Expert Group - Dialogue on Supply Chain Future Scenario

Supply Chain and Logistics in the Supply Chain and Logistics in the Maritime IndustryMaritime Industry

--Dialogue on Future ScenariosDialogue on Future Scenarios

Stephan Wurst Marco Cremon

Wondermar workshop – Delft 20 February 2003 2

FincantieriFincantieri S.p.A.S.p.A.


OverviewOverview

Maritime supply chain today and in the future

Different perspectives of the Wondermar “Future Scenarios”

Conclusion

Open discussion


ee--SCMSCM final final countdowncountdown??

1995 2000 2002 2005 2010

Visibility

SMM 2000

Technologystart

Normality

Valley of Tears

Consolidation

„Into a new World“

„ Disappears quickerthan a dot.com company“

(Hyundai Car Advert)

„ It is time for aNew Positioning

and a Future Strategy“

Shipbuildingacceptance


PositioningPositioning

Is there an ultimative e-SCM solution?

Numerous, Different and Heterogenous Business Processes!Different Interest of Participants!Fast Changing Technologies!

-> Even in „transparent and small“ shipbuilding many e-SCM solutions will exist in parallel!


vertical, pyramidal co-operation

Shipyard A Shipyard B, module factory1

2

3 - n

Supplier Subcontractor

Material Component SystemsManu -

facturingAssembly

EngineeringDesign


Material Component SystemsManu -

facturingAssembly

EngineeringDesign


Material Component SystemsManu-

facturingAssembly

EngineeringDesign



facturingAssembly

EngineeringDesign



facturingAssembly

EngineeringDesign

Horizontal co-operation

SupplySupply Chain Chain StructureStructure

E-SCM

E-SCM

E-Business


TheThe NeedNeed forfor StandardsStandards

MS OFFICEDesign Sys.

Doc, xls, pdf, drw...

Supplier ERP Systems

XML

Browser, Viewer

Doc, xls, pdf, drw...

MS OFFICEDesign Sys.

Buyer‘s module

Supplier‘s moduleMarine Industry e-Business Platform

Mars(MARS Interface)

Baan(BEMIS)

SAP(IDOC)

Prop. Sys.(Prop. Interface)

XMLIndustry Standard XML

Industry Standard XML


TheThe way way forwardforward

Technology will continue to improve, increasing theattractiveness of e-SCM solutions for commercialapplications.Acceptance with the customers will improve. Inter-organisational processes will become more into thefocus.The potential for productivity improvements is high.Search for sustainable solutions, involving the tradingpartnersIntegration of inter-company processes (e-SCM) lead to sustainable customer-supplier relations



WONDERMAR Future Scenarios: Supply Chain Logistics

IT-VendorsTechnology, Market

StandardsInteroperability,

Integration

Ship Owners, Class SocietiesShipyards, Suppliers

Requirements

ConsultingScience

Vision, Feasibility


Ideas behind the future scenariosIdeas behind the future scenarios

Address important problems in the maritime supply chainDefine an ideal way of working to be reached within the medium and long term futureIdentify skills and functionalities needed to implement this scenariosAnalyse todays’ state of the art as well as the way shipyards and suppliers workFind gaps in the IT supportDefine levels of implementation depending on different types of companiesPredict costs and benefits of the implementation levels


TheThe way way towardstowards thethe futurefuture

Situation20xx

Situation today

Directio

n of imple

mentat

ionDire

ction of

view

Situation20xx


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– The problemThe problem

During design and engineering a large number of standard components is used that could be ordered directly without involving the purchase department

A lot of communication between purchase and engineering departments is needed, especially on large yards

This process could be simplified


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– Solution?Solution?

