Supply Chain Management Model & Technology-

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1 Supply Chain Management Model & Technology- T. Murata Room S223 Lecture 13 1 Lecture plan Weeks 1 Introduction (9/28) 2 Inventory theory (1)(10/05) 3 Inventory theory (2) & order operation(10/12) 4 Bullwhip effect (10/19) 5 Playing Beer Game (10/26) 6 No school day (11/2) 7 No class :Prof. business trip: Reading assignment (11/9) 8 Network inventory (11/16) 9 Basics of MPS & MRP (11/23) 10 Capacity Planning & MRP-C (11/30) 11 Just In Time & Lean manufacturing (12/07) 12 TOC & DBR scheduling (12/14) 13 Forecasting & Demand Management (12/21) 14 Aggregate Planning (1/11) 15 Transportation Planning (1/18) 16 B2B e-commerce(1/25) 17 Exam (report submission day) No lecture (2/01) 2 1

2 Learning Objectives B2B EC perspectives. Major types of B2B models. Characteristics of the sell-side marketplace and sell-side intermediary models. Characteristics of the buy-side marketplace and e- procurement. Auctions in B2B. B2B aggregation and group purchasing models. B2B administrative task automation. Infrastructure and standards requirements for B2B. 3 Market size of B2C EC in Japan B2C EC transaction value 13.7 trillion (narrow def.) 4.75 % of total B2C transactions Market size EC ratio narrow def. of B2B EC : transactions on Internet 4 2

3 Market size of B2B EC in Japan B2B EC transaction value 202 trillion (narrow def.) 19 % of total B2B transaction Market size EC ratio wide def. of B2B EC : transactions on Computer (incl EDI) narrow def. of B2B EC : transactions on Internet 5 Market segment of 2015 Major category Sub category construction production communication Transportation service Whole sale finance services Others total Total without others Architecture/estate foods Fabrics/commodities/chemical Steel/ nonferrous Industrial instruments Electronics/ computers Transportation machines information communication Transportation service Whole sale merchandise Finance services Advertise, rental Retail sales Other services 6 3

4 Difference between B2B and B2C market 7 B2B EC perspectives business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also eb2b (electronic B2B) or just B2B Key business drivers for B2B: Secure broadband Internet platform; Effective technologies for intra- and interorganizational integration. Collaboration between suppliers and buyers to save money and improve response 8 4

5 Direction of B2B Trade vertical marketplaces Markets that deal with one industry or industry segment (e.g., steel, chemicals) horizontal marketplaces Markets that concentrate on a service, materials, or a product that is used in all types of industries (e.g., office supplies, PCs) 9 Supply Chain Relationships in B2B E-Procurement Management E-procurement systems are used for making online purchases, connecting companies and their business processes directly with suppliers, and managing the interactions between them B2B private e-marketplace provides a company with high supply chain power and high capabilities for online interactions A public e-marketplace provides a business with high buying and selling capabilities, but results in low supply chain power Using an intermediary (brokering service) results in low supply chain power and buying/selling capabilities 10 5

6 E- SUPPLY CHAIN & E-Market places in Japan (examples) Industry segments Electronic information device parts PC electronic device parts Electric appliance Automotive Construction Distribution EDI standardization status in Japan JEITA (Japan Electronics and Information Technology Association): collaborative EDI based on ebxml RosettaNet Japan (local affiliate of RosettaNet) : supply chain business protocol standardization for PC supply chain JEMA (the Japan Electrical Manufacturers Association): electronic bidding system, electronic catalog COVISINT (global e-supply chain for automotive manufacturers and suppliers) JNX(Japan automotive Network exchange): extranet for automotive industry Construction EDI project (METI): logistics system standardization for construction JEDICOS (Japan EDI for Commerce System): 11 EDI message based on UN/EDIFACT, EANCOM E-Supply Chains e-supply chain management (e-scm) The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chains Electronic Data Interchange (EDI) Extranets Intranets Corporate portals Workflow systems and tools on internet Groupware and other collaborative tools 12 6

