1. Final Project A case study of The Real-Time Supply Chain System in Company I
Group 2
Members:
Angela
Ivan
Jimmy

2. Outline Introduction As-is Model Problems Discussion To-be Model
Conclusion

3. Outline Introduction As-is Model Problems Discussion To-be Model
Conclusion

4. Introduction Company I Challenge Purpose Real-Time
Cycle Time 48hr → 24hr

5. Outline Introduction As-is Model Problems Discussion To-be Model
Conclusion

6. Material Incoming Plan
As-is Model
Purchaser
(Company I)
Current Purchasing
System
SAP ERP Sys.
Warehouse
Supplier
Material Incoming Plan
(14D+10W+3M)
EDI 830
Sales
Dept.
RUN MRP
(00:00AM)
Shortage
List
Manufacture
Key-in SAP
(Receiving Qty)
Ready to
deliver
QI Process
Warehouse
(Qty)
Pass

7. Material Incoming Plan
As-is Model
Purchaser
(Company I)
Current Purchasing
System
SAP ERP Sys.
Warehouse
Supplier
Material Incoming Plan
(14D+10W+3M)
Sales
Dept.
RUN MRP
(00:00AM)
Shortage
List
Manufacture
Key-in SAP
(Receiving Qty)
Ready to
deliver
QI Process
Warehouse
(Qty)
Pass

8. Material Incoming Plan
As-is Model
Purchaser
(Company I)
Current Purchasing
System
SAP ERP Sys.
Warehouse
Supplier
Material Incoming Plan
(14D+10W+3M)
Sales
Dept.
RUN MRP
(00:00AM)
Shortage
List
Manufacture
Key-in SAP
(Receiving Qty)
Ready to
deliver
QI Process
Warehouse
(Qty)
Pass

9. As-is Model Company I Customer PO Priority SAP DB I2 FP DB
EDI 850
EDI 830
Customer PO
Priority
SAP DB
I2 FP
Company I
Web Server
EDI 850
EDI 830 DB
Oracle, SQL….
Supplier

10. Outline Introduction As-is Model Problems Discussion To-be Model
Conclusion

11. Problems Discussion Demand Accuracy Supplier Status Visibility
Shipment Visibility
IQC Status Visibility
Two B2B Cycle Gap
In the as-is model,we observed some problems about purchasing process and shipment.
珮嘉有無提到資訊的單向傳遞!!

12. Material Incoming Plan
Demand Accuracy
Purchaser
(Company I)
SAP ERP
Sys.
Current Purchasing
System
Warehouse
Supplier
RUN MRP
(00:00 AM)
Shortage List
Material Incoming Plan
(14D,10W,3M)
Sales Dept.
Ready to
deliver
New Sales
Orders
Production
EDI
Variance of
Demand
Key-in SAP
(Receiving Qty)
High level inventory
QI Process
The first is demand accuracy, Inventec runs MRP twice a day and send shortage list to supplier’s sales dept in the morning.But supplier didn’t key the shortage data into their MRP. They still deliver according to SO data. Because the demand is not stable, inventory have to raise up to cope with emergent order. So they has lots risk of inventory.
Supplier can’t get PO information simultaneously
Warehouse
(Qty)
Pass
Manual communications

13. Problems Discussion Demand Accuracy Supplier Status Visibility
Shipment Visibility
IQC Status Visibility
Two B2B Cycle Gap

14. Supplier Status Visibility
Purchaser
(Company I)
SAP ERP
Sys.
Current Purchasing
System
Warehouse
Supplier
RUN MRP
(00:00 AM)
Shortage List
Sales Dept.
Material Incoming Plan
(14D,10W,3M)
Ready to
deliver
Raw
Material
Work
Order
Finish
Good
Purchaser doesn’t know the inventory and supplier’s production planning
Order
Inquiry
New Sales
Orders ?
Key-in SAP
(Receiving Qty)
When Inventec meet customer’s inquiry,they can’t response rapidly, the reason is purchaser can’t handle the information of inventory and supplier’s production planning including raw material,work order and finish goods. The only way to check inventory is manual communication.
英業達是採用貨物寄存方式 consignment
QI Process
Warehouse
(Qty)
Pass
Check inventory via phone

15. Problems Discussion Demand Accuracy Supplier Status Visibility
Shipment Visibility
IQC Status Visibility
Two B2B Cycle Gap

