introduction to i2 supplier relationship management … · 2006-08-30 · introduction to i2...

Introduction to i2 Supplier Relationship Management (SRM)

Solutions

Introduction to i2 Supplier Introduction to i2 Supplier Relationship Management (SRM) Relationship Management (SRM)

SolutionsSolutions

Young-Suk BaikStrategic Consulting Group

i2 Technologies

Young-Suk BaikStrategic Consulting Group

i2 Technologies

© 2006 i2 Technologies, Inc. CONFIDENTIAL 22

Agenda

i2 Overview

SRM Definition and Process

i2 SRM Solutions and Case

Wrap-Up


회사연혁OverviewOverview

1988년미국 Dallas 에서설립

World leader in Supply Chain Management processes and technology

World business leaders run i2 software to drive supply chain productivityAMR기관이 2005년도선정한 Top 25 Supply Chain Leaders중21개기업은 i2 고객사

Solid customer base: 세계 1위의 SRM (Supplier Relationship Management) 솔루션업체

공급망최적화분야의 1위업체세계 1위의물류솔루션(TMS) 업체1,400개이상의고객사확보

회사조직

전세계 40개지역에지사및사무소운영각산업별특화된 IBU(Industry Business Unit) 운영

i2 Global HQ (Dallas, US)


i2 SRM 프로젝트수행경험국내외국내외프로젝트프로젝트


SRM의정의ItIt’’s all about Optimizing Spend to Align the Inbound Supply Chains all about Optimizing Spend to Align the Inbound Supply Chain

SRM SCM


SRM Process Focus

CSM – The Bridge between Design and Sourcing/Procurement or Manufacturing

Sourcing & Procurement

function

Product Development

function

Catalog Mgmt. (Parts, Commodities, Suppliers, Manufacturers)

Monitor Lifecycle

Spend/Cost

Balance Build & Supply(SCM)

Balance TTM, Risk,

Cost

Negotiate BOM

Qualify New

Suppliers

Align Design to

Supply

ReusePreferred

Parts

Establish Parts Catalog

Monitor Compliance & Performance

Execute Orders

(i2/ERP)

Manage Supply

Plan

Negotiate Sourcing

(RFQ)

Develop Bid

Package

Define SourcingStrategy

Analyze Spend

Establish Sourcing Catalog


High Level Strategic Sourcing Process

Global Sourcing Strategy

Commodity Planning Supplier Performance Mgmt

Spend & Demand Analysis

Procurement

Award & Compliance

2.4Supplier Collab.

(Negotiation

PLAN EXECUTE MONITORSTRATEGIZE

Supplier Strategy & Cost Targeting

Bid Analysis and Optimization

Allocation Planning


High Level Product Sourcing Process

PLAN EXECUTE MONITORSTRATEGIZE

Part/Supplier Classification &

Selection

Part/BOM Preference Mgmt

Part Change Analysis (Cost, Supply, etc)

Part/BOM Analysis for Reuse/Sourcing

Monitor Life Cycle Cost/Quality

BOM Production Sourcing

BOM Cost Management

Supplier Qualification and Dev. (RFI)


High Level CSM Process

1Cleanse

Data

2Cross-reference

Data

3Establish

Workflows

Item123AItm123AItem123AB

Item123

MPN123MPN123F

SPN123

ITEM123 Request

Purchasing

Comp Engr

Done

4Search and Evaluate

Based on item characteristics

Based on item category

Based on fuzzy text matching

Based related categories

5Act

• Add to Design• Target for Re-bidding• Phase Out• Raise Preference• Advise Heritage Systems• Alert Commodity Mgmt


i2 SRM Solution은 End-to-End 구매프로세스를지원함

Manage Supplier

Performance

Manage Supplier

Performance

Monitor Contracts & Compliance

Monitor Contracts & Compliance전략구매

구매실행 Supplier Collaboration

Supplier Collaboration

Execute Orders

Execute Orders

SupplierIntegrationSupplier

IntegrationSelect

Optimal Suppliers

Select Optimal

Suppliers

Evaluate Suppliers

& Bids

Evaluate Suppliers

& BidsConduct

NegotiationConduct

NegotiationDevelop Bid

PackageDevelop Bid

Package

UnderstandSupplyMarket

UnderstandSupplyMarket

ExecuteExecuteDefine

Sourcing Strategy

Define Sourcing Strategy

Analyze Spend,

Demand, Inventory

Analyze Spend,

Demand, InventoryStrategic Sourcing

(SS)

