Supply Chain Visibility

1
FWSI - FESC Showcase

• Supply Chain Visibility -
• Safety Stock Level Check

23 February 2005
2
Positioning of Business Scenario

• Stock replenishment when the stock is below a
  pre-defined safety threshold value for parts that
  are either
• Critical
• Longer Lead Time to deliver
• Commonly Shared

3
Vendor Managed Inventory - Scenario Overview
Trigger
A Stock Safety Level Control
Tier 1
Tier 2
Customer Company A
Singapore
USA
Order Fulfillment Response
Order Replenishment Request
4
Vendor Managed Inventory - Detailed Scenario
Issue Part (on demand)
Customers Inventorys Service Provider (Hong
Kong)
Company A (USA)
1a
Production Order
1b
Tier 2 (China)
Replenish Part (batch)
DO
Tier 1 (Singapore)
5
Deliver RM
6
DO
Raw Material _at_ RM Supplier
2
Part Supplier Purchase Order
Material Plans

• Notes
• 3 parties involved
• Customer (MNC)
• Part Supplier (Vendor)
• RM Supplier
• Part
• Critical Part
• Long Lead time
• Commonly shared

3a
Part (FG) Transfer
3b
Kit RM And Issue
Material Plans
RM Information
MRP
4
Legends
Not in Scope
Production _at_ Part Supplier
RM Raw Material
FG Finish Good
DO Delivery Order
5
Brief Description
Customer Company A (USA)

• Company A is a manufacturer that supplies
  component part to its customer.
• Company A appoints a third party inventory
  service provider to manage their inventory.

Third Party Inventory Service Provider (3PISP)
(Hong Kong)

• 3PISP manages Company As inventory
  (make-to-stock).
• 3PISP replenishes Company As order request.
• While fulfilling Companys A order request, the
  stock level is lower than its pre-defined stock
  threshold safety value, say Tsv.
• As a result, this has triggered a part order
  replenishment notification along the downward
  supply chain partners to fulfill the stock safety
  level. (i.e. current stock value

Tier 1 Part Supplier (PS) (Singapore)

• Supplier i, where i 0, supplies the computer
  parts to 3PSP based on the request.
• The supplier will base on the 3PSP request to
  conduct all the necessary planning for raw
  material acquisition, and capacity planning and
  scheduling for production.
• The supplier purchases its required raw material
  or other parts from its suppliers (i.e. Tier 2
  suppliers).

Tier 2 Raw Material Supplier (RM) (China)

• RM is a raw material supplier that supplier
  material to Tier 1 Part Supplier (PS).
• The supplier delivers the materials to Part
  Supplier (PS) Store.

6
Use Cases

• Parts/Order Release (by Customer)
• Parts/Order Replenishment (by Third Party
  Inventory Service Provider)
• Conduct MRP Run (By Part Supplier) (i/o BOM
  Qty)
• Analyze raw materials (by Supplier Purchasing
  Department)
• Receive MRP plan
• Raw materials delivery (by RM Supplier)
• Issue Delivery Order
• Update Inventory Level (by Part Supplier Store)
• Receive MRP plan (for Kitting)
• Receive raw materials
• Receive Delivery Order
• Dispatch raw materials to shop floor (not in
  scope)
• Receive finished good from shop floor (not in
  scope)
• Issue finished good to Third Party Inventory
  Service Providers warehouse
• Update Inventory Level (by Third Party Inventory
  Service Provider)
• Receive Delivery Order

7
Functional Elements

• Six elements have been identified for building
  the applications

Service monitoring and logging.
User access control
Presentation of inventoryinformation to
differentformat
Securing the some orall of the
inventoryinformation betweensupplier and
customer
Notify user via emailor SMS, etc
Detect end users device
8
Proposed Schedule
Complete Dev Testing(25 Mar)
Confirmation CD Cost(4 Mar)
FWSI Cut Into CD(30 Mar)
Demo Scenario Finalized (28 Feb)
Testing _at_ IDA(01 Apr)
Demo(06 Apr)
Feb
Mar
Apr