The Strategic Supply Chain and Logistics. A Digital Perspective
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1 Chain and Logistics A Digital a framework for understanding the business processes and software which power and enable the supply chain Patrick J Murzyn Transformation
2 Let s Talk Babble: it is like Babel without the Tower RFP COPQ HTTP AR MRP SCEM BOM MRO TQM DMAIC DMADV CNM B2C CAPS ERM HTML OEM SCM SIC BPM EPM RFI EPO QFD CPAR Cpk EAI ISM ERP B2B VAN ERM MRP II URL CTQ PLM TCP/IP CRM SRM SSL RFX FMEA AP PDM ASP UNSPSC CAR EDI RFQ 9 August 2003 PJ Murzyn 2
3 Let s talk about the (Answers) BOM: Bill of Material ERM: Employee Relationship Management MRP: Material Requirements Planning MRO: Maintenance, Repair and Operations MRP II: Manufacturing Resource Planning PDM: Product Data Management ERP: Enterprise Resource Planning eprocurement: Original term for internet catalog ERM: Enterprise Resource Management esourcing: electronic enabling of strategic sourcing SCM: Management AP: Accounts Payable SCEM: Event Management AR: Accounts Receivable PLM: Product Lifecycle Management ASP: Application Service Provider EPO: Enterprise Profit Optimization B2B: Business to Business BPM: Business Process Management B2C: Business to Consumer CNM: Customer Needs Management EDI: Electronic Data Interchange CRM: Customer Relationship Management VAN: Value Added Network SRM: Supplier Relationship Management RFP: Request for Proposal EAI: Enterprise Application Integration RFI: Request for Information EPM: Enterprise Performance Management RFQ: Request for Quotation OEM: Original Equipment Manufacturer HTTP: HyperText Transfer Protocol QFD: Quality Function Design HTML: HyperText Markup Language FMEA: Failure Mode and Effects Analysis TCP/IP: Transmission Control Protocol / Internet CAR: Corrective Action Request Protocol CPAR: Corrective and Preventative Action Request URL: Uniform Resource Locator COPQ: Cost of Poor Quality SSL: Secure Sockets Layer TQM: Total Quality Management SIC: Standard Industrial Classification DMAIC: Define, Measure, Analyze, Improve, Control UNSPSC: Universal Standard Products and Services Classification DMADV: Define, Measure, Analyze, Design, Verify CAPS: Center for Advanced Purchasing Studies CTQ: Critical to Quality ISM: Institute for Supply Management Cpk: Process Capability Index CEO/COO/CFO/CIO/CPO/CMO/CSO/CKO/CXO 9 August 2003 PJ Murzyn 3
4 What is the? <That which> encompasses every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. Management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer. Source: The Council 9 August 2003 PJ Murzyn 4
5 What is the? The interconnected set of business procedures and business partners that manage the flow of goods and information from the point of design to the delivery of the product or service to the end customer Supply chains are concerned with the flow of information, materials and money. Source: Kenneth Lysons and CIPS, The Impact of e-business on Supply Chain Management, 9 August 2003 PJ Murzyn 5
6 Issues Complete Goods & Services Goods, Services, Information Goods, Services, Information, Transactions Goods, Services, Transactions, Knowledge Enabling the ecommerce connections between entities ebusiness Models within (and between) the entities Management (SCM) Foundation includes everything from Transactions to Knowledge and Decisions Is there a valid high-level Dimensional Model Complete? ecommerce/ebusiness? the the flow flow of of goods goods and and services services from from their their point point of of creation creation or or origination origination to to the the point point of of consumption consumption or or recovery/disposal recovery/disposal (PJMurzyn) (PJMurzyn) to explain / assess 9 August 2003 PJ Murzyn 6
7 Complete Supplier 2 Supplier Enterprise Customer Customer 2 Knowledge Transactions Physical Services Physical Goods Raw Materials Physical Goods Physical Services Direct Indirect Capital Goods Raw Materials Products Transportation Storage Maintenance Extraction Processing Production Manufacturing Assembly Transactions Payments Invoices Orders Consumers Knowledge Measures Forecasts Design / Process Relationships Strategy Investment Decisions 9 August 2003 PJ Murzyn 7
8 Focus on the Enterprise: ecommerce Knowledge Supplier 2 Supplier Enterprise Customer Customer 2 Transactions Tactical Physical Services Physical Goods Raw Materials Physical Goods Physical Services Direct Indirect Capital Goods Raw Materials Products Transportation Storage Maintenance Extraction Processing Production Manufacturing Assembly Transactions Payments Invoices Orders Consumers Knowledge Measures Forecasts / Plans Design / Process Relationships Strategy Investment Decisions 9 August 2003 PJ Murzyn 8
9 The Enterprise: ecommerce Investment / Mkt & Corp Strategy The Enterprise Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 9
10 The Enterprise: ecommerce Investment / Mkt & Corp Strategy The Enterprise Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact EDI MRP2 ERP EDI Transactional Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 10