Monitor Program

Spend/Cost

Monitor Program

Spend/Cost

Adjust to SupplyMarket

Conditions

Adjust to SupplyMarket

Conditions

Balance Risk & Cost

Balance Risk & Cost

Align Design to Sourcing Strategy

Align Design to Sourcing Strategy

Qualify New Parts

& Suppliers

Qualify New Parts

& Suppliers

ReusePreferred

Parts

ReusePreferred

PartsManage Parts & Suppliers

Manage Parts & Suppliers개발구매

Product Sourcing(PS)

NegotiateProcurement

공급업체Performance 모니터링

공급업체Performance 모니터링

계약조건이행모니터링

계약조건이행모니터링

자매/부품/원가관리

자매/부품/원가관리

구매발주프로세스실행

구매발주프로세스실행

Align Design to Strategy


최적의공급업체선정

최적의공급업체선정입찰 & 협상입찰 & 협상구매전략수립구매전략수립구매비분석구매비분석

Part, Supplier, Commodity, Manufacturer ManagementPart, Supplier, Commodity, Manufacturer Management

Sourcing Objectives & KPI Management (Metrics)Sourcing Objectives & KPI Management (Metrics)

기준정보관리Component & Supplier Management(CSM)


i2 SRM Solution Component & Workflow

Business Process

Monitor Contracts & Compliance

Execute Orders

Manage Supply

Plan

Select Optimal

Suppliers

Develop Bid

Package


Define Sourcing Strategy

Analyze Spend & Materials

Parts List

QualifiedSuppliersStrategic

Sourcing Negotiate ContractManagement

ProductSourcing

Bills of Material

Supplier

SRM Operation (Solution Component)

OptimalSpecs RFQ Offer

Integrated product sourcing

Base costs lower 15-

20%

Maximized Spend

Leverage

Optimized Cost & Risk

Offer

ABPP

DemandPlan

SupplyAvailability

SupplierAllocations Procurement

Orders

Shipments

SupplyCollaboration

CSE

Receipts

Requisitions

Performance HistoryData Feeds

Preferred Mfg’sPreferred Parts

AUTOMATED>>>>AUTOMATED>>>>AUTOMATED>>>>AUTOMATED>>>>AUTOMATED>>>>AUTOMATED >>>>AUTOMATED


Commodity-Centric Strategic Decision AnalyticsStrategic SourcingStrategic Sourcing

Spend AnalysisSpend & Commodity rollup and rapid analysisGlobal purchase price variance for all commoditiesCross-reference of disparate part number coding schemesVisibility of purchases through contract manufacturers

Material RationalizationRationalize duplicates and functional equivalents

Supplier ManagementASL and alternate suppliers mgmt processMeasurement of supplier performance ← ScorecardEnterprise rollup of supplier spend & analysisSupplier allocation analysisMgmt of supplier risk

Enterprise Leverage

Spend AnalysisPurchased Price Variance AnalysisMaterial & Suppler RationalizationSupplier Eval. & Alloc.Outsource Spend Mgmt

Enterprise Leverage

Spend AnalysisPurchased Price Variance AnalysisMaterial & Suppler RationalizationSupplier Eval. & Alloc.Outsource Spend Mgmt

Supplier Allocation

Outsourced Spend

Supplier Supplier AllocationAllocation

Outsourced Outsourced SpendSpend

Optimize Commodity (Enterprise) LeverageDefine the optimal sourcing strategy to reduce supply risk and costs

Optimize Commodity (Enterprise) LeverageOptimize Commodity (Enterprise) LeverageDefine the optimal sourcing strategy to reduce supply risk and costs


Strategic SourcingOLAP Navigator: Spend (Slice & Dice) AnalysisOLAP Navigator: Spend (Slice & Dice) Analysis

Supplier

Organization Ad Hoc

CommodityCOMMODITY

TIME

SUPPLIER ORGANIZATION

Analyze FromMultiple Perspectives


Strategic SourcingSupplier EvaluationSupplier Evaluation


Program-Centric Strategic Decision AnalyticsProduct SourcingProduct Sourcing

Part Reuse & Preference Mgmt

Avoiding redundant innovationLowering design effort cost

Technology Obsolescence Mgmt

Proactively preventing design- or build-cycle cost increasesReacting to shortage and LTB events

Design for SupplyReducing inbound supply dependenciesManaging introduction risk

Program Cost MgmtStructuring and Meeting design cost targets

Outsourcing CollaborationNegotiating win-win BOM sourcing

Design-for-Supply

Reuse

BOM Costing

DesignDesign--forfor--SupplySupply

ReuseReuse

BOM Costing BOM Costing

Product Success

Part PreferenceBOM Grading & Component AnalysisTarget Cost AnalysisObsolescence Mgmt. Collaboration on BOM(Project Workspace)

