III. Electronic information integration
Information integration is the basis for supply chain integration. For companies inside the entire supply chain, in order to coordinate their products, finance and information flow, they must be able to get the right, timely information on their supply chain status. Therefore, all supply chain partners have the ability to achieve timely sharing information is the key to improving supply chain performance.
In order to ensure that the supply chain is driven by real consumption, information sharing is driven, this is critical. This is the most effective way to overcome the distortion of demand information - well known "bullwhip effect". When partners use local information to do demand forecasts, and transmit predictive results to upstream partners; partners are based on local economic factors, local constraints or business measurement; gambling behavior is exaggerated when the uncertainty in the perceived supply environment Order, the distortion of the information is often happened. These distortions are gradually enlarged from a level to another level in the supply chain, which is seen as one of the largest reasons for the supply chain.
Increase the visibility of orders in the supply chain
Figure 1: Information distortion and bullwhip effect
One of the methods of overcoming the oxygen effect is to transparent the demand information. In fact, in the food industry, this transparency is considered to be the cornerstone of the supply chain integration, and is the main factor of "effective customer response", but also in that industry to move toward the overall supply chain integration. Companies involved in information sharing efforts usually share sales data, inventory status, production schedules, promotional plans, demand forecasts, and shipping schedule information.
Internet Information Center: The key to sharing information
Internet is a valid electronic link between different entities, and it is also proven to be an ideal platform for information sharing. The power of the Internet is derived from an open standard, allowing large-scale visits to obtain information with low cost, simple, universal, still safe way.
One of the methods based on Internet-based supply chain integration is the information center, and the information center can process and deliver all relevant information to all appropriate participants uninterrupted. The node of the information center data network, multi-woven, pursues supply chain integration in the mutual impact. The information center has data storage, information processing, and uploading and downloading features. The entire network forms a system of hub-and-spoke, while the participant's internal information system is auxiliary (such as ERP, or other enterprise systems).
In the logistics world, and the information center is similar to the "Through Logistics Center" in which the product from multiple supply resources to the logistics center is classified according to the demand of the destination. They are then sent to the center, the center allows key supply and demand data downloads, and seamlessly sent to the appropriate partner when appropriate.
Collaboration = profit
Does the information share are worth such efforts and risks like this? The recent report of the Joint Research of Stanford University and Accenture (former Andersen Consulting) surveyed 100 manufacturers and 100 retailers in the food and consumer industry. The results of the survey show that those companies that have higher profits than the average levels are usually actively involved in higher levels of information sharing.
IV. Planning Synchronization
Once the supply chain is agreed to sharing information, the next reasonable step should be consistent with what is the shared information. Programming synchronization refers to exchange information and knowledge between partners so that they can cooperate to create synchronized replenishment programs. Establish universal rules on what is done on sharing information, and is agreed on a key operation throughout the supply chain, and these key actions can further reduce problems such as bullwhip effects. We have a long way to go on the issue of benefiting all partners.
Here, once again, the Internet plays an important role. A typical example of this is a cooperative plan, predicting and replenishment (CPFR) action. In the CPFR, both the purchaser and the seller use Internet to share predictions, insights main changes, exchange opinions and cooperation to eliminate each other's differences, so that both parties eventually have a common forecast and replenishment plan. At present, the Industrial Commercial Committee is working to standardize the process model and technical framework of CPFR. It encourages companies to use Internet and electronic bulletins to pursue cooperative efforts. From puzzle to the network, Internet
Consumers and B2B companies can obtain Internet-driven cooperation interests. Fast food giant Nabisco successfully established a good CPFR driving position with a good development prospects with the food chain WegRNAMS. Due to sensible promotions, WegRNANs saw 11% of fast food sales, while other retailers faced a decline in sales of 9%. Nabisco seeing its Planters sales will jump to 40% by strategic sharing requirements data, Nabisco will jump to 40%, and market share will grow to WeGRNANs. Moreover, NABISCO's warehouse supply ratio increased from 93% to 97%, but inventory fell by 18%,
Many other driving warehouses are currently in companies such as Schuck Markets, Kmart, Circuit City, P & G, Kimberly Clark, Sara Lee, and Wal-Mart.
In the field of B2B, Adaptec, a factory-free semiconductor company, and Cisco Systems, leading network equipment sellers, are also taken.
For a company facing supply process reform, innovation products, and a supply chain dispersed on geographic, Adaptec's case clarifies the value based on Internet cooperation.
Using Application Software (developed by Extricity), the company can communicate with its real-time, exchange specific, complex Design, prototype planning, test results, production, shipping schedule. This greatly promotes their ability to test demand and supply levels, and is a rapid response to potential inappropriate issues. It also helps shorten new product development cycles. Due to the use of alliance, Adaptec's new product development cycle is shortened by more than half.
In another programming synchronization case, Cisco accepts a large project that creates a multi-level supplier through the Internet. It tries to coordinate the supply and demand plan inside the supply chain, mainly using the intelligent plan preparation software provided by Manugistics. The E Center also helps to determine the potential supply and demand problems early, providing the appropriate participants, allowing instant solutions, all this is done over the Internet.
IP and knowledge sharing
In order to support new product design and new products, other new types of companies have emerged by cooperating and sharing knowledge property. A typical example is SpinciRCuit in the electronics industry. By designing data such as EDA CAD Collection Book Library, Mup / ERP, and PDM, design data sheets create mass data networks, design projects and manufacturing engineers can cooperate to accelerate design and promotion processes. The Internet has played a considerable role in supporting the company's supply chain management design.
The Internet is also likely to use knowledge capital that is equivalent to the process. For example, Boeing, TRW and Monsanto use Yet2.com's Web website to achieve share and transactions between intellectual property between partners, saving a lot of money in research and development.
Profits come from collaboration
With the sharing of information, the synchronization plan is prepared to provide a higher dividend for companies who are willing to invest. An example of NABISCO is one of them. In the previous part, Stanford University and Accenture's research fully confirmed this. As shown in Figure 4, the survey found that more than average consolidation levels are more involved in logistics replenishment and planning projects that are jointly carried with their trading partners. Food Manufacturers Campbell Soup and P & G, and retailers Hannadord Brothers, H.E.BUTT found that synchronous replenishment projects increased inventory turnover rates.
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