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1、Supply Chain Management/ e-Procurement/ cMfg WorkshopDate: April 27, 2001Time: 9:00 A.M - 3:00 P.MAgenda9:00 -9:15- Introductions9:15 -10:00-SupplyChainManagement10:00- 11:00-e-Procurement Overview11:00- 11:15-Break11:15-12:00-c-Manufacturing12:00- 1:00-Lunch1:00-2:30-Workshop2:30- 3:00-Implementati
2、onConsiderations, CaseStudies3:00- Summaryand ConclusionSupplyChainManagementSupplyChainManagement“Planning,implementing andcontrollingtheefficient andeffectivesourcing, productionand delivery processesforafinalproduct,servicesandrelatedinformationfrom thepointoforigintothe point of consumption fort
3、hepurposeofconforming to customer requirements. SupplyChainManagementGoal“Tocreateareal-time, virtualmarketplacewhereall thepeopleconnected to SAICare engagedininformeddecisionmaking andcustomerfulfillment.Evidencedby: Leadtime-responsetimeisreduced,revenue opportunitiesare generated,costsare cut,cu
4、stomersatisfaction is increased.The5majorstrategicconceptsofSupply Chain ManagementCustomizationCompanieshavea choiceandabilitytoadapttheiroperationalenvironmenttochangingmarketdemandCollaborationAllpartnersinthe supplychaindonotonlyoptimizetheiroperations butjointly plan, optimize,monitor andexecut
5、e.VisibilityAllpartnershavereal timeinformationaboutstatus andperformanceofeach elementinthe supplychainfrom customerstosuppliers.OptimizationBest practicesandmostadvancedtoolsbringthepartnersinthe supplychainandits total resultclosertoits optimum.SynchronizationTheend resultisa totallysynchronized
6、supplychainthat is entirely drivenbythecustomersdemand.SupplyChainValuePrinciplesProvideVisibilityofInformationInventories,Forecasts,Orders, Plans,EngineeringChanges,KPIsSynchronizeActivitiesOptimizedfeasiblesourcing/planning, pull-basedtriggersPromoteResponsivenessReducetimetodetectdemand,commit, p
7、roduce, fulfillLeverageMarketMechanismsAggregated buyingpower,auction-based buying/sellingAchieveProcess SimplificationAutomatedsteps, One-step businessSUPPLIERNETWORKINTEGRATEDENTERPRISEDISTRIBUTIVENETWORKInformation,Product,Service,Financial andKnowledgeFlowsMATERIALSCapacity,Information, CoreComp
8、etencies,Capital andHumanResourcesRelationshipManagementSourcingOperationsLogisticsENDCONSUMERSSource:SupplyChainFaculty,MichiganStateUniversityTHEINTEGRATEDSUPPLYCHAINChallenges forSupplyChainsTake ordersover theweb, or automaticallyvia B2BOfferrich productselection and/ortheabilitytocustomizeSourc
9、ethe order andcommittodelivery, immediately,onlineService theorderonline, includingchanges andinquiriesDeliver productquickly,efficiently, profitablyBeinconstantcommunication withcustomers andsupplierstorespond quicklyto“pullsignals”tomanage inventoriesadaptquickly andeconomicallytochangesindemand/s
10、upplyoperate withlow inventoriesInternetSellingCollaborative Planning,ForecastingandReplenishmentCPFRInternetVendorManagedInventoryiVMICollaborative SupplyPlanningCSUPCollaborative ProductionPlanningCapable to PromiseCTPe-Procurement (auctioning,bidding)Internet-basedTenderingInternet-basedKanbane-F
11、ulfillmentCollaborative Business ScenariosDrivers of HighPerformanceAchievement(RatedbyPriority)CustomerintegrationInternalintegrationTechnology/Planning integrationRelationshipintegrationMeasurementintegrationSupplierintegrationCustomerIntegrationHigh Achievers:Identifyandfocusonimportant customers
12、Useformal visioningprocessImplementpreplannedsolutionsDevelop responsiveorpulllogistical capabilitiesSegmentalFocusRelevancyResponsivenessFlexibilityMaterial/Service Supplier IntegrationHigh Achievers:Develop interlockingprogramsandactivitiesCommittoshared responsibility withsuppliersPlaceemployeesa
