1、Agenda9:00-9:15-Introductions9:15-10:00-Supply Chain Management10:00-11:00 -e-Procurement Overview11:00-11:15-Break11:15 -12:00-c-Manufacturing12:00-1:00-Lunch 1:00 -2:30-Workshop2:30-3:00-Implementation Considerations,Case Studies3:00 -Summary and ConclusionSupply Chain ManagementSupply Chain Manag
2、ement“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.Supply Chain Management
3、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.The 5 major stra
4、tegic concepts of Supply Chain ManagementCustomizationCompanies have a choice and ability to adapt their operational environment to changing market demandCollaborationAll partners in the supply chain do not only optimize their operations but jointly plan,optimize,monitor and execute.VisibilityAll pa
5、rtners 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 total
6、ly synchronized supply chain that is entirely driven by the customers demand.Supply Chain Value PrinciplesProvide Visibility of InformationInventories,Forecasts,Orders,Plans,Engineering Changes,KPIsSynchronize ActivitiesOptimized feasible sourcing/planning,pull-based triggersPromote Responsiveness R
7、educe time to detect demand,commit,produce,fulfillLeverage Market Mechanisms Aggregated buying power,auction-based buying/sellingAchieve Process Simplification Automated steps,One-step businessSourcingOperationsLogisticsSource:Supply Chain Faculty,Michigan State UniversityTHE INTEGRATED SUPPLY CHAIN
8、Challenges for Supply ChainsTake orders over the web,or automatically via B2BOffer rich product selection and/or the ability to customizeSource the order and commit to delivery,immediately,onlineService the order online,including changes and inquiriesDeliver product quickly,efficiently,profitablyBe
9、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 inventoriesInternet SellingCollaborative Planning,Forecasting and Replenishment CPFRInternet Vendor Managed Inve
10、ntory iVMICollaborative Supply Planning CSUPCollaborative Production PlanningCapable to Promise CTPe-Procurement(auctioning,bidding)Internet-based TenderingInternet-based Kanbane-FulfillmentCollaborative Business ScenariosDrivers of High Performance Achievement(Rated by Priority)Customer Integration
11、Segmental FocusRelevancyResponsivenessFlexibilityMaterial/Service Supplier IntegrationFusionFinancial LinkageStrategic AlignmentOperational Supplier Relationship ManagementE.Dashboard-Key Performance IndicatorsMaximize Economic ValueOn-Time DeliveryLead TimeCash-to-Cash CycleInventory TurnsOrder Man
12、agement CostPerfect Order FulfillmentOrder Fill RatesInventory Carrying CostSG&AIncrease RevenueDecrease CostImprove Asset UtilizationThe E-Dashboard.Is a web-based tool that allows dynamic monitoring of the Supply Chain SolutionMonitors Key Performance Indicators to optimize important business proc
13、essesMeasures Return on InvestmentAllows 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 makingDigital Order Fulfillment Process Example
14、ERPATPERPATPERPATPWEBATPERPOrder/ProductConfigurationDSSMESWEBPCSQId like Product A,with Features B,C and D,by Date E.QDo we have all the material?QWhat is the priority?QBuildable?QCost?QWhen can we deliver?QSpecial handling required?Q1st Supplier:Yes,Ill reserve it.Q2nd Supplier:No.Q3rd Supplier:Il
15、l need a confirmation signal from my suppliers.123CustomerManufacturerSuppliersDigital Order Fulfillment Process ExampleQWe can have your product by this dateQYes,we can684QConfirmed57QOrder it!QConfirm the orders to suppliersQAllocate the materialQSchedule productionERPATPERPATPERPATPWEBATPERPOrder
16、/ProductConfigurationDSSMESWEBPCSCustomerManufacturerSuppliersIndustry Specific Value ChainIssues/Challenges/SolutionsBetter,Faster Decisions Drive Velocity.Receive Material Release DataProcess OrdersPlan Production&Make Intelligent DecisionsSend Material Release DataAIAG Worst Case*AIAG Benchmark*P
17、lant 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 da
18、y30 min1.1 days1 hour1 hour4 hours30 min6.5 hoursTime delays result in additional mix and volume buffering Legacy Automotive CommunicationsMultiple ProtocolsComplex,Costly,Ad Hoc,InflexibleDesignMfg$Customer#1Customer#3Customer#2Supplier#3Supplier#2Supplier#1Inconsistentservice,securityEDIVANs*EDIVA
