GB2380565A

GB2380565A - Electronically operated supply chain

Info

Publication number: GB2380565A
Application number: GB0123674A
Authority: GB
Inventors: Jeremy John Carroll; Ian David Page
Original assignee: Hewlett Packard Co
Current assignee: HP Inc
Priority date: 2001-10-03
Filing date: 2001-10-03
Publication date: 2003-04-09
Also published as: GB0123674D0

Abstract

The electronic based supply 10 chain mediation and control of a plurality of supplier members A, B,.. N is used for the supplying of an end product 11. Information is downloaded by the supplier members onto the system database D. The information includes member identifier, product identifiers, added value contribution by the member identifiers a, b, ...n, next up and down stream member identifiers and their work product identifiers. With the information available to all members in response to enquiries to the database. Also the members might be obligated to provide the information. Also the database could inform members when a downstream member make a query about them. The system could be set up on a network 15 with remote sites.

Description

Method of Operating an Electronically Mediated Supply Chain Background to the Invention This invention relates to a method of operating an electronically mediated supply chain of the kind having a plurality of supplier members.

More particularly but not exclusively the invention relates to a method of operating an electronically mediated supply chain in which an end product is supplied to an end user, to which end product a plurality of supplier members in a supply chain have made contributions having an economic value.

The supplier members'contributions may be the adding of a subcomponent to a work product received from an upstream supply chain member, or the carrying out of a service on a work product or even the mere supply of the end product to the end user.

The invention relates not only to a supply chain for supplying physical products such as manufactured items or food products, but abstract products too, such as an insurance policy, or a document translation for examples only which may themselves be supplied as a result of an e-service transaction.

Description of the Prior Art Traditionally, businesses may keep records as to who their suppliers are for each product they handle.

In the event of a problem or query concerning an end product, a consumer or other end user of the end product typically has to contact the last supplier in the supply chain in a quest for a remedy. For example in the case of an item of furniture end product, a handle of which requires replacement, a consumer would return to the retailer where the end user bought the item of furniture. Usually, the retailer would need manually to contact the next upstream supplier in the supply chain to discover the identity of the next upstream member in the supply chain and so on, until the supply chain member

who supplied the handle was found. Eventually, the retailer may be able to place an order for a replacement handle directly with the relevant supplier member.

In complex supply chains, the simple replacement of an end user's broken handle for an item of furniture for example, can thus be long and complicated.

Bigger businesses with static supply chains may keep more detailed records derived from their suppliers about further upstream suppliers in the supply chain but these records are not generally accessible by other suppliers in the supply chain or by an end user and are not readily able to account for rapid changes in upstream suppliers, for example if an upstream supplier sources components for a short term from an alternative not previously notified source.

Even in electronically mediated supply chains, each supplier member in the supply chain may utilise different record keeping systems, which may be incompatible with each other and thus in the event that an end user or a supplier member of the supply chain needs to interact directly with another supplier member of the supply chain, a manual complex tracking path is still required to identify a relevant supplier member.

It is known in an electronically mediated supply chain, to monitor the progress of an order along a supply chain, by monitoring supply purchase and/or production orders. In one arrangement when a customer places an order for a product with a catalogue agent, the customer is given a tracking number by means of which the customer can make enquiries through the catalogue agent concerning the status of the order. Such tracking is performed electronically with the catalogue agent making an enquiry of a workflow domain manager which oversees progression of the order along the supply chain.

However such a system does not enable a consumer for example, or the last supplier member of a supply chain e. g. a retailer, to identify a supplier of a

component of the end product, and thus to interact directly with the supplier of the component of the product ordered by contacting the supplier member.

A characteristic of an e-service supply chain is that it may well be transitory, e. g. it may be relevant to a single e-service transaction only. Thus in such cases where there is no established supply chain, it can be very difficult indeed, if not impossible, for an e-service consumer to identify an up-stream eservice supplier member responsible for a specific economic contribution to an end product.

