Latest analyst review

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B2B in China B2B???
Maxim use of your strategic investment ???????????
?
James Hatcher Seeburger Asia Pacific Ltd.
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Agenda ??

• ERP A strategic investment ERP ?????
• SEEBURGER Introduction SEEBURGER??
• China Supply Chain Success ???????
• Summary ??

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Evolution of a Mfg company ???????

• ERP ERP
• - Integration of the Factory ????
• - Integration of the Enterprise ????
• Extended Enterprise ????
• - Integration of the Supply Chain ?????

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ERP Took Us From This ERP?????
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.To This ?????
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This Reduced Inventory. ??????

• Lower Raw Material Inventory???????
• Lower WIP???????
• Lower Finished Goods??????

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China Competition ????

• China consumer demand continues to increase
• ??????????
• Increased demand is a supply chain
  challenge???????????
• Peaks and Valleys make production forecasting
  difficult??????????????????
• Competition is fierce ??????
• OEMs are using discounts and incentives to woo
  customers???????????????????
• Profit Margins are reduced accordingly??????????
• OEMs and qualified suppliers are exporting
  globally
• ????????????????

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The Supply Chain Balancing Act ?????
Supply Opportunity ????
Demand Opportunity ????

• Meet customer needs
• ??????
• Product development ????
• Merchandise planning ????
• Product portfolio planning??????
• Create customer needs ??????
• Pricing Promotion ????

• Keep right goods in stock
• ?????????
• Store requisition ????
• Warehouse replenishment ????
• Inventory forecasting ????
• Purchasing ??
• Shipping and transportation ?????

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A typical supply chain today ???????
Demand ??
Demand ??
Firms ??
Customers ??
Suppliers ???
Transactions
Transactions
Transactions
Information
Information
Information
Goods ??
Goods ??
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Extended Enterprise ????
Enterprise ERP
Supply Chain Execution ?????
Customers ??
Logistics ??
Manufacturing ??
Customer Response????
LogisticsPartners ????
Procurement ??
Warehouse Mgmt.????
Consignment Inv.????
Distribution ??
Outsource Partners ????
Supplier Optimization?????
Financials ??
Supplier Performance?????
Lean Manufacturing????
HR ??
Suppliers ???
Order Management????
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Fulfillment process Is yours manual? ???????
Customer System
Customer Notification
Customer Warehouse
Customer Financials
Customer Receiving
Validation
Transformation
Validation
Transformation
Transformation
Order Management
Sales Distribution
Financials
Sales Distribution
Supply Chain Management
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Supplier Management ?????

• Communication and Planning
• are the keys to success
• ???????????
• Supply Chain Visibilty ??????
• Forecast Collaboration ????
• Order Management ????
• Inventory Management ????

Suppliers
Enterprise
Outsourcing Manufacturers
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A Survivors supply chain ??????
Demand ??
Demand ??
Firms ??
Customers ??
Suppliers ???
Information
Information
Information
Information
Information
Transactions
Transactions
Transactions
Transactions
Transactions
Goods ??
Goods ??
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Benefits of Efficient Process Integration
?????????

• An Information-Driven Supply Chain provides
  complete supply chain visibility to enable
  efficient business processes that can quickly
  respond to demand changes, mitigate supply chain
  risk and manage global fulfillment.
• ???????????????????????????,????????????,???????,?
  ??????
• According to AMR, Information Driven leaders
  have
• 15 less inventory 15 ?????
• 17 better perfect order fulfillment 17
  ????????
• 35 shorter cash-to-cash cycle times 35
  ?????????
• Which translates to
• 10 increase in revenue improvement10 ??????
• 5-7 rise in profitability 5-7 ?????

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Supplier Management ?????
Expand communications ???? Key indicators such
as capacity, demand, forecasts, inventory,
production and yields should be accessible to key
members of the supply chain. ????????????????????
???????????????????? If any of these appears to
be going nuclear, an early warning should be
circulated at once. ???????????,?????????
Vinod Singhal, Georgia Institute
of Technology ???????
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The Survivors Profile ?????

• Business is relationship centric ????????
• Technology removes the gaps ??????
• Decision making is a shared process ????????
• Suppliers manage inventories at your premises
  ??????????
• Demand is pulled through ????????
• Suppliers, Firms and Customers Collaborate???????
  ????
• Systems can auto-replenish based on agreed
  business rules
• ?????????????????
• Automate the mundane, manage by
  exception???????,???????

Demand Planning/ Order Management ????/????
CRM and Service Support CRM ?????
Procurement ??
Manufacturing ??
Customers??
Distribution ??
Suppliers???
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Agenda ??

• ERP A strategic investment ERP ?????
• Seeburger Introduction SEEBURGER??
• China Supply Chain Success ???????
• Summary ??

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SEEBURGER Company Group ????

• Founded in 1986 in Bretten, Germany
  1986???????Bretten
• Profitable and self-financed, Continuous annual
  growth rates ??????????,????????

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SEEBURGER, Business Integration Expert ????????

• Business Integration vendor for complete partner
  integration ?????????????????????
• 7,500 Customers in 35 Countries 7500??????35???
• Concepts, Products and Implementation all from
  a single source ??????????????
• Member of W3C, OASIS, ebXML, AIAG, ODETTE, VDA,
  EAN, EDIFICE, GS1, SWIFT, EDNA, EPCglobal,
  RosettaNet, TD-IHK etc.. ?????????
• Support all kinds of EDI Industry Standards and
  Communication Protocols via VAN or Internet
  ????EDI?????????(??VAN??Internet)
• Strong partnerships with application providers
  and consultants ?????????????????????

