Applied Integration Issues
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Transcript of Applied Integration Issues
Presenters:
Khalid AtiqMuhammad QaiserRaheel Ahmed Siddiqui
A Case Study of A Case Study of
Lucent Technologies CompanyLucent Technologies Company
AGENDACompany OverviewCurrent Integration IssuesCurrent Supply Chain processLucent’s Strength and WeaknessesWhat Lucent Want to Achieve3 Possible upgrades to solve the issueAdvantages and Disadvantages of these
upgrades
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Introduction LUCENT TECHNOLOGIES
Designs and delivers networks for communication service providers
High bandwidth, core optical and multi-service data networks
More than half of the worlds phone calls are made over lucent remote access equipment (30 million call per day)
Employs 30,200 people worldwide
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Intro….Revenue of US$9.4 billion in the year 2005
Major Markets includes North America, China, Japan and Europe
Headquarters in New Jersey, USA
Research and development is Supported by Bell Laboratories
Partners include Accenture, Hewlett-Packard, IBM and Microsoft.
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Lucent’s Supply Chain Lucent has close relationships with suppliers to provide the materials and
services at affordable price
Relationship with suppliers is the key strategy for success
Being a Lucent supplier is much more than being a reliable source for quality material and services at competitive price.
In January 2001, Supply Chain Network (SCN) was formed to knit all supply chain functions through lucent into a single organisation
One of the significant outcome of SCN is the Supplier relationship program
The goal of the program is to bring Lucent and its suppliers closer for mutual benefits
Currently Lucent ERP system maintains all logistics information
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Lucent Supply Chain Diagram
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FF
Support: Sales & Marketing, Finance, Corporate Social Responsibility
Plant 1
Plant 2
Plant 3
3PL
Contract Manufacturer
DC
DC
Distributor
3PL
FF
Suppliers Customers
(3PL=third Party Logistics Provider; FF=Freight Forwarder; DC=Distribution Center)
Lucent’s StrengthsBell Laboratories the major investment partner in the
research and development of communication equipment
Restructured its global supply chain network by launching Lucent Worldwide services
20,000 professionals to provide network designed engineering, installing, managing, monitoring and repairing most sophisticated networks.
Focuses on world leading wire line service providers, including long distance carriers, local service providers, public telecommunication providers, emerging service providers and backbone builders
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Lucent’s weaknessesLack of global communication and transport system
Problem in resolving reverse logistics
Current system developed by Citadel requires different districts to be served by different logistic systems
Comparatively Longer delivery time (6 Weeks)
Don’t have well integrated system
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Current Integration IssuesCommunication System is relatively weak
Difficult to link data between regions of the world
Each region uses different software for its logistics
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Lucent’s Choices
Vice President of Lucent Supply Chain network gave 3 options to resolve their crisis
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Three possible Upgrades to solve integration issues
Customers, suppliers dispersed geographically
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Electronic Data Interchange SolutionDirect transfer of data between lucent,
customers, suppliers and other partnersPurchase orders, invoices converted
into standard messages as required by the interface
Transmission of data is very quickThe protocol among communication
devices has to be sameWe have to use direct link or third-
party network
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Usage of EDICustomers use EDI to transmit orders and
other information to lucent regional logistics info centers that linked to lucent ERP system.
Purchase orders are transmitted directly and accurately from ERP system to vendor
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Diagram-EDI
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Solution-II, XML BasedExtensible markup language, structure is similar to HTML
Customers placed orders on website
Lucent ERP can have interface to receive XML input.
Purchase or delivery orders can be transfer to suppliers in
XML format
XML and internet replace the use of EDI
This is a carefully-formatted string which is often found at
the very beginning of XML documents. Here is an example:
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B2B Portal SolutionPortal means gateway/entrance
Technically speaking: A website considered as an entry point to other websites, often
by being or providing access to a search engine.
A web portal presents information from diverse sources in a unified way.
Apart from the standard search engine feature, web portals offer other services such as e-mail, news, stock prices, information, and entertainment. Portals provide a way for enterprises to provide a consistent look and feel with access control and procedures for multiple applications, which otherwise would have been different entities altogether. Examples of a web portal are MSN, Yahoo!, AOL and iGoogle.
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Schematic
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How it can work in LucentThey have to build business to business portal,
lucent.netIt will use internet an e-commerce technologyLucent requires two portals
Business portal Links manufacturers, assemblers and logistics partners Every partner will have real-time information Internal ERP data can be open up to suppliers etc with
same access rights as their employees.
Customer portal Market place- online product catalogue for customers and
suppliers Online tracking Customer support
EDIAdvantagesQuick Access to informationReduced PaperworkBetter communicationIncreased ProductivityImproved Tracing,Expending,Accuracy and
Billing
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EDIDrawbacks
Expensive to ImplementDifficult to adoptLack of standardization
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XMLAdvantages
Has all benefits of EDICheaper (requires free web broswer,500$
computer and $15/ m for internet)Compatible with ERP SystemsEmail-like document Flexibility
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XMLDisadvantages
No single Standard Security ConcernsYet to prove in large –scale environment
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B2BCustomer Portal
Automate order processing onlineCost SavingTrackingFeedback
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B2BBusiness Portal
Real Time Data access (forecasting, inventory and purchase orders)
Consolidated Access Points
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B2BWeaknesses
Co-operative environment essential (if one link fails, the entire chain will become non-operational)
Lack of e-skillsUnsupportive company culture
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Conclusionuse of e-commerce
Alternative, redesign lucent supply chain e.g. selling or less profitable units
which option will assist strategically!
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Q & A
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