Supplier and Customer Relationship Management

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Supplier and Customer Relationship Management
2
Transactions in a Supply-Chain
Linear Flows
Non-linear flows can be enabled by the Internet
technology
3
Collaboration in future supply chains
4
Demand-supply chain order penetration point
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Process Misalignments

• Information content and format
• Information items may be buyer and/or vendor
  specific
• Purchasing constraints of buyers may differ
• Product change notification not up-to-date
• Reduced information transparency and bullwhip
  effect
• Lot size mismatch between buyer and seller
• Unsynchronized production and promotion schedules
  
• Process reengineering by partners (e.g.
  re-sequencing for delayed differentiation)
  (Benetton)
• Unnecessary hand offs
• Procuring lots of assembly parts or procuring the
  product assembled by suppliers in a sequence (Li
  and Fung)
• Parts assembled in transit vs. parts assembled by
  the manufacturer (Dell)

6
Modes of Collaboration

• Information Sharing
• Coordinated planning
• Conflict Resolution
• Real time execution

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Information Exchange

• Catalogs, terms of transactions, customer
  preferences, promotions
• Data conversion to standard format
• Bilateral standards (m x n)
• Information hub (m n)
• Specification of message to be exchanged
• Purchase order schema, content
• Specification of transport and receiving points
• Specification of Security
• Signature, authentication
• Specification of exchange behavior among parties
• Operation sequence, timing constraint

cust
Dist
Hub
suppl
3PL
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Shared-information categories

• Inventory status
• Fritz who manages Apples warehouse provides
  visibility of its inventory pipeline to Apple.
• Sales
• Sharing point-of-sales (POS) data by retail
  stores (PG, IBM, HP)
• Order status for tracking
• UPSs Host Access System for order tracking
• Demand/sales forecast
• Sun, HP, and TI share their forecasts with
  suppliers
• Production/delivery schedule
• Component manufacturers share production
  schedules with Motorola

9
Coordinated Planning

• Information Visibility
• Adaptec based in California (data transfer
  products) and TSMC based in Taiwan (fabricated
  microchips)
• Adaptec forecasts, and TSMCs WIP data are made
  visible to each other
• Conflict resolution
• Orders synchronized with suppliers production
  plan
• Trading partner agreement
• Early identification of conflicts
• Ciscos intelligent planning software

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Process Sharing

• Event based triggers
• On receiving an order assembler triggers two
  processes
• ship to customer
• assemble the next unit
• Assembly process triggers component delivery from
  the supplier
• Supplier triggers shipment to assembler and
  manufacture of a replacement part
• Run partners business processes (a set of
  applications) for information extraction
• Public/Private Processes

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Network Management

• Partners business processes may differ
• orders placement, logistics, payment
• Split orders and allocate to partners
• Information on returns, new products, and
  inventory must be routed to appropriate partners
• Distributed entities must be synchronized to work
  off the same information
• Select partners based on capability and
  availability
• Negotiate commitments and remuneration
• Coordinate service delivery
• Resolve execution problems

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CPFR Process Model
http//www.cpfr.org/
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CPFR scenarios
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What is CPC?

• Enables a unified view of product and its
  components (multiple suppliers)
• Visualization of assembly and part-fit by
  electronically manipulating them
• Requires application interoperability
• Capability for finding, and using information.
• Customer value is created by making the right
  product available at the right time and right
  price
• Supplier value is created by making the product
  visible throughout the design process

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CPC Components

• PDM
• BOM, and workflow data
• Visualization
• Viewing of parts/assemblies from different CAD
  systems
• Virtual product development (configuration)
• Decision support based on simulation of product
  content
• Sourcing applications (supplier collaboration)
• Identification of parts and their suppliers
• Voice of customer (customer collaboration)
• Project management software
• Application coordinator
• Design portals

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Design Process Management

• Manage modifications
• Many design changes requiring modifications to
  the engineering data packets
• PDM captures the changed data as they happen and
  it can recall them by the version of
  modification
• Manage flow of work
• Team members can share documents
• Can move work from one department to another for
  modification, reviews, and approval
• Keeps track of interrelated modifications
• Track the events and document movements
• Allows back-tracking to identify design problems

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Product Data Management

• Relationship between product-attribute data
• Relational database
• Product structure
• Records the relationship between assemblies and
  parts
• Classification
• Technique for easy access to a large volume of
  data sources
• Classes to suit business needs (3D models, spread
  sheets, drawings)
• Component to document (network) relationship is
  preserved.
• Data access paths
• Data access using different paths in the product
  structure configuration

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Visualization

• Visualization becomes a key factor in supporting
  engineering collaboration.
• Can create bill of material for various
  sections of the product
• Can calculate the geometric positions of
  components selected (e.g. body and wheels), and
  display them appropriately
• A highlighted component in the product structure
  is also highlighted in the viewer
• Can display an assembly, an individual component,
  or a multi-level bill of material
• Mockups and design documents can be exchanged
  with business partners using Web technologies
• Partners can provide instant visual feedback

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Configuration Management

• Part-status and specs of partners components are
  shared to avoid design iterations
• Simultaneous visibility of changes to all
  partners
• Identification and bundling of product-relevant
  data for distribution
• Coordination of project-management-data with
  product configuration (integration with other
  business processes)
• Support for simulation based design and analysis
  of product content

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Supplier Collaboration

• Enables designers to identify parts and their
  suppliers based on key characteristics
• Enables Mix-and-match of parts from different
  suppliers
• Enables component-based design to minimize the
  number of part types used
• Reduction in inventory, purchase cost
• Eliminate delays, caused by missing or incomplete
  information
• Improved negotiation with partners

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QFD
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CRM

• Customer transactions and inquiries may originate
  from several different channels
• Internet, e-mail, fax, telephone
• Same business rules must apply to all contacts
  and channels
• Information warehouse
• History of contacts accessible to all contact
  personnel
• Centralized infrastructure
• Real time information access across all channels,
  24/7
• Seamless integration of customer data
• Loan officers need access to product information,
  digitized voice messages, images of applications,
  credit reports
• Service customization

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Call center Operations
E-mail, fax, phone
Portal Database Search Application Interface
 
Incoming Customer Information
Search Portal for contact information name,
company, address, phone, e-mail
Is it a Document?
No
Yes
Review Contact History
Search Portal For order , Invoice, Shipment
New Activity or Conversation ?
Conversation
Record Follow-up Requirements
New Activity
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Integration of systems

• Legacy systems
• Extraction of data from old legacy system
• Computer telephone integration
• Consistent business logic in managing incoming
  calls
• Callers real time information is linked with
  history
• Data warehousing
• CRM requires that a large volume of data be
  organized
• Extracts and structures data from transaction
  systems
• Decision support technology
• Analytical and modeling tools for analyzing
  customer needs
• Decisions are based on accumulated relationship
  data