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1、Supply Chain Visibility and Logistics CollaborationPoint of ViewDavid A. Hance, Northeast Region, Stamford, CTNaoji Takeda, Northeast Region, New York, NYM. Christopher Herrera, Northeast Region, New York, NYJohn Scott, Northeast Region, Roseland, NJApril 2001Final Draft Digital Markets and Supply C

2、hain.Table of ContentsObjectiveIntroductionSupply Chain and Visibility Collaborative Logistics SolutionsMajor AttributesValue Propositions of Visibility/Collaborative Logistics SolutionsVisibility and Collaborative Logistics Solutions Landscape AnalysisVendor MatrixAndersen Point of View.ObjectiveTh

3、e objective of the Digital Markets/Supply Chain Teams “Point of View is to gain a comprehensive understanding of evolving Supply Chain Visibility and Collaborative Logistics solutions and how it will impact enterprise users.Focus will be on: Understanding solution from the entire Supply Chain Manage

4、ment perspectivesArticulating functionality and benefitsLandscape of fragmented solution sets.Introduction.Introduction: IllustrationToday, 67% of supply chain executives conduct transactions with transportation providers manually (i.e., face-to-face, phone, fax, or mail). Less than a quarter use ED

5、I and less than one-tenth use the Internet.Morgan Stanley Dean Witter Research, August 2000.Logistics Challenges Are RealAchieve 100% accuracy in all customer orders?Get a real-time status visibility of all shipments from trading partners? Optimize all modes of transportation?Receive shipments from

6、Asia and Europe?How can I? Why my APS has not deliver the promised ROI?.What Do Users Want from B2B Connectivity?According to AMRs interview of 152 executives on their views of the relative importance on the marketplace functionalities, SC Visibility and logistics-related functions (Order Status/Tra

7、cking and Transportation management) were among the highest in importance.Source: AMR Research November 2000.Supply Chain Visibility and Collaborative Logistics Solutions.Supply Chain Visibility and Collaborative Logistics DefinedDue to the advent of the Internet technology, B2B eCommerce and collab

8、orative technology, a new category of much fragmented Supply Chain Management tool has emerged; Supply Chain Visibility and Collaborative Logistics.Supply Chain Visibility tools enable enterprise to monitor, track and control all executed order shipments across its extended supply chain. Typical thi

9、s includes inbound logistics from suppliers and outbound logistics to customers. Real-time freight data from logistics service providers (Carriers, Freight forwarders, Customs brokers) as well as trading partners (suppliers and customers) are validated and aggregated to provide an end-to-end status

10、visibility. Tracking of goods at various levels (Customer Order, BL#, Container and SKU level) are made possible by common data modeling.Collaboration happens at various levels of logistics service providers. Enterprise-Service Provider collaboration includes exception contract negotiations, tender/

11、acceptance, alerts messaging/workflow and scheduling. Also Supplier-Customer collaboration will also be enhanced by feeding real-time inventory visibility into APS module to provide Capable-to-Promise (CTP) information to customers.Supply Chain VisibilityCollaborative Logistics.Supply Chain Manageme

12、nt LayersSupply Chain Planning (SCP)SCP is a system of applications that enables demand planning and forecasting, materials procurement and production scheduling.Typically, SCP systems are used for forecasting and preparation of manufacturing/assembly processes.Supply Chain Execution (SCE)SCE is a f

13、ramework of applications that enhance the productivity of the storage, preparation, logistics and delivery of completed products.SC Event ManagementWarehouse ManagementInternational Trade LogisticsInventory ManagementProduction SchedulingDistribution PlanningSupply PlanningSupply Chain Collaboration

14、Demand Forecasting and PlanningSupply Chain Network DesignManufacturing PlanningTransportation ManagementOrder ManagementOperationalPlanningTacticalPlanningStrategicPlanningPlanning LevelSupply Chain ExecutionSupply Chain PlanningDecision SupportTime HorizonSeconds/MinutesHours/DaysWeeks/MonthsQuart

15、ersYearsAdopted from AMR ResearchVisibility / Collaborative LogisticsScope.Traditional View vs. New Supply Chain Management ToolsSupply Chain Planning (SCP) tools were developed separately from Supply Chain Execution (SCE) tools. As a result, they both require unique ERP interfaces. This “ERP centri

16、c model often resulted in customer demand not fulfilled properlytheoretically perfect supply chain plans not executed properly due to missing linkages between planning and execution systems.Visibility and Collaboration components, however, began linking plans and results of various supply chain acti

17、vities at or close to real-time basis. Also these components enabled enterprise to collaborate with trading partners and logistics service providers. Visibility component is the eyes, and Collaboration is the mouth to communicate for an enterprise. With better visibility and communication, an enterp

18、rise can leap benefits from functionality from each component solutions (APS, ERP, TMS and WMS).New ViewTraditional ViewCollaborationSupplierCarriersCustomerVisibilityAPSERPTMSWMSSupply Chain Execution (TMS, WMS)ERP ApplicationSupply Chain Planning(APS).Supply Chain VisibilityHow it Fits to Existing

