Network-based supply chain management method

• US 7,904,350 B2
• Filed: 07/20/2001
• Issued: 03/08/2011
• Est. Priority Date: 07/20/2001
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Villalobos, Mauricio Alejandro, Ayala, Roberto, Murray, Michael P.
• Primary Examiner(s): Zeender; F. Ryan
• Assistant Examiner(s): Obeid; Fahd A
• Application Number:
  US09/910,544
• Publication Number:
  US 20030018546A1
• Time in Patent Office: 3,518 Days
• Field of Search: 705/28
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials
• CPC Class Codes: G06Q 20/203 Inventory monitoring

Abstract

An exemplary embodiment of the invention relates to a method for facilitating supply chain collaboration in a network environment, said supply chain including an enterprise and at least one supplier. The method includes generating and transmitting an unconstrained forecast to a supplier; receiving a supplier capability statement in response; and generating a constrained forecast utilizing the supplier capability statement. The constrained forecast is transmitted to the supplier which responds with a formal commitment to product a needed supply indicated in the constrained forecast.

The method also comprises monitoring inventory levels at a replenishment service center by a supplier based upon a formal commitment; refilling inventory items at the replenishment service center; and facilitating delivery of the inventory items to the enterprise site by transmitting a pull signal to the replenishment service center whereby inventory items are delivered in response to the pull signal.

Claims

1. A method for facilitating supply chain collaboration over a network including a processor, the supply chain including an enterprise, enterprise sites, and at least one supplier, wherein the processor performs the method comprising:

aggregating demand received, at a central server of the enterprise, from a plurality of enterprise sites associated with the enterprise, the demand comprising materials requirements;

wherein each of the plurality of enterprise sites comprises divisions that share common material requirements with divisions from others of the plurality of enterprise sites, the common material requirements for each of the divisions corresponding with a product or commodity;

generating, using a material requirement planning system (MRP) located at an enterprise site, an unconstrained forecast resulting from the aggregating, the unconstrained forecast generated at a product or commodity level, wherein the unconstrained forecast represents at least one of an aggregated demand and a projected forecast received from a group scattered among the plurality of enterprise sites, and wherein the unconstrained forecast does not take into consideration any resource constraints;

transmitting the unconstrained forecast over the network to each of the suppliers that service the enterprise sites for which the unconstrained forecast is generated;

receiving supplier capability statements over the network, the supplier capability statements received by the division at each of the enterprise sites from corresponding suppliers in response to the transmitting;

performing, using the central server, a squared set analysis by generating square sets and adding capacity constraints to the unconstrained forecast by imploding component data related to the unconstrained forecast and tracing the component data through a manufacturing cycle while factoring at least one of constraints and business rules, wherein square sets represent an exploded demand for the components, wherein the square sets thereby avoid generation of demand for components that will not be consumed;

based on the results of the squared set analysis, generating, using the central server, a squared set build plan that is site-specific build plan for each of the plurality of enterprise sites associated with the enterprise;

based on the results of the squared set build plan, generating, using the MRP system, a constrained forecast, wherein the constrained forecast is at least one of equal or less than the unconstrained forecast, and wherein the constrained forecast takes into consideration all resource constraints and limits the constrained forecast to most limiting constraints;

receiving a formal commitment from the suppliers that service the enterprise sites;

transmitting the constrained forecasts to the suppliers at an enterprise site level over the network, wherein the constrained forecasts are sent to only the suppliers who provided the formal commitment;

monitoring inventory levels at a replenishment service center by said at least one supplier based upon said formal commitment;

refilling inventory items at said replenishment service center according to said formal commitment;

facilitating delivery of said inventory items to a site location for said enterprise by transmitting a pull signal to said replenishment service center; and

receiving said inventory items in response to said pull signal.

2. The method as recited in claim 1 further comprising:

receiving, from said at least one supplier, a formal commitment to produce a needed supply indicated in said constrained forecast.

3. The method as recited in claim 1 further comprising:

receiving, from said at least one supplier, a communication when said at least one supplier is unable to produce a needed supply indicated in said constrained forecast.

4. The method of claim 1, wherein the unconstrained forecast is generated via a centralized material resource planning engine at the enterprise.

5. The method of claim 1, wherein generating the unconstrained forecast includes exploding the aggregated demand into time-bucketed materials requirements at the product or commodity level.

6. The method of claim 1, wherein the unconstrained forecast is transmitted to each of the suppliers via the world wide web.