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SEEBURGER Customers (sample list) ????
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Agenda ??

• ERP A strategic investment ERP ?????
• Seeburger Introduction SEEBURGER??
• China Supply Chain Success ???????
• Summary ??

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Industry Initiatives MMOG/LE ????

• AIAG Automotive Industry Action Group
• AIAG?????????? www.aiag.org
• MMOG/LE
• Global Materials Management Operations Guideline
  Logistics Evaluation
• Improve materials management efficiency and
  accuracy while reducing costs from errors and
  waste.
• ??lt????????/????gt(MMOG/LE)
• ????????????????????????
• Mandatory for FORD suppliers ??????????
• Encouraged and strongly recommended for GM and
  Daimler Chrysler suppliers ????????????????????
• Recognized by Toyota and Honda ???????
• EDI is mandatory for MMOG/ LE certification
  EDI?MMOG/LE???????

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What is EDI?

• Communication ??
• VAN
• AS2 (EDI INT)
• ISDN
• OFTP
• HTTP (s)

Content and work flow (business
process) ??????(????)

• Data Formats ????
• EDIFACT
• ANSI X12
• ODETTE
• VDA
• RosettaNet
• UCCNET
• Jama EDIFACT
• ebXML

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Screenshots
????-???????????
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The Project - SCM ???????

• EDI compliance was mandatory for all
  suppliers????????EDI????
• Traditional EDI via AS2 or ??SA2???EDI??
• Web EDI solution webEDI ????
• Delivery of ASN was mandatory ??????(ASN)?????
• Bar Code labeling was made mandatory for all
  suppliers ??????????????
• AIAG B10 standards AIAG B10??
• Web EDI included an integrated Bar Code generator
  to assist suppliers WebEDI???????????????
• Integrated 3PL into the system as an internal SAP
  user ????SAP???????????????
• Suppliers were given the option to deliver direct
  to the OEM or ??????????????? ?
• Deliver via the appointed 3PL who would handle
  sequencing on their behalf ???????????????

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EDI Transactions EDI??

• Phase One ???? Direction ANSI X.12 transaction
  
• Material Release Outbound 830
• Purchase Order Outbound 850
• Ship Notice ASN Inbound 856
• Ship Schedule JIT Outbound 862
• Material Release for COSCO Milk Run Outbound 862
• Production Sequence JIS Outbound 866 (JIS
  suppliers only)
• Functional Acknowledgement Outbound 997
• Application Advise Outbound 864 (confirm ASN
  content)
• Purchase Order Change Request Outbound 860
• Phase Two ????
• Invoice Inbound 810
• Payment Order Outbound 820
• Application Advise Outbound 824
• Supplier Routing Instruction Outbound 853
• Receiving Advise Outbound 861
• Production Sequence JIS Outbound 866

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Agenda ??

• ERP A strategic investment ERP ?????
• Seeburger Introduction SEEBURGER??
• China Supply Chain Success ???????
• Summary ??

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Business Integration ????

• Communication
• is the key to effective supply chain management
• ?????????????
• When you have visibility of Supplier Capabilities
  Customer Demand
• ?????????????????????
• You can plan better ?????
• Manage inventory better ???????
• Reduce Expedites ????
• Increase customer satisfaction???????
• Operational efficiency bottom line
  profit!??????

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Supplier Communication Methods???????

• Traditional EDI ??EDI
• Traditional EDI is used to transmit electronic
  messages from one system to another.
• This requires that the Suppliers implement a
  standard EDI Software Package.
• All messages can be transmitted in EDIFACT/ VDA
  / Ansx12 format.
• Connectivity can be made using MQSeries and a
  standard EDI Solution.

Complexity
Operation Cost

• Web-EDI Web-EDI
• Web EDI provides Suppliers with an Internet based
  application, which is used to retrieve,
  print or download the Daily and Weekly Delivery
  Schedules.
• Suppliers require Internet Connectivity
  only Broadband or Dial-UP

• File-Transfer ????
• Transferring of files in proprietary format via
  FTP or SSH protocol over the internet
• Cost-Effective communication channel for small
  message volume to Suppliers.
• Limited set-up cost for ftp/ssh server (if
  required by supplier)

• FAX / E-Mail ??/????
• Cost-Effective communication channel for small
  message volume to Suppliers.
• NO additional set-up cost required on supplier
  side.

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Current Communication Methods? ?????????
Current Messaging Summary Qty / Month
Manual Fax ???? gt???
Send Schedule etc via a Fax Machine Send Schedule etc via a Fax Machine
Automatic Fax ???? ???
Schedule etc is generated and sent automatically using fax software (no human )
Email ???? gt???
Schedule etc is generated and attached to email which is sent to receiver
Web EDI Web EDI ???
Recipient/Sender logs into a web page to receive/send the message.
EDI EDI ???
Sent / Receive via EDI or other method which sends/receives and processes ERP automatically
Other ?? ???
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Summary ??

• Supply Chain Solutions are real in China
  ????????????
• Cost of doing business is increasing ??????????
• Doing nothing, a dangerous option ??????????
• I.T. has a critical role BUT you need to fit the
  big pictureIT???????????????
• Global trade is driving the evolution of China
  I.T. ?????????IT???
• Will you lead, survive or fade away???
• ???????????????

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Getting things done, quickly! ???,?!

• KIS Keep it Simple ???
• Use value based methodologies ??????????
• Implement using a phased approach ?????????
• Leverage existing infrastructure ??????
• Improve visibility then worry about more
  sophisticated capabilities ?????,??????????

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SEEBURGER - Contact ??
Thank you! ??!