13、tcustomer/supplierbusinessfacilitiesEnterinto long-termagreementsInclude supplierssuppliers in planningFusionFinancialLinkageStrategicAlignmentOperationalSupplierRelationshipManagementE.Dashboard- KeyPerformanceIndicatorsMaximize Economic ValueOn-Time DeliveryLead TimeCash-to-CashCycleInventoryTurns
14、OrderManagement CostPerfect Order FulfillmentOrderFill RatesInventoryCarryingCostSG&AIncreaseRevenueDecreaseCostImprove Asset UtilizationTheE-Dashboard. .Isa web-basedtool thatallows dynamicmonitoringoftheSupply Chain SolutionMonitorsKeyPerformanceIndicatorstooptimizeimportantbusinessprocessesMeasur
15、esReturnonInvestmentAllowsdecisionmakers at alllevelsofanorganization to navigate,organize,record,andanalyzestrategicbusinessinformationtodevelopinsightsandunderstandpossiblescenarioswhichwouldleadtoimproveddecisionmakingDigital Order Fulfillment ProcessExampleERPATPERPATPERPATPWEBATPERPOrder/Produc
16、tConfigurationDSSMESWEBPCSIdlikeProduct A, withFeaturesB,CandD,byDateE.Dowehave allthematerial?What is thepriority?Buildable?Cost?When canwedeliver?Special handling required?1stSupplier:Yes,Illreserve it.2ndSupplier:No.3rdSupplier:Illneeda confirmationsignalfrommysuppliers.123CustomerManufacturerSup
17、pliersDigital Order Fulfillment ProcessExampleWecanhaveyour productbythisdateYes, we can684Confirmed57Orderit!Confirm theorderstosuppliersAllocatethematerialScheduleproductionERPATPERPATPERPATPWEBATPERPOrder/ProductConfigurationDSSMESWEBPCSCustomerManufacturerSuppliersIndustrySpecificValueChainIssue
18、s/ Challenges/ SolutionsBetter, FasterDecisionsDriveVelocity.Receive Material ReleaseDataProcess OrdersPlan Production&Make Intelligent DecisionsSend Material ReleaseDataAIAG Worst Case*AIAG Benchmark*Plantw/oi2BR1:Plantw/i2Line SchedulingDecisionSupportBR2:Plantw/i2Material& Capacity Planning Decis
19、ion SupportTotal2 days4 days5.5days30min11.5 days*Source:AIAG ManufacturingAssemblyPilotProjectFinalReport10min1 hour5 hours30min6.5hours1 hour1 hour7 days30min7.1days1 hour1 hour1 day30min1.1days1 hour1 hour4 hours30min6.5hoursTime delaysresultinadditionalmixand volumebufferingLegacyAutomotiveCommu
20、nicationsMultiple ProtocolsComplex,Costly, Ad Hoc,InflexibleDesignMfg$Customer#1Customer#3Customer#2Supplier#3Supplier#2Supplier#1Inconsistentservice, securityEDIVANs*EDIVANs* VAN = Value-Added NetworkMultiple LinksANXValue:NetworkConsolidation- Single link, protocol- Consistent, high service qualit
21、y & security- Multiple - companies - traffic types - sectors, continents Simpler,LowerCost,Managed,AdaptableCustomer#1Customer#3Customer#2Supplier#3Supplier #2Supplier #1ANX“TheBusinessInternet”* RevisedApril420011 ANX-Certified Exchange Point(1 more underway in Europe)AmeritechANX-Certified IPSec s
22、ecurity gatewaysavailable from 10 vendors7 ANX-Certified Service Providers (CSPs)EquantAT&TBell NexxiaWorldComAmeritechIdeal TechnologySolutionsipulsys700+ production Trading Partners (TPs)(160 more underway)TradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTr
23、adingPartnersANXStakeholdersANXUsableinany sector:Business,government,academic, non-profitBasedonInternettechnologies:Standards-based, off-the-shelfproductsNoproprietarysolutionsVariety of connectivity,speed:Dial,DSL, ISDN, and56KB T3Availableglobally:NorthAmerica:Canada, Mexico,U.S.Africa, Asia, Au
24、stralia,Europe,SouthAmericaANXCharacteristicsANXCovisintRelationshipSimilarities:Funded, endorsed,guidedbyBig 3OEMsSpun-offasseparatefor-profit companiesButdifferent meanings of “exchange”Complementary Roles:ANXnetwork serviceinfrastructureCovisinte-business processes,applicationsSynergy:ANXenables
