Catalytic purchase of new thinking

Abstract: For the manufacturing sector, the cost of inventory levels is an important factor in the decision, one of the world's second largest manufacturer of TFT-LCD, how to manage supplier relationships, how to reduce inventory to JIT purchasing? As stated in the article will be ... ...

In some chemical reactions, some reactions need to add some kind of catalyst, and then will greatly change the reaction rate. If changing the world economy as a huge chemical reaction, then the information technology on the worthy of the "World Economic catalyst" of the title, greatly accelerated the world economy changes. Business globalization, caused by highly competitive and rapidly changing highly personalized customer demand, so the enterprise and customer, business relationship with suppliers increasingly close and complex. Businesses often need to collaborate around the world object or service, not only to increase the depth and breadth of cooperation, strategic alliance, also need to handle more and more rapid changes, and respond more quickly, while a wide range of geographical distribution between different languages and cultures to communicate quickly and accurately and effectively with the exchange of information. Supply Chain Management (Supply Chain Management, SCM) is in this context, a business management and information technology "hot spots."

Relationship with the customer is the enterprise from the date of production, like the inevitable, supplier relationship also is the company born in the industrial supply chain of each of the intermediate links, are by the customer - to link suppliers, all these factors, while also increasing the relationship between enterprises and their supply-side management complexity and the difficulty that any one end of the error can result in business failure. This not only requires us to supplier relations as a business supply chain to emphasize an important part, also need to systematically sum up the unique supplier relationship management rules, and using information technology as a modern enterprise management, supplier relationship basis.

Powerful combination, creating highly efficient supply chain
As Taiwan's largest, the world's second largest TFT-LCD design, development and manufacturing company, AU Optronics by Friends of Scientology technology and optical merged together, the product covers a wide range of applications to the 20.1-inch TFT-LCD panel , is the world's largest suppliers of small, medium and small manufacturers a full size product line. (Including their industry, size, ownership type)

Up to large-size optical TFT-LCD panel of the worldwide shipments in the second, the international market share of 13% strength, in the large size of the 14.1-inch notebook panels and 17-inch LCD monitor panel market account for second in the world; small size, the global digital video cameras and digital camera panel market has been ranked first in the world automotive display panel market ranking third in the world. Currently has five TFT-LCD plant, three module plant and an R & D centers of various OLED and LTPS technology of forward-looking employees worldwide, more than one million people, located in Taiwan, the United States, Japan and mainland China operations base for the world . AU 2002 to create a turnover of 75.56 billion Taiwan dollars, is the world's first on the New York Stock Exchange (NYSE) public offering of TFT-LCD manufacturing company (symbol AUO).

China's first 5th generation TFT-LCD plant in March this year also was the first successful mass production, in addition, including the LTPS, OLED, PDP, product and process technologies, advanced product technology and process technology, and other forward-looking R & D units in the six AUO Technology Centre, will be completed in 2004. In March 2003 with Fujitsu for more LCD monitors in the field of R & D, production and transnational technological cooperation. AUO also look at the global, active in Suzhou, China, the United States, Japan, and have set up operations base for international distribution. AU Optronics (Suzhou) is the AUO TFT-LCD production back-end assembly center, as it settled down in Suzhou in 2000, a group of well-known manufacturers, such as photoelectric Sweden, Can Yu optics, electronics and other enrichment have settled down to as the center of Suzhou in east China, as the supporting manufacturer AUO. Supporting hundreds of families from the plant site are AUO Suzhou, a three-hour drive in the context of AUO Suzhou formed a core size of the business after a full range of TFT-LCD manufacturing process chain.

