Paolo Paganelli Gruppo Formula S.p.A., Italy

1. Workshop on Information Society TechnologiesApplied to Transport and TourismBrussels, 23rd May 2000Web Infrastructures for Logistic Networks The FLUENT Project Paolo Paganelli Gruppo Formula S.p.A., Italy

2. FLUENT: Flow-oriented Logistics Upgrade for Enterprise NeTworks • Esprit IiM Project 29088 • 9 months from completion Objective To design, implement and experiment a new IT solutionfor managing materials flows,occurring in a logistic network with multiple plants and co-operating firms. • Focus on logistics vs. manufacturing • Network approach • Distributed sites • Multi enterprise • Heterogeneous information systems

3. Linear supply chain(source: SCP vendor) Enterprise Interenterprise visibility (source: Gartner Group) Two definitions for Supply Chain Supply Chain Management is about managing the flow of products and services and the associated information, across the whole business system to maximise value to the end consumer. Price Waterhouse (‘98) For a start, the supply “chain” is really not a chain at all - it is a complicated web of relationships between demand and supply. The concurrent and multidimensional nature of these relationships creates a complex fabric woven step by step.Gartner Group (‘98)

4. FLUENT vision • Network visibility “.. the ability to see processes, events and data throughout the trading partner community.” • Network velocity “.. the speed at which products, processes and data move through the supply chain.” • Network variability “.. the ability to manage the unique combinations of SCM processes and control the infinite permutations of events and processes as they occur throughout the supply chain.” • Across enterprise boundaries “ Creating a revenue-enhancing SCM strategy requires enterprises to work toward the primary definition of collaboration, where enterprises act together for mutual benefit.”

5. FLUENT vision • Real-time collaboration “Throughout the supply chain, closer collaboration is replacing arm’s length transactions..” • Connect nodes, notassimilate them "Just as Esperanto has failed to become the universal language, we believe universal data semantics and process models for business will remain a fantasy.." • Integrate but not overlap with ERP “(a SCM producer) larger challenge continues to be its lack of a clearly differentiated message vs. Enterprise Resource Planning vendors targeting the SCP market.”

6. “Agile” SCM = SCP + SCE SCM today: evolving goals

7. SCP / APS: i2, Manugistics, Adexa, .. FLUENT ERP world-class: SAP (APO), JDE (Numetrix), .. SCM today: Largely incomplete functional coverage

8. FLUENT

9. SCP vs. SCE

10. Supply Chain Inventory Visibility: An unfulfilled promise

11. FLUENT E-commerce impact on business: SCM is not an option Real-time intranet/extranet communications

12. SCMProcesses Forecast Planning SCM data Forecast Forecast XML Local ERP Local ERP Planning Planning Network Supply Chain Links Non-ERPLogistic execution Local ERP FLUENT functions Network Execution • Demand evasion cycle • Alert system for exceptions notification • Workflow-based Network Visibility • Real-time access to different nodes data • Data normalisation and conversion across nodes (codes, units, ..) • Clear data ownership and visibility rules Forecasting & Performance Measurement Supply Chain Planning Network Modelling • Configurable links (push/pull, visibility, ordering rules,..) • Different viewpoints on the net (by node, product, channel, …) Supply ChainVisibility & Execution Node Planning & Execution ERP Interface • Data interchange across heterogeneous systems • Based on the XML standard • Scriptable transformation logic SCM = An integrated environment for sharing data, communicating events and taking decisions in a network of independent logistics units

13. Manufacturing Cooperation • On-line delivery plan management • Order change/release cycle • Notification of order status/exceptions Co-Managed Inventory • Visibility of planned and actual demand at any node • Allocation of planned production • Replenishment cycle FLUENT Extranet Forecast SCMProcesses Planning Forecast SCM data Planning Planning Local ERP Local ERP XML Network Legacy Logistics Local ERP Supply Chain Links Virtual Stock Management • Warehouses/distributors network • Collection of customers demand • Consolidation and corss-docking Application scenarios

14. Wholesaler Custom. Visibility, Execution Planning Custom. ERP2 Manufacturer or distributor Wholesaler Custom. ERP3 Custom. Custom. ERP1 Subsidiary Visibility, Execution Visibility, Execution Custom. Visibility Demand Stock levels, Custom. orders Orders Production, Inventory, Movements Availability, Order status, Shipments Availability, Shipments status Example: Co-managed Inventory

15. Verify availability Publish Demand Publish order status Example: Co-managed Inventory Wholesaler Custom. Custom. Manufacturer or distributor Wholesaler Custom. Custom. Custom. Subsidiary Visibility, Execution Custom.

16. Advantages • On-line access to SCM data • From every point of the network • According to existing links and rights • Aggregated on more nodes • In the viewing node format or in the original format • Inter-company processes • Notification of demand • Orders negotiation • Alerts in the execution phase • Workflow automation Wholesaler Custom. • Decentralised system • Each node is responsible for (pays for) its own data • Preservation of existing local standards (product codes, units, currency,..) Custom. • Interface to existing systems • Different ERPs (Formula,SAP,Baan ..) • Legacy systems and other tools • Transport-independent (XML) • Calling conventions independent • Scriptable conversion logic Manufacturer or distributor Wholesaler Custom. Custom. Custom. Subsidiary Visibility, Execution Custom.

17. Thank you for your attention