G ökçe B. Laleci Ertürkmen SRDC Ltd. Turkey

1. iSURF -An Interoperability Service Utility for Collaborative Supply Chain Planning across Multiple Domains Gökçe B. Laleci Ertürkmen SRDC Ltd. Turkey

2. iSURF Project • Consortium • FP7 Objective ICT-2007-1.3: ICT in support of the networked enterprise • Project Officer: Cristina Martinez • Duration: 30 Months, Start: 01/02/2008 • iSURF Contact Details: • Prof. Dr. Asuman Dogac, Coordinator, asuman@srdc.metu.edu.tr • http://www.isurfproject.eu/

3. Motivation, problem area • SMEs, should be more agile, self-sustainable and responsive to the changes in the supply chain • should be also addressed by the entire chain jointly • The supply chain partners should collaborate more effectively realizing the “the network is the business” vision • The distributed intelligence of multiple trading partners needs to be collaboratively exploited in the planning and fulfillment of customer demand in the supply chain • Knowledge is the main instrument to drive and support collaboration

4. Research Objectives • Do the European companies especially SMEs have the necessary infrastructure ready to collect the real-time supply chain visibility data • iSURF open Smart product Infrastructure • Are supply chain collaboration processes ready to be deployed in integration to existing enterprise legacy systems? • iSURF Service Oriented Collaborative Supply Chain Planning Process Definition and Execution Platform • Is there a standard representation model for exchanging planning data across multiple domains? • iSURF Semantic Interoperability Service Utility • Do we have necessary infrastructure to enable dynamic transient supply chain relationships to let the European SMEs be agile and ready to react changing requirements of the supply chain? • iSURF Global Data Synchronization and Transitory Collaboration Service Utility

5. Research approach, Methodology

6. iSURF open Smart Product Infrastructure for SMEs

7. iSURF open Smart Product Infrastructure for SMEs

8. Service Oriented Collaborative Supply Chain Planning Process Definition and Execution Platform • Collaborative Planning, Forecast and Replenishment (CPFR) Guidelines • By VICS (Voluntary Inter-industry Commerce Standard) • A reference model providing a general framework for the collaborative aspects of planning, forecasting and replenishment processes • formalizes the processes between two trading partners used to agree upon a joint plan and forecast, monitor success through replenishment, and recognize and respond to any exceptions • Regularizes efficient exchange of forecast data • Advantages • Reduced forecast error • Increased sales • Shorter replenishment lead times • Visibility into consumer buying trends / patterns

9. Collect/analyze POS data • Identify planned events (promotions, holidays) • New products/changes • Inventory strategies • DC Withdrawals • Capacity limitations • Manufacturer’s historical demands/shipments • Item management data

10. Successful CPFR Applications • Based on “Euopean CPFR Insights” report • Pilot applications for Collaborative planning • Condis, Delhaize, Elgeka, Eqos, Heinz, Hellas Spar Veropoulos, Henkel, JDA, Johnson &Johnson, Ketjuetu, Kimberley-Clark, Kraft, Marks & Spencer, Masterfoods, Nestlé, ONIA-NET, Procter & Gamble, SCA, Superdrug, Syncra • involved companies in collaborative planning activities achieved 15% increase in forecast accuracy, reduced their inventory by 13.3% whilst increasing on-shelf availability by 7% • eChO project of STMicroElectronics aiming to optimize the supply chain planning, • inventory levels have dropped from four weeks to two weeks for both ST and its trading partners • contract costs were reduced by 50 percent, and 80 percent of all manual transactions were eliminated

11. Disadvantages of CPFR • Deployment of CPFR processes within a supply chain consortium is too costly and labor intensive • A lot of optionalities, many different realizations of the process possible • iSURF will provide CPFR building blocks for binary collaborations • Collaboration processes can be created graphically reusing these building blocks • CPFR does not mandate the messaging standards to be used in the collaboration process Hampers the scale of CPFR processes • iSURF will support CPFR through Interoperability Service Utility • CPFR is technology independent: • It does not provide any guidelines on how the internal planning processes mostly implemented by legacy enterprise planning systems will be integrated with the joint CPFR collaboration process • iSURF will enable integration with Legacy Application through SOA

