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 1 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?