????? Order Fulfillment, E-Supply Chains, and Collaborative Commerce

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????? Order Fulfillment, E-Supply Chains, and
Collaborative Commerce
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• ????????????
• ???
• http//www.mgt.ncu.edu.tw/ckfarn
• 2014.04 updated

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Order Fulfillment

• Procurement/Acquiring Goods and Services
• Order fulfillment
• All the activities needed to provide customers
  with their ordered goods and services, including
  related customer services
• Back-office operations
• The activities that support fulfillment of
  orders, such as packing, delivery, accounting,
  and logistics
• Front-office operations
• The business processes, such as sales and
  advertising, which are visible to customers

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An Overview

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Logistics

• logistics
• The operations involved in the efficient and
  effective flow and storage of goods, services,
  and related information from point of origin to
  point of consumption
• e-logistics
• The logistics of EC systems, typically involving
  small parcels sent to many customers homes (in
  B2C)

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The EC Order Fulfillment Process

• Activity 1 Making sure the customer will pay
• Activity 2 Checking for in-stock availability
• Activity 3 Arranging shipments
• Activity 4 Insurance
• Activity 5 Replenishment
• Activity 6 In-house production
• Activity 7 Use contractors
• Activity 8 Contacts with customers
• Activity 9 Returns

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Handling Returns Reverse logistics

• The movement of returns from customers to vendors
• Return the item to the place of purchase
• Separate the logistics of returns from the
  logistics of delivery
• Completely outsource returns
• Allow the customer to physically drop the
  returned item at a collection station
• Auction the returned items

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Innovative E-fulfillment Strategies

• Merge-in-transit
• Logistics model in which components for a product
  may come from two (or more) different physical
  locations and are shipped directly to the
  customers location
• Rolling warehouse
• Logistics method in which products on the
  delivery truck are not pre-assigned to a
  destination, but the decision about the quantity
  to unload at each destination is made at the time
  of unloading

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Supply Chains ???/???

• Supply chain
• The flow of materials, information, money, and
  services from raw material suppliers through
  factories and warehouses to the end customers
• e-Supply chain
• A supply chain that is managed electronically,
  usually with Web technologies

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Supply Chain Parts

• Upstream supply chain
• Procurement The process made up of a range of
  activities by which an organization obtains or
  gains access to the resources (materials, skills,
  capabilities, facilities) they require to
  undertake their core business activities
• Internal supply chain and value chain
• Downstream supply chain

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Supply Chain Management (SCM)

• A complex process that requires the coordination
  of many activities so that the shipment of goods
  and services from supplier right through to
  customer is done efficiently and effectively for
  all parties concerned.
• SCM aims to minimize inventory levels, optimize
  production and increase throughput, decrease
  manufacturing time, optimize logistics and
  distribution, streamline order fulfillment, and
  overall reduce the costs associated with these
  activities

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TSMC
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• LSP Logistics Service Provider
• 3PL 3rd Party Logistics

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Supplier
Focal
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Supplier
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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
• information visibility ???
• The process of sharing critical data required to
  manage the flow of products, services, and
  information in real time between suppliers and
  customers

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Activities and Infrastructure of e-SCM

• Supply Chain Replenishment
• e-Procurement
• The use of Web-based technology to support the
  key procurement processes, including
  requisitioning, sourcing, contracting, ordering,
  and payment. E-procurement supports the purchase
  of both direct and indirect materials and employs
  several Web-based functions such as online
  catalogs, contracts, purchase orders, and
  shipping notices
• collaborative planning
• A business practice that combines the business
  knowledge and forecasts of multiple players along
  a supply chain to improve the planning and
  fulfillment of customer demand

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Other eSCM Activities

• Collaborative Design and Product Development
• e-Logistics
• Infrastructure for e-SCM

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Typical Problems Along The Supply Chain

• Bullwhip effect
• Erratic shifts in order up and down supply chains
• Need for information sharing along the supply
  chain
• Visibility
• The knowledge about where materials and parts are
  at any given time, which helps in solving
  problems such as delay, combining shipments, and
  more