TFT-LCD courtyard similar post-assembly industry, the organization of the supply of materials required is very high, high need for collaboration with a number of supporting companies to smooth organize production. AUO Suzhou, formed within the very completeness of information, but how to rebound from the scope of business collaboration with suppliers or AUO in the SRM system had not solved the problem. For example:

How to release their long-term production plan to the supplier?
How to understand the key capacity providers and Long Lead time stock preparation bottleneck of material information?
How to adjust their short-term production plan information release to the supplier?
How do suppliers AUO process in accordance with arrangements to achieve JIT delivery?
How to control, track, analyze supplier delivery records? Etc. These issues
This case, the response rate on the supply chain requirements are particularly high, not only rely on slow manual operation, and error-prone, so with the help of information systems is imperative.

Now on the market of software systems on the SRM lot, BenQ compete in the Guru SRM is one of them. SRM focuses on how to compete in the procurement needs of businesses with suppliers to supply a fast equilibrium. Between enterprises by enabling fast, secure information sharing, integrated inter-enterprise processes, thereby enhancing supply chain collaboration among companies to help organizations effectively reduce costs, increase profitability, and thus gain a competitive edge.

BenQ competing against since its inception in 1998 has been committed to build information technology business, has a number of companies working in information system implementation, AUO is one of the Guru SRM is a full-featured supplier relationships management system. The main purpose of helping companies with their suppliers to Internet as the communication medium for collaborative procurement operations. Enterprises can demand information to the agreed specification was released on to the WEB, the supplier feedback on the WEB, one has changed, the two sides to quickly communicate and coordinate. Established by Guru SRM rapid communication mechanism, can improve the efficiency of corporate purchasing and supplier of materials supply efficiency and supply on time degree, save the procurement transaction costs and enhance control of the supplier reduce procurement risk suppliers at any time other information relevant to their own understanding. In short, transparency of information.
Thus, AUO has BenQ compete in a supply demand, the two companies hit it off, decided to immediately implement Guru SRM.

Remedy
Medicine has always been opposed to a "stop-gap" and "quack" approach, "to find the source of this research, tackling the problem" is the true way of saving lives where. The same goes for companies on the system, but also its problems select the most appropriate system to maximize the resolution of production, sales and logistics control issues, rather than just parroting the lightly.

AUO facing the main problem is how to flow with suppliers of information communication, how to arrange the delivery and the delivery record, control, tracking and analysis. To solve these problems, BenQ compete in a set of unique and full-featured supplier relationship management system Guru SRM, the main purpose is to help businesses with their suppliers to Internet as the medium of communication for collaborative procurement operations. As a result, AUO will be the demand for information to the agreed specification was released to the WEB, the supplier feedback on the WEB, one has changed, the two sides to quickly communicate and coordinate. Established by Guru SRM rapid communication mechanism, can improve the efficiency of corporate purchasing and supplier of materials supply efficiency and supply on time degree, save the procurement transaction costs and enhance control of the supplier reduce procurement risk suppliers at any time other information relevant to their own understanding.

Guru SRM has many modules, major functional modules are also more practical, such as order management, which support enterprise online publishing PO, suppliers online confirmation, and if there are objections, the two sides agreed the process can be online communication; in delivery manage the scheduling module, companies can build according to DPS supplier delivery scheduling, online publishing for its confirmation, both parties may be scheduled in the amount of communication and coordination as well as agreement, the supplier in accordance with the arrangements for the two sides confirmed that the schedule delivery. Delivery schedule with management, the two sides to quickly communicate to achieve JIT procurement type is no longer just have to think about things a; achieve ASN management, supplier delivery before the opening of shipping notification (ASN), online publishing and with the freight delivery receipt as a basis for Buyer side; even finance this long-standing problem, with the financial management module will simplify the operation, the secret is to deal with procurement-related enterprises, paid and other financial information published to the WEB, on to the suppliers real-time query and reconciliation, information transparency, and saved much time and misunderstanding; other services is also the management, electronic bulletin boards, query management, analysis reports, system management and other modules. Generally speaking, this system is tailor-made for the AU set of information technology, "fashion" - the magnificent exterior hides a great energy.

