- 1. Supply Chain Management/ e-Procurement/ cMfg WorkshopDate: April 27, 2001Time: 9:00 A.M - 3:00 P.M
- 2. Agenda
9:00 - 9:15 - Introductions
9:15 - 10:00 - Supply Chain Management
10:00 - 11:00 - e-Procurement Overview
11:00 - 11:15 - Break
11:15 - 12:00 - c-Manufacturing
12:00 - 1:00 - Lunch
1:00 - 2:30 - Workshop
2:30 - 3:00 - Implementation Considerations, Case Studies
3:00 - Summary and Conclusion
- 3. Supply Chain Management
- 4. Supply Chain Management“Planning, implementing and controlling the efficient and effective sourcing, production and delivery processes for a final product, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. "
- 5. Supply Chain Management Goal“To create a real-time, virtual marketplace where all the people connected to SAIC are engaged in informed decision making and customer fulfillment.
Evidenced by: Lead time- response time is reduced, revenue opportunities are generated, costs are cut, customer satisfaction is increased. "
- 6. The 5 major strategic concepts of Supply Chain ManagementCustomizationCompanies have a choice and ability to adapt their operational environment to changing market demand
CollaborationAll partners in the supply chain do not only optimize their operations but jointly plan, optimize, monitor and execute.
VisibilityAll partners have real time information about status and performance of each element in the supply chain from customers to suppliers.
OptimizationBest practices and most advanced tools bring the partners in the supply chain and its total result closer to its optimum.
SynchronizationThe end result is a totally synchronized supply chain that is entirely driven by the customer’s demand.
- 7. Supply Chain Value PrinciplesProvide Visibility of Information Inventories, Forecasts, Orders, Plans, Engineering Changes, KPIs
Synchronize Activities Optimized feasible sourcing/planning, pull-based triggers
Promote Responsiveness Reduce time to detect demand, commit, produce, fulfill
Leverage Market Mechanisms Aggregated buying power, auction-based buying/selling
Achieve Process Simplification Automated steps, One-step business
- 8. SUPPLIER
NETWORKINTEGRATED
ENTERPRISEDISTRIBUTIVE
NETWORKInformation, Product, Service, Financial and Knowledge FlowsM
A
T
E
R
I
A
L
SCapacity, Information, Core Competencies, Capital and Human ResourcesRelationship ManagementSourcingOperationsLogisticsE
N
D
C
O
N
S
U
M
E
R
SSource: Supply Chain Faculty, Michigan State UniversityTHE INTEGRATED SUPPLY CHAIN
- 9. Challenges for Supply ChainsTake orders over the web, or automatically via B2B
Offer rich product selection and/or the ability to customize
Source the order and commit to delivery, immediately, online
Service the order online, including changes and inquiries
Deliver product quickly, efficiently, profitably
Be in constant communication with customers and suppliers to
respond quickly to “pull signals” to manage inventories
adapt quickly and economically to changes in demand/supply
operate with low inventories
- 10. Internet Selling
Collaborative Planning, Forecasting and Replenishment CPFR
Internet Vendor Managed Inventory iVMI
Collaborative Supply Planning CSUP
Collaborative Production Planning
Capable to Promise CTP
e-Procurement (auctioning, bidding)
Internet-based Tendering
Internet-based Kanban
e-Fulfillment
Collaborative Business Scenarios
- 11. Drivers of High Performance Achievement(Rated by Priority)Customer integration
Internal integration
Technology/Planning integration
Relationship integration
Measurement integration
Supplier integration
- 12. Customer IntegrationHigh Achievers:
Identify and focus on important customers
Use formal visioning process
Implement preplanned solutions
Develop responsive or pull logistical capabilitiesSegmental Focus
Relevancy
Responsiveness
Flexibility
- 13. Material/Service Supplier IntegrationHigh Achievers:
Develop interlocking programs and activities
Commit to shared responsibility with suppliers
Place employees at customer/supplier business facilities
Enter into long-term agreements
Include suppliers’ suppliers in planning
Fusion
Financial Linkage
Strategic Alignment
Operational Supplier Relationship Management
- 14. E.Dashboard - Key Performance IndicatorsMaximize Economic ValueOn-Time DeliveryLead TimeCash-to-Cash CycleInventory TurnsOrder Management CostPerfect Order FulfillmentOrder Fill RatesInventory Carrying CostSG&AIncrease Revenue
Decrease Cost
Improve Asset Utilization
- 15. The E-Dashboard . . . Is a web-based tool that allows dynamic monitoring of the Supply Chain Solution
Monitors Key Performance Indicators to optimize important business processes
Measures Return on Investment
Allows decision makers at all levels of an organization to navigate, organize, record, and analyze strategic business information to develop insights and understand possible scenarios which would lead to improved decision making
- 16. Digital Order Fulfillment Process ExampleERPA
TPERPA
T
PERPA
TPWEBA
T
PERPOrder/
Product
ConfigurationDSSMESWEBPCSI’d like Product A, with Features B, C and D, by Date E.Do we have all the material?