Summary of the Invention According to a first aspect of the invention we provide a method of operating an electronically mediated supply chain for supplying an end product to an end user, the supply chain having a plurality of supplier members, with at least some of the supplier members making contributions adding economic value to a work product received from the next upstream supplier member in the supply chain, the method including collating in a database for each of the supplier members of the supply chain :- - supplier member identifier information to identify the supplier member; - work product identifier information by means of which the supplier member identifies the work product during the supplier's handling of the work product; - identifier information in respect of any contribution by the supplier member to the work product received from the next upstream supplier member; - next downstream or upstream supplier member identifier information to identify the next downstream or upstream supplier member in the supply chain; - next downstream or upstream supplier member work product identifier information ;

and the method further including making available to at least some of the supplier members of the supply chain and/or to the end user, in response to an enquiry to the database, the identity of a supplier member who is responsible for a contribution in the supply chain to the end product.

Thus by operating the electronically mediated supply chain in accordance with the invention, an end user, typically a consumer, or at least the last supplier member of the supply chain e. g. a retailer, may identify and thus interact directly with the supplier member who made a particular contribution to the end product by contacting the supplier member so that any problem or enquiry concerning the contribution can be dealt with directly by the supplier member.

Thus the supply chain is operated more efficiently than conventional supply chains.

Moreover the invention lends itself particularly for use where the supply chain is an e-service supply chain which may be transitory in nature, although the invention is also useful where the supply chain is more established i. e. having supplier members which enjoy more permanent commercial relationships.

Preferably the method includes obligating each supplier member of the supply chain to provide its information to the database.

Whereas most desirably from the end user's point of view, each supplier member will permit the database to make full disclosure in response to an enquiry, there may be circumstances in which a supplier member may be unwilling for the identity of an upstream supplier member to be disclosed.

Thus the method may include setting security parameters on the database according to preferences of each supplier member to allow or inhibit the disclosure of at least some respective supplier members'information in response to an enquiry. Thus any supplier member who opts not to allow the database to disclose information in response to an enquiry and as a result the

identity of an upstream supplier member who made a contribution to the work product, is hidden, the supplier member assumes responsibility for such contributions made to the work product upstream.

The method may include informing supplier when a downstream supplier member seeks to locate an upstream supplier member by interrogating the database with a query which would indicate the likelihood of subsequent interactions between the downstream supplier member and the upstream supplier member.

Being aware of such interactions between a downstream supplier member and an upstream supplier member may enable a supplier member to monitor the quality of any contribution to the work product made upstream, better to assess the quality of the work product supplied by it downstream.

The database may be a centralised database to which each of the supplier members may provide its information for example over a network connection such as the Internet or an Intranet or Virtual Private Network for examples. Alternatively the database may be a distributed database located at a plurality of sites, the plurality of sites being connected by a network connection.

At least some of the sites of the distributed database may be coincident with premises of supplier members of the supply chain although this may require the record keeping systems of the relevant supplier members'to be compatible. Thus if desired the sites of the distributed database are remote from the supplier members'premises.

The method may include storing on the database additional information relating to a supplier member's contribution to the work product. Such additional information may include details relating to the nature, content or where appropriate, raw material source of the supplier member's contribution to the work product.

According to a second aspect of the invention we provide an electronically mediated supply chain system for supplying an end product to an end user, the supply chain having a plurality of supplier members, with at least some of the supplier members in use, making contributions adding economic value to a work product received from the next upstream supplier member in the supply chain, the system further including a database containing for each of the supplier members of the supply chain :- - supplier member identifier information to identify the supplier member; - work product identifier information by means of which the supplier member identifies the work product during the supplier's handling of the work product; -identifier information in respect of any contribution by the supplier member to the work product received from the next upstream supplier member; - next downstream or upstream supplier member identifier information to identify the next downstream or upstream supplier member in the supply chain; - next downstream or upstream supplier member work product identifier information ; and the system further including an enquiry input device by means of which an enquiry may be made to the database by at least some of the supplier members of the supply chain and/or the end user, relating to one of - the identity of a supplier member who is responsible for a particular contribution in the supply chain to the end product - additional information provided by a supplier member relating to a contribution to the end product made by that supplier member.

Brief Description of the Drawing

The invention will now be described with reference to the accompanying drawing which is a schematic view of a supply chain operated in accordance with the invention.

