B2B Integration : A Practical Guide to Collaborative E-commerce

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Supply Chain Management (SCM) 435 • Resource utilization planning; • Collaborative design and fulfillment; • Transportation planning for inbound and outbound transportation; and • Product life cycle management to track product life cycle demand patterns and recommend future profiles, based on the product life cycle. SCM systems, typically, have a three-tier architecture, which includes the presentation tier (HTML, GUI-based front-end developed in programming languages such as Java, VC++), middle-tier comprising application servers with clustering solutions for load balancing and back-end comprising of database servers such as DB2, Oracle, Sybase, SQL Server. An SCM solution should be available for all the main operating systems — Windows 2000, Windows NT, Sun Solaris, HP- UX. The leading providers of SCM software include i2, PeopleSoft, SAP, Manugistics, Oracle and J.D. Edwards. Goal MITSUBISHI MOTOR SALES OF AMERICA — ENABLING DEALER COLLABORATION VIA THE INTERNET Strengthen Mitsubishi Motor Sales of America's (MMSA) new brand strategy and company revitalization efforts Strategy Ensure MMSA customers have the right car at the right place at the right time by implementing a Web-based order-to-delivery system Solution Manugistics NetWORKS Demand, NetWORKS Supply, and NetWORKS Collaborate, jointly implemented by Manugistics and Deloitte Consulting Continue on page 436
436 B2B Integration — A Practical Guide to Collaborative E-commerce Results Continued from page 435 • Linked all of MMSA's 526 North American auto dealerships into a Manugistics-powered Internet-based collaboration system; • Slashed collective vehicle inventory in half; • Decreased age of vehicles on dealers' lots by more than 25%; • Cut vehicle lead times by more than 60%; and • Eliminated port stock, saving millions of dollars per year. The order-to-delivery solution, believed to be the first of its kind in the North American auto industry, allows MMSA to develop a profile of each dealership, based on factors such as dealer geography, customer buying patterns, product promotions, and sales seasonality. Dealers help refine these profiles, which can be shaped to cover key issues such as required materials and lead times, to help dealers forecast how many vehicles they should order to meet demand. Vehicle orders are then submitted by the dealers via the Web to MMSA. Since going live, the order-to-delivery solution has helped slash collective vehicle inventory (the number of cars MMSA and its dealers have on the ground at any given time) from a high of 80,000 units to less than 40,000 units — all while experiencing sales increases of nearly 40 percent per month. The average age of vehicles on dealer lots has also decreased, from 166 days down to 38 days, resulting in fresher, higher quality products reaching customers. In addition, vehicle lead times have decreased by more than 60 percent, reducing port and distribution center inventories. Port stock has fallen from 45,000 units at the start of the project to zero today, creating millions of dollars in savings for MMSA. MMSA's outstanding results illustrate the bottom-line success that is achievable using the power of intelligent Internet collaboration to create an eBusiness trading network of manufacturers, suppliers, and distributors that communicate and execute in real time. Source: Condensed from Mitsubishi Motor Sales of America: Enabling Dealer Collaboration via Internet, Manugistics Corp.
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