Product Success

Part PreferenceBOM Grading & Component AnalysisTarget Cost AnalysisObsolescence Mgmt. Collaboration on BOM(Project Workspace)

Optimize Product CompositionOptimize designs for sourcing and supply chain constraints before they reach manufacturing for best total margin and cost for thisproduct

Optimize Product CompositionOptimize Product CompositionOptimize designs for sourcing and supply chain constraints before they reach manufacturing for best total margin and cost for thisproduct


Product Sourcing Solution

Project Team Workspace• Documents / Specs• Drawings• BOMs and Items• Cost estimates

Collaborative Product Sourcing

OEM

Design BOMs + Feedback

SRM Database

MaterialsItemsSuppliersCosts

New Product Sourcing / Quotes

ERP Legacy

Design and

Buying systems

Designer

Buyer / Engineer

Analyze BOM Cost and Part Obsolescence

Analyze BOM for Sourcing Cost and Supply

Suppliers and Contract Manufacturers

Supplier Design Feedback

OEM

Approval Workflows


Foundation Data ManagementCSM (Component & Supplier Mgmt.)CSM (Component & Supplier Mgmt.)

Consolidate Materials/Suppliers

Accessible across sitesCommon schemaRich attribution of dataSmart SearchMeaningless code

Leverages Normalized Reference Content to capture market offerings

RationalizationReducing active parts and suppliersConsolidating material duplicates and equivalents

MaintenanceAlign workflows & organizations for new part introduction, on-going maintenance

Consolidated Parts/Materials

Preferred Suppliers

Consolidated Consolidated Parts/MaterialsParts/Materials

Preferred Preferred SuppliersSuppliers

Establish a bridge between design & procurement (CSM)Primary Masters of Part, Supplier, ContractLeverage existing Sourcing Strategies

Establish a bridge between design & procurement (CSM)Establish a bridge between design & procurement (CSM)Primary Masters of Part, Supplier, ContractLeverage existing Sourcing Strategies

Catalog Management

Cross-ReferencingClassification SchemaTechnical AttributesParametric SearchWorkflows for Catalog Maintenance

Catalog Management

Cross-ReferencingClassification SchemaTechnical AttributesParametric SearchWorkflows for Catalog Maintenance


i2 Strategic Sourcing Case삼성전자삼성전자 SRM SRM 구축사례구축사례: System: System--Enabled Strategic Sourcing Process FlowEnabled Strategic Sourcing Process Flow

GLONETSGR Data

CISParts Data

1

5 Negotiate Price and update Contracts 3 Analyze Supplier

Performance and Surveys

2 Assess SEC Spend

Strategic Importance

RelationshipAttractiveness

Supplier RelationshipSegmentation

4Supplier Differentiation and Supplier Evaluation

T

SC

C

G

WOOYOUNG CO., LTD3709-AStrategic

III

JAE3709-AStrategic

HIROSE3709-AStrategic

DDK(THAILAND)LTD.3709-AStrategic

KYOCERA ELCO3708-AStrategic

UJU ELECTRONIC CO., LTD.3708-AStrategic

FCI3708-AStrategic

TYCO 3708-AStrategic

YEON HO ELECTRONICS CO. LTD.3708-AStrategic

OMRON CORPORATION3708-AStrategic

SUNG KYUNG PRECISION CO., LTD3708-AStrategic

WOOYOUNG CO., LTD3708-AStrategic

JAE3708-AStrategic

HYUP JIN I & C3705-BStrategic

UJU ELECTRONIC CO., LTD.3705-BStrategicKOREA AIR ELECTRONIC CO3705-BStrategic

HIROSE3705-BStrategicMOLEX3704-CStrategic

TYCO 3704-CStrategicWOOYOUNG CO., LTD3704-CStrategic

공급업체명SG 명관계세분화

전략

협업

거래중심

그룹 A그룹 C

개선필요 양호 우수

그룹 B그룹 D

System Data fed toSRM SRM

GBM and IPC Buyers respond to Survey

Commodity Council

Strategy Execution

Global Spend

IPC Spend

삼성전자의전사전략구매는 Strategic Sourcing 시스템의다음기능들을통해실현됩니다 : 1) 자재별, 공급사별, 구매조직별 Spend에대한신속한다차원분석이가능합니다. 2) SG에대한전략적중요도를분석합니다.3) 공급사의관계매력도를분석합니다. 4) 정량/정성분석을통해공급사를분류합니다. 5) 공급사에대한차별화전략실행을지원합니다.


