Solution 3 (Real Time Inventory Tracking Module)

5.3.3.1 General Overview

In any ideal supply chain operation, it would be a complete solution to provide a real time updates on the demand and supply allocation. This modular system proposed will reduce the bullwhip effect which causes shifts in orders up and down the supply chain, and eliminating any stockpiling cause by the current forecast method of determining the quantity of components needed for the productions. Moreover, this proposed system is designed to provide process visibility across the value chain, giving suppliers greater control over the process and ensure synchronization of information with all partners regardless of size or geographic location.

Figure 10: Overview of Real Time Inventory Tracking Module (Source: e2Open Solutions)

The real-time inventory tracking module to be incorporated into the BEA system will comprises four agents, used independently or in combination with one another to execute more advance process in the supply chain. These four agents are Forecast, Inventory, Order and Multi Tier Visibility.

Forecast Agent

This agent will enables suppliers to rapidly align demand and supply in the mid-to-long-term planning horizon, allowing customers and their partners to arrive at a consensus forecast or plan. It provides alerts and notifications of demand supply mismatches and can support a single-phase or two-phase commit planning process.

Inventory Agent

This agent enables suppliers to align demand and supply by providing visibility to inventory status levels at multiple internal and external locations, as well as in-transit positions, enabling optimal levels of inventory. It allows partners to exchange key inventory-related information, such as demand-pull requests and target inventory levels and can be used to track supplier compliance to contract obligations such as min/max inventory levels. Exception alerts can be configured to flag any inventory-level violations.

Order Agent

This agent enables suppliers to manage and track the entire purchase order lifecycle through TMCA’s supply process. Suppliers can manage and track, in real-time, the complete end-to-end process for discrete, replenishment, demand pull and/or blanket purchase orders from order creation through shipment, receipt, invoicing and payment.

Multi-Tier Visibility Module

This agent allows TMCA to extend their demand/supply planning, order management and inventory management workflows beyond their first-tier partners to provide visibility to the processes executed between tier two, three and four partners. The solution allows to monitor demand/supply disconnects and exceptions throughout the extended supply chain, while providing tools to help identify the impact of problems identified multiple tiers away.

With these four agents implemented, integrated and work seamlessly with the existing BEA system, it would practically enhance the current system. Hence, give real time updates on the demand and supply allocations. In short, TMCA is now able to execute and monitor closely on their suppliers supplying operation and also the value chain.

Moreover, this system will be able to supports an array of integration protocols, formats and industry standards, including:

Transport Protocols

Protocols Data Formats Standards

• HTTP Table 2: Supports an array of integration protocols, formats and industry standards

(Source: e2Open Solution) 5.3.3.2 Solution Description

In this proposed real-time inventory system, when an order is being placed by the salesperson, the order information like car type, date-of-order, requirements will be enter into the TVOPS. Instantaneously, the Order Agent will communicate with the TVOPS

and collect the necessary information and analysis the data. The Order Agent will then provide the information regarding the parts involved and any requirements on the vehicles to the Inventory Agent. The Inventory Agent will then analysis the information received from the Order Agent. The Inventory Agent will identify those suppliers involved and submit inventory request to the suppliers. In addition, the Inventory Agent will collect any key inventory-related information and update the Order and Forecast Agents, which will then be returned to the TVOPS after aggregating the data.

Simultaneously, when the analysed information is communicated between the Order Agent and Forecast Agent, information on date of order will be analysed by the Forecast Agent based on the current situations on demand and supply, and return the information to the system with the date-of-delivery. The demand and supply information will be communicated between Forecast Agent and the Inventory Agent. Nevertheless the Forecast Agent will also be having the overview of all inventories and provides alerts and notifications of demand supply mismatches. Information of such will be communicated through the Inventory Agent where all inventory locations and level will be visible to the Inventory Agent. In short, all the 3 Agents will be communicating in runtime to provide all necessary information across the whole supply chain, to allow real-time inventory tracking which eventually improve the JIT production.

5.3.3.3 Scenario of proposed module

The interest of this system is focused on a complete solution to provide a real-time updates on the demand and supply allocation. In this scenario, one of the distributors of TMCA has just received an order of purchase of a locally made Toyota Camry. When the salesperson logs the order into the current BEA system, the information will immediately be sent Toyota Vehicle Order Processing System (TVOPS). Instantaneously, the real-time inventory module will acquire the new order information and be analysed. The analysed inventory information will then be sent to the respective suppliers to be updated onto their own system. For example, as a Toyota Camry requires more than 260 parts, only those suppliers involved in the production of Camry’s part will receive the information about the new order. With such message flow, suppliers can get their supply

ready for the next delivery to meet the JIT production in the shortest possible time needed.