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1、The Key to SuccessE.Procurement is not about technology alone. Savings are never automatic. Centralized procurement will need to negotiate the required agreementsStreamlining processesEnabling processes with technologySimplify payment processOptimizing the supplier baseSupplier ReadinessE.Procuremen
2、t requires Supplier capabilitiesAt a minimum: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 re
3、sponsibility of two separate organizations and have 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 productDirec
4、tRaw materials and packaging materials used in the manufacture and assembly of products. BenefitsLeverages corporate spending power for lower pricesEnables increased use of price agreements and approved suppliersReduces total lead time by 5080%Improves buyers role as negotiatorReduces transaction pr
5、ocessing time and manpowerAcquisitionInventoryCarryingTransactionCost reduction in three major areasBenefitsExamples of electronic procurement resultsTransactionCostsAdditionalDiscountsCycleTimeComplianceAgreementsCosts perTransaction-90%-10%-75%+30%PriceTimeCompliance100%100%20Days60%90%10%5Days90%
6、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 reductionAccounts payab
7、le cost reductionLead time reductionProcurement data availabilitySystems harmon-izationUser interface simplification25%*Process ChangeBenefitsStrategic sourcing leverageCompliance enforcementDemand managedLogistics/inventory cost reductionBuyer efficiencyControl system simplificationEnd-user efficie
8、ncyAutomated controls and audit trailsIncreased customer satisfaction1015%*Purchasing EfficiencySupplier IntegrationSAP, Global Chemical & Pharmaceutical Marketplace Business Challenge: Chemical industrys online sales increasing to 40% by 2005) Disintermediation of chemical producers Lower overall s
9、upply chain costs Increase overall service efficiency Deeper penetration of strategic accounts Capture wealth in the new economyEDS Role: Technology and Integration support A.T. Kearney Leveraged Sourcing Networks corporate buyers and strategic suppliersInitial Members:BASF AG Bayer AG Degussa-Huls
10、AG Henkel KgaA KSB AG Linde AGSartorius AGSiemens AG Heinz Wollschlager GmbHCase 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
11、 for thisEDS 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
12、 Reduce buyers inventory carrying costs Increase productivity of procurement processes Cut layers from existing distribution channels Consolidation of procurement activitiesTrading Exchanges: The Executive Dilemmas Do We Join an Existing Exchange?If So, How Do We Prevent Our Products From Becoming C
13、ommodities?Do We Form An Exchange With One or More of Our Competitors?How? Weve Hated Them for Decades?Do We Start Our Own?Will Anyone Join?The Engines that will Power CovisintIntegration EngineCommunication EngineCollaboration EngineProcurement EngineCovisint is still a novelty, but it will become
14、a critical component in every suppliers e-business strategyProblem SummaryLack of connectivity to all suppliers / all customersPush vs. PullBatch vs. Real timeCost of communication / EDI MapsRequires Personnel InterventionBuilds InventoryProblem SummaryReal-time Visibility of Inventory, Consumption,
15、 Shipments, and ForecastsTier-2 manages material flow to Tier-1, and to Tier-1s inventoryBenefits: Eliminate excess inventory Reduced expediting Better planning/execution Economically communicate demand forecast/delivery notifications to suppliers Internet / ANXTodays Solutions :Provide real time da
16、ta flowWeb Browser VisibleSystem to System XMLCompatible with EDIMultiple fulfillment processesAble to connect with emerging exchangesDelivering big results quicklyWIN WIN for both sides of the supply chainTodays Solutions :Collaborative Manufacturing WorkshopHow close are we to a 5-day car? 63 days
17、 away!Source: AMR ResearchModule 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 =
18、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 Todays Order to Delivery = 68 days(and th
19、ats without ordering steel) Todays Delivery Date Accuracy 20% 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 abo
20、ut lime-green, 2-door, manual with A/Cwith $100 off?Information Visibility Is it on the lot? Is it on a truck? Is it in DC inventoryIs 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 mo
21、del Special option packages Are there dealer incentives? Is there something close?Impact of re-engineered OTD on SuppliersTypical impact on commodity suppliers faster/cheaperIn-sequence production will become mandatory for critical system suppliersLess pressure on component inventoryLittle impact on