What is the priority?
Buildable?
Cost?
When can we deliver?
Special handling required?1st Supplier: Yes, I’ll reserve it.
2nd Supplier: No.
3rd Supplier: I’ll need a confirmation signal from my suppliers.123CustomerManufacturerSuppliers
- 17. Digital Order Fulfillment Process ExampleWe can have your product by this dateYes, we can684Confirmed57Order it!Confirm the orders to suppliers
Allocate the material
Schedule productionERPA
TPERPA
T
PERPA
TPWEBA
T
PERPOrder/
Product
ConfigurationDSSMESWEBPCSCustomerManufacturerSuppliers
- 18.
Industry Specific Value Chain
Issues/ Challenges/ Solutions
- 19. Better, Faster Decisions Drive Velocity...Receive Material Release DataProcess OrdersPlan Production & Make Intelligent DecisionsSend Material Release DataAIAG Worst Case*AIAG Benchmark*Plant w/o i2BR1: Plant w/ i2 Line Scheduling Decision SupportBR2: Plant w/ i2 Material & Capacity Planning Decision SupportTotal2 days4 days5.5 days30 min11.5 days*Source: AIAG Manufacturing Assembly Pilot Project Final Report10 min1 hour5 hours30 min6.5 hours1 hour1 hour7 days30 min7.1 days1 hour1 hour1 day30 min1.1 days1 hour1 hour4 hours30 min6.5 hoursTime delays result in additional mix and volume buffering
- 20. Legacy Automotive CommunicationsMultiple ProtocolsComplex, Costly, Ad Hoc, InflexibleDesignMfg$$$Customer #1Customer #3Customer #2Supplier #3Supplier #2Supplier #1Inconsistent
service, securityEDIVANs*EDIVANs** VAN = Value-Added NetworkMultiple Links
- 21. ANX Value: Network Consolidation- Single link, protocol
- Consistent, high service quality & security
- Multiple - companies - traffic types - sectors, continents Simpler, Lower Cost, Managed, AdaptableCustomer #1Customer #3Customer #2Supplier #3Supplier #2Supplier #1ANX
- 22. “The Business Internet”* Revised April 4 20011 ANX-Certified Exchange Point(1 more underway in Europe)AmeritechANX-Certified IPSec security gatewaysavailable from 10 vendors7 ANX-Certified Service Providers (CSPs)EquantAT&TBell NexxiaWorldComAmeritechIdeal TechnologySolutionsipulsys700+ production Trading Partners (TPs)(160 more underway)Trading
PartnersTrading
PartnersTrading
PartnersTrading
PartnersTrading
PartnersTrading
PartnersTrading
PartnersANX StakeholdersANX
- 23. Usable in any sector:
Business, government, academic, non-profitBased on Internet technologies:
Standards-based, off-the-shelf products
No proprietary solutionsVariety of connectivity, speed:
Dial, DSL, ISDN, and 56 KB T3Available globally:
North America: Canada, Mexico, U.S.