11 The Enterprise: ecommerce Investment / Mkt & Corp Strategy The Enterprise Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact XML EAI edi EDI (SC) Interconnectivity Catalog Purchasing SC Collaboration MRP2 ERP Content Publishing XML EAI edi EDI Collaborative & Connected Transactional Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 11
12 The Enterprise: ecommerce Investment / Mkt & Corp Strategy The Enterprise Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact XML EAI edi EDI Supplier Relationship Mgt Catalog Purchasing Employee Relationship Mgt SC Collaboration (SC) Interconnectivity MRP2 ERP Customer Relationship Mgt Content Publishing XML EAI edi EDI Collaborative & Connected Transactional Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 12
13 The Enterprise: ecommerce Investment / Mkt & Corp Strategy Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact Supply Lifecycle Management (SLM) Sourcing, Supplier Relationship Mgt (SRM), Category Management` XML EAI edi EDI Supplier Relationship Mgt Catalog Purchasing The Enterprise Organization Lifecycle Management (OLM) Recruiting, Employee self-serve, Training, HR Systems, etc. Employee Relationship Mgt SC Collaboration (SC) Interconnectivity MRP2 ERP Market Lifecycle Management (MLM) Marketing, Marketing, Customer Relationship Mgt. (CRM), Sales Mgt, etc. Customer Relationship Mgt Content Publishing XML EAI edi EDI Collaborative & Connected Transactional Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 13
14 Focus on Enterprise eprocurement Investment / Mkt & Corp Strategy Relationship / Contract Product Line Design / Plan Item / Mfg / Produce Transact Supply Lifecycle Management (SLM) Sourcing, Supplier Relationship Mgt (SRM), Category Management` XML EAI EDI + edi Supplier Relationship Mgt Catalog Purchasing The Enterprise Organization Lifecycle Management (OLM) Recruiting, Employee self-serve, Training, HR Systems, etc. Employee Relationship Mgt SC Collaboration (SC) Interconnectivity MRP2 ERP Market Lifecycle Management (MLM) Marketing, Marketing, Customer Relationship Mgt. (CRM), Sales Mgt, etc. Customer Relationship Mgt Catalog Publishing Tactical Suppliers Enterprise Customers XML EAI EDI + edi Collaborative Transactional 9 August 2003 PJ Murzyn 14
15 The Enterprise: ecommerce Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 15
16 The Enterprise: ecommerce Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 16
17 The Enterprise: ecommerce Investments/ Mkt & Corp Strategies / Financing Relationships / Contracts Product Lines Designs / Plans Items / Mfg / Production Orders / Invoices / Payments Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 17
18 Enterprise View of the ecommerce : Elements of Focus Investments/ Mkt & Corp Strategies / Financing Relationships / Contracts Product Lines Designs / Plans Items / Mfg / Production Orders / Invoices / Payments Categories Organizations Markets Suppliers Employees Customers Contracts Agreements Contracts Designs Purchased Goods/Srvcs Descriptions & Content Strategy Regions, Markets, Assets and Investments Consumption & Conversion Offerings Sold Goods/Srvcs Descriptions & Content Inventory Logistics & Demand Transportation Orders Quantity & Timing Production Orders Quantity & Timing Invoices Analysis and Orders Reports Payments Tracking Receipts Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 18
19 Enterprise View of the ecommerce : Components Investments/ Mkt & Corp Strategies / Financing Relationships / Contracts Product Lines Designs / Plans Items / Mfg / Production Orders / Invoices / Payments Collaborative Connected Transactional Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 19
20 Enterprise View of the ecommerce : Varying Competencies and Issues Investments/ Mkt & Corp Strategies / Financing Relationships / Contracts Frequency 1 / Week People Knowledge Agility Risk Management Differentiation Investing Product Lines Designs / Plans Items / Mfg / Production Orders / Invoices / Payments Collaborative Connected Transactional 100/ Day 100K / Day Information Sharing Teams Connected Standards Computers Standards Machine-to-Machine Speed Data Tactical Suppliers Enterprise Customers 9 August 2003 PJ Murzyn 20
21 Enterprise View of the ecommerce : Logistics Deep knowledge of suppliers both today and into the future Strong connection to Supplies linkage to business units, their direction and strategy Collaborative Connected Transactional Suppliers Enterprise Customers Deep knowledge of markets both today and into the future Strong connection to Demand Connected directly to the business functions and systems 9 August 2003 PJ Murzyn 21
22 Logistics Applications / Enablers Real Time Demand / Supply Forecasting Tracking Inventory Warehousing Transportation (Ground, Rail, Air, Ocean) Manufacturing/Assembly (capacity/capability/availability) Analysis and Decision Support (Planning) Optimization Risk-based Decision Making Import/Export International trade rules / regs Currency Language Standards Commerce Bidding Settlement Contracting Communication and Collaboration 9 August 2003 PJ Murzyn 22
23 QUESTIONS? 9 August 2003 PJ Murzyn 23
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