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……

End