Moving Forward with Standards Dr. Chayakrit Charoensiriwath RosettaNet Thailand NECTEC 18 May 2549

2 Supply Chain Micro (Old) Scheme Macro (New) Scheme –Network of entities associated with flow and transformation of goods and associated information from raw material stage to end user. –Suppliers, Manufacturers, Transporters, Warehouses, Retailers, Customers. SupplierManufacturer RetailerCustomerWarehouse

CustomersSuppliers -L1-L2-L3+L3+L2+L1 co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. co. Supply Network - Nervous System

4 Supply Chain Integration Technical Goal: –Automate business processes Why? –Reduce transactional delays and inefficiencies –Avoid human intervention in exchanging, reading and processing information between trading partners

5 Business Integration Problems Interface compatibility Data structure compatibility Model compatibility Process model compatibility Application integration Legacy systems

6 Why Standard? Value Creation for Suppliers –VMI (Vendor managed inventory) –SPM (supplier performance metrics) Leveraging Supplier Networks –Interoperable Networks –Federated Trading Directory Catalog/Content Services –Updating product content costs money and time –Product content is a huge problem for SMEs Master Data Management –Data Synchronization

7 What’s Needed?  Industry standard  Process oriented  Open system  Global  Using latest technology  Backend system agnostic  Standard dictionary  Standard codes  Robust transport protocol

8 Emerging Standards RosettaNet –provide the infrastructure for integrating business processes with trading partners ebXML OAGIS BMEcat and other Catalog Standards Global Data Synchronization Network (GDSN) –connects retailers and suppliers, via their selected data pools

9 Emerging Standards Global Location Number (GLN) –provides a standard means to identify legal entities, trading parties and locations. Global Trade Item Number (GTIN) –uniquely identifying trade items (products and services) sold, delivered, warehoused, and billed throughout the retail and commercial distribution channels. Global Product Classification (GPC) –provides a common language for category management

10 Used for Business to Business communication Dominant in supply chain management Established Standards in EDI: –ANSI X12 (USA) –EDIFact (Europe) –HIPAA (Healthcare) Document standards – at least 250+ –E.g., PO (850), ASN (856) Transport standards –E.g., VAN, AS2 Trading partner agreement framework Electronic Data Interchange (EDI)

11 Problems with EDI Expensive bandwidth Messages are difficult to decipher Needs dedicated EDI server and VAN Costly to implement and maintain Difficult to change trading partners Competing standards Complex

12 Locked up investment in EDI Backing by big guys: –WalMart, Novartis and Addison Wesley –Big guys drive partners to adopt it as well Support from powerful vendors: –GE, Sterling Commerce AS2 (EDI over HTTP) reduced cost by eliminating VAN. Walmart drove adoption of AS2. Why EDI will stay anyway?

ebXML

14 ebXML OASIS: Organization for the Advancement of Structured Information Standards ebXML™ is a joint OASIS - United Nations/ CEFACT “Electronic Business XML initiative” Non profit,... (like RosettaNet) Competition to RosettaNet ebXML Mission: To provide an open XML based infrastructure enabling the global use of electronic business information in an interoperable, secure and consistent manner for all parties. Uses XML Schema (not DTDs)

15 Introduction to ebXML™ Strengths –Completely based on XML –Provides complete set of specifications. –HORIZONTAL approach –A combined effort of XML & EDI communities to evolve new generation B2B(EDI) –Infrastructure to provide a set of re-usable and extensible Core Components

16 Description of B2B Collaboration using ebXML™ Roles – Seller, Buyer Transactions – Quote Request, Quote Response, Purchase Order Request, Purchase Order Confirmation Business Documents –Quote Request, Quote Response –PO Request, PO Confirmation Protocol – HTTP SSL for Authentication Documents and Capabilities published for Trading Partner access

Open Applications Group Integration Standard (OAGIS)

18 Interfacing with ERP Providers Connectivity, Integration and Data Exchange between ERP Systems Leveraging Supplier Networks in Partnership with Software Providers Partnering Options –Channel partner for your services –Channel partner to your customers –Still trying to solve the SME market