19、Ns*VAN=Value-Added NetworkMultiple LinksANX 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“The Busines
20、s 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
21、(TPs)(160 more underway)TradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersANX StakeholdersANX Usable in any sector:Business,government,academic,non-profitBased on Internet technologies:Standards-based,off-the-shelf products No proprietary soluti
22、onsVariety of connectivity,speed:Dial,DSL,ISDN,and 56 KB T3Available globally:North America:Canada,Mexico,U.S.Africa,Asia,Australia,Europe,South AmericaANX CharacteristicsANX Covisint RelationshipSimilarities:Funded,endorsed,guided by Big 3 OEMs Spun-off as separate for-profit companies But differen
23、t 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 connectionsE.Procurement Common TermsE Business-Buying,selling transacting or exchanging
24、information via Internet with customers,suppliers,employees Reaches beyond advertising and marketing,includes core business processes of order entry,purchasing,supply chain,CRME Commerce-Transaction-oriented Web based functions such as placing orders,order entry,paymentsE Procurement-Requesting,Appr
25、oving,Ordering,Receiving,and Payment of goods and services via the InternetTrading Exchanges,Virtual Marketplaces,Portals-Vertical industry focused Web sites for buyers and sellers to make offers to buy and sell,conduct transactions.Dot ComsMarketplace TrendsElectronic CommerceSuppliersBombarded wit
26、h infoWhy companies are considering e-procurementBuyerslSoftware vendors push their productslMagazine and news coverage aboundsCosts too highlVolume not leveragedlSignificant accounts payable effortlUsers buying at retailProcesses are inefficientlApprovals take days or weekslUsers are wasting timel8
27、5%of purchasing time spent managing orderslToo much re-keying and errorsNot leveraging new technologieslTheir competition is doing itlTheir intranet is under-utilizedlThey have multiple home-grown systemslERP implementations are winding downInformation unavailablelDont know what they spendlUsers don
28、t know about dealslNo audit trailThe Business ChallengeThe Procurement Process of TodayConfusing and Slow:Multiple communication channels and processes,internal and externalTime and Labor Intensive:Many suppliers,many different types of transactions to manage.Inaccurate:Information spread across man
29、y systemsmust leverage product spending,reduce costs,and drive profit to the bottom line.Fragmented Spend Pattern386151363010212315265938643381324610M+1M10M11M5M500K 1M250K500K100K250K50K100K25K50K15K25K10K15K4,0003,5003,0002,5002,0001,5001,0005000$1.2 B$1 B$800 M$600 M$400 M$200 M$0Number of Suppli
30、ersTotal$/Supplier GroupPurchasesNumber of suppliersTotal$per supplier group$3.8 billion with 17,700+suppliersLack of Enterprise Leverage16,773 suppliers used only in 1 business unit.Only 1 supplier used by all.16,773704 14854319531123456789181614121086420Number of Suppliers(Thousands)Business Units
31、 CrossedAcross business unitsE Procurement PracticesTraditional EDI,Electronic Catalog Ordering Systems,Internet Reverse Auctions,E RFQ/RFP.BuyersImplementation and integration of end-to-end Web-based self-service procurement systemObjective:Cost ReductionSuppliersDevelopment and management of elect
32、ronic catalog and system for order-takingObjective:Revenue EnhancementMarketMakersCreation and hosting of infrastructure that connects buyers and sellers in a vertical or horizontal marketplaceObjectives:Cost Reduction+Revenue EnhancementInternet ProcurementInternet offers a breakthrough communicati
33、ons channel,New software applications bring simple user interfaces,electronic catalogs,secure channel for collaboration to do vendor managed inventory and document exchange.CatalogsMultiple items which are searchable by item number,description,category,or brand which can be ordered,acknowledged,trac
34、ked,invoiced and paid for on-line.Objective:Cost ReductionAuctionsReverse 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 timeObjective:Lowest possible price Internet Reverse Auction CompaqHPDellSourcing
35、teamAuctioneerHosted serverIBMSuppliersBuying OrganizationCategory selection considerations Categories for Auction Does the value per buy exceed$1.0 millionEvent Auction Criteria Is the same good or service routinely purchased Is the value per buy above$30,000Recurring Auction CriteriaGeneral Criter