The reason why hidden enormous energy, because the system itself has a very strong technology base and system infrastructure. Guru SRM using B / S system architecture, easy installation, easy to maintain, upgrade, when a very convenient and it uses the MS SQL Server database, is compatible with Microsoft's operating system, operate a very simple and very suitable for mass use, the Friends Some of the computer is not up to very little understanding of pointing nine employees can qingso0ng operation, so popular; powerful data interface functions, can integrate with back-end systems; for encryption technology used DM5, so permissions control is very powerful and can provide perfect security; using XML technology, can be common in the windows, phinix other platforms, easy cross-platform integration.

In terms of hardware, Guru SRM database server using a Pentium III 1G or above, 512MB or more RAM, 10GB or more hard disks, consider the future scalability, the proposed server can extend the 2 XEON CPU, 2G RAM, and RAID 5 configuration is best disk array. Application server is a Pentium III 1G or above, 512MB or more RAM, 10GB hard drive above. Guru SRM's Web server can be a computer, it can be more than one, requires Pentium III 1G or above, 512MB or more RAM, 10GB hard drive above.

The hardware specifications of the client-compatible Pentium-class, 64Mb or more memory, 1Gb or more hard disks, the database server operating system is MS 2000 Server or SQL Server 2000, application server platform is MS 2000 Server. SRM's Web server can be one or more system application MS 2000 Server platform, while the client platform is whether MS Win95, 98 or 2000 can be.

0:00 Plan, transparent process
AUO Suzhou, the implementation of the SRM, the aim is to make information transparent, inventory minimization, so called "zero plan, transparent process" seems more appropriate.

As the saying goes, Rome was not built in a day, not one day develop a habit, more than one day can change. Although the system is good, but the staff were abruptly abandoned the habit of the ready to adapt to the new process is not an easy thing, needs the active support of staff and senior leadership support, as some photoelectric Chengdu has its own e- high, so SRM implementation process smoothly. AUO Suzhou SRM platform project from mid-April 2003 to early July 2003 the successful completion of which lasted 2 陆 months, in order to smooth the transition, AUO has adopted on-line supplier of batch means. First select a 4 e relatively high degree, and is most closely AUO four vendors on-line, namely, enrichment of electronic, photoelectric Sweden, Can Yu optical, Taiwan, AUO. Second, the three on-line vendors, including Taiwan, Toshiba, Panasonic Taiwan, Xin Guan, Novatek, flag wins and 11. Friends of technology transfer and closed the case leading up to their own about 30 or so vendors on-line, currently under way. I believe soon, e-AUO will become a leader in the industry.



Schematic implementation of the project

But all things difficult to smooth, system implementation is no exception. AUO SRM project took 2 陆 months, the overall project is progressing well, but also encountered some problems:
1. Buyer's work habits difficult to change.
As production needs AUO variety of materials, most of the material is used JIT delivery methods, buyer need to change production schedules of frequent communication with suppliers, normally a very busy work. Although the manual in the efficiency and face tracking historical data, some difficult issues, such as very slow and error-prone, but they have become accustomed to the current buyer manual mode of operation, each also in the process of practice and explore the Some tips. Introduce a system for the new, on the one hand because there are not familiar with using features of a potential sense of exclusion, on the other hand due to a system of on-line also needs a lot of basic information to their overall resulted in additional burden on existing work.

Because of this phenomenon in the early stage of the project to promote the existence of a number of bottlenecks. Need buyer who delays in the content of the test on-line test, not to gather feedback in order to improve the system; some of the basic information system operation must have been delayed for a long time to start building more and more people ... ... this situation the project slow progress for some time.

After this occurs, competing against the team determined the project team with the top made up of Friends of communication, report a problem project and explain the extent of the problem. AUO senior team vision, they are very clearly the significance of the project on the AUO, in understanding the circumstances of the project very seriously and immediately from top to bottom to push the mobilization meeting held in Buyer, good intentions to persuade and enlighten them with righteous and to facilitate a clear responsibility to the extent Buyer's with a significant increase, progress of the project became successful.

