Logistics Enterprise Resource Planning in the cloud

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Logistics Enterprise Resource Planning in the cloud

An opportunity for opening up new markets in a globalized world

Jan Andreas Daske, Gunter Teichmann SALT Solutions GmbH

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Agenda

SALT Solutions – a brief introduction What exactly is "cloud computing"?

Some different approaches and our conclusion What does it mean in context of logistics?

Virtualization of real world services Transformation of classical IT systems Enterprise Resource Planning in the cloud

Chances and Challenges

State of technology and science What’s the right roadmap ?

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SALT Solutions GmbH

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• Founding 06/2002

• Locations Dresden, Düsseldorf, Oberpfaffenhofen, Würzburg

• Employees 270 (full time)

(effective 1.1.2011)

• Equity 4,8 Mio Euro Equity ratio 50 percent

• General Managers Dr. Bernhard Blüthner and Associates Dieter Heyde

Markus Honold • Business Areas Production

Logistics Retail

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Our concept

Process design and IT-solutions along the value chain

Experienced operating department and IT consulting services Proven international project expertise

Life-time Application Management and Support Certifications: ISO 9001, SAP AMS

Logistics

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Jan Daske Head of Business Development

Gunter Teichmann Head of Research & Development

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Cloud computing –

What exactly is it?

?

Three service models

Five essential characteristics

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Three service models

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Infrastructure (datacenter) Server & storage

platform Server & storage platform Server & storage platform Middleware / OS Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e PaaS IaaS SaaS

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Four deployment models

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Conclusion

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Our Conclusion:

Four service models

Infrastructure (datacenter) Server & storage

platform

Server & storage platform

Server & storage platform Middleware / OS Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e Softw ar e PaaS IaaS SaaS

Content, collaboration, communication, finance, …

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What does it mean in context of

logistics?

• Logistics industry has been an early adopter of internet technology (telematics solutions, fleet management systems, track&trace

systems, …)

• The internet becomes an internet of things and services. That is nothing else than logistics.

• Logistics is particularly strong driven by globalization related changes:

„think global, act local“.

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05.03.2012 // Logistics ERP in the cloud

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The challenge in logistics

• Producers, retailer and consumers move further apart and around the world. Logistics is therefore one of the world's most globalized

business in general. Result: The fragmentation of processes increases dramatically by divided process responsibility.

• The global risk management strategies of the leading producers and the movement of strategic resources results in more and higher

demands on logistics flexibility.

• Value chains moves with high speed to new providers, plants, suppliers and resources.

• Service Cluster with clear focuses becomes more and more importance.

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After the customer's order, the relevant procurement, manufacturing and distribution activities are automatically triggered in the digital value network.

Five characteristics of digital value

networks

Customer orientation

The customers are not viewed as passive recipients of services,

but to actively shape their/s product or solution, which are tailored for them as individual service packages.

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Five characteristics of digital value

networks

Customer orientation

The respective digital value creation network consists of a unique network of

suppliers, customers, competitors, complementary and intermediary, which form a special value creation network. Each partner contributes its specific core

competence.

Coordination is done through a system-wide communication and information management.

Cooperation and holism

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Five characteristics of digital value

networks

Cooperation and holism Agility and Scalability Customer orientation

Due to the flexibility of the production, distribution and information flows to

ensure that the digital value network can respond quickly to changes in demand, new product introductions, changes in partner constellations and growth within the digital value creation network.

This decreases the capital commitment and the duration of the process and steps can be reduced. All processes, whether material or information must be scalable.

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Five characteristics of digital

value networks

Cooperation and holism Agility and Scalability Customer orientation

The order processing cycle is fast and compressed. Ordered by the customer, the problem solution is delivered within the shortest

possible time to any location.

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Rule based, event driven systems on web technology automate most operational decisions of the manufacturing process.

The activities of the participating companies, customers and suppliers are connected through digital information channels.

A digital value network is characterized by the intelligent use and digital design of information and production processes.

Five characteristics of digital

value networks

Cooperation and holism Agility and Scalability Customer orientation Velocity digital

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Optimization of value creation in

changing times

Complexity

Number of stakeholder „Clockspeed“

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Value creation in networks

1st Order Customer 2nd Order Customer 2nd Order Supplyer 1st Order Supplier Supply Side Demand Side Company A Company C Company B

Internal Supply Network

Entire Supply Network Specific Supply Network

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1st Order Customer 2nd Order Customer 2nd Order Supplyer 1st Order Supplier Supply Side Demand Side Company A Company C Company B

Internal Supply Network Specific Supply Network

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Cloud computing history

source: Forrester Research Inc.