36、ia Is 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“Dont Auction”Criteria Categories involving jo
37、int process improvement with suppliers Highly strategic suppliers offering truly unique itemsSteps in an Auction Process Potential Steps in the Auction CycleProfileCategory&SupplyMarketIdentifyPotentialSourcingStrategies 1st RoundSupplierQualificationSetupAuctionSourcing Strategy Auction Event Final
38、 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 auc
39、tionNote:(1)Deliverables are the same for the event auction and 1st recurring auctionInternet ProcurementOBI Open Buying on the Internet.An industry standard that enables buyers to access product,pricing,and availability information directly from a suppliers Web site,providing increased control over
40、 the presentation of product and other information.IntelesysNetscape Buyer XpertSupplier has the dataEach has unique ordering screens and processesBuyer forced to find suppliersLow risk e-procurement entryQuick implementationAdvanced ordering techniques(product configurators)PharmaCoAutoCoServiceCoS
41、upplier Centric SolutionCatCatCatDellStaplesGraingerBenefitsExamplesRisksDSGManaging catalogRun technologySupplier integrationSecurityControl over catalogCustomized environmentCatCatCatBuyer Centric SolutionDellOffice DepotGraingerPharmaCoAutoCoServiceCoBenefitsRisksExamplesAriba ORMSOracle Web ReqC
42、ommOne BuySite Access to new markets,customers Eliminates regional barriers Streamline sales process Reduced cost of sales Centralizes catalog content requirementsLeveraged catalog managementAvailability of many suppliersFaster implementationEnables personalized catalog viewLower cost of entryPay as
43、 you goPharmaCoAutoCoServiceCoWhat is a MarketMaker?PC Co.Office Co.MRO Co.E-ProcurementMarketplaceSeller BenefitsBuyer BenefitsE.procurement TomorrowSuppliersMarketplaceBSBBSSCovisintMarketplaceBSBBSSSAICMarketplaceBSBBSSHorizontalMarketplaceBSBBSSThe Key to SuccessE.Procurement is not about techno
44、logy alone.Savings are never automatic.Centralized procurement will need to negotiate the required agreementsg Streamlining processesg Enabling processes with technologyg Simplify payment processg Optimizing the supplier baseSupplier ReadinessE.Procurement requires Supplier capabilitiesAt a minimum:
45、1.Electronic catalog content files2.Internet accessDesired:3.Inventory availability4.Order Status5.Shipping details6.Order entry integration via XMLTwo Categories of ProcurementProcurement of Indirect and Direct goods and services are usually the responsibility of two separate organizations and have
46、 different business objectives and strategies such as long term contracts versus spot buys.IndirectOffice Equipment and supplies,Computer&IT equipment,MRO,Services,Expensed goods and services not consumed in the manufacturing of a productDirectRaw materials and packaging materials used in the manufa
47、cture and assembly of products.BenefitslLeverages corporate spending power for lower priceslEnables increased use of price agreements and approved supplierslReduces total lead time by 5080%lImproves buyers role as negotiatorlReduces transaction processing time and manpowerAcquisitionInventoryCarryin
48、gTransactionCost reduction in three major areasBenefitsExamples of electronic procurement resultsTransactionCostsAdditionalDiscountsCycleTimeComplianceAgreementsCosts perTransaction-90%-10%-75%+30%PriceTimeCompliance100%100%20Days60%90%10%5Days90%BenefitsIntangiblesBenefitSourcePurchased UnitCost Re
49、ductionProcess EfficiencyBenefits=software solution+process changeAs a percentage of total purchase cost plus process cost for a catalogued item Software-relatedBenefitslIncreased use of price agreementslTransaction costs reductionlAccounts payable cost reductionlLead time reductionlProcurement data
50、 availabilitylSystems harmon-izationlUser interface simplification25%*Process ChangeBenefitslStrategic sourcing leveragelCompliance enforcementlDemand managedlLogistics/inventory cost reductionlBuyer efficiencylControl system simplificationlEnd-user efficiencylAutomated controls and audit trailslInc
