Communication within Supply Chain with no or Traditional Web Based Communication Tools

Copyright by FLUID-WIN Consortium 2007

Peter Mihók NATIONAL AND REGIONAL ECONOMICS VII,October 3, 2008 - Workshop „European Projects

Technical Unversity of KosiceFaculty of Economics

FLUID – WIN:Integration of financial and logistic servicesinto multidisciplinary web-based platform




Service provider

Prime

Prime

PrimeFornitore

componenti

Tier-3supplier

Tier-2supplier

Tier-2supplier

Service provider

Tier-3supplier

Target: tier-1 medium companies belonging to industrial districts

Communication within Supply Chain with no or Traditional Web Based Communication Tools




B2B platforms: large quantities of information

This information can be useful for external service providers

Customer and suppliers can get benefits by connecting/ integrating external service providers to the same platform that they use for B2B communication, and…

External service providers can get benefits, too, of course, and so …

FLUID-WIN aims to create conditions to allow external service providers to connect to B2B platforms:

B2(B2B)

FLUID-WIN: Another Significant Step Forward




Service provider

Tier-3supplier

Tier-3supplier

Prime

Prime

Prime

Tier-2supplier

Tier-2supplier

Service provider

FLUID-WIN – ASP fully integrated web-based communication

Communication within Supply Chain with FLUID-WIN




Study the potentials and requirements, especially taking into account specific conditions in the NMS company structures

Define suitable, customizable communication models

Design and implement prototypical software

Run evaluations in order to prove applicability and to identify the necessary development to set up a commercial solution

Project Objectives




European Added Value

Benefits for:

• Old Europe manufacturers (cost cutting by migrating to East Europe)

• East European suppliers (business with the “old” Europe manufactures)

• Logistic and financial service providers

• Local suppliers of “old” Europe manufacturers (doing business abroad)

Strategic impact on the business cooperation in the new Europe-25




Major Roles of Partners

Models: IPK AITPL/ERA: TUK, IPK

Services: Finance: AL Logistics: Régens Manuf. B2B: Joinet

Coaches: Finance: AL, TUK Logistics: Régens B2B: Labein/Joinet

Evaluation: TS Motory (SK)Lombardini (IT) Tecasa (ES)

Metalflex (SI) MBAS (UK) & associated companies (subc.)




Logistics: rarely Web-based in “old” Europe manufacturing networks (suppliers are close…..).

Financing: consolidated procedures, no added value in Web-based management in “old” Europe manufacturing networks

cross-old-Europe-new-Europe manufacturing networksSignificant added value: flexibility is possible together with cost reduction, but a full network integration is mandatory.

FLUID-WIN: Two Critical Processes




Definitions

Manufacturing network from FLUID-WIN point of view is a network constituted by a prime contractor and a group of its suppliers; the prime contractor manages the suppliers trough a B2B application where at least orders, transportation documents and invoices are managed

FLUID-WIN network is a manufacturing network plus

Logistic service providers that provide transportation/ warehousing services among prime contractor and suppliers

Banks and other financial service providers that give services to the companies within the network







Modelling Method - IEM

Basic Elements

Action

Order

Product

Resource

Object states

Process description

X = 1

X = 0

Connection between actions and objects or between actions.

Split: both processes run In parallel.

Decision: the process sequence depends on the object states following the decision element

Join: different sequences are joining to one sequence

Connection Elements




Overview of work done

A detailed state of the art has been performed

Based on WP2 results (Full Field Study) the requirements coming from the industrial partners have been analysed

New expected functionalities have been defined

Functionalities have been prioritised according to several criteria.




Essential Terms & Definitions

Services :

(~ workflow)

• Benefits provided by LSP and FSP to other business partners in their current industrial relations

• Services are under the responsibility of the service providers (FSP, LSP)

• E.g. transportation service, factoring, etc.

Functionalities :

(~ “GUI view”)

• IT support for the execution of the services during their different phases

• Have to be developed and provided by the FLUID-WIN consortium members via the FLUID-WIN Platform

• E.g. status monitoring of the logistic orders, stock information, electronic invoice management




From P&R through Services to Functionalities

Logistic Services•Transportation•Warehousing

Financial Services•Factoring•Prepayment•Letters of credit•Payment

Requirements and Potentials

18 Functionalities

Logical Mapping

IT Mapping

Addressed Services




Expected Logistic Functionalities

Publication of invoices related to warehousing

Stock information

Warehousing Services

Logistic Order Management

Forecast propagation

Quality measurement by KPIs

Status monitoring Supporting RFQ for

logistic services Logistic capacity

overview Communication services

related to change management

Publication of invoices (of transportation services)

Transportation document management Management of documents related to invoice

for logistic service

Transportation Services




FLUID-WIN Logistic Functionality

Logistic order management B 8,5

Forecast propagation service for LSP B 7,7

Status monitoring services of the logistic orders A 8,6

Communication services related to change management A 7,6

Quality measurement of LSP service (by KPIs) B 8,4

Transportation document management A 7,7

Providing stock information B 8,4

Publication of invoices of warehousing and transportation B 7,4

Ranking of the logistic related functionalities:




Expected Finance Functionalities

Service Expected Functionalities

Factoring services Query serviceSending status information of the financial serviceCommunication service ( alert function)Electronic invoice managementKPI (for factoring house)Insurance management

Prepayment services Query serviceSending status information of the financial serviceCommunication service ( alert function)Electronic invoice managementKPI (for bank)Insurance management

Letters of credit Electronic document management Sending status information of the financial serviceCommunication service ( alert function)KPI ( for bank)

Payment services Payment workflowSending status information of the financial serviceKPI ( for bank and factoring house)




FLUID-WIN Financial Services

Electronic invoice management A 8,3

Query service A 8,3

KPI for bank and factoring houses A 8,2

Communication services related to change management A 7,6

Sending status information of the financial service C 7,7

Ranking of the finance related functionalities:




Trust and Security

• There needs to be trust among the players involved and the FSPs. Trust to share information so to be able to offer better rates and terms for facilities.

• Trust is also important from the FSP so that it can process instructions received electronically.

• Security is vital to ensure that only the right people with the correct authorisations are able to perform certain transactions – not only to safeguard privacy but also to avoid theft / access to unauthorised resources.




Thank you for attention

Documents

Communication within Supply Chain with no or Traditional Web Based Communication Tools