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???? The Bullwhip Effect
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Source Tom Mc Guffry, Electronic Commerce and
Value Chain Management, 1998
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Lee, H, P. Padmanabhan and S. Wang (1997), Sloan
Management Review
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Manufacturer
orders
Distributor
sell-through
Store
Store
Store
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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
• Collaboration hub (c-hub)
• The central point of control for an e-market. A
  single c-hub, representing one e-market owner,
  can host multiple collaboration spaces (c-spaces)
  in which trading partners use c-enablers to
  exchange data with the c-hub

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Collaborative Planning, Forecasting, and
Replenishment (CPFR)

• Project in which suppliers and retailers
  collaborate in their planning and demand
  forecasting to optimize flow of materials along
  the supply chain

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CPFR ??????????

• 1990??, Wal-Mart ? Warner-Lambert ?????
• ????? VICS (Voluntary Interindustry Commerce
  Standards ) ??CPFR??
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Develop front-end agreement
Create joint business plan
Create sales forecast
Identify and resolve exceptions
Create order forecast
Identify and resolve exceptions
Order generation
Source www.cpfr.org
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What is CPFR?

• A business practice that combines the
  intelligence ofmultiple trading partners in the
  planning and fulfillmentof customer demand.
• CPFR links sales and Marketing best practices,
  such as category management, to supply chain
  planning and execution processes to increase
  availability while reducing inventory,
  transportation and logistics costs.
• 1. Collaborative Planning
• 2. Collaborative Forecasting
• 3. Collaborative Replenishment

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Business Process Model- Generic (1998) ????
CP
1. Frond-End Agreement
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2. Joint-Business Plan
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SF
CF
3. Create Sales Forecast
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4. Identify SF exception
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5. solve SF exception
OF
6. Create order Forecast
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7. Identify OF exception
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8. solve OF exception
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CR
9. Order Generation
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CPFR reference model
CPFR 2004
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Factory PO
Factory PO 2W Lead Time
Asia Buying Office
Head Office
Factory PO
Receiving
ASN
US DC
Asia Warehouse Consolidation Yard
Asia Factory
Replenishment 5 Day Lead Time
Store
Inventory
Production
6W
6W
4W
4W
4W
Import Warehouse
Factory
On Water
Store
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Complete Supply Chain Visibility
Weekly Store Sales
Monthly Store Sales
Monthly DC Demand
Monthly DC Demand Forecast
Monthly DC Supply
Monthly DC On Hand Qty Day On Hand
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8 Inventory Turnover
Test Rite Logistics Operation Summary Period
August,05 August,06
8DC Inventory Yearly Turnover Rate
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Warehouse Inventory Reduction
Test Rite Logistics Operation Summary Period
August,05 August,06
Store Count 2500 2500 2200
Average In Stock 97.5 95.6 98.5
Average Turn/Year 10.5 9.6 8.8
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Product Lifecycle Management (PLM)

• ??? PDM Product Data Management
• ???????????
• ???????? (BOM Bill of Material)
• Supporting Joint Design
• ????
• C-Design, c-Engineering
• Business strategy that enables manufacturers to
  control and share product related data as part of
  product design and development efforts

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Supply Chain Integration
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How Information Systems Are Integrated

• Web Services
• An architecture enabling assembly of distributed
  applications from software services and tying
  them together
• B2Bi Business to Business Integration
• e.g. Rosettanet

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• ????Process integration

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??????

