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					Strategies for Integrated Supply Chain Visibility
Dr. Tobias Grabo
Head of Corporate Applications and Development
Kuehne + Nagel
Feb 19th 2009
Visibility and Monitoring
A Piece of Cake ….
The requirement
  Consistent and complete view of the actual status of all shipments
  independent of the mode of transport
  Automated and proactive monitoring capabilities of the whole supply
  chain – configurable according to the customer’s needs

The answers
  Timely creation and collection of all required data
  Integration and consolidation of the up to date records in a single place
  Provision of a sophisticated and integral IT system to deliver the
  information to the user

                                                    Easy!?

Strategies for integrated supply chain visibility               Feb 19 2009   p. 2
Visibility and Monitoring
It Sounds Easy ….
In principle yes, but …
  … most organizations struggle with this requirement
  Various reasons:
              Missing standardization in processes and applications
              Decoupled technical architecture
              Limited functionality and data consistency
              Large number of different operational systems
              Data quality
              …
Kuehne + Nagel approach
  Internal staff and representations around the globe
  Standardized operational processes and systems
  Integration of internal and external systems
  Central data and document pooling
  Highly configurable customer facing fronted with excellent performance
Strategies for integrated supply chain visibility                     Feb 19 2009   p. 3
 Visibility and Monitoring
 Integrated IT Architecture Crossing System Boundaries
                                                                   Single sign-on
                                     Business Objects                               KN Login NG

Visibility and                                 Data
                                               Mart                      Monitoring           Visibility
 Monitoring
                                     Data              Data
                                     Mart              Mart



                                                ETL                     DB interface         View layer



Data Pooling                                                            Document
                                        Data Pool
                                                                         Storage


 Integration                                         Enterprise Service Bus                  Broker
                                                                                                                 External
                                                                                                                 partners
Operational                            Operational                     Operational
 Systems                                 System                          System

 Strategies for integrated supply chain visibility                                                         Feb 19 2009   p. 4
KN Login NG
Next Generation of Visibility and Monitoring for Kuehne + Nagel
Motivation for KN Login NG migration
  Remove separate data base to avoid inconsistencies and save costs
  Reduce complexity and improve configurability
  Advance technology and increase performance

What was changed?
  Data Pool used as single source of truth
  Technology changed from Progress to Java/Oracle
  Unified and intuitive look and feel with single sign-on functionality
  Personalized for each user and offering customized summary view
  screens and own reference terminology
  Enhanced exception monitoring engine
  Integration of standardized reporting tools

Strategies for integrated supply chain visibility               Feb 19 2009   p. 5
KN Login NG
Consistent “No-Thrills” Technical Architecture
Principles
   Use the simplest solution for existing requirements
   Reuse existing and proven solutions where possible
   Solve common problems at one central point
   Reduce complexity as much as possible
   Employ proven object oriented patterns and practices
   Establish a specific technical web framework
   Strict documentation and quality assurance processes

Realization
  3-tier service oriented architecture with thin html client
  POJO based programming model
  Hibernate as object-relational mapping tool

Strategies for integrated supply chain visibility              Feb 19 2009   p. 6
KN Login NG
Overview Technical Architecture
                                                                                         DialogAction    DialogManager
        Thin client                                                                       (Technical)      (Technical)

        IE / Firefox                                   Struts
                                                                                           MyDialog
                                                                                         (Application)

      Web-Server                                    Presentation
                                                                                             Business dimension
         VM Java 5




                                                                   Technical dimension
                                                                                             User BC       Shipment BC
           Tomcat 5                                  Business
                                                                                             Service          Service
   Web Application
                                                    Integration

       DB-Server                                     Hibernate                              DAO             DAO



                                                                                                   BO                  BO
         Oracle 10


Strategies for integrated supply chain visibility                                                        Feb 19 2009        p. 7
                                                    Visibility in 3 steps:
                                                       Search
                                                       Overview
                                                       Detail




Strategies for integrated supply chain visibility              Feb 19 2009   p. 8
KN Login NG
Technical Challenges
Monitoring
  Active notification of internal and external parties if predefined
  events/status are (not) reached in time
  Challenging performance requirements:
              ~ 600.000 status messages per day
              ~ 50.000 configurable monitoring rules
              ~ 30.000 triggered notification events per day
   Solution: Implementation in SQL and PL/SQL close to data base
Data extract
   Highly configurable scheduled and ad hoc data extraction
   Usage of existing visibility data base structure (single source of truth)
   4000-6000 extract requests per day
   Iterative data extraction to avoid memory overflow
   Exhaustive performance tests

Strategies for integrated supply chain visibility                 Feb 19 2009   p. 9
KN Login NG
Interactive Delivery Planner




Strategies for integrated supply chain visibility   Feb 19 2009   p. 10
KN Login NG
Lessons Learned
       Specialised and consistent technical framework is crucial
              Solve common problems once and concentrate on business logic
              Ensure flexibility through clear structure in order to respond quickly to new
              requirements
       Mixture of up-to-date operational and analytical data in one data base
       is possible but challenging:
              Provide fast interfaces to continuously update operational data
              Support fast search queries on large volumes of data
       The monitoring and visibility application is just one part
              Consistent processes in operation
              Data quality starts at operational level and needs constant focus
              Loosely coupled but integrated applications
              Standard and expandable interfacing options to/from external partners
              Single source of truth for all visibility, monitoring and reporting data

Strategies for integrated supply chain visibility                               Feb 19 2009   p. 11
Future Visibility Integration: Shipment + Order + Inventory
How Does the Whole Picture Look Like?



                                         20
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     2                                                                              28   5   1
          1                                              35
    15                                                                              1
                                                                           30
          1                                                                                      10


                                                    20                30                               3

                                                              20




                                                              8


                                                                  2




Strategies for integrated supply chain visibility                                                     Feb 19 2009   p. 12
Thank You for Your Attention!
Questions?

				
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