software architecture for scm

8/9/2019 Software Architecture for SCM

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23 March 20101

Software Architecture

ofSupply Chain Management

By:

Biplab BasakM.Tech Industrial Engineering & Management

Dept of Management Studies

Indian School of Mines

Dhanbad


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Contents

Introduction to Supply Chain Management (SCM)

Information Technology in SCM

Traditional Integrated Systems Drawbacks in traditional systems

Dynamic Supply Chain and its architecture

Implementing the architecture


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What is Supply Chain Management?

Management of a chain or network of business

unit linked by flow of information (essentially

bidirectional), materials, money and services

and their relationship with the main activities of

adding maximum value to all activities at

demand assessment and terminations to the

delivery of finished product (or services) to the

ultimate consumer combating desired benefitsto all units of the chain.


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23 March 20104

So the whole idea is to .

reduce of uncertainty in decision makingprocesses

seamless flow good and materials betweenorganizations in the supply chain

information exchange between theorganizations

improved customer service at reducedoverall costs.


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Information Technology in SCM

To make decision-making possible, there has to

be efficient, reliable and timely data capture,

data availability at various locations and the

ease with which it can be manipulated for the

purpose of decision-making.

Reports and statistics, which allow the

monitoring of supply chain performance, can be

generated.


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Traditional Integrated Systems

Geographical Information System (GIS)

Electronic Data Interchange (EDI)

MRP and MRP-II Enterprise Resources Planning (ERP)

Extended-ERP (E-ERP)

Global E-biz

Modern

Approach


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Why a new architecture?

.drawbacks of existing systems

Past - one organizationdominating the otherorganizations in the supplychain.

hierarchical control to achieveintegral logistics managementacross organizationalboundaries.

forced to obey to theinstructions of the dominantorganization.

one central information systemwith fixed procedures

Result is:

Higher price-quality ratioof products

Higher productivity

But:

Does not contribute tothe flexibility of the supplychain

Denies customer withoption for dynamic

product assortment Subordinate

organizations cannotchange their portfolio


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Why a new architecture?

.drawbacks of existing systems

Traditional ERP systems and EDI interfaces are not equipped forsupply chain management across networked organizations. Thisis because:

ERP systems focus on the integral management of processes

within a company. Because of its central architecture, an ERPsystem assumes one central organization, but in dynamicnetworks there is no central point of authority.

The procedural ERP software can not easily support the couplingand decoupling of organizations to the dynamic network.

ERP systems have intelligence for co-ordination, but miss theflexibility needed for networked organizations.

The EDI systems and interfaces do not provide additionalfunctions for logistics control across organizations. They can alignwith the structure of networked organizations, but lack theintelligence for co-ordination across the supply chain.


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Hierarchical Approach

Supply chain management by domination of oneorganization over others

Source: Verwijmeren, Martin, Software component architecture in supply chain management, Computers in

Industry, 2004


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Network Organization

.is the answerCharacteristics:

continuously reform toaccommodate

changing marketdemand.

autonomous control,

common goals,

mutual trust,

information exchange, distributed ownership,

close co-operation and

variable coupling

A co-ordinationmechanism which

is an intermediatebetween

market co-ordinationand

hierarchical

co-ordination


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Network Organization

.is the answer


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Proposed Architecture

ERP, enterprise resource planning systems:

functions: purchase, materials management and sales;

users: manufacturers and trading companies.

WMS, warehouse management systems:

functions: receipts put-away, bin management and order picking;

users: logistics service providers and wholesalers.

TMS, transportation management systems:

functions: transport booking, planning and monitoring;

users: forwarders and carriers.

We already have a system in place. The idea is to augment the systemwith intelligent software components.


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Source: Verwijmeren, Martin, Software component architecture in supply chain management, Computers in

Industry, 2004


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Salient features

The software components in the architecture are called

supply chain engines (SCEs)

The required intelligence is built in the software

components, whereas the component structure enablesthe required flexibility.

The supply chain engines can run on the computers of

the different organizations in the supply chain.

The ERP, WMS and TMS focus on internal management,

the SCEs add functions and data for externalmanagement to the supply chain architecture.


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Salient features(contd.)

Communication engines:

function: basic communication between the systems (andusers) in the supply chain;

examples: data communication, message conversion and

flow control engines. Information engines:

function: transparent information over the systems (andusers) in the supply chain;

examples: stock visibility, track and trace and report queryengines.

Management engines:

function: advanced management across the systems (andusers) in the supply chain;

examples: inventory management, production managementand distribution management engines.


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Implementing the Architecture

The technology used for the

implementation of the supply chain

engines includes: application components (SCEs),

interfaces of the components and

common services for the components


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Components, interfaces and services in

the supply chain architecture.


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Components, interfaces and services

in the supply chain architecture.....

(contd)

The software components have interfaces forcommunication in the organization and across the supplychain. The supply chain engines can be equipped withthe following interfaces:

System interfaces to other supply chain engines, forexample, interfaces between distribution managementengines to support integral distribution management.

System interfaces to local information systems, forexample, interfaces between the inventory managementengines and ERP systems to retrieve the stock levels.

User interfaces to users, for example, the supervisor

(strategist) of the inventory management engine who setsthe parameters for integral inventory management.

Database interfaces, for example, to store the details ofa customer order in a distribution management enginepersistently in a database.


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(contd)

Naming service: the naming service contains a directoryof logical names and technical addresses of components.With the help of a naming service, a client componentcan send a service request to a server component by

using its logical name. The naming service provides thetechnical address of the server component.

Trading service: components can use a trading serviceto publish their service interfaces with names, attributesand types. Components can search for available servicesin other components. The trading service provides

references to the discovered services, so that a clientcomponent can send a service request to the servercomponent.


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(contd)

Messaging service: a messaging service usesintermediate queues for the exchange of messages(requests/responses) between components to guaranteemessage delivery. Asynchronous communication makes

that a client component does not have to wait for aresponse after a request has been sent. Publish-subscribe features facilitate distribution of messages froma publisher to all subscribers.

Transaction service: a transaction is a sequence ofoperations in which several components can be involved.The transaction service makes sure that a transaction

complies with the requirements of atomicity, consistency,isolation and durability. A two-phase commit protocolensures that all components commit to transactioncompletion or roll back to an original state in the event ofa failure.


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Conclusion

The software component architecture for supply chain

management across dynamic organizational networks

consists of existing systems supplemented with new

software components. The SCEs provide both the intelligence and the flexibility

as required for the integral management in dynamic

supply chains.


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You may shoot

Questions please !!!!!


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References

.helping hands

Raghuram, G and Rangaraj, N, Logistics and SupplyChain Management Cases and Concepts,Macmillan Business Book, 2000, PP 355-364.

Altekar, Rahul, Supply Chain Management: Conceptsand Cases, Eastern Economy Edition, 2005, PP 710.

Verwijmeren, Martin, Software component architecturein supply chain management, Computers in Industry,2004, PP 165-178.

Simpson, Stacy, The Software Supply Chain Integrity

Framework: Defining Risks and Responsibilities forSecuring Software in the Global Supply Chain,SAFECode, July, 2009, PP 1-11


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Thank You

Empowering SCM Excellence

Towards an Integrated Global Supply Chain

The author can be contacted at [email protected]

software architecture for scm

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