Africa, Asia, Australia, Europe, South AmericaANX Characteristics
- 24. ANX Covisint RelationshipSimilarities:
Funded, endorsed, guided by Big 3 OEMs
Spun-off as separate for-profit companies
But different meanings of “exchange”Complementary Roles:
ANX network service infrastructure
Covisint e-business processes, applicationsSynergy:
ANX enables faster Covisint roll-out to 700+ TPs
Covisint is an ANX customer, with 2 connections
- 25. E.Procurement
- 26. Common TermsE Business- Buying, selling transacting or exchanging information via Internet with customers, suppliers, employees
Reaches beyond advertising and marketing, includes core business processes of order entry, purchasing, supply chain, CRM
E Commerce - Transaction-oriented Web based functions such as placing orders, order entry, payments
E Procurement- Requesting, Approving, Ordering, Receiving, and Payment of goods and services via the Internet
Trading Exchanges, Virtual Marketplaces, Portals - Vertical industry focused Web sites for buyers and sellers to make offers to buy and sell, conduct transactions. Dot Com’s
- 27. Marketplace TrendsElectronic CommerceSuppliersBombarded with infoWhy companies are considering e-procurementBuyersSoftware vendors push their products
Magazine and news coverage aboundsCosts too highVolume not leveraged
Significant accounts payable effort
Users buying at retailProcesses are inefficientApprovals take days or weeks
Users are wasting time
85% of purchasing time spent managing orders
Too much re-keying and errorsNot leveraging new technologiesTheir competition is doing it
Their intranet is under-utilized
They have multiple home-grown systems
ERP implementations are winding down
Information unavailableDon’t know what they spend
Users don’t know about deals
No audit trail
- 28. The Business ChallengeThe Procurement Process of Today…
Confusing and Slow:
Multiple communication channels and processes, internal and external
Time and Labor Intensive:
Many suppliers, many different types of transactions to manage.
Inaccurate:
Information spread across many systems
…must leverage product spending, reduce costs, and drive profit to the bottom line.
- 29. Fragmented Spend Pattern386151363010212315265938643381324610M+1M–10M11M–5M500K– 1M250K–500K100K–250K50K–100K25K–50K15K–25K10K–15K4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0$1.2 B
$1 B
$800 M
$600 M
$400 M
$200 M
$0Number of SuppliersTotal $/Supplier GroupPurchasesNumber of suppliersTotal $ per supplier group$3.8 billion with 17,700+ suppliers
- 30. Lack of Enterprise Leverage16,773 suppliers used only in 1 business unit.
Only 1 supplier used by all.16,7737041485431953112345678918
16
14
12
10
8
6
4
2
0Number of Suppliers
(Thousands)Business Units CrossedAcross business units
- 31. E Procurement PracticesTraditional EDI, Electronic Catalog Ordering Systems, Internet Reverse Auctions, E RFQ/RFP.Buyers Implementation and integration of end-to-end Web-based self-service procurement system
Objective: Cost Reduction
Suppliers Development and management of electronic catalog and system for order-taking
Objective: Revenue Enhancement
MarketMakers Creation and hosting of infrastructure that connects buyers and sellers in a vertical or horizontal marketplace
Objectives: Cost Reduction + Revenue Enhancement
- 32. Internet ProcurementInternet offers a breakthrough communications channel, New software applications bring simple user interfaces, electronic catalogs, secure channel for collaboration to do vendor managed inventory and document exchange.Catalogs Multiple items which are searchable by item number, description, category, or brand which can be ordered, acknowledged, tracked, invoiced and paid for on-line.
