Analysis Mode-transaction mode (Trading)

Martin focuses on stocks, futures, and options in Trading models, which are estimated to be extracted from some projects in the financial sector. These areas are narrow.
In addition, it seems that Martin has made too many articles in some detail, but he does not mention the various business models that are widely used in the industry. Therefore, it does not look like a domain conceptual model at all, it is only for several design cases in specific industries. After all, the domain conceptual model focuses on how the system implements various mainstream business models.
In addition, Martin seldom uses proprietary industry terms. It is very difficult to map the object nouns suddenly emerging to industry terms.
ERP systems, especially large ERP systems such as SAP, provide procurement, sales, and other modules to deal with transaction (Trading) Businesses in mainstream industries, with a wide range of applications, in summary, there is a big gap between the solution and the model mentioned by Martin.
Therefore, this article abandons the content of related chapters in the Martin analysis model, recording his own understanding of this field, and only involves some main concepts.

General purchase cases:

1. The purchase information record is a centrally maintained price list and supplier information
There are many sources of price information, such as quote Quota, Contract, and other sources that can provide price information.
Multiple design methods can be used to generate price information from quotations and contracts, such as automatic generation at the time of quotation and Contract Validation, or the quote and contract can be selected when the purchaser creates a purchase information record, determine whether the buyer can adjust the scope and scope of the adjustment according to the configuration.
2. The procurement application is the planned demand for materials. You can create a purchase order through the procurement application (mainly providing the quantity and date of demand) and the purchase information record (mainly providing suppliers and prices ).
Because the number of purchases, who to purchase, and the purchase price are very sensitive to enterprises, flexible settings are required to meet various requirements. Companies with standardized and strict management can adopt the above procedures and restrict the scope of adjustment by purchasers. If the scope of adjustment exceeds the predefined scope, the top level should sign the approval. For companies with low management requirements, or the purchase materials that are not important can be controlled too much, that is, the buyer is allowed to directly create a purchase order.

One-time PO (purchase order) is a traditional method. You can create or directly create a purchase order based on the price inquiry, purchase application, or subsequent procurement operations.
Strategic Procurement for important materials involves many aspects, and there are also many operation modes that can be solved through contracts. A contract is a long-term procurement Agreement (Long Term Purchase Agreement ). SAP divides a contract into a value contract and a quantity contract. The value contract mainly determines the total procurement value within a certain period of time. The PO created by the value contract will be referenced, and the total PO amount will be included in the contract, when the sum reaches or exceeds the total contract value, the contract target is completed, and a new contract is required for subsequent procurement. The quantity contract determines the total quantity, when the cumulative PO purchase quantity reaches the contract quantity, the contract goal is fulfilled.

The Contract mentioned in Martin's book is equivalent to the PO in the figure. PO itself has a legal effect. From a legal point of view, it is a Contract, but in the industry, they are called orders, such as purchase orders or sales orders)
Portfolio is similar to the Contract concept in the figure. In Martin's description, Portfolio is more like a loose and random grouping. It includes qualified orders for statistical analysis. Such a function can use OLAP) tool implementation in the product should not be a major object in the conceptual model. On the one hand, the contract I provided in the figure can provide some framework price information (this is optional, that is, the procurement contract in the figure provides price information to the purchase information record ), on the other hand, the management can control and focus on the total value and quantity of procurement of contract materials within a certain period of time. For example, after the contract target is completed, it is not allowed to continue procurement without a new contract. In terms of business operations, establishing strategic partnerships with suppliers is conducive to in-depth cooperation and reducing risks between the two parties.
Scenario is similar to the purchase information record in the figure. As mentioned above, it is best to set a configurable price from the purchase information record when creating a PO. For those companies whose real right of purchase falls on specific purchasers and lack the conditions to improve such management conditions, it is a better solution to allow purchasers to create any purchase order and determine the purchase quantity and price.

For one-time PO, it is sufficient to divide the concept object into two layers (Purchase Order + procurement project), and the delivery plan information can be included in the purchase order or procurement project; the delivery plan is suitable for fine-grained procurement with large procurement quantities and high real-time requirements. For example, in one scenario, the company's management team signs large procurement orders (large amounts or quantities) with major suppliers every quarter, and the production and sales departments formulate detailed delivery plans based on specific production and sales situations, it may be the number of deliveries per week or every two days. Then, the buyer is responsible for implementing the delivery plan and making adjustments based on the actual situation. This kind of purchase order is a bit similar to that in the JIT purchase mode.

The further development of refined procurement is JIT, which requires more cooperation between suppliers and procurement parties and suppliers. JIT procurement generally conducts supplier inspection, evaluation, authentication, and signing of business operation agreements outside the system. The System Implementation Layer generally uses the blancet PO. This PO does not have a quantity or provides a rough estimate and summary quantity. The actual purchase quantity is subject to the specific delivery status. The blancet PO mainly provides the purchase price information. The advantage of providing a summary evaluation quantity is that suppliers can prepare part of production in advance based on this. JIT delivery will be summarized into the Blanket PO, financial settlement based on actual delivery conditions and signed agreements
JIT can be implemented using the refined procurement solution mentioned above, that is, using the Delivery Plan in the PO, because JIT is a type of refined procurement. In many cases, the delivery plan may need to be extended into an independent module. For example, the JIT implementation of large enterprises requires more control over the delivery plan, delivery schedules in PO are too simple to meet these control requirements

As for VMI, the procurement process is similar to JIT, except that the creation of the procurement application may contain other complicated processing logic, such as calculating replenishment points based on different inventory control theories, different notification methods are provided in different warning zones.

In addition, the implementation of centralized procurement, decentralized procurement and other procurement models mainly focuses on the design of procurement organization.
Production enterprises generally maintain the material master data, but for trade enterprises, in order to reduce the system maintenance workload (in fact, it will not decrease, and the confusion in the subsequent material management will bring more problems ), you may not want to maintain the material master data. In this case, it may be easier to allow purchasers to directly enter the description of the purchased materials in the purchase order (the process of building material code for the customer is not simple ), there is also Service procurement.