25、fasterCovisintroll-outto700+ TPsCovisintisanANXcustomer,with2 connectionsE.ProcurementCommonTermsE Business-Buying, sellingtransactingorexchanginginformationviaInternetwithcustomers, suppliers,employeesReaches beyondadvertisingandmarketing,includescore business processesoforderentry,purchasing,suppl
26、y chain,CRME Commerce -Transaction-orientedWeb based functionssuch as placingorders,orderentry,paymentsE Procurement-Requesting,Approving, Ordering,Receiving, andPayment of goods andservicesviathe InternetTrading Exchanges,VirtualMarketplaces, Portals-Verticalindustryfocused Websitesforbuyers andsel
27、lers to makeoffers to buyandsell,conducttransactions. DotComsMarketplaceTrendsElectronic CommerceSuppliersBombardedwithinfoWhycompanies areconsideringe-procurementBuyersSoftwarevendors pushtheirproductsMagazineandnewscoverageaboundsCoststoohighVolumenot leveragedSignificantaccountspayable effortUser
28、sbuyingatretailProcessesareinefficientApprovalstakedaysorweeksUsersarewastingtime85%ofpurchasingtime spent managing ordersToomuchre-keyingand errorsNotleveragingnewtechnologiesTheircompetitionisdoingitTheirintranetisunder-utilizedThey havemultiplehome-grownsystemsERPimplementations arewinding downIn
29、formationunavailableDontknow whattheyspendUsersdontknow about dealsNoaudittrailTheBusinessChallengeTheProcurementProcessofTodayConfusingand Slow:Multiplecommunication channels andprocesses, internal andexternalTime andLaborIntensive:Many suppliers,manydifferenttypesoftransactions to manage.Inaccurat
30、e:Informationspreadacross manysystemsmustleverageproduct spending,reducecosts, anddriveprofittothe bottomline.Fragmented Spend Pattern386151363010212315265938643381324610M+1M10M11M5M500K1M250K500K100K250K50K100K25K50K15K25K10K15K4,0003,5003,0002,5002,0001,5001,0005000$1.2 B$1B$800 M$600 M$400 M$200
31、M$0NumberofSuppliersTotal$/Supplier GroupPurchasesNumberofsuppliersTotal$ persuppliergroup$3.8 billionwith17,700+ suppliersLack of EnterpriseLeverage16,773suppliersusedonly in1businessunit.Only1supplierused by all.16,77370414854319531123456789181614121086420NumberofSuppliers(Thousands)BusinessUnitsC
32、rossedAcrossbusinessunitsE Procurement PracticesTraditionalEDI, ElectronicCatalogOrderingSystems,InternetReverse Auctions,E RFQ/RFP.BuyersImplementationandintegrationofend-to-endWeb-basedself-service procurement systemObjective:Cost ReductionSuppliersDevelopmentandmanagementofelectronic catalogand s
33、ystemfororder-takingObjective: RevenueEnhancementMarketMakersCreationandhostingofinfrastructurethat connects buyersandsellersina vertical or horizontalmarketplaceObjectives:CostReduction+Revenue EnhancementInternetProcurementInternetoffersabreakthroughcommunicationschannel,New software applicationsb
34、ringsimpleuserinterfaces,electronic catalogs,securechannelforcollaborationtodovendormanagedinventoryand document exchange.CatalogsMultipleitemswhicharesearchablebyitem number,description, category,orbrandwhichcanbeordered,acknowledged,tracked,invoicedandpaidforon-line.Objective:Cost ReductionAuction
35、sReverse or downward auctioninwhichbuyerinvitesqualifiedsuppliers to beatthe lowestprice.Biddersseetheirbid in relation to lowestbidinrealtimeObjective: LowestpossiblepriceInternetReverse AuctionCompaqHPDellSourcingteam Internet AuctionServiceAuctioneerHosted serverIBMSuppliersBuyingOrganizationCate
36、goryselectionconsiderationsCategories forAuctionDoes thevalueperbuy exceed$1.0 millionEventAuction CriteriaIsthesamegood or serviceroutinely purchasedIsthevalueper buyabove$30,000RecurringAuctionCriteriaGeneral CriteriaIsthemarket competitive (i.e. morethan4 suppliers)Isthegoodorservice fairlywell d