Objective: Cost Reduction
Auctions Reverse or downward auction in which buyer invites qualified suppliers to beat the lowest price. Bidders see their bid in relation to lowest bid in real time
Objective: Lowest possible price
- 33. Internet Reverse Auction CompaqHPDellSourcing team Internet
Auction
ServiceAuctioneerHosted serverIBMSuppliersBuying Organization
- 34. Category selection considerations Categories for AuctionDoes the value per buy exceed $1.0 millionEvent Auction CriteriaIs the same good or service routinely purchased
Is the value per buy above $30,000Recurring Auction CriteriaGeneral CriteriaIs the market competitive (i.e. more than 4 suppliers)
Is the good or service fairly well defined
Line items for a sub-category exceeding 25 can be put into a market basket
Lack of supplier constraints (e.g. switching cost)
Can suppliers access the Internet“Don’t Auction” Criteria Categories involving joint process improvement with suppliers
Highly strategic suppliers offering truly unique items
- 35. Steps in an Auction Process Potential Steps in the Auction CycleProfileCategory &SupplyMarketIdentifyPotentialSourcingStrategies 1st RoundSupplierQualificationSetupAuctionSourcing Strategy Auction EventFinal SelectionConductAuctionReport &AnalyzeNegotiatewith andselectsupplier(s)Customized auction environmentSupplier and buyer trainingOne time auction environment setupAuction eventPost-Auction reporting and analysisBid confirmation from suppliers Event Auction Deliverables1Recurring AuctionRecurring auctionNote: (1) Deliverables are the same for the event auction and 1st recurring auction
- 36. Internet ProcurementOBI Open Buying on the Internet. An industry standard that enables buyers to access product, pricing, and availability information directly from a supplier’s Web site, providing increased control over the presentation of product and other information.Intelesys
Netscape Buyer Xpert
- 37. Supplier has the data
Each has unique ordering screens and processes
Buyer forced to find suppliersLow risk e-procurement entry
Quick implementation
Advanced ordering techniques (product configurators)PharmaCoAutoCoServiceCoSupplier Centric SolutionCatCatCatDellStaplesGraingerBenefitsExamplesRisksDell.com
Staples.com
Grainger.com
- 38. Managing catalog
Run technology
Supplier integrationSecurity
Control over catalog
Customized environmentCatCatCatBuyer Centric SolutionDellOffice
DepotGraingerPharmaCoAutoCoServiceCoBenefitsRisksExamplesAriba ORMS
Oracle Web Req
CommOne BuySite
- 39. Access to new markets, customers
Eliminates regional barriers
Streamline sales process
Reduced cost of sales
Centralizes catalog content requirementsLeveraged catalog management
Availability of many suppliers
Faster implementation
Enables personalized catalog view
Lower cost of entry
Pay as you goPharmaCoAutoCoServiceCoWhat is a MarketMaker?PC Co.Office Co.MRO Co.E-ProcurementMarketplaceSeller BenefitsBuyer Benefits
- 40. E.procurement TomorrowSuppliers
MarketplaceBSBBSSCovisint
MarketplaceBSBBSSSAICMarketplaceBSBBSSHorizontalMarketplaceBSBBSS
- 41. The Key to SuccessE.Procurement is not about technology alone. Savings are never automatic. Centralized procurement will need to negotiate the required agreementsStreamlining processes
Enabling processes with technology
Simplify payment process
Optimizing the supplier base
- 42. Supplier ReadinessE.Procurement requires Supplier capabilities
At a minimum:
1. Electronic catalog content files
2. Internet access
Desired:
3. Inventory availability
4. Order Status
5. Shipping details
6. Order entry integration via XML
- 43. Two Categories of ProcurementProcurement of Indirect and Direct goods and services are usually the responsibility of two separate organizations and have different business objectives and strategies such as long term contracts versus spot buys.Indirect Office Equipment and supplies, Computer & IT equipment, MRO, Services, Expensed goods and services not consumed in the manufacturing of a product
Direct Raw materials and packaging materials used in the manufacture and assembly of products.
