Post on 25-Dec-2015
Group:d927810 Paul
Enterprise Integration
A case study of the cash-flow financing system for purchase
orders in supply chain
d927811 Tommy Advisor: Dr. Amy Trappey
Agenda
Tommy
•Background•Two Company Profiles•“As-is model”
–Traditional Financing Method
Paul
•“To-be model”–Advanced Financing System–An integrated connecting infrastructure–Evaluation level of each P/O stages
•The benefits of enterprise integration•Conclusion
Background
• Because of progressing internet technology the enterprises business process has been greatly changed in many fields especially in supply chain.
• Enterprises can’t promise to ship goods on time without a well cash-flow even so the orders could be acquired.
• Many enterprises and banks cooperate to built a complete cash-flow financing system for P/Os in the supply chain to solve above problem.
Company Profile(1/2)
• Giant- A global bicycle company
• Giant’s Main Product
Mountain bicycle Comfort bicycle Road bicycle
Kids bicycle Indoor Cycling Special bicycle
Company Profile(2/2)
• Chang Hwa Bank- Global financial service– Receiving demand deposits– Issuing domestic and international letters of cre
dit– Guaranteeing issuance of corporate bonds– Extending short-term, mid-term and long-term l
oans– and so on
“As-is model”
• Traditional Financing method
Credit verification
Acquire loaning capital or not?
Receive purchase orders
Vender
Provide lands, machinery equipments, factory buildings to borrow money…….
Bank
Vender Bank
Center Plant
“To-be model”
• Advanced Financing System
Cash-flow
loaning system
Ask for borrowing Provide money
Provide order/credit information
“To-be model”
ERPAda-pter
Big VenderBrowser
Small Vender
ERP
CenterPlant
BizTalk Bank App.
Cooperation BanksBizTalk
FinancingSystemPlatform
Internet
Internet
Internet
Internet
• An integrated infrastructure
“To-be model”
• Evaluation levels of each P/O stages
-Loaning for P /O s-Loaning beforeExportation
-Invoice Loaning-O n Account(O /A ) Loaning
Loaning forpurchasingm ateria ls
Loaning forInventory
-AccountR eceivable (A /R ) Loaning-Authority to Pay (A /P ) Loaning
40% 60% 70% 85%
7% 6.5% 6.2% 5.7%
80 60 40 10
40% 60% 70% 85%
7% 6.5% 6.2% 5.7%
80 60 40 10
Am ount 20%
7.5%
100
20%
7.5%
100
R ate
C harge
The benefits
• The benefits for “center plant” – Receive goods on time,……
• The benefits for “vender” – Acquire loan capital,……
• The benefits for “bank” – Increase income,……
Conclusion
Enterprise Integration can ~ – exchange Information smoothly.– reinforce the cash flow in supply chain.– reduce the time to reference the credit. – trade globally. – response quickly.– and so on……