Week4 ch14
Week4 ch14
Management,
11e
Chapter 14: Supply Chain Technology:
Managing Information Flows
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Discussion Outline
• Information requirements
• Systems capabilities
• Technology selection
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Information Requirements (1 of 2)
• Information connects the
extended supply chain, providing
cross-chain insights regarding
demand, customer orders,
delivery status, inventory stock
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Information Requirements (2 of 2)
Meet Quality Support Multidirectional
Provide Decision Support
Standards Flows
Seven • Internal information • Strategic decisions: Long-
information sharing range supply chain plans
quality • External information • Tactical planning: Cross-
standards: sharing organization linkages and
• Accuracy • Suppliers supply chain activity
• Accessibility − Logistics service coordination.
• Relevancy providers • Routine decisions: Rules-
• Timeliness − Financial based decision making.
• Transferability institutions • Execution and transaction
• Usability − Government processing: Completion of
• Reliability agencies fulfillment activities
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Systems Capabilities
Enable Process Excellence
Link Network Elements
Mitigate Technology Risks
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Systems Capabilities
Enable Process Excellence
The system must facilitate excellent performance across the plan, buy,
make, move, and return processes of a supply chain.
1. Cross-chain visibility. Supports process variability reduction, performance optimization, & cost
control.
2. Agility. Support analytics that help to understand volatility and respond appropriately.
3. Velocity. Adjust speeds according to situations.
4. Synchronization. Facilitates data synchronization & real-time information sharing between
partners.
5. Adaptability. Enable strategic adaptation of supply chain design & capabilities to evolving
conditions.
6. Segmentation. Help define customer segments, understand cost to serve & prioritize service
execution.
7. Optimization. Enable consideration of trade-offs, effectively deploy resources, & make decision.
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Systems Capabilities
Link Network Elements
A cohesive network of integrated technologies, skilled people, and robust
processes must be established.
Common risks must be identified and mitigated to maximize the return on technology investments.
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SCM Software
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SCM Software
Primary Categories
Source Table 14.1: Adapted from Gartner IT Glossary. Retrieved from https://www.gartner.com/it-glossary/scp-supply-chain-planning/
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SCM Software: Execution Applications
Companies deploy a variety of execution software to facilitates desired performance of day-to-day operating
tasks required to support customer demand.
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SCM Software: Event Management Tools
Supply chain event management tools collect data in real time from multiple
sources across the network and convert them into information that allows
companies to automate the monitoring of supply chain events as they occur on a
day-to-day basis.
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SCM Software: Analytics & Intelligence Tools
Capabilities
• The data collection & “big data” analytics • Development of graphical dashboards
• Self-service reporting • Activity monitoring supporting event mgmt.
• Performance scorecarding versus goals • Access to data residing on multiple SCIS
Opportunity Areas
• Generating valuable insights about complex global operations
• Providing more granular visibility of spending
• Improving S&OP & demand forecasting
• Resolving logistics bottlenecks
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SCM Software: Facilitating Tools
Facilitating systems and applications provide critical links between supply chain processes, the
organization, and external stakeholders. Collectively, they create a holistic view of the supply chain.
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SCM Technology
Implementation
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SCM Technology Implementation
Informed Decision Making
1. Need assessment. Understand the supply chain that the technology is
intended to support.
2. Software selection. A multifaceted decision, involving development
alternatives (off the shelves vs. in-house), types of applications (individual
applications vs. integrated suite), and purchase options (on-premise vs.
SaaS)
3. Implementation issues. Training, cultural change, systems
interoperability, data synchronization, data standardization, and application
integration
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SCM Technology Implementation
Golden Rules for Success
1. Get sponsorship of senior leaders
2. Choose the right technology solutions
3. Select an implementation leader with project management skills
4. Choose the right consultants to support implementation
5. Staff the project team with the best and brightest people
6. Manage “scope creep” to avoid implementation delays
7. Secure adequate resources for training and post-go-live support
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Supply Chain Technology
Innovations
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Supply Chain Technology Innovations
Smart Technologies
To enable the supply chain evolution, companies must effectively digitize their
supply chains and deploy smart technologies