- 44. BenefitsLeverages corporate spending power for lower prices
Enables increased use of price agreements and approved suppliersReduces total lead time by 50–80%Improves buyer’s role as negotiator
Reduces transaction processing time and manpowerAcquisitionInventoryCarryingTransactionCost reduction in three major areas
- 45. BenefitsExamples of electronic procurement resultsTransactionCostsAdditionalDiscountsCycleTimeComplianceAgreementsCosts perTransaction-90%-10%-75%+30%PriceTimeCompliance100%100%20Days60%90%10%5Days90%
- 46. BenefitsIntangiblesBenefitSourcePurchased UnitCost ReductionProcess EfficiencyBenefits = software solution + process changeAs a percentage of total purchase cost plus process cost for a catalogued item Software-relatedBenefitsIncreased use of price agreementsTransaction costs reduction
Accounts payable cost reduction
Lead time reductionProcurement data availability
Systems harmon-ization
User interface simplification2–5%*Process ChangeBenefitsStrategic sourcing leverage
Compliance enforcement
Demand managedLogistics/inventory cost reduction
Buyer efficiency
Control system simplificationEnd-user efficiency
Automated controls and audit trails
Increased customer satisfaction10–15%*Purchasing Efficiency
Supplier Integration
- 47. SAP, Global Chemical & Pharmaceutical Marketplace Business Challenge:
Chemical industry’s online sales increasing to 40% by 2005)
Disintermediation of chemical producers
Lower overall supply chain costs
Increase overall service efficiency
Deeper penetration of strategic accounts
Capture wealth in the new economy
EDS Role:
Technology and Integration support
A.T. Kearney Leveraged Sourcing Networks corporate buyers and strategic suppliers
Initial Members:
BASF AG
Bayer AG
Degussa-Huls AG
Henkel KgaA
KSB AG
Linde AG
Sartorius AG
Siemens AG
Heinz Wollschlager GmbH
- 48. Case Study – TruckBayBusiness Challenge:
Create B2B Marketplace for the trucking and trucking maintenance industry.
Corporate startup: No business processes, no infrastructure architecture, and no existing systems are in place for this
EDS Solution:
Deployed the initial marketplace within 90 days
Adopted 30 suppliers
Normalized 60,000 catalog items
Implemented Marketplace in five months
Will add further customizations and reverse auctionsClient Value:
Lower buying/selling transaction costs
Provide alternate parts catalogs
Reduce buyers’ inventory carrying costs
Increase productivity of procurement processes
Cut layers from existing distribution channels
Consolidation of procurement activities
- 49. Trading Exchanges: The Executive Dilemmas Do We Join an Existing Exchange?
If So, How Do We Prevent Our Products From Becoming Commodities?
Do We Form An Exchange With One or More of Our Competitors?
How? We’ve Hated Them for Decades?
Do We Start Our Own?
Will Anyone Join?
- 50. The Engines that will Power CovisintIntegration Engine
Communication Engine
Collaboration Engine
Procurement EngineCovisint is still a novelty, but it will become a critical component in every suppliers e-business strategy
- 51. Problem SummaryLack of connectivity to all suppliers / all customers
Push vs. Pull
Batch vs. Real time
Cost of communication / EDI Maps
Requires Personnel Intervention
Builds InventoryProblem Summary
- 52. Real-time Visibility of Inventory, Consumption, Shipments, and ForecastsTier-2 manages material flow to Tier-1, and to Tier-1's inventory
Benefits:
Eliminate excess inventory
Reduced expediting
Better planning/execution
Economically communicate
demand forecast/delivery
notifications to suppliers
Internet / ANX
- 53. Today’s Solutions :Provide real time data flow
Web Browser Visible
System to System – XML
Compatible with EDI
Multiple fulfillment processes
Able to connect with emerging exchanges
Delivering big results quickly
WIN WIN for both sides of the supply chain Today’s Solutions :
- 54. Collaborative Manufacturing Workshop
- 55. How close are we to a 5-day car? 63 days away!Source: AMR ResearchModule and Component
WarehouseModule and Component
Supplier
(3 day Production)Assembly Plant
(6 days to assemble)Distribution Center
and Outbound LogisticsOEM Regional
OfficeDealerConsumerOrder = 1 daySales Order to Region = 5 daysOrder to DC = N/AOrder to Production Sequence = 25 daysCheck Component Inventory = 2 daysOrder Module= 2 daysDeliver
Component= 2 dayDeliver Compoent= 1 dayDeliver to
DC = 8 daysDC to Dealer = 11 daysRegion to Dealer = N/ADeliver
Vehicle = 2 daysOrder to Component = 35 days Component to Consumer = 33 days Today’s Order to Delivery = 68 days
(and that’s without ordering steel) Today’s Delivery Date Accuracy < 20%
- 56. Accelerated OTD is Enabled by Information VisibilitySource: AMR ResearchDo you have a lime-green
2-door, manual, no A/C?Vehicle Tracking SystemDealer InventoryDC InventorySales Incentive SystemProduction Sequencing SystemCRM SystemHow about lime-green,
2-door, manual with A/C
with $100 off?Information Visibility Is it on the lot? Is it on a truck? Is it in DC inventory
Is there a fleet vehicle being held for future delivery? Is scheduled for production?
