NDIA Adapting Collaborative Commercial Techniques Practices, Processes & Technology For The Aerospace and Defense Supply Chain

Transcription

1 NDIA Adapting Collaborative Commercial Techniques Practices, Processes & Technology For The Aerospace and Defense Supply Chain Jeff Holmes SVP & President Government, Aerospace & Defense March 2003

2 History Of Collaborative Began in 1996 Wal-Mart, Warner Lambert, Manugistics, SAP Focus on improving forecasting for sales volumes Began the evolution of CPFR by adding replenishment How it progressed Began a rollout to the CPG/Grocery retail space Issues focused around in-stock and sales volume Adopted by the VIICS council and ECR as a standard Followed by Rosetta-Net for high tech sector CPFR goes mainstream in 1998 Multiple industry vertical adoption Crosses the manufacturer-retailer model to also focus on suppliers, dealers, customers regardless of vertical industry

3 The Collaborate Opportunity Internal and External to the Enterprise Move/Add Value Suppliers Back Office Front Office Customer & Channels Collaboration Manufacturing Finance Engineering Sales Support/Service Marketing Supply Chain Front/Back Office Integration Demand Chain Source: The Yankee Group

4 Collaboration Must Focus On Business Processes Strategic C O L L A B O R A T I O N Supply & Materials & Supplier Business Master & Enterprise Operations Distribution & Transportation Visibility and Monitoring Integration Tool Kit Deployment Architecture Transactions & Information Customer Expectation & Demand C O L L A B O R A T I O N

5 Across Multi-Dimensional and Operating Horizons TACTICAL STRATEGIC EXECUTION TRANSACTIONAL ANALYTICAL Supply Operations Logistics Demand

6 Delivering Continuous Improvement Through Business,, Real Time Monitoring and Adaptive Business Business Operations Business Execution EDI Procurement Modeling Electronic HUB Transportation Rate Supplier UUNet RFID Manufacturing Modeling SCM Supply Global Logistics Dynamic Proration Business Analytics Network Modeling Collaboration Supply Classification SCM Demand ATP/CTP Logistics Execution Demand Classification MRM Budget Optimization Catalog Admin MES WMS RFID Cust Svc Consumption A P D L A A P N T N I N V N E G Statistical Correlation Auto Tuning Carrier Weighting Purchasing Manufacturing Distribution Marketing/Sales Transaction Data (ERP), Maintenance Historical Data Cost Accounting Data Substitution Network Reconfiguration

7 Examples Of Collaborative Commercial Sector Aerospace & Department of Defense Copyright 2002, Manugistics, Inc. All rights reserved.

8 Internet Dealer Collaboration Reduced vehicle inventory at the ports by over 90% Reduced operating costs associated with transporting vehicles to dealers by over $2 million Implemented a system that reduces order-to-delivery lead time by ~75%, while also allowing for vehicle customization up to 15 days prior to production Reduced age of vehicles from 164 to 37 days old Rolled out the system to dealers across the nation in less than 6 months

9 Canadian Tire Story- Collaborative Commerce Implement a hosted web-enabled trading network in three weeks Improved partner relationship between retailer and suppliers through real-time collaboration process and shared information 20% increased in-stock positions with 15% reduced inventories Web Browser Collaboration Server Web Browser Web Server Firewall CT Hosted Collaborative Commerce Internet Firewall Multiple Trading Partners

10 Case study: Compaq System 87 Site Requirements One Server Manugistics NetWORKS/Material 1200 buyers EDI 830 EDI EDI Communication 870 Website 750 Suppliers 100% Increase In Responsiveness, Improved On-Time Delivery Up to 50% Reductions In Raw Material Inventory Raw Material Inventory Reduced by $30M in 6 Months 50% Reduction in Forecast Change Response Time Improved Product End-of-Life : Avoided $12M Obsolete Material Write-Down From A Single Product Line Phase-Out

11 Cisco s ehub Changed The Model Current Model New Model OEM 1 CM OEM OEM 2 OEM CM Dist OEM 3 OEM 4 OEM EM&A Hub Dist Disti 3PL Carrier