13. Configures Configures Configures Retailers Distributors Manufacturers Creates multiple executable BPEL Definition Enables SMEs to graphically design their CPFR Process Collaborative Business Process Design Tool Collaborative Business Process Execution & Monitoring Tool Collaboration Business Process in ebBP SOA based Legacy Migration Tool Interoperability Service Utility GDSSU and Transitory Collaboration OAGIS GS1 Proprietary Enhanced exception Handling Enables integration with Legacy Systems Enables consumption of diverse message standards

14. iSURF Semantic Interoperability Service Utility • Various standard initiatives addressing the standardization of communication in exchanging the supply chain planning information in different domains • RosettaNet, OAGIS, CIDX, GS1 eCOM (including GS1 EANCOM EDI messages and GS1 BMS XML messages) • When companies involving in more than one supply chain need to exchange this planning information across multiple domains, we face an interoperability problem to be addressed

15. UN/CEFACT Core Components Technical Specification Traditionally, standards for the exchange of business data have been focused on static message definitions that have not enabled a sufficient degree of interoperability or flexibility A more flexible and interoperable way of standardizing Business Semantics is required The Core Components methodology provides a way to identify, capture and maximize the re-use of business information to support and enhance information interoperability across multiple business situations All semantic standardization is done in a syntax-neutral fashion Problem UN/CEFACT Core Components Library (CCL) 07A Universal Business Language (UBL) 2.0 Open Applications Group Integration Specification (OAGIS) 9.0 Global Standards One (GS1) XML All of them use CCTS differently!! Results in different schemas for nearly same information content Degregates interoperability

16. Interoperability Problem

17. iSURF Semantic Interoperability Service Utility

18. iSURF Semantic Interoperability Service Utility

19. iSURF Semantic Interoperability Service Utility

20. Example & Heuristic Rules Heuristic Rules are defined to semantically equivalent but structurally different schemas

21. Methodology R U L E S Source OWL Instance Target/Source XSD Document Schemas Upper Ontologies Harmonized Ontology Equality Relations Subsumption Relations Knowledge Base Rule Engine & Reasoner Source XML Instance Target XML Instance XSLT Definition DATA LEVEL KNOWLEDGE LEVEL DATA LEVEL

22. iSURF Contribution to Standards • OASIS Semantic Support for Electronic Business Document Interoperability (SET) Technical Committee • http://www.oasis-open.org/committees/tc_home.php?wg_abbrev=set • Requirements for Semantic Support for Electronic Business Document Interoperability • Draft Deliverable for Semantic Support for Electronic Business Document Interoperability • The SET XSD-OWL tool converts a CCTS based document schema into OASIS SET TC OWL Definition and is publicly available from http://www.srdc.metu.edu.tr/iSURF/OASIS-SET-TC/tools/OASISSET.zip

23. iSURF Semantic Interoperability Service Utility – Legacy Interface

24. iSURF Global Data Synchronization and Transitory Collaboration Service Utility • A semantic infrastructure • Facilitate establishing transitory supply chain planning collaborations in case of exceptions • Allow the registration, discovery and negotiation of partner’s current trade interests and availability information and their reputation in trusted relationships. • Trading partners can dynamically discover matching trading partners for a specific need within a trusted environment • The Global Data Synchronization Network (GDSN) will be exploited • A network that connects data pools, which are regional sources of manufacturer and retailer data, to the GS1 Global Registry • The GS1 Global Registry lets companies locate source (manufacturer) or recipient (retailer) data pools so data is standardized and synchronized for trading partners on a near real-time basis

25. Piacenza Overall Architecture POS Data, Inventory Status CPFR messages….c Exception Notification Retailer Real time visibility data Smart Product Module Order Forecast, Sales Forecast ISU New Partner Search Transitory Collaboration SU

26. Overall Architecture Exception Notification CPFR Execution Transitory Collaboration SU GDSSU Partner Search Initiate Negotiation Negotiation Design new CPP CPFR Designer

27. iSURF Pilot Application • The Fratelli Piacenza iSURF pilot application aims • Demonstrating how iSURF solutions facilitate collaboration in the cross-sector (chemical sector, textile sector, apparel sector, retail sector and recycling sector) textile clothing supply chain • Demonstrating how product identification techniques integrated with collaborative planning tools could dramatically improve the efficiency and the effectiveness of this supply chain • Piacenza will be the coordinating actor in supply chain planning environment composed of Piacenza and its supplier SME network

28. http://www.isurfproject.eu/Thank you for your attention Dr. Gokce B. Laleci SRDC