7. The method of claim 1, wherein the supplier capability statements include a greatest amount of materials each of the suppliers is able to make available to the division.

8. The method of claim 1, wherein the generating a constrained forecast includes:

inputting the supplier capability statements into a centralized constraint-based optimization tool at the central server, the centralized constraint-based optimization tool performing squared set analysis and applying capacity constraints;

producing the squared set build plan from results of the squared set analysis; and

inputting the squared set build plan into a materials resource planning tool for processing, the results of the processing used in generating the constrained forecast.

9. The method of claim 8, wherein squared sets resulting from the squared set analysis include an exploded demand including optimized volumes.

10. The method of claim 8, wherein the performing squared set analysis further comprises imploding component data, tracing the component data through a manufacturing cycle up to a final product while factoring in at least one of constraints and business rules.

11. A non-transitory storage medium encoded with machine-readable computer program code for facilitating supply chain collaboration over a network, the supply chain including an enterprise, enterprise sites, and at least one supplier, the storage medium including instructions for causing a computer to implement a method comprising:

aggregating demand received, at a central server of the enterprise, from a plurality of enterprise sites associated with the enterprise, the demand comprising materials requirements;

wherein each of the plurality of enterprise sites comprises divisions that share common material requirements with divisions from others of the plurality of enterprise sites, the common material requirements for each of the divisions corresponding with a product or commodity;

generating, using a material requirement planning system (MRP) located at an enterprise site, an unconstrained forecast resulting from the aggregating, the unconstrained forecast generated at a product or commodity level, wherein the unconstrained forecast represents at least one of an aggregated demand and a projected forecast received from a group scattered among the plurality of enterprise sites, and wherein the unconstrained forecast does not take into consideration any resource constraints;

transmitting the unconstrained forecast over the network to each of the suppliers that service the enterprise sites for which the unconstrained forecast is generated;

receiving supplier capability statements over the network, the supplier capability statements received by the division at each of the enterprise sites from corresponding suppliers in response to the transmitting;

performing, using the central server, a squared set analysis by generating square sets and adding capacity constraints to the unconstrained forecast by imploding component data related to the unconstrained forecast and tracing the component data through a manufacturing cycle while factoring at least one of constraints and business rules, wherein square sets represent an exploded demand for the components, wherein the square sets thereby avoid generation of demand for components that will not be consumed;

based on the results of the squared set analysis, generating, the central server, a squared set build plan that is site-specific build plan for each of the plurality of enterprise sites associated with the enterprise;

based on the results of the squared set build plan, generating, using the MRP system, a constrained forecast, wherein the constrained forecast is at least one of equal or less than the unconstrained forecast, and wherein the constrained forecast takes into consideration all resource constraints and limits the constrained forecast to most limiting constraints;

receiving a formal commitment from the suppliers that service the enterprise sites;

transmitting the constrained forecasts to the suppliers at an enterprise site level over the network, wherein the constrained forecasts are sent to only the suppliers who provided the formal commitment;

monitoring inventory levels at a replenishment service center by said at least one supplier based upon said formal commitment;

refilling inventory items at said replenishment service center according to said formal commitment;

facilitating delivery of said inventory items to a site location for said enterprise by transmitting a pull signal to said replenishment service center; and

receiving said inventory items in response to said pull signal.

12. The storage medium of claim 11, wherein the unconstrained forecast is generated via a centralized material resource planning engine at the enterprise.

13. The storage medium of claim 11, wherein generating the unconstrained forecast includes exploding the aggregated demand into time-bucketed materials requirements at the product or commodity level.

14. The storage medium of claim 11, wherein the unconstrained forecast is transmitted to each of the suppliers via the world wide web.

15. The storage medium of claim 11, wherein the supplier capability statements include a greatest amount of materials each of the suppliers is able to make available to the division.

16. The storage medium of claim 11, wherein the generating a constrained forecast includes:

inputting the supplier capability statements into a centralized constraint-based optimization tool at the server, the centralized constraint-based optimization tool performing squared set analysis and applying capacity constraints;

producing the squared set build plan from results of the squared set analysis; and

inputting the squared set build plan into a materials resource planning tool for processing, the results of the processing used in generating the constrained forecast.

17. The storage medium of claim 16, wherein squared sets resulting from the squared set analysis include an exploded demand including optimized volumes.

18. The storage medium of claim 16, wherein the performing squared set analysis further comprises imploding component data, tracing the component data through a manufacturing cycle up to a final product while factoring in at least one of constraints and business rules.