Description of the preferred Embodiments Referring to the drawing a supply chain 10 for an end product 11 being in this example a manufactured item such as an item of furniture, includes N supplier members A, B,... N etc. Each supplier member B,... N etc. downstream of the first supplier member A of the supply chain 10, receives from an upstream supplier member, a work product 12,13 and each supplier member A, B apart from the last supplier member C in the supply chain 10, supplies a work product 12,13 etc. to the next downstream supply chain member B,... N. The first supply chain member A originates the work product 12, for example in the case of a manufactured product, from raw materials. The last supplier member N in the supply chain 10, supplies the end product 11 to an end user D.

In this example, each of the supplier members B, C downstream of the supplier member A who originates the work product 12 makes a contribution having an economic value, to the work product 12,13 etc. it receives from the next upstream member A, B... etc. of the supply chain 10.

For example, supplier member A may manufacture a furniture item from wood thus making an initial contribution a, whereas supplier member B may fit a fitting such as a handle to the furniture item received from supplier member B, thus making a contribution b and so on, until the final supplier member N may package the furniture items for consumers, thus making contribution n.

Thus each of the supplier members A, B,... N makes a contribution having an economic value a, b,... n to the end product 11.

Each of the supplier members A, B,... N are obligated to supply information to a third party database D which is configured so that upon an enquiry being made, the identity of a supplier member A, B,... N who made any

particular contribution a, b,... n can be identified to enable the enquirer to make contact with and hence interact directly with the relevant supplier member A, B,... N.

In one example, each supplier member A, B,... N is obligated to provide the following information to the database D namely :i. supplier member identifier information to identify the supplier member ; Such information may include contact information to enable the supplier member A, B,... N to be contacted by mail, telephone, facsimile, e-mail etc.

The database may thus have a table of supplier member information. Where the supplier member A, B,... N is an entity which is related to another entity, for example the supplier member A, B,... N may be a subsidiary or company otherwise related to another company which may even be another supplier member A, B,... N in the supply chain 10. The supplier member identifier member information may include information about such related companies.

For example, on the database D, on a main data storage table, there may be included information to identify the supplier members, and on an auxiliary data storage table there may be stored contact information and any information relating to the supplier member's company hierarchy. ii. work product identifier information by means of which the supplier member A, B,... N identifies the work product during the supplier's handling of the work product ; Each supplier member A, B,... N may use its own record name and/or code for the work product 12, 13 it handles. Preferably this information includes not only an e. g. alphanumeric identification code, but a description of the work product for ease of identification purposes. For example for work product 12 handled by supplier member A,"wardrobe###"where"###" represents an alphanumeric code.

iii. identifier information in respect of any contribution by the supplier member to the work product received from the next upstream supplier member; Such information enables the contribution a, b,... n by any supplier member A, B,... N to be identified. For example in the case of supplier member B, a code/description relating to a handle contributed to the work product 12 received from supply member A may be identified as"Handle###"where again"###"represents an alphanumeric code. iv. next downstream supplier member identifier information to identify the next downstream supplier member in the supply chain; each supplier member A, B,... N will need to know at least who the next downstream supplier member in the supply chain 10 is, so that its work product 12, 13 (and the end product 11 too) can be delivered. Hence each supplier member A, B,... N will have this information for the database to store in a table. v. next downstream supplier member work product identifier information; In order to supply its work product 12,13 etc. to the next downstream supplier member B,... N, the supplier member will need to identify the work product for the next supplier member's B,... N records.

By collating this information on the database, in response to any enquiry relating to any contribution a, b,... n to the end product, the supplier member A, B,... N responsible for the particular contribution a, b,... n can be identified and thus an enquirer may interact directly with the relevant supplier member A, B,... N.

In another example, instead of the information which is stored, particularly the information indicated at iv. and v. above, relating to the next downstream supplier member in the supply chain 10, it will be appreciated that alternatively the information may relate to the next upstream supplier member in the supply chain 10. Either system enables a supplier member A, B,... N who

made a particular contribution a, b,... n to the end product 11 to be identified, provided that all the supplier members A, B,... N in the supply chain 10 adopt the same protocol.

In one example where a consumer experiences a problem with the handle contributed to the item of furniture end product 11, by making an appropriate transitive closure enquiry to the database D, typically via the retailer of the wardrobe item or directly, in order to identify supplier member B as the contributor of the handle. Thus a new handle may be obtained directly from the supplier member B rather than supplier member B having to supply a new handle to the next supplier member in the supply chain and so on down to the retailer. Moreover there is no need to make step by step enquiries from one supplier member to the next up the supply chain in order to identify supplier B.

