TEMPORARY PAUSE>>>>that refreshes.......read on: By Stannie Holt Reprinted from InfoWorld, Dec. 28, 1998 / Jan. 4, 1999 (Vol. 20/21, Issue 52/1)
ound by their typically closed enterprise resource planning (ERP) systems, businesses are finding that sharing data electronically with partners may be the toughest nut to crack in 1999. But some industries are already looking to the Extensible Markup Language (XML) for business-to-business supply-chain collaboration.
Agile Software, which sells applications to describe and configure complex products, is proposing to make an XML-based open standard for supply-chain collaboration in the electronics industry. Some observers think this could deliver the "Holy Grail" of supply-chain planning: full, real-time information sharing regardless of different software and platforms.
"It's very pragmatic ... basically a standardization of information everybody has," said Bill Swanton, vice president of manufacturing strategies at AMR Research, in Boston. "I think it's going to catch on really well because the electronics folks have never felt standards have to be built from the ground up."
Agile announced in mid-December that it is teaming up with the National Electronics Manufacturing Initiative, contract electronics manufacturer Solectron in Milpitas, Calif., and semiconductor distributor Marshall Industries in El Monte, Calif., to propose an XML-based standard for companies to exchange product information such as bills of materials or engineering change orders.
"I'd like to see industry-wide support for this," because it would eliminate vast amounts of busywork to deliver and decode various formats of bills and product reports, said Ken Ouchi, CIO of Solectron.
XML, a cousin of the Web page language HTML, lets data objects such as "customer," "item," and "price" be automatically attached to numbers and words in an online document.
Solectron is supporting Agile's position on XML -- "[to] create a working standard that's public and open and something everybody could embrace," Ouchi said.
XML is especially suited to business-to-business commerce and collaboration, such as between semiconductor makers and equipment manufacturers, because it is fast, flexible, platform-independent, and Web-accessible, Ouchi said. This way, trading partners would not be required to use the same supply-chain and manufacturing software, he added.
The proposed XML standard will be offered to standards bodies such as the World Wide Web Consortium and the Supply-Chain Council as an open, nonproprietary set of specifications, an Agile representative said.
However, Ouchi said he hopes to see the standard catch on in the free market, not get bogged down in, say, the International Organization for Standardization certification process.
"They don't want buy-in issues to get in the way; the last thing you want [as an electronics manufacturer] is something slowing you down," Swanton said.
Other companies are expected to sign on soon, in areas such as peripherals and telecommunications as well as supply-chain collaboration software vendors.
Agile and its partners plan to come up with standardized XML documents such as change orders, deviations, and bills of materials, much the way the electronic data interchange created standardized financial documents that any company could use, Agile officials said.
The proposed standard was first aimed at the electronics industry because that relies the most on outsourced manufacturing.
"You're certainly going to see similar things [in other industries]," Swanton said. "Every discussion group we're in, everybody's planning something with XML."
Agile itself could create a usable version of an XML standard in six to nine months, but there's no telling how long certification by standards bodies would take, the Agile representative said.
Agile Software Corp., in San Jose, Calif., is at agilesoft.com.
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