Networked Supply Chain Management

Transcription

1 1 Networked Supply Chain Management Session 2

2 Agenda Supply-Chain Management Opportunities and Challenges Technology Choices and Solutions Cisco Case Study Emerging Industry Exchanges Next Steps 3 The -Enabled Enterprise Channel/Distribution Partners Customer Care E-Commerce Business Engaged Enterprise Supply Chain Management Customer Workforce Optimization E-Learning Suppliers/ Manufacturers Employees 4

3 Why Supply Chain Management? Increasing customer demands Measured on responsiveness Expectation of high, consistent quality Mass customization Globalization of competition Broadening of global markets Emergence of new competitors Scale for growth Rising development costs Compressed product lifecycle Need dramatic cost reduction Need to return to core competency Rapid development cycle To survive in the economy enterprises need to extend processes to create a virtual extended enterprise 5 The Extended Enterprise Product Service Depot Inventory, Versions, Demand Message Business Engaged Enterprise Order Fulfillment Order Commit, Demand, Planning, Build, Ship, Pay Order Customer Product Life Cycle Design, Release, Change, Retire Suppliers/ Manufacturers 6

4 We estimate that supply-chain planning vendor revenue will top $3.6 billion, triple today s current revenue, by 2002 By 2004, 90% of enterprises that fail to apply SCM technology and processes will lose preferred supplier status. Supply-Chain Management Growth Gartner, ITxpo 99 Enterprises plan to increase their extranets by 41% over the next two years. Forrester Research Inc 99 7 SCM Example: TSMC and Adaptec Process integration with Extricity, SAP multiple automated processes: Purchase Order/Acknowledgement WIP Update Ship Notification Demand Forecast Engineering Design and Test Results: Increased customer loyalty Reduced product lead times 14 Times ROI over three-year period 8

5 Modes of Networking and Collaboration Private Network (FR, ISDN, Leased Line, xdsl, Cable) VAN Dialup/EDI Application Integration Data Exchange Your Browser/ XML/EDI Access IP VPN Marketplaces Browser/ XML Process Sharing 9 How Do You Connect With Your Extranet Partners Today? Frame Relay Leased Line Public Public (VPN) Dialup/ISDN Carrier IP (IP/VPN) ATM 6% 34% 34% 28% 28% 26% 50% Survey of 50 Global 2500 Companies Source: Forrester Research Inc Nov 99 10

6 Business Requirements Drive Connectivity Solution Business process Integration No. of business partners Mission criticality Relationship flexibility Cost sensitivity High Availability Scalability Security Network Solutions Typically Companies Choose More Than One Solution Cost QoS Flexibility Access Private Network EDI/ VAN IP VPN Exchanges 11 Private Network Your Application Integration 56 kbps Router Front-End ISDN Frame Relay Strategic set of suppliers/partners Limited scalability due to cost Router Router High level of control (security, performance) Access Process Sharing 12

7 Your Private Network: Security Cisco Secure PIX Firewall Cisco Secure Access Control Server Firewalls for protecting confidential internal resources 56 kbps Router ISDN Frame Relay Authentication, authorization for preventing unauthorized user access Router Router PIX Firewall Partner Network Password/ Token Cisco Secure Integrated Firewall 13 Cost of Supply-Chain Downtime Application ERP Supply Chain Mgmt. E-Commerce Banking Customer Service Center Electronic Funds Transfer Messaging Cost per Minute $13,000 $11,000 $10,000 $7,000 $3,700 $3,500 $1,000 Survey of 250 Fortune 1000 Companies Source: The Standish Group 14

8 Private Network: High Availability WAN -SP2 WAN- SP1 ISDN Partners Fast convergence around failures Network device redundancy and resiliency Dual homing to service providers SLA monitoring 15 Your Virtual Private Networks Application Integration IP VPN Process Sharing Servers Scalable Affordable IP VPN service can provide improved SLA VPN Client 16

9 Your Virtual Private Networks: Security Message Digital Certificate Certificate Authority IP VPN Message Digital Certificate Application Integration Process Sharing Authentication: Digital Certificates, Shared Keys Privacy: Virtual Private Networks, IPSec VPN Client 17 Your Virtual Private Networks: Integrated Solution Cisco Secure PIX Firewall Cisco 7100 IP VPN Cisco 1720 Cisco 2600 Application Integration Process Sharing Integrated routing, VPN, firewall, QoS and IPSec support Cisco IOS software Release

10 Your Centralized VPN Client Scalability and Management VPN 3000 Concentrator PPTP/IPSec/L2TP Digital certificate authentication Cisco 7100 IP VPN -Based Management Multiple VPN Clients Support for 1000 s of client sessions Client autoconfigured with user authentication Centrally defined policy-based network access 19 Your Dialup to Value-Added Network EDI Electric Data Interchange X12/EDIFACT Data Exchange over VANs 9.6 kbps Dialup VAN 9.6 kbps Partner A Partner B Partner s EDI System Purchasing System EDI Translator Standard document Non-repudiation Non-real-time Partner C Too expensive for smaller suppliers 20