22、 material suppliersCo-location will become deciding factor for choosing key system supplierse-Manufacturing SolutionsEnables manufacturers to deliver on promisesAddresses order fulfillment issues created by the e-business model to conduct business through effective integrationEnsures manufacturing p
23、eople, processes, and technology are aligned with e-business goalse.Manufacturing Defined Enabling Manufacturing Operations for e-businessResult: Demand fulfillment synchronizedwith demand generationFinished Goods StorageMaintenance/RepairsScrap/ReworkProduction LinesShipping/ReceivingBar Code Print
24、ingBar Code ShippingFaster shippinginterfaced to ERP systemsMaintenanceIntegrated life cyclemanagement of assetsError ProofingProduct correctly labeledand shipped error freeQualityImprovementFirst time quality isfaster and cheaperTracking &TraceabilityProduct recallcapabilityLeanManufacturingIncreas
25、ingthroughputInventoryManagementIncreasinginventory turnse-Manufacturing SolutionsEnterprise TrainingFoundational trainingfor manufacturingprofessionals Order Fulfillment - Functional AreasProduct marketing, development and configurationSupply chain network planningDemand forecasting and planningSup
26、ply planning and sourcingManufacturing schedulingWarehousing and inventory planningTransportation and distribution planningManufacturing ExecutionMaintenance, repair and operations planning and executionPerformance measurement and monitoringPlanExecuteMaintainCollaborationStakeholdersCustomers, Rese
27、llersSuppliers, Distributors, PartnersCustomer Relationship ManagementMarketingSalesCustomerServiceSelling Chain ManagementSupply Chain ManagementEnterprise Resource PlanningLogisticsProductionDistributionKnowledge-ToneApplicationsEnterprise Application Integration Administrative ControlHRMS / BMS /
28、 ORMS Finance/Accounting/AuditingManagement ControlEmployeesBusiness 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 com
29、merce 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 warehouse
30、s, ERP system, and legacy environments ?Business ChallengesBusiness 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
31、?.leverage legacy investments to satisfy information requirements at the desktop ?.meet immediate business requirements while developing an improved enterprise environment? Business Challenges The Integration Challenge The Traditional Approach .integrates applications only one at a time, creating an
32、 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 functional
33、ity.Enterprise Application IntegrationEnterprisePortalIntegrated EnterpriseDivision ASystemSAPFinancialHRMSDivision CSystemDivision BSystemSCM/ CRMApplicationProcess ControlSystemsBusinessPartnersSystemEAI/MiddlewareEnterprise DataWarehouseApplication Integration FrameworksMessage Oriented Middlewar
34、eDistributed Object ComputingDecision Support IntegrationWeb / Java IntegrationTransaction Processing MonitorsRemote Database AccessSystems Management and SecurityInterprocess CommunicationEAI Technologies Application Integration FrameworksMessage Oriented MiddlewareDistributed Object ComputingDecis
35、ion Support IntegrationWeb / Java IntegrationTransaction Processing MonitorsRemote Database AccessSystems Management and SecurityInterprocess CommunicationEAI Technologies New Ways of WorkingEEEEEEEEEEEEEEEEEEEValueTimeProcess automationNo reengineeringAccurate informationFunctional automationReengi
36、neering of a process in a functional areaEnhanced information accessImprove processes across departmentsOrganizational reengineeringShared information networksInter-enterprise process improvementInter-organization reengineeringIntegrated information networksCostCostProductivityCostProductivityRevenu
37、eRevenueOpportunityMarket ShareDepartmental efficiencyMulti-departmental efficiencyMulti-departmental integrated efficiencyInter-enterprise integrationTask Automation(Departmental Comp.)Information Sharing(Intra-Enterprise)Extended Enterprise(Inter-Enterprise)Virtual Enterprise (Community)Small to m
38、oderate demand-supply mismatchStable MPS/MRPIntuitive capacity measures and planningShort-term visibility (daily/weekly)Individual plant focusCustomer-to-customer awarenessStage II - STABILITYThe process is under control, with average performance.“Internal CooperationLarge demand-supply mismatchWild
39、ly inaccurate or non-existent forecastsLost ordersHeavy expeditingLong lead timesFrequent shortagesProduction schedules ignored by OperationsStage I - CHAOSBasic process control is lacking.“Functional ParochialismDemand-supply matchSupplier-to-customer focusSegmented demand planningSchedule sharing with customers and suppliersLong-term visibility (monthly/quarterly/yearly)Global, multi-plant focusAccurate forecasts (90%+)Real-time optimization, planning & schedulingStage III - BEST PRACTICEProcess performance is equal to or better than that
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