19、 SytemsPlanningExecutionDataInterfaceITLSDatabaseWMSDatabaseTMSDatabaseOMSDatabaseAPSDatabaseERP ApplicationERP Application Supply Chain VisibilityCollaborationSCPSystemSCESystemSource: AMR Research, 2000Extended Trading CommunitySingle InterfaceVisibilityEvent TrackingPerformance & ComplianceManage

20、mentDistributed Data MgmtAlert MgmtWorkflow CoordinationFinancialServicesSuppliers3PL & TransportHubs &ExchangesCustomers.Connecting Logistics Trading PartnersEnd-to-End Visibility ScopeInternet Collaboration EngineSupplierOcean CarriersPlantsAirCarriersAssemblyGround CarrierWarehouseCustomer.Logist

21、ics CollaborationLogistics Collaboration facilitates data exchange among all parties within fulfillment chain. This is not demandforecast collaboration between customers and suppliers such as CPFR (Collaborative Planning Forecasting and Replenishment). Logistics Collaboration focuses on executed ord

22、ers to be fulfilled as planned. CPFR focuses on demand forecast and fulfillment plans to be accurate.SuppliersCarriersCustoms BrokersFreight ForwardersWarehousesCustomersManage purchase orders, ensure order complianceProcure services, monitor inventory movement, monitor performanceProcure services,

23、Expedite customs clearance, monitor performanceProcure services, monitor inventory movement, monitor performanceProcure services, monitor inventory level, monitor performanceFulfill orders, improve customer serviceASN, Packing Slip, Shipping informationService bid, Pick up information, Estimate time

24、 of arrival, route information, proof of deliveryService bid, service contract, document request, Estimate time of clearance,Service bid, Pick up information, Load information, Estimate time of arrival, route information, drop off informationWarehouse receipt, shipment confirmationInquiries, expedit

25、e requests, delivery confirmationPurchase OrderService tender, Pick up information, Planned time of deliveryService offer, Product information and import documentationService tender, Pick up information, Planned time of deliveryPick, pack and ship ordersASN, Visibility information, Exception AlertsP

26、urpose of CollaborationCollaboration WithOutgoingIncomingInformation Exchange.Major Attributes of Supply Chain Visibility ToolGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlanningTechnologyLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Managem

27、ent and Intelligence.Transportation PlanningMany of visibility solutions have been developed from traditional transportation management systems (TMS) and inherits many of their planning functionality. The most important benefit from integrating transportation planning with visibility functionality i

28、s the ability to simulate on real-time: supports decision maker in exception handling process by assessing what aftereffects may be (e.g., reject this order because a more important customers order would be delayed, or attempt to transfer it to another facility because profitability level is high).F

29、unctionalityRouting, rating and optimization (domestic and international)Order ConsolidationEquipment UtilizationCommingling of OrdersRate AnalysisContinuous Movement ManagementBenefitsTransportation Cost ReductionsCustomer Service CommitmentsEnable complex merge-in-transits and multileg, multiroute

30、 transportation planningGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.Logistics Process AutomationThis functionality supports day-to-day operations of l

31、ogistic/traffic departments. Major processes include procurement of logistics services, contract management, booking and tendering, payment and settlement. The automation of the logistics processes required to execute the delivery of goods helps reduce internal operating costs of logistics organizat

32、ion.FunctionalityInternet-based RFP to carriers and service providersContract Management using central data depositoryShipment/Load Tendering process automation with carriersAutomated payment support for freight payments based on actual carrier performanceSupport for freight audits and compliance re

33、porting Benefits Reduced administration and operating costs Reduced Order Cycle timesGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningTechnologyLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Management and Intelligence.Logistics Process Aut

34、omation (Continued)The logistics processes automation should address end-to-end logistics activities. GoodsTrans-portation planStrategicPlan (ContractNeg.)TenderCarrier PickupsDeliversInvoice MatchIn transitInvoice toShipperPay AuditEDI / XMLEDI / XMLEDI / XMLCarriersFulfillment ProcessSettlement Pr

35、ocessPlanning ProcessEDI / XMLWhseDepotDepotGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.Product TrackingTrack and Trace function enables an enterprise

36、 to locate key assets and associated contents instantaneously and precisely within the supply chain.An important aspect is the ability to Monitor: Many solutions provide real-time tracking of supply chain objects and events including visibility into actual inventory levels, orders, shipments, produc

37、tion and supplyeven down to ATP numbers of individual SKUs. Also the solution must support Multi-Mode and International geographic coverage. FunctionalityMonitor orders, shipments, inventory at clientdefined supply chain milestones Data model to support linkages among various tracking units (i.e. or

38、ders, BL #, SKUs, serial numbers, ASN #)Event notification to alert diversion from planned performance (late shipments and partial shipments due to carrier noncompliance or accidents)GPS integration and environmental monitoring (temperature, etc.) BenefitsImprove order fill rates and customer servic