• ??????????(??,????)
• ????????(???)???(?FTP, e-mail)
• EDI
• ?????????
• ???????
• ????UN/EDIFACT?
• EOI- EDI over Internet
• HTML (??)
• XML
• ????(?RosettaNet, ebXML)

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???????(Markup Language)

• Markup is a method of conveying metadata (that
  is, information about a dataset).
• Markup Language use string literals, or tags,
  to delimit and describe this data.
• ??????????????
• printer typesetting, proofreader, punctuation,
  ASCII, C, RTF

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Example HTML Document
ltHTMLgt ltH1 ALIGNCENTERgt??lt/H1gt ltFONT FACE
size2gthTC One Maxlt/FONTgt ltFONT FACE
size2gt?????lt/FONTgt ltFONT FACE size2gt???lt/FONTgt lt
FONT FACE size2gt??lt/FONTgt ltFONT FACE
size2gt???lt/FONTgt ltFONT FACE size2gtAB_Lin_at_abc.com
lt/FONTgt
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Example XML Document
extended data tags
lt?xml version"1.0" encoding"Big5" ?gt lt????gt
lt??gt??????????,??? 2 ?lt/??gt lt??gt
lt??gt12478943lt/??gt lt??gtIBM 240lt/??gt
lt??gt58,455lt/??gt lt??? ??"http/www.ibm.com.t
w/product/nb/tp240"gtThinkPad 240lt/???gt
lt/??gt lt??gt lt??gt83424723lt/??gt lt??gtDell
A123lt/??gt lt??gt58,999lt/??gt lt???
??"http//www.dell.com.tw/product/nb/a123"gtNB
A123lt/???gt lt/??gt lt/????gt
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XML???

• ???? open, platform-independent
• Vocabulary ???Application Domain ??tag
• An XML vocabulary is a description of XML data
  that is used as the medium for information
  exchange, often within a specific domain of human
  activity (business, chemistry, law, music, for
  example)
• Program Readable
• ?XML is not a programming language, nor an
  object-based system, nor an operating system. It
  is a powerful, elegant technique for thinking
  about, exchanging, and presenting data in a
  platform-independent manner.

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XML????

• XML???????????
• HTML Interpreter ? XML Parser
• XML?Hypertext????Application??
• Application Software ? Browser Software
• XML???????,???????????

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Client Side of Web-XML
Browser
URL
Application
Parser
Present-ation Module
Valid- ater
Document Handler
XML File
HTTP Server
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RosettaNet

• RosettaNet is a consortium of major Information
  Technology, Electronic Components and
  Semiconductor Manufacturing companies working to
  create and implement industry-wide, open
  e-business process standards.
• Cluster 0 RosettaNet Support
• Provides administrative functionality
• Cluster 1 Partner, Product and Service Review
• Allows information collection, maintenance and
  distribution for the development of
  trading-partner profiles and product-information
  subscriptions

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RosettaNet

• Cluster 2 Product Information
• Enables distribution and periodic update of
  product and detailed design information,
  including product change notices and product
  technical specifications
• Cluster 3 Order Management
• Lets partners order catalog products, create
  custom solutions, manage distribution and
  deliveries, and support product returns and
  financial transactions
• Cluster 4 Inventory Management
• Enables inventory management, including
  collaboration, replenishment, price protection,
  reporting and allocation of constrained product
  

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RosettaNet

• Cluster 5 Marketing Information Management
• Enables communication of marketing information,
  including campaign plans, lead information and
  design registration
• Cluster 6 Service and Support
• Provides post-sales technical support, service
  warranty and asset management capabilities
• Cluster 7 Manufacturing
• Enables the exchange of design, configuration,
  process, quality and other manufacturing floor
  information to support the "Virtual
  Manufacturing" environment

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RosettaNet PIP

• Partner Interface Process (PIP)
• message guidelines and XML DTD's (Document type
  definition).
• Understand what the PIP number represents.
• A PIP number has 3 parts  a number a letter
  another number.  Example 3A4
• The first number represents the Cluster.   PIP
  3A4 is in Cluster 3.
• The letter represents the Segment.  PIP 3A4 is in
  Segment A of Cluster 3.
• The second number is a sequential number which
  completes the PIP number.  PIP 3A4 is the 4th PIP
  in Segment A of Cluster 3.

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RosettaNet 3A4 PIP
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RosettaNet 3A4 PIP
RN 3A4
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ebXML

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• ??????????ebXML
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• ?XML???
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