CMP0394 e-Logistics Systems Instructor: Timothy Kf Au Email: [email protected] URL: cmp0394

CMP0394 CMP0394

e-Logistics Systems e-Logistics Systems

Instructor: Timothy Kf Au

Email: [email protected]

URL: http://www.geocities.com/timothykfau/ cmp0394

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e-Business and e-Logistics Process e-Business and e-Logistics Process IntegrationIntegration

e-SCM Maturity Stages Supply Chain Order Execution Enabling Technologies Next Era B2B Platform

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e-SCM Maturity Stagese-SCM Maturity Stages

e-SCM– is an e-business strategy

to ensure the right products, at the right time, at the right amount at the right place in the right condition at the right price with the right information.

– involves a collaborative effect among trading partners who have the strategic initiative to improve the physical flow, information flow and financial flow in a

supply chain and to improve customer service and reduces costs.

e-SCM Maturity Stages

Data Management

Business Process Redesign

Inter-enterprise systems

Business Collaboration

Integrated e-SCM

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e-SCM Roadmap– Enabling technologies

are essential to integrate physical flow, information flow and financial flow and the diversified business functions and to coordinate cross-functional activities across different organizational departments.

– An efficient and accurate information flow requires data capture at the points of goods receiving and dispatch are crucial to streamline internal

processes as well as to collaborate with trading partners through information sharing and B2B data exchange.

– Interorganizational information flow Information flow is not limited to internal processes, there is a high demand in external connection,

adoption of global standards in data management, data capture and data communications are in need to ensure “no barrier” data communications and data exchange without costly conversions and enabling timely deilvery of products and end customers and to bridge the “digitial-gap” between trading partners.

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e-SCM Maturity Stages 1. Data Management

2. Business Process Redesign

3. Interenterprise Fusion

4. Business Collaboration

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1. Data Management Organize data in standardized electronic form EAN.UCC number RFID

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1. Data Management (continued) EAN.UCC

– Application Identifiers is a technique to include supplementary information such as “use by date”, quantities, batch numbers.

– Well structured and worldwide applicable data pool for storing associated information of each identification number.

Benefits of EAN.UCC numbers– Unique

– Key to access database and contains precise information.

– International standard rather than industrial standard.

– Secure for data capture – check digit.

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1. Data Management (continued) EAN.UCC Barcode Standards

– globally unique numbering system for identification of trade items and services – GTIN (Global Trade Item Number).

– number that identify functional or physical locations – GLN (Global Location Number)

– logistics units – SSCC (Serial Shipping Container Code)

– assets – GRAI (Global Returnable Asset Identifier); GIAI (Global Individual Asset Identifier)

– service relationship – GSRN (Global Service Relationship Number)

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1. Data Management (continued) EAN.UCC automatic data capture

– EAN-13, EAN-8, UPC-A, UPC-E,

– ITF-14 and UCC/EAN-128

– RSS (Reduced Space Symbology) and EAN.UCC Composite Symbology

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1. Data Management (continued)– UCC/EAN-128

The UCC/EAN-128 is the EAN/UCC endorsed technology to allows the encoding Application Identifier (AI) data which AI provides the techniques to add supplementary information such as batch number, serial number information in addition to identification numbers.

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1. Data Management (continued) Automatic Identification (AutoID)

– Barcoding and symbologies

– Radio Frequency Identification (RFID)

– Biometrics e.g. eye, fingerprint, face, voice, hand, signature

– Magnetic strip

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1. Data Management (continued) Radio Frequency Identification (RFID)

– Radio Frequency Identification uses radio wares to communicate information and the identity of an item carrying the data through the supply chain and to be dynamically and continuously updated.