2. Supplier uneven level of acceptance.
SRM system on-line only been with the supplier can proceed smoothly, the supplier of the system to some extent determine the level of acceptance of the project process forward. AUO early in the project recognized this problem and decided to select more than 20 manufacturers in batches on the line, give priority to five e-levels are higher and better relationship between AUO existing on-line business.

In order to facilitate understanding of SRM systems supplier, AUO provider organization focused on training. Expected result of the training is to understand the future and the Friends of the supplier up to the cooperation model system to understand the use of SRM method. To this end we have organized a field test, each company a PC simulation of the consultancy business under the guidance of the sample operation. Is called the most powerful proof of the fact that, after a brief within the heart, the system suppliers have in-depth understanding of the process and gradually accepted it from the heart, the final training results were pretty good.

After training, they began to organize the five companies online test run, the result the problem has arisen. Some firms operate more smoothly, and some manufacturers do not know how to operate, to accept the level of a big difference. Issues guidance by phone and the user manual instructions say not very clear. In response, BenQ and AUO consultants compete in jointly organized the visit of the vendors on the actual business operations conducted field guide. This approach achieved good results, the supplier of the relevant personnel to use the system with better control, and the remaining in use as long as possible problems can be resolved by telephone.

Reap as you sow
By SRM Project, AUO will be the success of their suppliers into the production planning system. Changes in the market end up fast friends can adjust their production plans, production plans rapid changes in the generation of suppliers plan to goods manufacturers as a complete production plans and procurement plans of the driver. Suppliers can also according to their capacity and stock preparation of the actual situation, AUO plans to confirm delivery. After much communication double confirm a delivery schedule, the supplier under the plan to arrange the delivery, AUO will be receiving the actual records back to the SRM platform as the basis for payment and reconciliation.

Flow chart of the main features are as follows:



Description: BAPI refers Bussiness Application Programing Interface.
ASN refers to the Advanced Shipping Notice - Notification of early delivery

Process Description:
AUO's businesses will Forecast information to the PC, PC according to capacity and material conditions for production scheduling, then schedule broken down into materials to delivery plans to release to the vendor, by suppliers online confirmation to Hit the number, then According to confirmation of the Shipping Schedule (Delivery Schedule) to arrange the delivery, prior to the delivery, the supplier in advance out ASN (Advanced Shipping Notice), AUO SRM platform can be seen in the ASN information, and as income Cargo basis. The communication is reversible, Friends of the information can change over the production and timely delivery to the supplier, the supplier of the material will affect the status of feedback AUO's production scheduling, the two sides to the platform rapid communication and coordination to achieve the purpose of supply chain collaboration.
In the absence of implementation of the SRM system before the AU's order confirmation, delivery confirmation and shipping notification in advance is to use the telephone, fax and other forms of manual operations. Other programs, such as daily production scheduling and material planning is to use Excel and other forms of manual, time-consuming effort.
By SRM Project, AUO will be the success of its organization and its suppliers to become a supply chain system, based on SRM platform for mutual sharing of production information, the following is a diagram built platform.



Suppliers to provide a platform for understanding through the SRM AUO's production planning information, material demand information in order to bring in materials production, AUO can learn through the platform supplier capacity and material supply bottlenecks, and to adjust their production plans, full control , tracking and analysis of supplier delivery records; the exception of the information, platforms and mobile phone short messages through the Mail and timely initiative to inform the parties, the parties to adjust production quickly, smoothly carried out.