Designer can order components from a catalogue during the design process

Catalogue directly integrated into the design and engineering systems

Collect such orders and automatically send them to the suppliers

Make purchasing more direct


Future Future scenarioscenario „„OrderingOrdering in in thethe designdesign phasephase““

Design

Purchasing

Suppliers

Catalogue of products

Order info

Frame contract

Product informaton

Order data

Catalogue


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– RequirementsRequirements

Different organisation of the purchasing processInterdisciplinary teams from both departmentsAssignment of new responsibilitiesList of products to be handled in this way has to be preparedCatalogues that can be used from inside the CAD and functional design systemIntegration of purchasing and technical dataSupport of the pre-selection processInterface to purchase department for organising the actual order


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– Skills neededSkills needed

Engineers and purchasers need an understanding of each others job

They must be willing to give up responsibilities to a certain extent

The processes must be adaptable to suit the requirements

Software tools involved need to offer the required interfaces


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– Implementation levelsImplementation levels

Improve employees’ skills

Extend design and engineering tools by interfaces to Internet catalogues

Change business processes to enable designers to order and to support purchase department in maintaining such tools

Connect design systems with purchasing software

Develop unified user interface

Define sub-catalogue with products to be ordered


Scenario “Ordering in the design phase” Scenario “Ordering in the design phase” –– Process improvementsProcess improvements

Order process could be initiated earlier, leading to better planning and availability of components

Ordering of components initiated during early design

Purchasers could concentrate on the ordering framework

Shorter and faster process chain

Scenario might also be used for the quotation process for largercomponents


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– The problemThe problem

Purchasing requires communication between different departments and with external companiesLarge amounts of data have to be exchangedDifferent media are in use

PaperProprietary filesOnline connections

No integration between the software tools in useData conversion causes loss of informationDifficulties to get the information required


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– Solution?Solution?

Fully integrated online quoting, ordering and deliveryGenerating RFQs, and orders by means of online messages in a standard formatIntegrate internal supplier and yard systems into the purchasing processImprove data exchange

Avoid paper documentsReduce data conversion processesAvoid loss of data during data conversion

Access to technical informationSimulation of systems depending on chosen components


Future Future scenarioscenario „„Virtual purchasing” Virtual purchasing”

Simulation

Purchasing

Delivery

SupplierCustomer


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– RequirementsRequirements

Provide better functionality than currently available purchasingsolutions

Full integration of all tools involved

Makers lists must be available onlineinternal (yard specific)external (customer specific)

Security must be guaranteed


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– Requirements (cont.)Requirements (cont.)

Easy integration of new partners (suppliers, yards, owners, class societies)

Completeness of information providedTechnicalPurchasing

Support purchasing simulation


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– Skills neededSkills needed

Availability of purchasing system access to all purchasers

Purchasing must be closely integrated with design and production

Simulation skills

Interfaces between design, engineering and purchasing applications

Digital signatures


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– Implementation levelsImplementation levels

Introduce WWW-based purchasing systems

Integrate these systems with existing company tools

Change all purchasing processes towards WWW-based ones

Implement digital signature

Introduce purchasing simulationProduction planningFunction


Scenario “Virtual purchasing” Scenario “Virtual purchasing” –– Process improvementsProcess improvements

Shorter lead timesLess misunderstandingsDirect import of order information into delivery and storage systemsNo media breaks in data transferFull integration of business, product and logistic dataShow consequences of component selection by means of simulation


ConclusionConclusion

Most of the functionality presented could be realisedtoday

Technology availableDifferent tools have to be combined

Changes in the organisation required

Major gapsSimulationStandardsIntegration from users point of view


Conclusion (cont.)Conclusion (cont.)

The Wondermar II expert group „Supply Chain and Logistics“ has identified a first set of future scenarios.

These scenarios are not only to be seen as achievablegoals but also as landmarks for further development.

The scenarios will be detailed and published on www.wondermar.net in April 2003.

You are welcome to contribute!


Open discussionOpen discussion

What do YOU think?


Scenario “Full digital certificate handling”Scenario “Full digital certificate handling”

Material certificates are generated digitally and exchanged online between class society, supplier and yard

Requirements from the yard: Immediate access to certificates for material and componentsLossless data transferIntegration into engineering and purchasing applicationsSecure data transmission -> Digital signature


Scenario “Full digital certificate handling” (cont.)Scenario “Full digital certificate handling” (cont.)