RFID is data carrier that complements to the EAN.UCC standards in many application areas:– Asset management for returnable transportation items such as containers

– Logistics process including tracking and tracing of items

– Electronic article control for anti-theft control

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1. Data Management (continued) Advantages of RFID over bar coding in terms of distribution

and order fulfilment:– Read multiple items at one time

– The ability to identify items without the “line of sight”

RFID is most suitable for – high value products such as pharmaceuticals, electronics;

– high volume distribution centres where RFID can speed the goods receiving and shipping processing;

– better technology in “track and trace” applications where you can track goods through the supply chain including reverse logistics.

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2. Business Process Redesign Point-of-Sale data capture, inventory, warehouse

management and ERP. Continuous planning and feedback

1. Knowledge building and capacity evaluation – develop a clear vision of what customer needs are and a clear understanding of what capabilities you need.

2. e-Business design – foundation to address new customer needs

3. e-Business blueprint – create the mapping between the e-business design goals and the technologies based on your business model and your application framework.

4. Application development and deployment – transform the projects into integrated applications and get feedback so that the plan can be refined.

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2. Business Process Redesign

e-fulfilmente-procurement …..

Top down strategic planning

Order execution

Purchase Order

SubmitOrder

Supplier Fulfilment

Order Delivery

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3. Interenterprise Fusion– Purchase order, Shipping ordering, booking and invoicing using

EDI/XML.– Data communications in B2B Exchange

XML has become the preferred technology in B2B exchange which is platform and software independent.

– Interoperability between EDI and XML A pilot test was conducted by HKANA in March 2001 in which the coexistence of both

EANCOM® EDI and XML was proven. This is an important milestone to illustrate that the interoperability between EANCOM® EDI message and XML message without sacrificing the performance of data exchange activities.

Because the the flexibility, the scalability and the interoperability of XML, trading partner in supply chain no matter large corporates or SMEs can benefit from the centralized approach of document transaction, eliminating the cost of transaction due to multiple standards and different interfaces.

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3. Interenterprise Fusion (continued)

– Business Process Alignment XML itself does not address the main problem of automated B2B communication which is how to

align different business processes successfully and reliably. The international initiative, ebXML run by the United National (UN/CEFACT) and OASIS aims to

enable a global electronic marketplace where enterprises of any size and in any geographical location can meet and conduct business with each other

Trading PartyTrading Party

Trading Party

Trading PartyTrading Party

Trading Party

eLogistics Hub

Figure. XML/EDI Interoperability

XML/EDI

XML/EDIXML/EDI

XML/EDI

XML/EDI

XML/EDI

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4. Business Collaboration Weapon of competitive advantages e.g. long term collaborative planning, continuous replenishment.

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Supply Chain Order ExecutionSupply Chain Order Execution

Supply Chain Order Execution– Elements of Supply Chain Execution

Order Planning Process Production Process Replenishment Distribution management Reverse logistics

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Figure: Supply Chain Order Execution

Order entry

Order confirmation

Fulfillment Planning

Forecasting

Aggregate Inventory Planning

Capacity Planning

Inventory Availability –

Schedule Production

MPS/Sourcing

Allocate Inventory – Priority Orders

Production Scheduling

Distribution Scheduling

Pick and Load

Schedule Home Delivery

Customer Service

Order Planning Process

Distribution Process

Replenishment Process

Production Process

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Purchasing versus Procurement– These two terms are often used interchangeably nowadays; but

they differ in scope.– Difference between ‘Purchasing’ and ‘Procurement’:

Purchasing refers to the actual buying of materials and those activities associated with the buying process.

Procurement has a broader meaning and includes purchasing, transportation, warehousing and inbound receiving. Procurement begins with acquisition and ends with payment.

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Why is procurement a top management concern?– PROCURMENT is evolving from a support function to a weapon of competitive

advantages in a corporate.

– COMPANIES are looking for solutions to high procurement costs, lengthy order cycle time and ensure smooth receipt and delivery of materials and services.