In fact, from the above diagram can be seen, after the implementation of the effectiveness of the system is still very significant: the proportion from what form of the more obvious




On the front line
After the delivery schedule on-line formulation
Procurement under the DPS manual processing for each supplier delivery scheduling, time-consuming
The system automatically launched according to DPS for the various suppliers for the delivery schedule, just a few minutes to complete the confirmation schedule
MAIL delivery schedule sent to the supplier, not in time to know whether the supplier to confirm that if the change occurred during the period, but could not follow
Published online delivery scheduling, procurement can always check the feedback of information suppliers, and in different colors exception information, the system automatically recorded version of the difference. Operating efficiency of the procurement staff

70% -80% increase financial reconciliation of the information
Fax or MAIL pass reconciliation information, often receives inquiries from phone calls from suppliers
Reconciliation of the information posted, automatic updates, financial officers are no longer plagued by the numerous phone calls, the current AU operation in Suzhou's SRM platform smoothly, largely AUO optimized the internal logistics. Since a high degree of information sharing, suppliers also gained great benefits, stocking and inventory levels in advance of all significantly lower, for both changes can be adjusted quickly in order to optimize the entire supply chain operation.

As AUO Suzhou, SRM project achieved good results, AU headquarters in Taiwan and compete in the SRM also like to rely on a platform to establish the same, will it integrate its suppliers. Then to SRM platform as the core of supply chain management will be extended to AUO Taiwan headquarters, supply chain management as a platform for SRM will play a greater role in it. (On the program planning AUO and BenQ are competing against the arrange with the.)
Beyond the AUO Suzhou, the Suzhou Darfon has completed the SRM project implementation, Kunshan and Shanghai Shi Electronics Co., Ltd. of SRM projects are being implemented. Expected to be completed after the implementation of two cycles:

1, Shanghai Shi rapid cycle internal information that enables business, production, full collaboration between materials to enhance operational efficiency
2, materials with suppliers of information between the rapid cycling, suppliers can quickly know the status of Wus demand for production can be adjusted, timely delivery; and if not satisfied WUS, WUS can make early preparations to carry out procurement adjust or production adjustment.

By means of information technology to speed up the efficiency of internal operations, reduce human error rate, the use of advanced management thought and precise management of inventory is expected to be reduced to the original 1 / 3; suppliers via the Web at any time to see what their disabilities in Shanghai inventory and delivery arrangements Wus; Shanghai Shi can also speed up the supply chain system collaboration efficiency, can quickly find and deal with abnormal conditions.

Leaf and the world Zhiqiu
In supply chain management in this field, supplier relationship management also are new projects, but cases continue to increase with the successful, experience will accumulate more and more. AUO Suzhou in this project, BenQ competing against the person who has accumulated a lot of experience, but also to many of the lessons, experience deep. The following three points, although the look is very short, but when the participating countries were talking about when the project will each other on TV, knowing smile, which is really too many joys:

1. Bottlenecks progress of the project be sure to get each other high-level support
As with other degrees in the issue of bottlenecks in the first time after the active high-level support for each other. Level from the top down is easier to promote the progress of the project. If you do not attempt with high-level thrust relationship on its own to carry out maintenance and coordination of a waste of time.

2. Training must implement
Can not talk about training issues, to have a mechanism to track the effect of training. When the training has not achieved the desired results, they must take remedial measures, be sure to implement the results. Many basic data set is based on the user of the system based on the understanding that once the user misunderstanding of basic information, there may be wrong, based on data errors will waste a lot of time and energy are. Therefore, training is a time to remember the old saying: "Brothers do not mistake firewood power" and not anxious, be sure to implement the effect of training.

3. For a quick response to customer demand
Responsiveness to customer needs largely determine customer satisfaction. AUO SRM project is progressing well because we conclude, that the fast response is a very important factor. We are moving in the project, both project team is made up of Friends of the needs of end users or proposals for careful analysis, one to give feedback within two working days and organize the discussion in question quick resolution and conclusion on the rapid implementation by conclusions. This rapid feedback of the model greatly improved the team AUO trust us, but also to improve the user's initiative and with the degree. The project has a great future reference.

See surging domestic and international trade, warlords, and since, I believe that only with strong power can always be invincible, either LCD or the software industry, but also what industry or other. But the company's information technology already ready to go, in this competitive environment, how should you lead the industry expert advantage? We will see.







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