ITversionVictor.ppt

Supply Chain IT Solutions Overview Presenter: Victor Pang, Business Solutions ManagerOctober 2003Shanghai2Agendaq Objectives of This Presentationq Logistics Information Systemsq UPS SCS IT Solutionsq 2003 Industry Standings of WMSq “Current Hype” in Logistics Technologyq Opportunities in China Logistics for IT Solutionsq SummaryUPS Supply Chain Solutions3Disclaimer“The opinions shown here are solely the opinion of myself and not representative of the IT department in UPS-SCS.Solutions to be introduced in these slides may include both current and already obsolete solutions in the history of UPS-SCS. This Session is meant as an introduction to Logistics Systems used in the industry and mapped back to what UPS-SCS have for Internal UPS-SCS China Logistics Information Session Only.”I AGREEI AGREE UPS Supply Chain Solutions4Objectives of This Presentationü Enable Logistics Team members to better understand the IT Solutions available for Logistics Projectsü Share with Team Members on the Solutions available in UPS-SCSü The Current Trend in Logistics ITü The Vast Opportunities presented for us in ChinaUPS Supply Chain Solutions5Logistics Information Systems (LIS)ØIntegrative system that provides required logistics information that enables:-•Logisticians to make decisions based on information provided by the system•Empowers the Logisticians to:–Plan–Manage –Control, and –Measure logistics activitiesØBasic Elements of LIS:-•Data Collection•Data Processing to turn into Information•Information RepresentationUPS Supply Chain Solutions6Logistics Information Systems (.. In a Nutshell..)Planning & ForecastingVisibility Reporting & AlertElectronic Data Interchange (EDI)Transportation ManagementWarehouse ManagementData TranslatorTrack & TraceOrder ManagementData Warehousing & OLAPBillingCustomer’s ERPForwarder BookingUPS Supply Chain Solutions7Logistics Business Models…Finished Goods Logistics (FG)Spare Parts Logistics (SPL)Track & TraceVendor Managed Inventory (VMI)Supplier Hub Concept4th Party LogisticsTransportation Optimisation1.EXE2.LoGIC3.PKMS1.SPLUS2.Citadel3.ICON1.ET/WT2.Global Tracker3.VCS 21.EXE1.ICON ***1.i22.Roadnet1.NAUPS Supply Chain Solutions8US Logistics Systems ConsiderationsPreferred Vendor in PortfolioOther Potential Choices in the PortfolioOther Leaders in this field/Vendors to ConsiderUPS Supply Chain Solutions93 Commonly used System Delivery Technologies• Client / Server Technology–Means: information is accessed via a main server. Dummy PCs are used to access as Client. System: EXE, PKMS, Citadel, SPLUS, LoGIC.–Advantage: Secure, Fast and reliable as system usually runs in secure network.–Disadvantage: Expensive to implement as usually requires a dedicated lease line.• ASP (Application Service Provider) – Web Application–Means: The program is sent/delivered via the Internet, no need for user to install a program in order to use. Usually program is accessed via an Internet browser. System: ICON, VCS2.–Advantage: Easy Access and used. No need to install any programs. Cheap and fast to implement.–Disadvantage: Speed affected largely by Internet speed. May not be fully secured.• Standalone System–Means: Program is installed on the PC and runs from there. No need a server. System: CSFLog–Advantage: Cheap and quick to implement. No need for a server.–Disadvantage: As all data & program resides on 1 PC. If PC is down, all data may be lost.UPS Supply Chain Solutions10UPS SCS IT SolutionsUPS Supply Chain Solutions11Service Parts Logistics System’s CoreüBasic WMS Functions: Receive, Barcode, Putaway, Pick, PacküStores and Validates Serial #üFast/Cost Effective to Setup and ImplementüAdvance WMS Functions: Replenishment, Stock BalancingüValue-added Features: Field Engineers Booking etcüAdvanced Reports: Defective Trends Analysis, Engineers Work Order AnalysisüCurrently Known UPS SPL System:1.Citadel2.ICON3.SPLUSUPS Supply Chain Solutions12Citadel System Information:• Client/Server Technology• Accessed via Lease Line using Telnet• Non-graphical Interface – a Unix/Vax