– CHALLENGES Reducing order processing costs and cycle time Provide enterprise-wide access to corporate procurement capabilities Empowering desktop requisitioning through self-service Achieving integration with back-office systems Elevating procurement to a position of strategic importance within the organization

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e-Procurement Business Issue: Order Execution– Process Integration in Action

Multi-supplier catalog

Catalog

Order Form

Availability

Order Entry

3. Find products

2. Find suppliers

4. Order Items

5. Confirm order

1. Product Catalog

6. Transmit order, get confirmation

7. Order completed

Supplier 1

Supplier 2

Supplier N…..

Catalog C

ontent Interchange

Approval Workflow

PO Workflow

FulfilmentShipmentAccountingetc.

Web browser

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Selling Chain Management– Evolution of Selling Process

Drummer or peddler (Demand excess Supply) – Negotiate price and/or barter with customer

Salesman (Demand almost equals supply and limited competition) – high pressure selling; manipulative and canned; transaction oriented

Account Executives/Sales Consultant/Sales Engineer – build long term relationship; problem solving; adaptive selling

Relationship Manager (Partnering Value-Added Relationship Manager) – Synergistic relations with suppliers; real-time visibility into the process; customer needs are paramount.

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Selling Chain Management– Selling Chain Process

Inquiry/Prospect Customize Commit Order

Sales Lead Configurator Order EntryContract Pricing

Product Catalog

Available to Promise

CommisionProposal & Quote

Complete Order Life Cycle

Partial Functional Solutions to Order

Life Cycle

Integrated Selling Chain Solution

Integrated Selling Chain Application

Figure: Cross-functional Integrated Process – breaking down the departmental wall

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eProcurement Chain

Select Product

Create Requisition

Approval Cycle

Submit Order

Approved PO

Supplier Fulfilment

Ship Product

ReceivingAccounts Payable

Route to Recipient

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Knowledge-tone Application ArchitectureKnowledge-tone Application Architecture

To meet the challenge of creating an integrated decision framework, organizations have to implement a number of decision support applications under the framework of knowledge tone.

The knowledge tone of architecture is built on a platform composed of THREE layers:

1. e-Business Solutions

2. Enabling technologies

3. Core technologies

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Knowledge-tone Application ArchitectureKnowledge-tone Application Architecture

Figure. Enabling Technologies Architecture

Customer Relationship Management

Billing & Payment Management

Advertising / Promotion Management

Data Mining

Supply Chain Management

Knowledge Management

Performance Management

Enterprise Resource Planning

OLAP

E-BUSINESS SOLUTIONSENABLING

TECHNOLOGIES

CORE TECHNOLOGIES

HTML/XHTML

XML/ebXML

EDI UN/EDIFACT

J2EE

COBRA/IIOP

COM/DCOM/DNA

SSL/TLS

Messaging Security

Linux

Unix

RAS

Networking RDBMS

Open Standards

AutoID

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Enabling TechnologiesEnabling Technologies

Enabling technologies – This layer includes the underlying technologies to support e-business applications, such as:– HTML/XTML– XML and ebXML– EDI and UN/EDIFACT– AutoID (barcoding, RFID, Biometrics, Magnetic strips)– J2EE– SSL/TLS– CORBA/IIOP– COM/DCOM/DNA

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Next Era B2B PlatformNext Era B2B Platform

Next Era B2B Platform

Domain Specific Application Layer

VAN Layer

XML Layer (XML passer)

ePortal e-Business ApplicationeService …..

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Next Era B2B PlatformNext Era B2B Platform

Developing the e-Business Design– Moving Physical to Digital– The Challenge of E-Business Strategy Creation– Top-down Strategic Planning– Blueprint– Translating e-Business Strategy into Action

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Thank you!Any Question?

Instructor: Timothy Kf AuEmail: [email protected]

URL: http://www.geocities.com/timothykfau/ cmp0394

Documents

CMP0394 e-Logistics Systems Instructor: Timothy Kf Au Email: [email protected] URL: cmp0394