Is there similar a fleet car
scheduled? Is it a loyal customer? Are pushing the model
Special option packages
Are there dealer incentives?
Is there something close?
- 57. Impact of re-engineered OTD on SuppliersTypical impact on commodity suppliers… faster/cheaper
In-sequence production will become mandatory for critical system suppliers
Less pressure on component inventory
Little impact on material suppliers
Co-location will become deciding factor for choosing key system suppliers
- 58.
e-Manufacturing Solutions
- 59. Enables manufacturers to deliver on promises
Addresses order fulfillment issues created by the e-business model to conduct business through effective integration
Ensures manufacturing people, processes, and technology are aligned with e-business goalse.Manufacturing Defined Enabling Manufacturing Operations for e-businessResult: Demand fulfillment synchronized
with demand generation
- 60. Finished Goods StorageMaintenance/RepairsScrap/
ReworkProduction LinesShipping/ReceivingBar Code PrintingBar Code Shipping
Faster shipping
interfaced to ERP systemsMaintenance
Integrated life cycle
management of assetsError Proofing
Product correctly labeled
and shipped error freeQuality
Improvement
First time quality is
faster and cheaperTracking &
Traceability
Product recall
capabilityLean
Manufacturing
Increasing
throughputInventory
Management
Increasing
inventory turnse-Manufacturing SolutionsEnterprise Training
Foundational training
for manufacturing
professionals
- 61. Order Fulfillment - Functional AreasProduct marketing, development and configuration
Supply chain network planning
Demand forecasting and planning
Supply planning and sourcing
Manufacturing scheduling
Warehousing and inventory planning
Transportation and distribution planning
Manufacturing Execution
Maintenance, repair and operations planning and execution
Performance measurement and monitoringPlanExecuteMaintainCollaboration
- 62. S
t
akeho
l
de
r
sCustomers, ResellersSuppliers, Distributors, PartnersCustomer Relationship ManagementMarketingSalesCustomer
ServiceSelling Chain ManagementSupply Chain ManagementEnterprise Resource PlanningLogisticsProductionDistributionKnowledge-Tone
ApplicationsEnterprise Application Integration Administrative Control
HRMS / BMS / ORMS Finance/Accounting/Auditing
Management ControlEmp
l
oye
e
s
- 63. Business problems that lead a customer to EAI Service:
How do I ...
…conduct electronic business (cross selling) whose overall enterprise business process spans multiple disparate application systems and manual processes ?
… conduct electronic commerce that spans multiple enterprises ?
… enable a business process to span the boundaries of independently designed and managed systems (applications, data warehouses, third party systems, packaged applications) ?
… facilitate efficient, cross-functional information flow across disparate data warehouses, ERP system, and legacy environments ?Business Challenges
- 64. Business problems that lead a customer to EAI Service:
How do I … (continued)
... integrate information systems from different infrastructures and geographies ?
...provide users with more power to gather and analyze data for improved decision making ?
...leverage legacy investments to satisfy information requirements at the desktop ?
