Flextronics Supplier Portal Program Overview

Jason Schreiber & Serena Seah

05/2012

Disclaimer.

Flextronics Supplier Portal (FSP) Solution Overview

Flextronics Supplier Portal (FSP) Overview

What is it? Flextronics Supplier Portal (FSP) is a next generation supply chain collaboration solution. Flextronics plans to use FSP to manage all supplier communications, transactions and processes beginning with Procurement Automation (Forecast and Purchase Orders). Flextronics first released FlexPASS in Dec 02 with 1 facility, a handful of parts and a few suppliers. Today, FSP is currently being implemented globally. We have 78 sites now live on FSP.
Key Business Processes
Purchase Orders Forecast Transmission Forecast Collaboration ASN SMI Invoice Management (TBD) Supplier Ratings and Metrics (TBD)

Application Partner: SAP SNC 7.01

Flextronics Supplier Portal (FSP) Overview

Why FSP? FSP is a centralized, web-based application that manages and supports collaborative supply chain processes between Flextronics and its supplier base. FSP enables Flextronics and suppliers to:
Automate transmission of transactions including:
Forecast Forecast Response/Collaboration Purchase Orders Purchase Order Changes Order Cancellations ASN Advance Shipment Notice

Accept and send supplier responses and shipment notices via multiple formats including:
Online Web Portal EDI Excel Email

Flextronics Supplier Portal (FSP) Vision

Reduce non-value added purchasing costs:

Provide complete history of POs (including PO Changes) on the web

Increase supply chain data integrity, availability and visibility

Provide electronic records of communication between suppliers and Flextronics Automatic data upload into Baan

Improve operational efficiency

Reduce processing time for receiving transactions

Flextronics Supplier Portal (FSP) Overview

FSP is a web-enabled applications suite to manage all supplier communications, transactions and processes beginning with Procurement Automation on SAP SNC 7.01 platform. Increases buyer / supplier performance Reduces purchasing transaction cost Increases supply chain data integrity, availability and visibility Improves operational efficiency

FSP (SAP SNC 7.01)

User Interaction
Web-Based User Interface

Business Processes
Purchase Order Process Supply Network Inventory Release Process Forecast Process Delivery Control Monitor Contract Mfg. Purchasing Supplier Managed Inventory Kanban Process Responsive Replenishment

Modules, Capabilities and Features

PO Collaboration Web-based collaboration tool that manages the full Purchase Order lifecycle Purchase Order Suppliers and buyers manage POs on 3 different levels (Header, Item and Schedule Lines) via Web or EDI Integrated ASN Suppliers sends Advanced Shipping Notifications to confirm the delivery via Web or EDI Dynamic Replenishment Web-based collaboration tool that manages the Forecast process Demand Monitor Detect and adjust the suppliers plan based on the forecast process, where the ever changing customer forecast/plans are compared with the suppliers data Exception Management ERP based exception reports that enables buyers to manage POs by exceptions Supplier Response Exception Report Alerts PO response exceptions on Date, Quantity, Price and MPN to buyers Supplier Non-Response Report Alerts delinquent supplier PO responses to buyers for proactive material shortage management Exchange Infrastructure (XI / PI) EAI/B2B middleware which enables integration among various applications and supply chain partners

XI Integration XML Message Exchange

Purchase Orders

ASN

Goods Receipt

Forecast

Supplier Response Exception Rpt

Supplier Non-Response Rpt

Flextronics ERP (BaaN)

Flextronics Supplier Portal (FSP) Overview

What is SAP SNC? SAP Supplier Notification Collaboration (SNC) is a web-based application that manages and supports collaborative supply chain processes between multiple business partners.
Process Support
Enable inventory, component & requirement visibility Automates Purchase Order, ASN and Forecast communication Supports complex data level integration to provide a simple web entry interface Provides BOM level communication Provides detailed purchase order status information, with tight integrations and proactive alerting Integrates sub-contractors into your purchase process N-Tier Visibility

Developed for High Tech

Flextronics Supplier Portal (FSP) Overview

Flexibility
Developed with APO in mind Designed to work with R/3 systems Stand-alone application SNC Current Version 7.01 Over 100 total SAP Customers 2005 High Customers Adoption (Over 65 client projects)

Adoption

FSP Key Features

PO Process Enables New/Reschedule/Cancel transmission and accepts responses from suppliers via Web/EDI Goods Receipt visibilities. Forecast Process Enables Forecast transmission and accepts commits from suppliers via Web/EDI

ASN Maintenance Supplier creation and publishing of ASN, including packaging and label printing

Alert Monitoring of exception situations available out-of-the-box on WebUI, and as emails, fax, SMS, etc.