7 Basic Types of B2B E-Marketplaces One to many : Private E-Marketplaces E-commerce that focuses on a single company s buying needs (many-to-one, or buy-side) or selling needs (one-to-many, or sell-side) private e-marketplaces Markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction 13 Basic Types of B2B E-Marketplaces Many-to-Many: Buyer Aggregation 14 7

8 Basic Types of B2B E-Marketplaces Many-to-Many Supplier Aggregation 15 Basic Types of B2B E-Marketplaces Many-to-Many Reverse Auctions request for quote (RFQ) The invitation of sellers to participate in a tendering (bidding) system 16 8

9 Basic Types of B2B E-Marketplaces Many-to-Many: Exchanges trading communities or trading exchanges Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other (public e-marketplaces) 17 Collaborative commerce (c-commerce) The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications Examples: Trade Electronic Document Interchange (TEDI): Global Trade document exchange among related Organizations Rosetta net (RN): PC Global Supply Chain ebxml: Integration Infrastructure and Software in B2B EC 18 9

10 Trade Electronic Document Interchange (TEDI Project) Global Trade document exchange among related Organizations How to realize secure data exchange for Trade on the Internet? 19 Trade Electronic Document Interchange (TEDI Project) Security Requirements Authentification : be assured of the identity of the party with whom they are dealing Privacy : want identity to be secured Integrity : data and information transmitted are not accidentally or maliciously altered or destroyed Non-repudiation : protection against unjustifiable denial of placing an order or payments made Safety : ensure it is safe to provide a data on the Internet : Encription 20 10

11 Trade Electronic Document Interchange (TEDI Project) ure/34_ed.htm 21 Trade Electronic Document Interchange (TEDI Project) security core technology Public Key Cryptography system: Encryption using Public-Key system trapdoor one-way functions. x easy f: Public key f(x)=y Computation infeasible to find f -1 from f Authentication using Public-Key System (Need Secret key f to get X) 22 11

12 RosettaNet : Internet based PC Global Supply Chain Exchange Extranet architecture for PC industry B2B EC Creation of standard business processes Automation of the interaction among trading partners B2B EC on Extranet PC component Manufacturer PC assembly Manufacturer Business protocol PC component Manufacturer Inter company Business workflow 23 Open Architecture Example : RosettaNet : US PC industry driven B2B architecture standardization Telephone Business Process DIALOG Dialog Grammar Words Alphabet Sound human-to-human business exchange B2B Application ebusiness Process PIP (Partner Interface Process) Framework Dictionary XML Internet Partner-to-Partner ebusiness exchange RosettaNet 24 12

13 RosettaNet : Internet based PC Global Supply Chain Partner Interface Processes(PIPs) 7 types of clusters defined by PIPs. 1.Partner Product and Service Review 2.Product Information 3.Order Management 4.Inventory Management 5.Marketing Information Management 6.Service and Support 7.Manufacturing Each PIP consists of three main parts: Business Operation View (BOV) Functional Service View (FSV) Implementation Framework View (IFV) B2B Application ebusiness Process PIP (Partner Interface Process) Framework Dictionary XML Internet Partner-to-Partner ebusiness exchange RosettaNet 25 RosettaNet : Internet based PC Global Supply Chain RosettaNet Implementation Framework (RNIF) RNIF packages to route and transfer all PPI* messages and signals between end points. HTTP and SMTP transfer protocols. Application protocols to send/receive Business Messages. * PPI : Program Port Interface 26 13

14 RosettaNet : Internet based PC Global Supply Chain RosettaNet Dictionaries RosettaNet defines a common terminology for e-business communication. Three maintypes of dictionaries: RosettaNet Business Dictionary (RNBD) RosettaNet Technical Dictionary (RNTD) RosettaNet Dictionary & Library Model Specification 27 RosettaNet : Internet based PC Global Supply Chain Codes for global trading of products: Product Identification code (GTIN) GTIN code used by PIPs to identify products UN/SPSC Product Family Identification code(un/spsc) D-U-N-S code used by Product Information PIPs as classification schema, like SIC (Standard Industrial TECHNICAL Classification ) DICTIONARY Partner Identification code (DUNS) code used by PIPs to uniquely identify trading partners and their locations TECHNICAL DICTIONARY vocabulary definitions of business term used by PIPs 28 14