The database D may be a centralised database, typically organised and run by an independent third party or particularly where the supply chain includes a large number of supplier embers A, B,... N, the database D may be a distributed database located at a plurality of sites, the plurality of sites being connected by a network connection 15.

At least some of the sites of the distributed database may be coincident with premises of supplier members of the supply chain although this may require the record keeping systems of the relevant supplier members'to be compatible, and so preferably the sites of the distributed database are remote from the supplier members'premises.

Supplier members'information may be provided to the database directly electronically e. g. via a network connection 15. Preferably the supplier members'information is provided automatically to the database D as the supply chain 10 is set up, with each supplier member A, B,... N only being accepted as a supplier member in exchange for accepting an obligation to provide its information to the database D.

The supplier members A, B,... N may provide additional information relating to their contributions a, b,... n to the end product 11 to the database D which may store such information which may then be made available directly to an enquirer. For example, such additional information may relate to the nature, content or where appropriate raw material source of the contribution a, b,... n. In the example described above, supplier member A may provide additional information relating to its contribution a to the end product 11, to state that the wood which was used comes from renewable resources, from a particular country. Supplier member B may provide additional information relating to its contribution b to the end product, for example to specify the nature of the fastening by which the handle may be secured to the furniture item work product 12. Supplier member n may provide additional information relating to its contribution n to the end product, for example to state that its packaging is made from recycled materials.

Although most desirably from the point of view of an enquirer, each of the supplier members A, B,... N will allow full disclosure of their information provided to the database D in response to an enquiry, there may be circumstances in which a supplier member A, B,... N may be unwilling for the identity of an upstream supplier member to be disclosed.

Thus if desired the database D may include security flags by means of which security parameters on the database D may be set according to preferences of each supplier member A, B,... N. Such security flags may enable the disclosure of at least some of a supplier member's A, B,... N information, in particular the supplier member's suppliers, to be inhibited. However any supplier member who opts not to allow the database D to disclose information relating to upstream suppliers in response to an enquiry, and as a result the identity of an upstream supplier member who made a contribution to the end product 11, is hidden, assumes responsibility for contributions made to the work product upstream.

If desired, the database D may be configured passively to inform supplier members when a downstream supplier member B... N seeks to locate an upstream supplier member by interrogating the database D with a query.

This would indicate the likelihood of subsequent interactions between the downstream supplier member and the upstream supplier member. By investigating these interactions, for example, a supplier member may monitor the quality of any contribution a, b... n to the work product 12,13 etc. made upstream, so that a supplier member B,... N may better assess the quality of the work product supplied by it downstream.

In another example the end product may be an abstract product such as an insurance policy which may have originated with an underwriter supplier member A of the supply chain, but the policy wording was drawn up by supplier member B and eventually brokered to the consumer by supplier member C.

Thus each of the supplier members A, B,... N of the supply chain 10 have made contributions a, b,... n adding economic value to the insurance policy 11. In the event that a consumer has a query concerning the wording of the policy document, by making an enquiry to the database D which stores information provided by each of the supplier members A, B,... N, e. g. via a broker, the consumer may identify and interact directly with supplier member B who worded the policy document, to clarify the wording.

In yet another example of an electronically mediated supply chain to which the method of the invention may be applied, a food end product 11 has contributions a, b,... n made to it by supplier members A, B,... N of the supply chain 10. For example the first supplier member A of the supply chain 10 may, from raw ingredients, create a work product 12 being a batch of an uncooked mixture which is then supplied to the next downstream supplier member B. The supplier member B may divide the batch of mixture 12 into smaller units thus making a contribution b with an economic value to the work product 12

received by it, and other supplier members in the supply chain 10 (not shown) may cook and package the smaller units of the batch, thereby each adding an economic value. The final supplier member N in the supply chain is in this example a food product 11 retailer who supplies consumers.

In this example, all of the supplier members A, B,... N of the supply chain 10 provide their information to the database D, and additionally at least the originator supplier member A in the supply chain 10 provides additional information relating to original source and nature of the raw ingredients used in the original mix 12.