...meet immediate business requirements while developing an improved enterprise environment? Business Challenges
- 65. The Integration Challenge The Traditional Approach ...
integrates applications only one at a time, creating an ultimate morass of individual links that cannot be reused to develop subsequent applicationsThe New Integrated Approach ...
Uses a middleware layer of standard interfaces to mediate interactions among legacy applications, packaged applications, data warehouses, business methods, and new Web functionality.
- 66. Enterprise Application IntegrationEnterprise
PortalIntegrated Enterprise
Division A
System
SAP
FinancialHRMS
Division C
System
Division B
SystemSCM/ CRM
Application
Process Control
SystemsBusiness
Partners
SystemEAI/MiddlewareEnterprise
Data
Warehouse
- 67. Application Integration Frameworks
Message Oriented Middleware
Distributed Object Computing
Decision Support Integration
Web / Java Integration
Transaction Processing Monitors
Remote Database Access
Systems Management and Security
Interprocess CommunicationEAI Technologies
- 68. Application Integration Frameworks
Message Oriented Middleware
Distributed Object Computing
Decision Support Integration
Web / Java Integration
Transaction Processing Monitors
Remote Database Access
Systems Management and Security
Interprocess CommunicationEAI Technologies
- 69. New Ways of WorkingEEEEEEEEEEEEEEEEEEEValueTimeProcess automation
No reengineering
Accurate informationFunctional automation
Reengineering of a process in a functional area
Enhanced information accessImprove processes across departments
Organizational reengineering
Shared information networksInter-enterprise process improvement
Inter-organization reengineering
Integrated information networksCostCostProductivityCostProductivityRevenueRevenueOpportunityMarket ShareDepartmental efficiencyMulti-departmental efficiencyMulti-departmental integrated efficiencyInter-enterprise integrationTask Automation(Departmental Comp.)Information Sharing(Intra-Enterprise)Extended Enterprise(Inter-Enterprise)Virtual Enterprise (Community)
- 70. Small to moderate demand-supply mismatch
Stable MPS/MRP
Intuitive capacity measures and planning
Short-term visibility (daily/weekly)
Individual plant focus
Customer-to-customer awarenessStage II -
STABILITY
The process is under control, with average performance.“Internal Cooperation”Large demand-supply mismatch
Wildly inaccurate or non-existent forecasts
Lost orders
Heavy expediting
Long lead times
Frequent shortages
Production schedules ignored by OperationsStage I -
CHAOS
Basic process control is lacking.“Functional Parochialism”Demand-supply match
Supplier-to-customer focus
Segmented demand planning
Schedule sharing with customers and suppliers
Long-term visibility (monthly/quarterly/yearly)
Global, multi-plant focus
Accurate forecasts (90%+)
Real-time optimization, planning & schedulingStage III -
BEST PRACTICE
Process performance is equal to or better than that of competitors.“Internal Integration”“Shared” systems (instantaneous information exchange)
Global inter-enterprise supply-chain planning (enterprise extension)
Rapid inventory replenishment (customer pull)
“Deterministic Demand” (forecasts unnecessary) Better predictability or better preparednessStage IV - TRANSFORMATION
Process design and performance redefine the standard across industries.“External Integration”The Progression in Supply-Chain Management Is From Guessing About to Controlling Demand
- 71. Defining World ClassThe closer you are to World Class, the tighter your own information systems are integrated with themselves, with suppliers and with your customers.
The closer you are to World Class, the more you treat your physical infrastructure as an asset.
- 72. Technology shifts helping to speed up the Digital EconomyDigital technology for the digital economy
High-performance processing for the high-performance organization
Network centric computing for the networked enterprise
High Speed/ Broadband communications for the networked economy
Smart on/off ramps to the information highway (IP enabled infrastructure)
Interactive multimedia for complete communications
Open systems for an open world
Intelligent agents doing the work
Rapidly deployable software for a rapidly changing world
Collaborative environments for a new economy
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- 74. eds.com