37、efinedLine items fora sub-categoryexceeding25can be putinto amarket basketLack of supplier constraints(e.g.switchingcost)Cansuppliers accesstheInternet“DontAuction”CriteriaCategories involvingjointprocess improvement withsuppliersHighlystrategic suppliersofferingtrulyuniqueitemsStepsinanAuction Proc
38、essPotentialStepsinthe AuctionCycleProfileCategory&SupplyMarketIdentifyPotentialSourcingStrategies1stRoundSupplierQualificationSetupAuctionSourcingStrategyAuction EventFinalSelectionConductAuctionReport&AnalyzeNegotiatewith andselectsupplier(s)Customized auctionenvironmentSupplierandbuyertrainingOne
39、timeauction environment setupAuction eventPost-Auctionreporting andanalysisBidconfirmation fromsuppliersEventAuction Deliverables1RecurringAuctionRecurringauctionNote:(1) Deliverablesarethe samefor theeventauction and1strecurring auctionInternetProcurementOBIOpenBuyingonthe Internet.Anindustrystanda
40、rdthat enablesbuyers to accessproduct,pricing,andavailability information directly fromasuppliers Website,providingincreased controloverthepresentation of productand other information.IntelesysNetscapeBuyerXpertSupplierhasthe dataEach hasuniqueorderingscreensandprocessesBuyerforcedtofindsuppliersLow
41、riske-procurement entryQuickimplementationAdvancedorderingtechniques (productconfigurators)PharmaCoAutoCoServiceCoSupplierCentric SolutionCatCatCatDellStaplesGraingerBenefitsExamplesRisksDSGManagingcatalogRuntechnologySupplierintegrationSecurityControl overcatalogCustomized environmentCatCatCatBuyer
42、Centric SolutionDellOffice DepotGraingerPharmaCoAutoCoServiceCoBenefitsRisksExamplesAribaORMSOracleWebReqCommOne BuySiteAccesstonew markets, customersEliminates regional barriersStreamline sales processReduced costofsalesCentralizescatalog contentrequirementsLeveragedcatalogmanagementAvailabilityofm
43、anysuppliersFasterimplementationEnables personalizedcatalog viewLowercost of entryPayasyou goPharmaCoAutoCoServiceCoWhat is aMarketMaker?PC Co.Office Co.MRO Co.E-ProcurementMarketplaceSellerBenefitsBuyerBenefitsE.procurement TomorrowSuppliersMarketplaceBSBBSSCovisintMarketplaceBSBBSSSAICMarketplaceB
44、SBBSSHorizontalMarketplaceBSBBSSTheKey to SuccessE.Procurement is notabouttechnology alone.Savings areneverautomatic. Centralized procurement willneedtonegotiatethe required agreementsStreamliningprocessesEnablingprocesseswithtechnologySimplifypayment processOptimizing thesupplierbaseSupplierReadine
45、ssE.Procurement requires Supplier capabilitiesAta minimum:1.Electroniccatalog contentfiles2.InternetaccessDesired:3.Inventory availability4.OrderStatus5.Shippingdetails6.Orderentryintegrationvia XMLTwoCategoriesofProcurementProcurementofIndirectandDirect goods andservicesareusuallytheresponsibilityo
46、ftwo separate organizationsand havedifferent business objectivesand strategiessuchaslong termcontracts versusspot buys.IndirectOfficeEquipment andsupplies,Computer&ITequipment, MRO,Services, Expensed goods andservicesnotconsumedinthe manufacturingofaproductDirectRawmaterials andpackagingmaterials us
47、edinthe manufacture andassemblyofproducts.BenefitsLeveragescorporate spending power forlowerpricesEnables increaseduseofpriceagreementsandapprovedsuppliersReduces total leadtimeby5080%Improvesbuyers roleasnegotiatorReduces transaction processingtimeandmanpowerAcquisitionInventoryCarryingTransactionC
48、ost reductioninthreemajorareasBenefitsExamplesofelectronic procurement resultsTransactionCostsAdditionalDiscountsCycleTimeComplianceAgreementsCostsperTransaction-90%-10%-75%+30%PriceTimeCompliance100%100%20Days60%90%10%5Days90%BenefitsIntangiblesBenefitSourcePurchasedUnitCost ReductionProcess Effici