Process: Class society generates XML document according to a given standard, document is distributed by means of EDI mechanisms

Benefit: Avoiding paper transfer speeds up communication, less transmission errors, better availability due to pull instead of push principle

State-of-the-art: Certificates are generated as paper documents and transferred on the traditional way, long delays and the need to manually insert the data into the software systems


Scenario “Virtual marketing”Scenario “Virtual marketing”

FunctionalityProvide information about material and components for the maritime industry onlineSupport supplier benchmarking, selection and product presentation via the webOffer products via different types of platformsProvide product data in standard formatsSupport online requests for quoteProduct comparisons based on design requirementsCreate integrated platform with defined interfaces to enable suppliers to joinInterface with purchasing systems


Scenario “Virtual marketing” (cont.)Scenario “Virtual marketing” (cont.)

RequirementsGlobal platform for presentation of product informationData exchange standard

RealisationSpecify marketing portal modules

product presentationproduct comparisonsupplier informationsupplier benchmarkingsupplier selectionrequest for quote module

contact to suppliersauctioning

Specify interfaces to related systemsImplementation


Scenario “Virtual marketing” (cont.)Scenario “Virtual marketing” (cont.)

BenefitsIdentification and comparison of suppliers according to individual criteriaSuppliers can offer their products to new customersProduct identification could be supported by “intelligent” cataloguesRanking and suggestions of suitable productsProvide another marketing channel for suppliersSearching even for suppliers not registered in the system (via WWW search)Accessing configurators in company ERP systems


Business Business ProcessesProcesses

Product Development and CertificationSupplier Classification



Product Development and Certification

Product MarketingSupplier

Shipyard

Owner




Product Marketing

Ship Engineering and DesignShipyard Supplier




Product Marketing

Ship Engineering and Design

PurchasingShipyard Supplier




Product Marketing


Purchasing

Delivery/LogisticsSupplier

Shipyard

Owner




Product Marketing


Purchasing

Delivery/Logistics

Assembly, Testing and ApprovalSupplier

Shipyard

Owner

Subcontr.


EE--Business InitiativesBusiness Initiatives

E-businessSolutions

Design Sytem

Branch„Hybrid“

Shipyards„Buyers“

Suppliers„Sellers“

GoingConcern National

Asso-ciation

GenericMarket Place

Legacy System

Tribon

Mars, SAPInternet Interfaces

Shipserv, MTSSeaQuipment

vdma-e-market

ec4ec

Filtraguide

E-euroship, SYX

ZohakuWeb


Who‘sWho‘s in in thethe driverseatdriverseat ??

SupplierWebsites/Portals

(Big Suppliers,Consortia, Associations)

ShipyardPurchasing Platforms

(Consortia)

Con

cent

rate

dFr

agm

ente

d

Fragmented Concentrated

Marine IndustrySupply Chains

(Mature EDI supportedpurchasing and logistics,

Integrated Portals and MP‘s)

Single and GenericMarketplaces

(Single Suppliers,Few Interest Groupings,

Independent Portals)

.com.com.com.com

.com.com.com.com

.com.com.com.com

.com.com.com.com

Buyers - Shipyards/Operators

Selle

rsSu

pplie

rs/S

ubco

ntra

ctor

s

.com.com

.com.com.com

.com.com.com



WONDERMARFuture Scenarios

SupplyChainLogistics


InternetPortal

EE--SCM MigrationSCM Migration

Supplier

CustomerCustomer Customer

Marketing

Catalogue

Dynamic Catalogue

Website

Supplier

Marketing

Catalogue

Dynamic Catalogue

Website

Supplier

Marketing

Catalogue

Dynamic Catalogue

Website

E-Marketplace

▲Handling/Logistics▲ Operational Contract Handling▲ Logistics▲ Payment

Serviceportal

▲Informationservices▲Traded Goods, Suppliers▲Selection and Configuration▲Purchasing Conditions

▲Agreement Support Services▲ Selection of Trading Partners▲ Amount, Dates, Prices▲ Selection Procedures, Suppliers

Evaluation, Benchmarking▲ Pricing Procedures Auctions

▲Service-Functions▲ After Sales Services▲ Installation, Testing▲ Guaranty, Maintenance▲ Repairservices




Product Marketing


Purchasing

Delivery/Logistics

Assembly, Testing and Approval

Guarantee, After Sales Service, Maintenance and Repair Supplier

Shipyard

Owner

Subcontr.

Expert Group - Dialogue on Supply Chain Future Scenario

Documents

Transcript of Expert Group - Dialogue on Supply Chain Future Scenario