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InterLogGrid - Cloud Services for intramodale Logistics

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The airport in the logistics chain

Downstram processes Airport processes

Upstream processes

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Provision of the services within the

supply chain

The individual process steps in the supply chain are provided by separate companies.

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The airport as the center of a

powerful network of partners

Partner

Partner Partner

Partner

The airport is therefore the focus of a potential partner network. Each partner has its own specific skills and services.

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Partner Partner

Partner

The airport as the center of a

powerful network of partners

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Partner

Partner Partner

The airport as the center of a

powerful network of partners

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Partner

Partner Partner

Partner

The airport as the center of a

powerful network of partners

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Partner

Partner Partner

Partner

The airport as the center of a

powerful network of partners

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Partner

Partner Partner

Partner

The airport as the center of a

powerful network of partners

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The business activities of the

partners in the network is a

potential value

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Service Service Service Service Service Service

IT-Services increase the

efficiency of the network and its

partners

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Simulation of Logistics chains Service level analysis Tour planning Customer billing Service credit Costing each

sub-process Performance analysis Determination lowest-cost service Shipment consolidation Customs clearance Determination of resource requirements Customer analyses Balance tours with traffic conditions Balance tours with

timetable

IT services support all phases of

the logistics process

Tendering Billing Check Operation Implementation Control Optimization Planing

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Cloud architecture

Company

data Company software Company

data Company software

Cloud Interface

PC

Client Client(s) Mobile Company C Local Data Cloud Interface Cloud Interface PC

Client Client(s) Mobile Company A

Local Data

Company

data Company software

PC

Client Client(s) Mobile Company B

Local Data

Public

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From traditional phase model

to a model driven permanent

cycle

Concept Plan Implemen-_tation Test Introduction Usage Shutdown

Production Simulation

Modeling

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Logistics ERP Cloud Architecture

Business Modeler Business Model Controller End User Client(s) Task Controller

Cloud Computing Platform

Company 1

Shared Business Repository Local

Systems Business Modeler End User Client(s)

Company 2

Local

Systems Business Modeler End User Client(s)

Company n

Locale Systems

Customer Company Business Repository

Process- Model Business

Data Model Organisation Model

Shared Process Model Shared Business

Data Model Organisation Model Shared Business Model

Controller Controller Task

Data Model Organisation Model

Business Model

Controller Controller Task

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Collaboration in the Cloud

Business Modeler Business Model Controller End User Client(s) Task Controller Company 1 Local Systems Business Modeler End User Client(s) Company 2 Local systems

Process- Model Business Data Model Organisation Model Business Model Controller Task Controller

Process- Model Business Data Model Organisation Model Virtual Company Virtual Business Controller

Virtual Company Business Repository

Process- Model Business Data Model Organisation Model

Cloud Computing Platform Shared Business Repository

Shared Process Model Shared Business

Data Model Organisation Model Shared

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Agenda

SALT Solutions – a brief introduction What exactly is "cloud computing"?

Some different approaches and our conclusion What does it mean in context of logistics?

Virtualization of real world services Transformation of classical IT systems Enterprise Resource Planning in the cloud

Chances and Challenges

State of technology and science The right roadmap

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The right road to the cloud…

05.03.2012 // Logistics ERP in the cloud ₄₀

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Facing the challenge in logistics

- More Service - Great Clustering

- Combined Business Service Models

- More awareness with individual services to global producers

- service oriented interaction between global customers and logistic networks and his business members

- Using Cloud Computing as basic resource to improve business - Act as one service provider.

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Summary

• Cloud computing thought to end means “Everything as a Service”. That means virtualization of real world logistics services and virtual organization (virtual companies).

• Classical applications have to be transformed into a service oriented architecture. This is not just a technical affair, but rather requires a organizational and entrepreneurial rethinking in order to succeed.

• Companies wishing to benefit from it must open up their “walled gardens”. This contains great opportunities but also risks.

• “Think big, start smart”: The way into the cloud can be light weighted.

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Jan Daske Head of Business Development Tel.: +49 351/80604-3323 E-Mail: Jan-Andreas.Daske@salt-solutions.de

Gunter Teichmann Head of Research & Development Tel.: +49 351/80604-3431 E-Mail: Gunter.Teichmann@salt-solutions.de

Logistics Enterprise Resource Planning in the cloud