16. Material Incoming Plan
Shipment Visibility
Purchaser
(Company I)
SAP ERP
Sys.
Current Purchasing
System
Warehouse
Supplier
RUN MRP
(00:00 AM)
Shortage List
Sales Dept.
Material Incoming Plan
(14D,10W,3M)
Information flow
New sales
orders
Production
EDI ?
Where the
Material
Key-in SAP
(Receiving Qty)
Ready to
deliver
QI Process
Only the one way to send information
因為資訊是屬於單向流通，所以採購人員無法即時得知貨物的出貨時間預計到達時間等等相關資料， on the web
Can’t trade the state of materials in transit
Out of control of the Production Planning.
Quantity and arrival time
Warehouse
GR (Qty)
Pass
Manual communication

17. Problems Discussion Demand Accuracy Supplier Status Visibility
Shipment Visibility
IQC Status Visibility
Two B2B Cycle Gap

18. Material Incoming Plan
IQC Status Visibility
Purchaser
(Company I)
SAP ERP
Sys.
Current Purchasing
System
Warehouse
Supplier
RUN MRP
(00:00 AM)
Shortage List
Material Incoming Plan
(14D,10W,3M)
Sales dept.
New sales
orders
QI Process
EDI
Key-in SAP
(Receiving Qty)
Ready to
deliver
Supplier can’t get the result of inspection in the real time
QI Process
IQC reject
When purchaser reject the material, supplier can’t get the result of inspection in real-time.It is able to cause the replenishment Delay.
Unknown the rejected quantity
Extra replenishment
Result in the increasing of lead time
Warehouse
(Qty)
Pass
Replenishment
Delay
Manual communication

19. Problems Discussion Demand Accuracy Supplier Status Visibility
Shipment Visibility
IQC Status Visibility
Two B2B Cycle Gap

20. Material Incoming Plan
Two B2B Cycle Gap
Current Purchasing
System
SAP ERP
Sys.
Warehouse
Supplier
Shortage List
Sales dept.
RUN MRP
(00:00 AM)
Material Incoming Plan
(14D,10W,3M)
RUN MRP
(afternoon)
Unchanged
data
Update
MRP Data ?
Gap
Key-in SAP
(Receiving
Qty)
Ready to
deliver
(In Transit)
First
receiving
Material Incoming Plan (14D, 10W, 3M)
Ready to
deliver
Shortage list
(afternoon)
Double Count
If purchaser did’t key in inspection result to update MRP data at real-time, MRP sys. Runs next time with the unchanged data, so it makes double account.
After a long term, the shortage list will be wrong. Let’s reconsider the first problem,the reason that the supplier deliver by PO rather than MRP data is the Gap.
再次補貨時間delay
可能會因為運送時間過長而導致double
Second
receiving
Key-in SAP
(Qty)

21. To-Be Purchasing Process Model
(1)Forecast and Forecast Commitment Process (2)Pull Signal Status Process (3)Hub Inventory Status Process
Inventec tries to analysis current purchasing process,finds the problems and proposes three directions to improve
The first one is Forecast and Forecast Commit process
The second one is Pull Signal Status Process
The last one is Hub Inventory Status Process
construct the Real-Time Supply Chain System for exchanging the information

22. Data Flow Company I Supplier Forecast PO Status Pull Signal QI Status
Real-Time Supply Chain System
Company I
Supplier
Forecast (14D,10W+3M)
Forecast
Forecast Commit
Pull Signal with lot#
Order Commit (ETD/ETA) PO
Status
Actual delivery time
PO Status
Pull
Signal
PO Bal Qty / Invoice Price
PO Qty / Price Variance QI
Status
Received qty, rejected qty
Product,WIP,raw material
Less than Safety inventory
Buffer
Policy
PO status
Delivery status

23. (1)Forecast and Forecast Commitment Process
Purchase Dept.
Warehouse
SAP MRP System
Real-Time Supply Chain System
Supplier ①
Run MRP
Consolidate
Demand
6 M Forecast (14D,10W,3M)
Know whether the supplier can satisfy the future demand or not.
New SO ②
ERP
Feedback how many demands they can commit according to MPS
Forecast
Commit
XML
Update MRP
Data
In the to-be process,Inventec would consolidate the demands and pass this information to supplier’s ERP database directly by XML. This XML format is predefined by both sides.Then, the supplier feed back how much forecasting demand they can commit according to MPS.And this information can let Inventec know whether the supplier can satisfy the future demand or not. If the supplier can’t, find a way to solve the problem in advance.Through sharing forecasting demand,the suppliers can reduce the safety inventories.On the other hand,Inventec can also prevent the material shortage in advance .
Prevent the shortage in advance.
Reduce the safety inventory