Thus in the event that a consumer is concerned to know whether the food end product 11 contains any genetically modified raw ingredients, or raw ingredients from a particular country, or raw ingredients (e. g. nuts) to which the consumer may have an allergy, the consumer may within a retailer's 11 premises, using an enquiry input device E, make an appropriate enquiry to the database D to discover this information. In this example, in the event that the additional information stored on the database D relating to the raw ingredients is insufficient for the consumer, by using the enquiry input device E, the database D may identify to the consumer the upstream supplier member to enable the consumer directly to contact and hence interact, with the supplier member A for the required clarification.

It will be appreciated that the invention may be applied to a supply chain, which may only be transitory, e. g. set up for a single transaction, or at least sufficiently few transactions that no permanent commercial relationships are set up between all of the supplier members A, B,... N. An example of such a transitory supply chain is an e-service supply chain in which the members A, B,... N, or at least some of the members may be e-service supplier members, or proxies for supplier members. In each case the invention allows a consumer to find out more about any economic contribution made to the end product by any supplier member A, B,... N.

The features disclosed in the foregoing description, or the following claims, or the accompanying drawings, expressed in their specific forms or in terms of a means for performing the disclosed function, or a method or process for attaining the disclosed result, as appropriate, may, separately, or in any combination of such features, be utilised for realising the invention in diverse forms thereof.

Claims

CLAIMS 1. A method of operating an electronically mediated supply chain for supplying an end product to an end user, the supply chain having a plurality of supplier members, with at least some of the supplier members making contributions adding economic value to a work product received from the next upstream supplier member in the supply chain, the method including collating in a database for each of the supplier members of the supply chain :- - supplier member identifier information to identify the supplier member; - work product identifier information by means of which the supplier member identifies the work product during the supplier's handling of the work product; - identifier information in respect of any contribution by the supplier member to the work product received from the next upstream supplier member; - next downstream or upstream supplier member identifier information to identify the next downstream or upstream supplier member in the supply chain; - next downstream or upstream supplier member work product identifier information ; and the method further including making available to at least some of the supplier members of the supply chain and/or to the end user, in response to an enquiry to the database, the identity of a supplier member who is responsible for a contribution in the supply chain to the end product.
2. A method according to claim 1 wherein the method includes obligating each supplier member of the supply chain to provide its information to the database.

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3. A method according to claim 1 wherein the method includes setting security parameters on the database according to preferences of each supplier member to allow or inhibit the disclosure of at least some respective supplier members'information in response to an enquiry.
4. A method according to claim 1 wherein the method includes informing supplier members when a downstream supplier member seeks to locate an upstream supplier member by interrogating the database D with a query.
5. A method according to claim 1 wherein the database is a centralised database to which each of the supplier members provides its information.
6. A method according to claim 5 wherein each of the supplier members provides its information to the database over a network connection.
7. A method according to claim 1 wherein the database is a distributed database located at a plurality of sites, the plurality of sites being connected by a network connection.
8. A method according to claim 7 wherein at least some of the sites of the distributed database are coincident with premises of supplier members of the supply chain.
9. A method according to claim 7 wherein the sites of the distributed database are remote from the supplier members'premises.
10. A method according to claim 1 wherein the method includes storing on the database additional information relating to a supplier member's contribution to the end product.

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11. A method according to claim 10 wherein the additional information includes details relating to at least one of the nature, content and raw material source of the supplier member's contribution to the end product.
12. An electronically mediated supply chain system for supplying an end product to an end user, the supply chain having a plurality of supplier members, with at least some of the supplier members in use, making contributions adding economic value to a work product received from the next upstream supplier member in the supply chain, the system further including a database containing for each of the supplier members of the supply chain :- - supplier member identifier information to identify the supplier member; - work product identifier information by means of which the supplier member identifies the work product during the supplier's handling of the work product; - identifier information in respect of any contribution by the supplier member to the work product received from the next upstream supplier member; - next downstream or upstream supplier member identifier information to identify the next downstream or upstream supplier member in the supply chain; - next downstream or upstream supplier member work product identifier information; and the system further including an enquiry input device by means of which an enquiry may be made to the database by at least some of the supplier members of the supply chain and/or the end user, relating to one of - the identity of a supplier member who is responsible for a particular contribution in the supply chain to the end product

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- additional information provided by a supplier member relating to a contribution to the end product made by that supplier member.