19 OAGi History Founded in November, 1994 Originally by ERP Vendors Focused on how they can integrate together better Identified common content as biggest missing piece

20 OAGi is a not-for-profit, independent, open standards development organization. It was formed to promote interoperability among business software applications and to create or endorse one or more standards for easier business software interoperability. The primary technical standard produced by OAGi is OAGIS, the OAG Integration Standard. Open Applications Group

21 OAGIS Standard Provides a neutral venue for constituencies to build the business languages for interoperability they require. HORIZONTAL (Cross Industry) Business Language Adding vertical efforts over time All versions based on OAGIS Message Architecture is consistent

22 OAGi Work Groups Core Components CRM XML Logistics XML Internet Parts Ordering (Auto Aftermarket) Inventory Visibility (AIAG) Auto Retail (STAR) Supply Chain Management (ITA) VisionML Facilities Management (OSCRE) NIST Test Bed Semantic Integration Web Services

23 Reasons for OAGIS Adoption Are moving toward interoperability solutions in XML Want to preserve EDI investment where it makes sense Want to define new interoperability needs using XML Want interoperability across their trading partners

The Global Standard for Business- to-Business E-Commerce

25 Global, non-profit consortium with major industry players Identify all business-to-business touch points between trading partners in the IT & EC supply chains Bring business owners from member companies together to define and agree on common processes Develop real-time, XML-based standards to support those processes Drive adoption and implementation of the standards What is RosettaNet?

26 RosettaNet is NOT A vendor Software A portal, hub, exchange or marketplace

Business strategies dictate that size and scope of the supply chain network increases to achieve operational and functional goals Future: Tens of thousands of supply chain transactions automated RosettaNet began with a few of the largest manufacturers and trading partners who offered the biggest gains from automation Past: Hundreds of supply chain transactions automated More of the trading partners were brought online to extend the value of the networks Present: Thousands of supply chain transactions automated Time RosettaNet: History and Future

28 MANUFACTURER 3Com, Cisco, Compaq, Dell, HP, IBM, Intel, NEC Technologies, Quantum, Siemens, Solectron eTECHNOLOGIST Trilogy, SAP ENDUSER GSA, Lucent RESELLER/SI CompUSA, Insight, Office Depot CARRIER FedEx, UPS SOFTWARE PUBLISHER Netscape 1 WHOLESALE DISTRIBUTOR Arrow, Avnet, Ingram Micro, Pioneer-Standard 11 IT Managing Board (26) RosettaNet INFORMATION TECHNOLOGY BOARD

29 SEMICONDUCTOR SUPPLIERS Altera, Hitachi, Intel, Lucent, Micron, Motorola, National, NEC, Philips, Samsung, ST, TI, Toshiba, Xilinx CUSTOMER Agilent, IBM, CISCO, Nokia, Sony CONNECTOR SUPPLIER FCI, Molex,Tyco Electronics DISTRIBUTOR Arrow, Avnet, Future, Pioneer, Memec EC Managing Board (30) PASSIVE SUPPLIER AVX, Bourns, Kemet RosettaNet ELECTRONIC COMPONENTS BOARD

30 INTEGRATED DEVICE MANUFACTURER Agilent, Intel, LSI, Lucent, Micron, Motorola, National Semiconductor, NEC, Philips, Samsung, TI,Toshiba, Winbond FOUNDRY Chartered Semiconductor, TSMC, UMC FABLESS DESIGN MANUFACTURER Xilinx ASSEMBLY, TEST, PROBE Amkor, ASE, SPIL SM Managing Board (30) MATERIAL Air Products & Chemicals, Applied Materials, JSR, Shin-Etsu Handoutai, Shinko, Sumitomo Bakelite, Sumitomo Metal Industries, SITIX, TOK, Toppan RosettaNet SEMICONDUCTOR MANUFACTURING BOARD