i2 Strategic Sourcing Case삼성전자삼성전자 SRM SRM 구축사례구축사례: Strategic Procurement Analysis: Strategic Procurement Analysis


i2 Strategic Sourcing Case삼성전자삼성전자 SRM SRM 구축사례구축사례: Impacts of Strategic Sourcing: Impacts of Strategic Sourcing

BenefitBenefitBenefit

신속하고정확한정보제공을통한전략적구매의사결정 지원

• Buying power leverage를통한원가절감

•우수공급사와의협업강화를통한

조달안정화

•우수공급사비율확대하여공급망

전체의경쟁력향상

전사동일한실적평가실시전사동일한공급사평가프로세스

필요한소수 GBM만따로실적평가실시

자재의특성을분석하고

거기에맞는평가항목을

도출하여공급사평가진행

정량화된

실적평가

공급사별

단순/획일적평가

데이타취합가능한

정량/정성항목을포함한

실적평가실시

세분화된

공급사

분석/평가도입

일부제한된항목에

대해서만실적평가진행

전사및 Council의공급사평가결과를반영

공급사차별화

전략실행

전사공급사평가결과의

실제구매에미치는

영향력미약

Spend Visibility

• Global Spend Visibility• Single Base Priceacross the enterprise

• Multi-dimensionalSpend Analysis

• Divisional spendvisibility & management

• Price differencebetween GBM

QualityQuality

To-BeToTo--BeBeAs-IsAsAs--IsIs

EvaluationEvaluation

Differentiation

Differentiation

SpendSpend


i2 Product Sourcing Case BoeingBoeing

BEFORE i2

High and unmanaged

Low

Constant Problem

WITH i2

Negotiated larger contract discounts with volume visibilityReduced spend $14 million peryear in the fastener class alone

Identified hundreds of thousands of duplicate part numbers

Reduced Design Cycle Time

Boeing’s repeatable SRM process has a projected savings of $1 billion over the next four years with a 2000% ROI!

Part Cost

Design Cycle Time

Part Reuse


Latest on i2 SRM Solution

"This is a long-term relationship, and both companies will share in the revenues, assuring customers of stability and support."

"i2 has been quietly and continually enhancing its product sourcing and, more important, its integration capabilities. The company’s objective is to be a technology leader in this area, and i2 seeks partners to embed these capabilities. The Dassault/i2 announcement shows that i2’s approach is clearly working."

"i2 SRM customers should keep working with i2 to continue to derive value from the solution and work together to help develop i2’s next generation SRM solutions."


Decisions enabled by i2 SRM

For Design or EngineeringWhat parts should I use in my design ?What equipment or MRO should I have for my plants ?If I want to outsource design or manufacturing who should I use ?How do I collaborate with my outsourcing partners ?

For Sourcing and NegotiationWho do we buy from?What do we buy?How do I buy it? (contract type, spot, strategic relationship)

For Buying (Purchasing)How much do I buy (Today and Future)?When do I need it ?Where do I need it ?


SRM Value Proposition!Value Proposition!

15 - 20% Improvement in Cost of Quality

10% Improvement in Manufacturing CostInnovation

Reduction in Production DowntimeRisk Management

Reduce Development Cost by 10-20%

Time to Volume 25-60% Improvement

Time to Market 15-50% Improvement

Time to Volume

Increase inventory turns 20-40%Asset Reduction

5-10% of direct material spendCost of Goods Sold

ImpactImpactValue BucketValue Bucket


Summary

i2 SRM provides a single integrated suite addressing Spend Optimization with differentiating strengths:

Comprehensive approach with modular entry-points and growth paths allows rapid time to value and progressive ROIAddresses both commodity-based and product-based sourcing needsBridges engineering and procurement to drive reuse and enforce sourcingLeverages i2 content and classification strengths to establish fully cross-referenced item-level enterprise view – without “re-numbering”Provides workflow-maintained enterprise sourcing master for items, suppliers, contracts, price, sourcing strategy and preferencesStandards-based architecture delivers excellent enterprise citizenship with low total cost of ownershipIntegrated decision-support and execution tools cover complete sourcing process

Young-Suk [email protected]