49、encyBenefits= software solution +processchangeAsa percentageoftotalpurchasecostplus processcostforacatalogued itemSoftware-relatedBenefitsIncreased use of price agreementsTransaction costs reductionAccounts payable cost reductionLead time reductionProcurement data availabilitySystems harmon-izationU
50、ser interface simplification25%*Process ChangeBenefitsStrategic sourcing leverageCompliance enforcementDemand managedLogistics/inventory cost reductionBuyer efficiencyControl system simplificationEnd-user efficiencyAutomated controls and audit trailsIncreased customer satisfaction1015%*Purchasing Ef
51、ficiencySupplierIntegrationSAP, GlobalChemical& Pharmaceutical MarketplaceBusinessChallenge:Chemicalindustrys onlinesalesincreasing to 40%by2005)DisintermediationofchemicalproducersLoweroverall supplychaincostsIncreaseoverall serviceefficiencyDeeperpenetrationofstrategic accountsCapture wealthinthen
52、ew economyEDSRole:Technology andIntegrationsupportA.T. KearneyLeveragedSourcingNetworkscorporatebuyers andstrategicsuppliersInitial Members:BASF AGBayerAGDegussa-HulsAGHenkelKgaAKSBAGLindeAGSartoriusAGSiemensAGHeinzWollschlagerGmbHCase Study TruckBayBusinessChallenge:CreateB2B Marketplace forthetruc
53、kingand trucking maintenance industry.Corporatestartup:No business processes,noinfrastructurearchitecture,andnoexistingsystemsareinplacefor thisEDSSolution:Deployedtheinitialmarketplacewithin90daysAdopted 30 suppliersNormalized 60,000catalog itemsImplementedMarketplaceinfive monthsWill addfurther cu
54、stomizations andreverse auctionsClientValue:Lowerbuying/sellingtransactioncostsProvide alternatepartscatalogsReducebuyersinventorycarryingcostsIncreaseproductivityofprocurementprocessesCutlayers fromexistingdistribution channelsConsolidation of procurement activitiesTrading Exchanges:TheExecutive Di
55、lemmasDoWeJoin an Existing Exchange?IfSo,How Do We PreventOur Products FromBecomingCommodities?DoWeForm An Exchange WithOne or MoreofOur Competitors?How?WeveHatedThem forDecades?DoWeStartOurOwn?Will AnyoneJoin?TheEnginesthat willPowerCovisintIntegrationEngineCommunication EngineCollaboration EngineP
56、rocurementEngineCovisintisstillanovelty, butitwill becomeacriticalcomponentineverysupplierse-businessstrategyProblem SummaryLack of connectivitytoallsuppliers /all customersPush vs.PullBatchvs.RealtimeCost of communication/EDIMapsRequiresPersonnelInterventionBuildsInventoryProblem SummaryReal-timeVi
57、sibilityofInventory,Consumption,Shipments,andForecastsTier-2managesmaterialflow to Tier-1,and to Tier-1s inventoryBenefits:Eliminateexcess inventoryReduced expeditingBetterplanning/executionEconomicallycommunicatedemandforecast/deliverynotifications to suppliersInternet/ ANXTodaysSolutions:Provide r
58、ealtimedata flowWebBrowserVisibleSystemtoSystem XMLCompatible withEDIMultiplefulfillmentprocessesAble to connectwithemergingexchangesDelivering bigresults quicklyWINWIN forboth sides of thesupplychainTodays Solutions:Collaborative ManufacturingWorkshopHowcloseare we to a5-daycar?63daysaway!Source: A
59、MRResearchModule and ComponentWarehouseModule and ComponentSupplier (3 day Production)Assembly Plant(6 days to assemble)Distribution Centerand Outbound LogisticsOEM RegionalOfficeDealerConsumerOrder = 1 daySales Order to Region = 5 daysOrder to DC = N/AOrder to Production Sequence = 25 daysCheck Com
60、ponent 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 daysOrdertoComponent=35daysComponenttoConsumer=33daysTodays Order to Delivery =68 days(and thatswithout ordering steel)Tod
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