Build to Order Customer order procurement   production scheduling  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  scheduling  production  procurement  production customer delivery notice  delivery to VMI BTO Customer rolling forecast order   procurement production scheduling   customer production  delivery CTO/ATO: Configure to order, Assemble to order Customer rolling forecast scheduling  order  procurement  production of components  final assembly   delivery production customer 中央大學。范錚強 9

What are the differences?

Customer ROLLING forecast What do you do with the forecast?

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Example:

A Shoe Manufacturer

Shortened Cycle time Order

Procurement In the Past 12weeks Production 10weeks Current

Rolling Forecast

12~13weeks 6weeks

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4weeks

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The technical solutions

B2Bi RosettaNet ebXML 中央大學。范錚強 12

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?

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Focal

(1)

ERP Server EC Server

XML格式 ERP 資料庫 中央大學。范錚強 14

back

Focal

(2)

ERP Server EC Server

XML format ERP 資料庫 轉出檔案 EC 資料庫 中央大學。范錚強 Independent service providers ASP CSP 15

Linking with Suppliers

(1)

EC Server EC interface

ERP/MIS ERP DB EC DB

Browser

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B2Bi Process Integration

Focal

ERP XML EC Server (Enterprise Ver.) Rosettanet/ XML Interne t RosettaNet PIPs

Supplier

EC Server (Standard Ver.) XML ERP

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Alternatives

ERP SCM In-house ASP Service Provider 中央大學。范錚強 AP1 AP2 Browser1 Browser2 Users 18

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 19

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 20

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 21

Example: HTML Document

Hardware

Notebook IBM Synnex John 中央大學。范錚強 22

Example: XML Document

“extended” data tags < 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 23

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.

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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 25

Client Side of Web-XML

Present ation Module Browse r Application Document Handler Valid ater Parser URL XML File 中央大學。范錚強 HTTP Server 26

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 27

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 28

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 29

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 30

RosettaNet 3A4 PIP

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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.

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Individual Transaction Choreography 中央大學。范錚強 33

ebXML Repository