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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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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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Proposed Architecture
Source: Verwijmeren, Martin, Software component architecture in supply chain management, Computers in
Industry, 2004
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Proposed Architecture
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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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Components, interfaces and services
in the supply chain architecture.....
(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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Components, interfaces and services
in the supply chain architecture.....
(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]