31  A2I  Active Software  Adexa  Agile Software  Anderson Consulting  AristaSoft Corp.  Aspect Development  Baan  BEA Systems  Bow Street Software  Bridges for Islands (Israel)  Calico Commerce  Celarix  ChannelAutomation  Comergent  Commerce One  CommerceQuest  Descartes  Digital Paper  Dun & Bradstreet  ecomXML  EDIFECS  Enigma  Extricity Software  FirstSource  GE Information  Glue Technology  Harbinger  Hearst  Holosofx  Hyperchannel (UK)  i2 Technologies  IBM  Introit Systems  JBA International (UK)  JD Edwards  Kinecta  KPMG  Manugistics  Microsoft  NeoGrid (Brazil)  Netscape  OnDisplay  Optimal Networks  PeopleSoft  RSA Security  Saga Software  SAIC  SAP  Saqqara Systems  Slam Dunk Network  Software Instruments  Software Technologies  Sterling Commerce  Syncra Systems  Tallan  TDI  Tibco Software  Tradec.com  TriStrata  Valicert  Viacore  Viewlocity  Viquity  Vitria Technologies  WebMethods  webPLAN  Web-TRACs.com  XMLSolutions Solution Partners

32 E.g. Oracle Company A Company B The Web And XML - The Future E.g. SAP RosettaNet eBusiness Interface Translate to and from Rosettanet standards to Company specific system data set Translate to and from Rosettanet standards to Company specific system data set RosettaNet defines processes and a framework for how data gets passed over the Web and certain handshake criteria. RosettaNet has adopted standards for product classification and categorization including GTIN, UN/SPSC; D-U-N-S®, and the RosettaNet Dictionary. Company Specific processing Company Specific processing

33 Business Integration Network RosettaNet China Worldwide Sites Thailand Web UI Server-to-Server 39 Suppliers Process Manager (Order, Forecast, & Inv.) Information Manager - Doc Archive & Reports Buy side Singapore 3PL Hubs Integration Hub Distribution Customers EDI Direct Customers RosettaNet Distribution POS, OEM PO, (PO Changes, Forecast, Commit) Information Manager - Doc Archive & Reports Server-to-Server >40 Customers Sell Side Integration Hub EAI Hub

34 RosettaNet Standards: Technical Components Partner Interface Processes (PIPs®) Guidelines that define the format in which information about particular processes is shared among partners. Dictionaries and Codes To ensure the consistency of information exchanged between trading partners when executing PIPs. RosettaNet Implementation Framework (RNIF) RNIF packages, routes and transfer all messages and signals between end points. RosettaNet currently supports HTTP and SMTP transfer protocols.

35 Standardized Content Format PIPs--Guidelines that define the format in which information about particular processes is shared among partners.

36 RosettaNet Process Areas Summary of Process Areas and Select eBusiness Processes Order Demand Creation ManufacturePayment Logistics DesignForecast - Collaborative Forecasting - Work Order - Work in Process - Material Composition - Test Data Exchange - Global Billing - Payment - Vendor Managed Inventory -Product Catalog Info -Sales Reporting -Request for Quote -Price & Availability -Order to Cash - Design Mgmt - Inventory Report - Ship Notice - 3PL - Warranty - E-Customs - Warranty - Returns - Engineering Information Management

37 RosettaNet PIPs = Partner Interface Processes 8 Clusters –Support – Partner Product and Service Review –Product Information –Order Management –Inventory Management –Marketing Information Management –Service and Support –Manufacturing Segments wiht PIP Definitions in each Cluster

38 3 Order Management Segment 3a: Quote and Order Entry Segment 3b: Transportation and Distribution Segment 3c: Returns and Finance Segment 3d: Product Configuration

39 Alphabet Grammar Dialog Words XML Framework Dictionary human-to-human business exchange Partner-to-Partner eBusiness exchange SoundInternet Business Process Telephone RosettaNet Business Process Telephone DIALOG PIP eBusiness Process Ecom Application

40 RFID in Supply Chain Management

41 Logistics Applications Supply Chain Management Warehouse Management Cargo Management Logistics Retail Store

42 RFID in Supply Chain Management

43 No dominant force yet. More than replacing barcode. Barcode will still be needed Master Data Management is needed for trading partner Barcode implementation RFID

44 The Rosetta Stone Made 196 b.c. Discovered July 1799 Final Thoughts…. A standard is not a standard until it becomes a standard!! Convergence is unavoidable. Share and learn information. Know your own requirements

45 Thank you for your attention.