machine ‘feel’• Server Located in Sydney, Australia• Have a Web front for Inventory tracking/visibilityUPS Supply Chain Solutions13CitadelUPS Supply Chain Solutions14CitadelUPS Supply Chain Solutions15Citadel – Good Stock in Transit ScreenUPS Supply Chain Solutions16Citadel ChecklistüWMS FunctionsüStores and Validates Serial #ⅩFast/Cost Effective to Setup and ImplementüAdvance WMS Functions: Replenishment, Stock BalancingⅩValue-added Features: Field Engineers Booking etcüAdvanced Reports: Defective Trends Analysis, Engineers Work Order AnalysisüBenefits: Proven System & Mature systemXDownside: Expensive to setup, require lease line, Outdated technology with EOL Database. Non-integrative to other systems.UPS Supply Chain Solutions17 ICON (Inventory Control On the Net)•Stands for Inventory Control On the Net•Aims to consolidate all the activities of the supply chain under one system for more effective command and control•Consists of 4 main modules:1.Warehouse2.Order Mgt3.Transport4.Service Parts•Multi-tier Application and highly scalable depending on Customers’ needs and requirements•Low implementation costs and allow accessibility to inventory details from almost anywhere!UPS Supply Chain Solutions18ICON Work FlowOrder MgtOrder MgtMODULEMODULEReceives InboundReceives New OrdersPerforms Pick, Pack & Ship OperationsSends ready to ship orders to Transport Module for carrier trackingWAREHOUSEWAREHOUSEMODULEMODULETRANSPORTTRANSPORTMODULEMODULESERVICESERVICEPARTSPARTSMODULEMODULEProvide Visibility into Inventory in all ICON warehouses“Looks” into Warehouse module for users’ queriesUses All 3 other remaining modules for track and trace of defective & active parts.UPS Supply Chain Solutions19ICON System Information:• Delivered via ASP Model• Accessed via Internet – Accessed almost everywhere• Full GUI – with user friendly interface• Server Located in Singapore• System Functionalities are customisable to users’ requirements• Network Setup: 1xFirewall, 1xDB server, 2xApps Server, 1xLoad BalancerUPS Supply Chain Solutions20Operations Scenario with ICONMain WarehouseFSB 1FSB 2FSB 3...ConsigneeTrucksTrucksCustomerAS/400ICONReplenishmentMain Warehouse Activities1. Receive Inbound according to ASN/PackingSlip2. Receive Unused Parts from FSE3. Receive Defective from FSE4. Receives Order, Picking, Packing and Shipping5. Replenish good part to FSB6. Cycle CountFSB Warehouse Activities1. Receive Inbound from main warehouse2. Receive Unused Parts from FSE3. Receives Order, Picking, Packing and Shipping4. Cycle CountShipping of GoodPartShipping of GoodPartsReturn of unused good partReturn of unused good part Return of Defective PartASSUMED OPERATIONS PROCEDURESCall CentreCall Centre Operators1. Receive Orders andCreate Orders in ICONICON1. Receive Orders andRoute Orders to W/H or FSB2. Place Orders in FTP directoryfor pulling by AS/400Dainabot AS/4001.Pulls and receives datafrom ICON FTP directoryof text file dataPlantUPS Supply Chain Solutions21ICON – Other Value Added FunctionsFE Management CapabilityFE Management Capability•Management of FEs, ICON can assist user to assign FE to previously maintained location/customer/systems,•Cuts down diagnostic time since FE has already service the same customer/system before,•Allows Service Report on frequently down system.Order by PictureOrder by Picture•We allow ordering of parts via pictures, •Reduction of error in ordering, allows also directed order by FE without an experienced order administrator.Easy access, anywhere, anytimeEasy access, anywhere, anytime……. .•Allows anyone with user access authority to retrieve reports via the Internet, without any costly network tie-ups!Further Analysis doneFurther Analysis done……. .