39、e level by expediting supply chain events Reduce inventory and safety stock levelGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.Collaboration EngineColla

40、boration Engine facilitates communication and data exchange between an enterprise and customers, suppliers, transportation carriers and service providers. Collaboration takes different forms depending upon the partners, from a simple exception alerting to complex negotiation process support over the

41、 Internet. FunctionalityNotify: supports real-time exception management via message system, which can alert a decision maker that attention is requiredControl: allows in-process adjustment, such as shipment diversion or order expeditingBusiness Rules: create predetermined business rules to expedite

42、exception handling and inter and intra-enterprise workflowsBenefitsReduce cycle time by eliminating phone calls, fax and paper communicationAbility to respond quicklyGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollabora

43、tionEnginePerformance Management and IntelligenceTechnology.Performance Management and IntelligenceUsing a common data model and analytical tools, most solutions offer functionality to Measure: provides various Key Performance Indicators (KPIs) data so that decision makers can assess supply chain pe

44、rformance. FunctionalityOLAP tools are usually capable of creating various reports as well as any other ad hoc reportsService level analysis allows a company to perform its own scorecard analysis of on-time delivery for a customer or the entire customer baseCarrier and service provider performance a

45、nd history can be easily obtainedLanded cost analysisa company can plan profitability of selling merchandise by summarizing all potential supply chain costs beyond FOB priceBenefitsImprove negotiation ability with carriers and service providers with concrete historical performance recordPlan and man

46、age own supply chain better with comprehensive informationGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.International Trade SupportAs Supply Chain Visib

47、ility solutions target large, multinational enterprises, it is critical to support international trade of goods. Many of this functionality are provided by partnering with best-of-breed providers such as Nextlinks and Vastera.FunctionalityImport and Export Customs Compliance process managementCustom

48、s compliance contents Trade Document ManagementBenefitsExpedite customs clearance processSave administrative costs and cycle timeProof of “reasonable care for potential customs audit and penalty risksGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process A

49、utomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.Connectivity and ContentConnectivity is the most important foundation of visibility applications. Most solutions offer an ASP model data aggregations service. The various data form (EDI, XML, Web) from logi

50、stics partners are aggregated, validated and cleansed prior to be made available as visibility information.Also it offers logistics contents such as carrier records, availability, spot transactions, as well as tariff and customs compliance contents via connections with specific content providers and

51、 B2B marketplace.FunctionalityData management serviceEDI/XML translationPartner connectivity servicesBenefitsLow-cost connectivityConnect with all trading partners without building a custom EDI link with each partnerGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLog

52、istics Process AutomationProduct TrackingCollaborationEnginePerformance Management and IntelligenceTechnology.TechnologyAs Visibility applications will be used by many different parties and deployed globally in most cases, it is important that the application architecture is Internet-enabled and sca

53、lable. Many of Visibility tools developed by 3PLs did not survive largely due to its proprietary technology and inflexible data modeling. Many vendors use EAI such as Tibco and Webmethods for enterprise integration.FunctionalityInternet-Enabled DatabaseASP/Hosted environment for connectivity layerSe

54、cure environmentUse of EAI (Enterprise Application Integration) to easily integrate with various enterprise applicationsBenefitScalabilityAdaptabilitySecurityGlobal Multi-modeInternational TradeConnectivity andContentTransportation PlaningLogistics Process AutomationProduct TrackingCollaborationEngi

55、nePerformance Management and IntelligenceTechnology.Value Propositions of Visibility/Collaborative Logistics Solutions .Revenue OpportunityReduce StockoutsCost SavingsInventory CostTransportation Cost Warehousing CostAdministrative CostFinancial ValueCustomer ServiceTimeReduce TimeOrder cycle timeLe

56、ad timePlanning cycle timeEvent response timeCustomer ServiceImprove order fill rate Respond customer inquiryEnable ATP (Available to Promise)Enable CTP (Capable to Promise)Value Propositions of Visibility/Collaborative Logistics SolutionsVisibility/Collaborative Logistics Solutions offer similar va

57、lue propositions to most of SCM applications. The solution acts as a conduit to link all disparate SCM applications and trading partners to deliver higher level of integrated benefits.Visibility/Collaborative Logistics Solutions can not deliver all the benefits by its own.Financial ValueCustomer Ser

58、viceTimeFinancial ValueVisibility/Collaborative Logistics Solutions offer a significant financial value when properly integrated and implemented with planning systems.A company can benefit from improved availability, transportation cost reduction in short termRevenueInventory CostTransportation Cost

59、Warehousing CostImprove forecast accuracy and fulfillment capabilityImprove supply chain planning capabilityImprove forecast accuracy and fulfillment capabilityPlan distribution network so shipment skips warehouseImprove carrier management and negotiation by better informationConsolidation, load/con

60、tainer optimization, route optimizationAutomate communication with logistics partners and manage logistics dataImprove warehouse management operation via improved inbound/outbound planningAssist accuracy via fulfillment capability improvementDirect contribution from fulfillment visibility, planning

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