FSP Transactions

Transactions Flow (Flextronics

Flextronics
Send Forecasts (830) Run MRP Send New PO (850) Send PO Change (860) Send SMI Pull Signal (862) Planner BaaN Buyer BaaN
EDI / Web

Suppliers)

Process ASN (856) Receive goods

Receiving BaaN

Suppliers
Send Forecast Commit (830R) Send New PO Acknowledgement (855) Send PO Change Acknowledgement (865) Send Inventory Balance (846) Supplier FSP

EDI / Web

Send ASN (856) Send goods

Supplier FSP

Order Method and Transactions

TRANSACTION Forecast (830) Forecast Commit (830R) New PO (850) New PO Acknowledgement (855) PO Change (860) PO Change Acknowledgement (865) Advanced Shipping Notification (856) SMI Pull Signal (862) Inventory Balance (846) DIRECTION Flextronics to Supplier Supplier to Flextronics Flextronics to Supplier Supplier to Flextronics Flextronics to Supplier Supplier to Flextronics Supplier to Flextronics Flextronics to Supplier Supplier to Flextronics ORDER METHOD CRP, FLT, SMI CRP, SMI CRP, FLT CRP, FLT FLT FLT FLT SMI SMI

CRP (Continuous Replenishment Program) :

Reduced Lead Time program Lead Time must be less than or equal to 2 weeks in Baan to be categorized as CRP

FLT (Full Lead Time) :

Lead Time loaded in Baan is equal to Manufacturer Lead Time plus Transit Time Fully automates MRP PO placement

SMI (Supplier Managed Inventory) :

A program where inventory is managed by supplier until Flextronics uses it

Benefits

Suppliers Benefits
Suppliers Benefits
Automatic transmission of Forecasts, New POs, PO Changes and PO Cancellations (Web, EDI or Excel Email) Ability to upload PO Acknowledgements, Forecast Commits and ASNs Suppliers manage by exception with custom email alerting. Suppliers do no need to visit the website on a daily basis Provides an electronic record of communication between suppliers and Flextronics Improved data integrity between suppliers and Flextronics Immediate transmission of all supplier acknowledgments to Flextronics ERP or to buyers for approval Faster delivery of Forecasts and Purchase Orders to suppliers

Additional System Benefits

Significantly improved system performance Very low requirement to access the FSP system. Suppliers only need a web browser, minimum, Internet Explorer Release 6.0 More options and capabilities including multiple languages

FSP Business Benefits and Results

Overall Business Benefits
Increased buyers / suppliers performance
Manage more with less Focus on strategic vs. tactical procurement activities

Reduced purchasing transaction costs

Reduce and remove non-value-add purchasing activities Manage by exceptions

Increased supply chain data integrity, availability and visibility

Ensure transparency of information across supply chain partners Maximise data quality and accuracy

Improved operational efficiency

Streamline integrated supply chain processes Minimize order cycle time and maximize inventory turns

FSP Business Benefits and Results

Where Are We Now?
Global Coverage
*78 sites (Americas, EMEA and Asia) are now live on FSP

Accelerated supplier adoption

**Number of Business Partners : ~9,800 **Number of Business Partner Users : ~15,300

Managing ever increasing supply chain transactions

**Weekly transaction volume : ~204,000 and growing..

*Data as at Oct, 2011 ** Data as at Aug, 2011

How to Get Started New Update

How to Get Started

Contact Flextronics Buyers or FSP Coordinators
Go to http://www.flextronics.com/partners/pages/fsp.aspx Obtain FSP On-Line Training Sites User Name and Password from buyers or FSP Coordinators Take the FSP On-Line Training Course Complete, sign and return the FSP Communication Agreement to the Flextronics site Receive FSP Username and Password via email Go Live on FSP NEW Update FSP Upgrade to SNC7.01 is implemented in May 2012 .

Thank you