•Parts Failure Analysis, FE’s job analysis, customers’ parts usage analysis…UPS Supply Chain Solutions22ICON ChecklistüWMS FunctionsüStores and Validates Serial #üFast/Cost Effective to Setup and ImplementüAdvance WMS Functions: Replenishment, Stock BalancingüValue-added Features: Field Engineers Booking etcüAdvanced Reports: Defective Trends Analysis, Engineers Work Order AnalysisüBenefits: Proven System & Mature systemXDownside: Speed Depends on Internet, may not be able to handle heavy transactions within the warehouse.UPS Supply Chain Solutions23SPLUS System Information• Uses best of breeds systems• Connectware, Vantive (CRM), EXE (WMS) and Oracle (DB)• Accessed via Telnet• Server located in US• Implemented for GE Medical Systems• Not recommended as a solution currently.UPS Supply Chain Solutions24Manhattan PKMS•Global Support - language, units of measure, support offices & personnel•3PL functionality (multiple customers in same facility, billing flexibility by pick, labor, transactional, etc.)•Multi-Industry breadth (high-tech, e-commerce, retail, healthcare, CPG, automotive, etc.)•Client/Server based and very integrative to Customers’ ERP•In UPS SCS, PKMS is used as the default solutions for Foundry/Semiconductor industryUPS Supply Chain Solutions25Manhattan PKMSWarehouse Management System PKMSReceive/Stock Locate•Creates put-away label to help track inventory within D.C.•Cross docks pre-packs for faster throughput.•Automatically directs priority SKUs to active pick sites or special processing. •Provides receipt verification against ASN for better DC planning and shipment reconciliation at host. Pick•Batches pick tickets into “waves,” eliminating manual selecting and sorting.•Prints pick tickets in best picking sequence for improved productivity.•Identifies and processes “hot” picks and rush orders immediately.•Pre-cubes orders and prints carton-level pick tickets to support pick/pack operations.Pack/Verify•Verifies picking accuracy via bar code scanning which reduces charge-backs and improves sales.•Performs weight verification of cartons to double check picking accuracy.•Creates UCC 128 shipping labels and carton content info for EDI ASN.•Eliminates effort and errors associated with key-punch invoicing.Ship/Manifest•Ensures shipping integrity of order.•Identifies best shipment routing based on freight charges and customer requirements.•Automatically generates shipment documents including shipment manifests and bills of lading.•Processing shipping zone and rate tables to automatically derive shipping charges for certain carriers.Distribution Center•Tracks and manages inventory in all areas of D.C. including bulk storage and active pick sites.•Handles suggested put-away in bulk and directed replenishment from bulk to active•Keeps system up-to-date with real-time updates using RF devices.Bulk Storage(Replenishment)FlowofgoodsUPS Supply Chain Solutions26National Semi-Conductor IT Setup with PKMSEDI BridgeManhattan PkMS EventManager UPSManifest & TrackingWeb TrackerWEBQueriesEmail TriggersQueriesEmailAlerts,PODs UPSManifest infoStatus UpdatesShipmentInitiationStatus Updates &Event Tracking infoExchange ofEDI filesIntegrated Systems Solutions and Interfaces FreightForwardersPODsUPS Supply Chain Solutions27Exceed 4000 / Version 3.6• Client/Server Based• Require Lease line back to US• Multiple “versions” for different customers/verticals• Multi Database support• Stable and considered default system to “sell”• Deployment in AP support mainly from Singapore and with vendor’s helpUPS Supply Chain Solutions28Exceed Topology - Hardware and System TopologyRF ServerRF ServerClientsClientsWinNT 4.0 SP6 WinNT 4.0 SP6 OROR R RWindows 2000 Windows 2000 withwith Internet Explorer V5.0 Internet Explorer V5.0InternetInternetAnd/OrAnd/OrIntranetIntranetWeb Server WinNT or Windows 2000 Web ServerWeb Server WinNT or Windows 2000 Web Server(IIS) V 5.0(IIS) V 5.0Database ServerDatabase ServerApplication ServerApplication Server (Forte) (Forte)·SQL Server·Oracle (Post Beta)RF DevicesRF DevicesServersServersWinNT, WinNT, Windows 2000, (UNIX Windows 2000, (UNIX (AIX, HP-UX, Sun) Post Beta(AIX, HP-UX, Sun) Post Beta AvailabilityAvailability) )UPS Supply Chain Solutions29Track & Trace Applications• ET/WT (Event Tracker/Web Tracker)–Global UPS Solutions for Domestic/International Shipments tracking–Multi-modal and multi-carrier–2 Applications here: Event Tracker & Web tracker• VCS2 (Virtual Carrier System 2)–Asia Pacific “cheaper” solution for track & trace of shipments–Auto track UPS, Fedex and DHL Express shipments via tracking numbers–Multi-modal and carrier via manual inputs or EDI–Used since 2000UPS Supply Chain Solutions30Event Tracker / Web Tracker• Multi-modal global supply chain solution• Flexible, user defined fields through out key tables within the application• Ability to dynamically change field names based on mode of transit• System captures all origin, destination, and transit points for all modes of transit• System captures key date information including ship date, arrival and departures at transit points, and arrival and delivery at final destination on all modes of transitUPS Supply Chain Solutions31Event Tracker HierarchyEVENT TRACKERShipmentsShipmentsShipmentsShipmentsLanesLanesLanesLanesEvent SetsEvent SetsEvent SetsEvent SetsEventsEvents           Events TypesEvents TypesEvent DatabaseEvent AlertsUPS Supply Chain Solutions32VCS 2 (Virtual Carrier System 2)•Access: Web-based,•Security: SSL Encryption, User IDs Req.,•EDI: XML, Excel, Flat File via FTP/HTTP•Reports: KPIs, Performance Measurement, •Alerts: on Performance Failure, Impending Failure via Email•Heuristics Business Rules: Auto-adjustment on ETA/ETD based on pre-defined rules•Customisable: Track via Order#, Invoice# other than HAWB/BL•Part of LLPs’ suite of Tools to monitor 3PLs Ops!UPS Supply Chain Solutions33VCS 2 Milestones:UPS Supply Chain Solutions34KPI For Milestones TrackingUPS Supply Chain Solutions352003 Industry Standings of WMSUPS Supply Chain Solutions36“Current Hype” in Logistics Technology• RFID – Next Big Thing since Barcoding!! •Wireless Solutions: Bluetooth / GPRS & PDA• Voice-Recognition WMS (Red Paire)• VoiceXML (Voice Extensible Markup Language)A voice-technology-based version of Extensible Markup Language (XML) supported by more than 200 companies. It was founded by AT&T, IBM, Lucent and Motorola. • WebservicesWeb services let companies bridge communications gaps—between software written in different programming languages, developed by different vendors or running on different operating systems. UPS Supply Chain Solutions37RFID Technology in the WarehouseUPS Supply Chain Solutions38RFID Technology in the WarehouseUPS Supply Chain Solutions39Voice XML – Enabling voice Control!Callers interact with Web servers containing Business Logic & Data via VoiceXMLSMS /VoiceWeb / Application ServerClient ComputersVoxGate™Mobile DevicesFaxPhoneGPRS /3G /Multi-modalPSTNInternet/IntranetUPS Supply Chain Solutions40Opportunities in China Logistics for IT Solutions• Spare Parts Logistics!–Opportunities for Systems which front handles external logistics rather than internal. I.e 4 walls• Use of PDA as a front to replace PC in WMS Applications–PDA have processing power up to 400MHZ! And in theory a Pentium PC!–Mobile and application in remote job sites• Low Internet Bandwidth Costs and Widespread use of Wireless Internet (GPRS)–Provide a good opportunity to promote use of Internet as the medium rather than traditional Lease Line in systems.–Internet allows real-times data across Greater China and with lower costs!–Potential Killer Apps – Greater China Track & Trace across multi-modal vendors. I.e. Trucks, planes, rails and ships!UPS Supply Chain Solutions41DCCan you Set up a DC Today?Stocking Location by Tomorrow?FSLFSLAnother one by Tomorrow?FSLAnother one ?FSLAnother one ?FSLAnother one ?And Link Them All Together??? In Real Time?UPS Supply Chain Solutions42Summary• China Logistics presents an opportunity for IT to play an all-important enabler! In New Shanghai Warehouse??• The lead-time in deploying new technologies is getting shorter and shorter!• First Mover Advantage is very real and the lead time between the first company who uses IT to sell its Logistics Solutions and the rest is probably only 3-6 months!• Most major 3PLs in China uses EXE as their defacto solution for WMS BUT no standard application is seen for SPL!UPS Supply Chain Solutions。