Strategic Consulting Groupi2 Technologies



Appendix: i2 SRM Solution Architecture

Appendix: Appendix: i2 SRM Solution Architecturei2 SRM Solution Architecture


시스템구성도


시스템구성도구성구성요소요소

Explore Java ServerExplore Java Server는 Object-Relational (OR) 디자인을기반으로구성됨. OR 디자인은복잡한패키지솔루션의빠른개발및기존에개발된솔루션을지속적으로변화하는사업환경에맞추어조정/구성할수있게지원함. Explore Java Server는 2가지요소로구성됨

Explore Java Client: 시스템관리, 고급분석 (Advanced Analytics) 및개발구매기능 (Product Sourcing 위한 Java ApplicationExplore Web Client: 모든사용자및 Firewall 밖에있는 Applications를위한 HTML 기반사용자화면(UI)

Data MartSRM은선진사례기반의광대한 Data Model을기본으로제공함. 제공되는 Data Model은대용량의데이터를대상으로빠른 Multidimensional 분석 Queries 실행과 Reports 생성을가능하게하는선진 Data Mart기술을포함하고있슴

Data ServicesData Services는고객의방대한데이터를데이터크린싱, Cross-Referencing, 데이터Normalization의기능을통하여 SRM에서관리될수있는데이터로변환/전환함


시스템구성도구성구성요소요소 ((계속계속))

HTML Client: HTML Client는다음의요소들로구성됨Online Analytical Processing (OLAP) Navigator: 방대한정보를단시간에다양한각도와레벨에서 Slice-and-Dice하면서조회, 분석을지원하는강력한 ToolQualified Supplier List (QSL) 분석: 승인된공급사들(Approved Suppliers)과할당비계수(Factor)를기반으로공급사별공급양할당의사결정에대한What-If 분석지원Key Performance Indicator (KPI) -성과지표: 측정하고자하는다양한성과지표에대한모니터링지원

Supplier Performance Survey: 협력사에대한정성적평가수행을위한서베이수행및관리, 협력업체의 Performance,성과/평가결과집계/저장/관리지원Supplier Information: 협력사및협력사그룹 (Supplier Group)에대한상세정보제공Baseline Cost Savings: 주문품목/물품에대한기준가격계산및구매품목/물품에대한비용절감결과상세또는 Overall한분석지원Shortcust: 사용자들이자주활용하는정보조희의 Queries 및보고서양식을사전정의하여쉽게재활용할수있게지원하며, 새로운요구사항에대해서도쉽게추가할수있는확장성제공

Sourcing Portfolio: 구매담당자가관리하는구매품목/물품들을그룹핑하여용이하게관리할수있게포트폴리오를생성, 성과모니터링지원


시스템구성도구성구성요소요소 ((계속계속))

ConsolidatorSRM 솔루션관리자가데이터연계 (Mapping), Loading, Validation (검증), 데이터전송일정계획운영 (Scheduling)을위하여사용되는 Tool임. 주기적인데이터 Loading 및구매비용 (Spend), 수요, 재고, 성과관련 Fact Table의데이터 Roll Up 지원하며, SRM에서활용되는데이터들은 ERP 및타데이터 Source로부터 Data Extract를통하여연계해옴

Administration Tools: 솔루션설정및구축을위한관리 Tool은다음의요소로구성됨

Consolidator Configurator: Consolidator Class의기준정보를구성하기위하여 Data Loading과 Roll-Up 기능수행Key Performance Indicator (KPI) 설정: 솔루션관리자가 KPI 정의지원Data Driven Data Loading (D3L) 설정: Consolidator가 Data Load, Roll-Up 수행및 Data Loading 스크립트를설정하게지원함

Enterprise Reporting: SRM에서생성할수있는다양한보고장표를 Display 함

Reference Content Data: 물품/품목/자재및협력사관련데이터가전사 Part 및협력사기준코드와의 Mapping 지원


Supplier Relationship ManagementSupplier Relationship Management

SRM Staging DB

• vendor•Part

•Buying BOM•Code Master

•Cross References•Transaction History(P/O,

Inventory, G/R, etc)

Strategic Sourcing

Product Sourcing

구매 Legacy구매 Legacy

구매실행Application

구매관련 DB•P/O

•P/O response• Shipment

• G/R• Invoice

• B/L• Invoice

• Customs Tax• Material Cost

ERP

SAP R/3

SA

P

Adapter

DB Adapter

Basic DataBasic Data

CSM DB• vendor

•Part•Buying BOM•Code Master

File adapter

CSM Application

DB Adapter

Integration Hub (EAI or ETL)•Part Code•Open P/O•Closed P/O•G/R•A/P•Forecast

•BOM• Inventory•Quality

•Vendor

SRM Application Architecture

Illustrative