Framework for Web Services Implementation (FWSI) TC Supply Chain Visibility - Stock Safety Level Check FWSI - FESC Showcase For Discussion On 23 February 2005

2 Framework for Web Services Implementation (FWSI) TC 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 Framework for Web Services Implementation (FWSI) TC Vendor Managed Inventory - Scenario Overview Customer: Company A USA Firewall Customer’s Inventory Service Provider Hong Kong Supplier 1 Singapore Firewall Internet China Tier 1Tier 2 Order Fulfillment Response Order Replenishment Request A: Stock Safety Level Control Trigger

4 Framework for Web Services Implementation (FWSI) TC Vendor Managed Inventory - Detailed Scenario Company A (USA) Customer’s Inventory’s Service Provider (Hong Kong) Issue Part (on demand) 1a1a MRP 2 Part Supplier 3b3b Material Plans Raw RM Supplier 4 Part Supplier Purchase Order 5 Part Supplier (PS) (Sales) Production Order Replenish Part (batch) RM Information Part Supplier Part Supplier Kit RM And Issue Part (FG) Transfer Deliver RM Notes: 3 parties involved: Customer (MNC) Part Supplier (Vendor) RM Supplier Part: Critical Part Long Lead time Commonly shared Tier 1 (Singapore) Tier 2 (China) 6 RM: Raw Material 3a Material Plans 1b1b DO FG: Finish Good DO: Delivery Order Not in Scope Legends:

5 Framework for Web Services Implementation (FWSI) TC 3PISP manages Company A’s inventory (make-to-stock). 3PISP replenishes Company A’s order request. While fulfilling Company’s A order request, the stock level is lower than its pre-defined stock threshold safety value, say T sv. 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 < T sv) Brief Description 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. 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). Customer Company A (USA) Third Party Inventory Service Provider (3PISP) (Hong Kong) Tier 1 Part Supplier (PS) (Singapore) 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 Framework for Web Services Implementation (FWSI) TC Use Cases 1.Parts/Order Release (by Customer) 2.Parts/Order Replenishment (by Third Party Inventory Service Provider) 3.Conduct MRP Run (By Part Supplier) (i/o: BOM + Qty) 4.Analyze raw materials (by Supplier Purchasing Department) 1.Receive MRP plan 5.Raw materials delivery (by RM Supplier) 1.Issue Delivery Order 6.Update Inventory Level (by Part Supplier Store) 1.Receive MRP plan (for Kitting) (not in scope) 2.Receive raw materials 3.Receive Delivery Order 4.Dispatch raw materials to shop floor (not in scope) 5.Receive finished good from shop floor (not in scope) 6.Issue finished good to Third Party Inventory Service Provider’s warehouse 7.Update Inventory Level (by Third Party Inventory Service Provider) 1.Receive Delivery Order

7 Framework for Web Services Implementation (FWSI) TC Functional Elements Six elements have been identified for building the applications Service Management Secure SOAP Mgt User Management Notification EngineTransformerSensory Service monitoring and logging. User access controlPresentation of inventory information in different formats Securing some or all of the inventory information between supplier and customer Notify users via or SMS, etc Detect end user’s devices

8 Framework for Web Services Implementation (FWSI) TC FebMar Confirmation CD Cost Demo Scenario Finalised Complete Dev & TestingCut CD FWSI Forum Apr Proposed Schedule 28 Feb 04 Mar25 Mar30 Mar 01 Apr06 Apr