12 For A&D It Means Enabling A New Operational Environment Access additional capabilities at each operating location to enhance planning, scheduling and operational capabilities Integrate to legacy and MR&O installed solutions Create a collaborative planning solution for connectivity and joint planning with suppliers, customers and business partners Utilize constraint based time-phased planning for operational efficiency Connect Enterprise level planning to suppliers, depots and customers Create collaborative planning environment Utilize constraint based capabilities to increase service level improvements while optimally managing within budgetary constraints Utilize collaborative weapon system life cycle management techniques to improve initial provisioning for retail and wholesale logistics execution Reduce customer wait time and improve reliability Use simulation and modeling for what-if analysis and situational awareness planning

13 Changing A Program Specific Supply Chain Environment -- OEM s and Virtual Prime Vendors -- Boeing Pratt & Whitney Lockheed Martin DLA SAIC SMART TRANS Transportation Visibility and Control NAVSUP/ICP SMART ERP/APS Depot Maintenance Forward Inventory Location Forward Inventory Enterprise Parts/Material Location - Predictive Forecasting - Distribution - Allocation - Reverse logistics TOOL CRIB ENGINE AVIONICS HAZMAT Repair Items Repair Items STORAGE PRODUCTION PLANNING PRODUCTION LANDING LINE GEAR Disassembly Assembly New New Items Items CANOPY RADOME COMMODITY SHOPS LABORATORY PROCESS ENGINEERING PLANT ENGINEERING (FACILITIES) Commodities to supply system after rework/repair DEPOT MANAGEMENT Maintenance & Preparation Asset & Configuration Resource planning& Scheduling Repair, Replace, Rebuild Maintenance Execution & Completion Financial Records Line Maintenance Northrop Grumman Capacity Buy vs Repair Analysis Logistics Supplier Relationship Mgmt Collaboration

14 Into The Inter-Networked Enterprise Operating Environment Maintenance, Repair, Overhaul and Recapitalization STORAGE -- OEM s and Prime Vendor Supplier Community Collaborative & Supplier Distribution & Transportation Enterprise Multi-site and Scheduling Constraint Based Multi-year - Predictive Forecasting - Distribution - Allocation - Reverse Logistics Surge & Sustainment Budget Forward Inventory Location Forward Inventory Location TOOL CRIB ENGINE AVIONICS PRODUCTION LANDING LINE GEAR Disassembly Assembly HAZMAT New New Items Items Repair Items Repair Items PRODUCTION PLANNING CANOPY RADOME COMMODITY SHOPS LABORATORY PROCESS Collaborative planning & scheduling - Demand - Scheduling & Capacity - Reporting and Analysis - Collaborative - Integration Tool Kit - Simulation & Modeling Operational Maintenance Demand Scheduling Reporting and Analysis Delivery Visibility DEPOT

15 DLA s BSM Program Includes Customer And Supplier Focused Collaboration C U S T O M E R S Customer Segmentation & Collaboration (Expectation ) Aviation Maritime Land Troop Support Customer Service Customer Service Customer Service Customer Service Demand Demand Demand Demand Supplier and Inter Agency Collaboration Demand Plan M A N U G I S T I C S Supply Supply Supply Supply Plan Supplier Mgt. Supplier Mgt. Supplier Mgt. S U P P L I E R S Built on two premises customer segment and planning via collaboration

16 NAVSUP s STS Shipping Solution Creates Collaborative Visibility Customer #1 Requisition MILSTRIP, EDI 940, 850 #4 Updates Order via Web #5 #10 PBL Vendors #11 PowerTrack Material #12 Picked Up at Vendor Requisition #4 SMART NetWorks Shipping Requisition Procurement #14 DASSC Web Based Ordering Tool NetWorks Procurement #7 #6 ORDERS NetWorks Transport Transportation Optimizer ATCMD Global #8 Freight (GFM) Shipping System Shipping Solution #2 ICP #3 #13 In-transit Status Messages CRIF / FACTS NTSC #9 Carrier (FEDEX, DHL, ) Material Delivered to Customer #12 GTN

17 NDIA Adapting Collaborative Commercial Techniques Practices, Processes & Technology For The Aerospace and Defense Supply Chain Jeff Holmes SVP & President Government, Aerospace & Defense March 2003