15 ebxml: Integration Infrastructure and Software in B2B EC Role of Standards in B2B Integration XML (extensible Markup Language) Standard (and its variants) used to improve compatibility between the disparate systems of business partners by defining the meaning of data in business documents Web Services An architecture enabling assembly of distributed applications from software services and tying them together 29 ebxml: Integration Infrastructure and Software in B2B EC Meta model for Business Process XML Service Directory XML Meta model for Business data XML Web Services XML Service provider XML XML Service requestor CPP: Collaboration Protocol Profile (message interchange rule of each partner) 30 CPA: Collaboration Protocol Agreement (agreement of message interchange rules between partners) 15

16 Current Topics on smart manufacturing Integration of Manufacturing information by IoT & Cloud The unification of material flow, information flow and fund flow. GIS/GPS RFID Integrated provider IOT platform Cloud Internet GIS/GPS RFID Industry 4.0 Connected industry Industrie du Futur 中国製造 2025 Connected industry The unification of material flow, information flow and fund flow. Logistics subcontactor GIS/GPS RFID Logistics integrated provider The unification of material flow, information flow and fund flow. Wei Liu and Zhijun Gao Study on IOT based Architecture of Logistics Service Supply Chain International Journal of Grid and Distributed Computing Vol.7, No.1 (2014) Current Topics on smart manufacturing Smart transportation Smart food chain Smart production Integrated material development Environmental information system Society 5.0 (by METI Japan) Energy value chain Security Standardi Data share zation cloud Service plat form ITC Infra & Education applications Ease-regulation Omotenashi service platform Connected industry Next generation Manufacturing Community care system Sustainable infra system Robust social system Business Incubation service 16

17 RFID Controller activates RFID reader to send RF signals Reader sends the signal of appropriate frequency (LF,HF,UHF,MW) Tag receives and modifies the signal Tag sends modified signals back through tag antenna Reader antenna receives the modified signal and reader decodes it Controller analyzes the results Max. Possible Read Range based on frequency range and protocol standards ISO/IEC ISO/IEC ISO/IEC ISO/IEC

18 Typical applications based on frequency range Frequency Range Micro-Wave 2.45 GHz UHF MHz HF MHz LF KHz Long Range Applications Applications requiring large data transfer Automatic Toll Collection Systems Supply Chain Applications Long Range Systems: Range>1m Dock Door Reading Asset management in Warehouse Overhead reading Smart Shelves Baggage Tracking Short Range Systems: up to 1 m Applications in vicinity of metals and liquids Animal Identification Item Level Tracking Baggage handling Smart Shelves Short Range Systems Electronic Door Locking System Contact less Smart Card System POS applications Typical Applications Ex. Applications in Depot Support Environment Warehouse Vehicle brought to maintenance shop Vehicle tag detected by readers mounted in the gates Vehicle history sheet retrieved Vehicle Inspection Material request sent to the warehouse and material retrieved as per history sheet Benefits Automatic Operation Shop ERP System Time Management Quality Management Poka - Yoke Material Management Vehicle sent to appropriate machines and database updated after each operation Appropriate technician informed as per schedule via mobile communication Operation Sequencing and Scheduling done as per availability of machines 18

19 Ex. Applications in Logistics Supplier Site Transortation Warehouse Parts properly tagged at supplier site and inventory database updated Mode of transit tracked at every designated halt by Through satellite communication Parts recognized and database updated at warehouse gate Benefits Real Time Inventory Tracking Eliminating Inventory Shrinkage Cycle time Reduction Information Visibility Delay Reduction Readers mounted on forklift trace and track the parts out of the warehouse to appropriate shop Parts grouped and stored in the AS/RS Request sent to AS/RS (Automatic Storage and Retrieval System) ERP System 19

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