11 Access and EDI over the Your EDI over Partner A Access EDI Servers EDI to Portal Partner B Cost effective for all suppliers and partners Limited integration 21 -Access Scalability Your EDI over Cisco 7200 Partner A Access EDI Catalyst 6500 Servers LocalDirector EDI to Portal Partner B Server Load Balancing (SLB) scalable web access LocalDirector, Integrated SLB 22

12 -Access Security Policy Manager Cisco Secure PIX Firewall Hacker Partner A EDI over Access EDI Catalyst 6500 LocalDirector Partner B Servers EDI to Portal Perimeter Security Firewalls 23 -Access Security Policy Manager Secure Intrusion Detection Server EDI over Partner A Update Policy Access EDI Catalyst 6500 LocalDirector Partner B Servers EDI to Portal Intrusion Detection Security Policy Management 24

13 -Access Availability Your PIX ISP 2 Access EDI Servers Catalyst 6500 LocalDirector ISP 1 Load balancing across ISP s, network and servers Fast automatic fail-over transparent to user HSRP, fast spanning tree, stateful failover Maximize server availability Supplier 25 High Availability Across the Stack Network Applications Databases Enterprise Storage Infrastructure Minimizing planned and unplanned downtime Distributed intelligence Fast convergence Load balancing/ redundancy Robust hardware and software Best practices 26

14 Partnering for Highly Available E-Business Back-End and Middle-Tier Enterprise Storage Database Cluster Oracle Parallel Server Oracle8i Front-End Access Network Cache Engine Catalyst Switch PIX Firewall Distributed Director Cisco Router Partner/ Customer EMC Symmetrix Connectrix Celerra Powerpath TimeFinder SRDF Oracle Application Server Application Servers Local Director Servers 27 High Availability Foundation Back-End and Middle-Tier Enterprise Storage Database Cluster Front-End Access Network Partner/ Customer ISP 1 ISP 2 Backup Application Servers Servers 28

15 Network Solutions Benefits Summary Business Flexibility Process Integration Scalability Reliability Security Cost Latency Private Network VPN VAN Good Poor 29 Cisco Case Study Problem: Scale through dramatic growth Increased product volume and complexity Higher customer expectation for delivery Solution: Partnerships between key suppliers and functions in Cisco Results: $175M annual savings $269M revenue contribution 56% product outsourced >90% factories are partner owned 45% reduction in supply chain inventories 30

16 Elements of Cisco s Supply-Chain Customer Cisco Connection Online (CCO) CCO Message Order Manufacturing Connection Online (MCO) Suppliers Single Enterprise Autotest Order Entry Planning Dynamic Replenishment Manufacturing Connection On-line Direct Fulfillment Product Data Procurement Business Systems Autotest Control Extranet Shipping Management System Production System Autotest cell Global Manufacturers 31 Cisco s Partner Network ERP/PDM Servers EDI Servers Cisco HQ San Jose, CA Frame Relay Service Provider 2 Frame Relay Service Provider 1 ISDN VAN Platinum Manufacturers Suppliers Gold Suppliers Silver Suppliers and Vendors /EDI VPN EDI Partners 32

17 Emerging Industry Exchanges Customer Enterprises Partner Customer Care E-Commerce Supply Chain Management Buyer Flexibility Industry Exchange Hosted Application Scalability to support all-tiers New applications Procurement Supplier Partner 33 Industry Exchange Applications Real-time visibility Collaborative planning Build-to-order Optimized inventory A Multitier, Integrated Supply Chain Collaborative Product Development Exchanges E-Enabled, Dynamic Trading Communities On-line development Collaborative design Interactive scheduling Auctions, RFQs Consortium buying Liquid market for surplus Catalog purchasing 34

18 Industry Exchange Predictions 10,000 B2B exchanges by 2003 (source: Gartner) $7.29 trillion in B2B commerce by 2004 (source: Gartner) 250 million business users procuring over the by 2003 (source: IDC) 40% of B2B will be captured by B2B exchanges by 2004 (source: B2B Exchanges ) 35 Industry Exchanges Today 1st B2B E-Marketplace in Belgium Multi-Billion-Dollar B2B Venture Retail s First Worldwide Online Supply Marketplace 36

19 Industry Exchange Datacenter Customers Buy Order Status Datacenter Exchange Host Exchange Operators Supply Chain Partners Industry Exchange Reverse Auctions Datacenter Suppliers Secure, Guaranteed Delivery of Messages and Transactions 37 Industry Exchange Infrastructure Requirements Exchanges Behave Like Public Utilities Available During Local Disasters Disaster Protection Infrastructure Requirements High Availability Downtime Effects Whole Industry Meet Unlimited User Volume Scalability Security Highly Confidential Information 38

20 What s Next Attend other related Networkers presentations: E-Commerce Introduction to VPNs Advanced Topics in Enterprise VPN s and PKI VPN Product Update Understand your supply-chain business goals Engage Cisco and ecosystem partners Develop networking strategy and choose appropriate infrastructure(s) 39 Networked Supply Chain Management Session 40

21 Please Complete Your Evaluation Form Session 41 42