24. (2)Pull Signal Status Process
Purchase Dept.
Warehouse
SAP MRP System
Real-Time Supply Chain System
Supplier
Update
MRP System ②
Expected Time to Deliver (ETD)
Expected Time to Arrive (ETA)
Expected delivery quantity
Prepare for receiving
check
Key-in SAP Received QTY
ERP
Pull Signal
Status
Warehouse
Key-in SAP QI
Process
Defective items
Rejected QTY
Quantity of goods and the departing time
Prepare shipment
Bar Code
Prepare replenishment ①
In the pull signal status process, ETD and ETA would be passed to Inventec. When the goods are going to being shipped, the information of the goods are sent to ERP database by barcode.And this information would be passed to Inventec to update the data of MRP system.Besides, it also notify to prepare for receiving goods. When the goods arrive,the staffs check the quantity and key the received qty into SAP. Then, inspect the quality of the goods. If there are defective items, this information can pass to supplier.And the supplier can prepare replenishment at the same time.This process make production planning and replenishment more effectively. Inventec can control the in-transit qty. ③
This mechanism makes replenishment more efficient
Company I can get the in-transit qty, ETD, ETA and so on.

25. (3)Hub Inventory Status Process
Purchase Dept.
Warehouse
SAP MRP System
Real-Time Supply Chain System
Supplier
SFC system
Warehouse
 Company I monitors the inventory to prevent the shortage.
 This can also help Inventec response customer’s inquiry quickly.
Raw Material WIP, Product
Mapping
PO# and SO#
Mapping Table
ERP
know the
status of
appointed
key component
Product,WIP,
Raw Material, and the status of PO
Query
Product、WIP、Raw Material
Hub
Inventory
Status
Firstly,they determine which key component should be included.Through warehouse and SFC system ,collect the data of product,raw material, and WIP.Then,send to ERP database and pass to real-time supply chain system.Inventec can inquire the inventory of appointed key component including final item, raw material and WIP. Besides, use the mapping table,Inventec is also able to trace the status of PO.

26. The Architecture of Real-Time Supply Chain System
Aggregation Server
IIS,Mail Server,etc.
Hub Server
User
Xagent Server
SAP
XAgent
Client
SAP DB
SAP App Server
Firewall
Proxy Server
internet
JDBC XAgent
Oracle JDBC
Oracle
Oracle ERP
Existing system
New system
Company I
Supplier
Integrate non-homogeneous OS and DB
XML
query
Control Xagents to collect data from the DB
and update data to the corresponding fields
this is the whole architecture of real-time supply chain system.The aggregation server is a commander.It controls the Xagent to collect
and update data from Inventec's and the supplier's database.The users inquery from aggregate server to get the information
further, the information flow can divide into two parts.One is the regular information flow and the other is irregular information flow.

27. Information Flow Xagent links to the database and collect the data
a. Forecasting Plan b. Actual Demand Plan c. Material #
Xagent links to the database and
collect the data
Xagent
XML
SAP
Xagent sends the data into the supplier’s database directly
Agg. Server
Xagent
Oracle
Temp
Xagent
Analysis Report
a. on-hand qty b. WIP qty c. Allocate forecast qty d. Commitment plan e. Item# cross-reference
The regular information flow. It mainly contains the forecast and forecast commit. The forecasting demand would be collected by Xagent.
Through time trigger, Xagent link to DB, collect data and update data to corresponding fields. Then, pass these information to the aggregation server ,save in the temp database and send into the supplier’s database. the supplier feed back how much forecasting demand they can commit according to MPS. Inventec can review commitment data on web to come out shortage
Also, the supplier feedbacks the information by Xagent
Time Trigger ex:MRP
Event Trigger
Pulling (when data change)

28. Expected Benefit 1. Prevents the shortage in advance
2. Makes replenishment more efficient
3. Gets the in-transit qty, ETD, ETA and so on
4. Decreases cycle time
5. Reduces supplier’s safety inventory
6. Improves customer service

29. Conclusion
In the project, Company I and the supplier try to plan collaboratively ,find out the problem timely, and solve the problem in advance. And they use the real-time supply chain system to exchange the information
This project is proceeding now. Success of this project
depends on the cooperation of both sides in the
managerial and technical aspects. Then, it can make
the information system align around business
processes.