SUPPLY CHAIN LOGISTICS MANAGEMENT

- DONALD J. BOWERSOX -
- FIFTH EDITION -

- COPYRIGHT: 2020 -

"By Dr. Luis Alfaro | Year: 2023"

PART ONE:

AN OVERVIEW OF LOGISTICS
AND
SUPPLY CHAIN MANAGEMENT

This part introduces the broad concept of logistics and supply chain management

It defines some key terms and discusses ideas that are developed in the rest of the book
SUPPLY CHAIN LOGISTICS MANAGEMENT

CHAPTER 2:

SUPPLY CHAIN INFORMATION TECHNOLOGY

"In accordance with the copyright provisions, the content of this material has
been modified for teaching purposes only, specifically to support the
instruction of the subject 'Introduction to Logistics and Supply Chain
Management.'
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The authorized entity solely permitted to use this material is:
SouthStar Management Institute, Da Nang, Vietnam.

This course is designed for the undergraduate level/program."

"Copyright Notice:
Any other party wishing to access this POWERPOINT PRESENTATION must
request the information directly via email at:"

Dr. Luis Alfaro

Director of Ports, Logistics and SCM
3The SouthStar Management Institute (SMi)
The Honors Program
254 Nguyen Van Linh St., Danang, Vietnam
T: (+84) 236.365.0403 (Ext. 606) - (+84) 236.382.7111
E: [email protected] │ [email protected]
W: http://smi.edu.vn/
Chapter Outline

Information System
Functionality
1
4 Summary

SC Information System
Modules
2
Study Questions
5
Logistics Operations
Modules 3
6 Challenge Questions
RECENT TRENDS

NEW ADVANCES COMMERCE

Computer miniaturization
The information technology The Internet
have introduced many new
opportunities for supply 1 Inexpensive information transmission
capabilities
2
chain and logistics strategy
and operations Omni-channel supply chain operations
RECENT TRENDS

B2B-B2C INTERNET BROWSERS

Information characterized The default standard for
by speed, accessibility, exchanging transactions
accuracy, relevancy, and 3 and data between 4
simplified access are now supply chain partners
the norm

GLOBAL INTERNET…
Three-dimensional (3D) printing has even made it possible for physical products to be transferred across the
Internet. Global Internet capability and standardization also facilitates worldwide execution and tracking.
INFORMATION SYSTEM FUNCTIONALITY

A major enabler of supply chain planning and execution is information

technology. Supply chain technology systems initiate activities and track
information regarding processes, facilitate information sharing both
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within the firm and between supply chain partners, and assist in
management oversight and decision making. Comprehensive information
systems are a combination of transaction, decision support, and
communication components
INFORMATION SYSTEM FUNCTIONALITY

From its inception, logistics focused on product storage and flow through the supply
chain. Information flow and accuracy were often overlooked because they were not
viewed as being critical to customers

WATCH THE VIDEO!!!

INFORMATION SYSTEM FUNCTIONALITY
5 Reasons: Timely and Accurate Information

REAL TIME INVENTORY AND INFORMATION AND

HUMAN RESOURCES FLEXIBILITY
Customers
Information helps Top questions:
continuously
to managing total How, When, and Where
demands:
supply chain resources may be utilized
Real-time assets to achieve competitive
Information advantage
INFORMATION SYSTEM FUNCTIONALITY
5 Reasons: Timely and Accurate Information

INFORMATION UNCERTAINTY AND

TRANSFER AND EXCHANGE VARIATION
Internet is There a corresponding
facilitating increase in demand to
collaboration and enhance inventory
redefining supply transparency and
chain relationships visibility
INFORMATION SYSTEM FUNCTIONALITY
Supply Chain Information Systems (SCISs)

Thread Linking Transaction System

This is characterized by:

Integration builds on
four levels of Formalized rules
functionality: Procedures &
(1) transaction systems, Standardized communications
(2) management control, Large volume of transactions
(3) decision analysis, Operational, day-to-day focus
(4) strategic planning
INFORMATION SYSTEM FUNCTIONALITY

Figure 2.1 Supply Chain Information System Functionality

INFORMATION SYSTEM FUNCTIONALITY

Figure 2.2 SCIS Usage, Decision Characteristics, and Justification

SUPPLY CHAIN INFORMATION SYSTEM MODULES

ERP CS ES PS
Enterprise Resource Planning Communication Systems Execution Systems Planning Systems
SUPPLY CHAIN INFORMATION SYSTEM MODULES

Figure 2.3 Application-Oriented SCIS Framework

The ERP systems in Figure 2.3 are the backbone of most firms’ logistics information system. This backbone
maintains current and historical data and processes to initiate and monitor performance. During the 1990s,
many firms began to replace self-developed functional modules (called “legacy systems”) with ERP systems
designed as integrated transaction modules and processes with a common and consistent database.
SUPPLY CHAIN INFORMATION SYSTEM MODULES

Figure 2.4 Enterprise Integration and Administration Components

Figure 2.4 illustrates the major enterprise integration and administration components. They are (1) general
administration, (2) accounts receivable and payable, (3) financial inventory accounting, (4) general ledger, and
(5) human resources.
SUPPLY CHAIN INFORMATION SYSTEM MODULES

Figure 2.5 Enterprise Operations Modules

SUPPLY CHAIN INFORMATION SYSTEM MODULES

Increasingly firms are purchasing supply chain information technology support in the form of
externally hosted systems. These include cloud-based hardware and software. A wide variety of

systems, such as warehouse management (WMS), transportation management (TMS),

and yard management (YMS), are available from technology application firms that specialize in
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providing and maintaining state-of-the-art performance systems. These applications are discussed
briefly later in the chapter. Typically referred to as Software as a Service (SaaS), these application-
specific software packages can be purchased for either internal use or on a hosted basis. When hosted
by specialized service firms that provide the application using the capabilities of large computer
resources, the application is referred to as cloud computing.
SUPPLY CHAIN INFORMATION SYSTEM MODULES

Figure 2.6 Enterprise Planning and Monitoring Modules

Figure 2.6 illustrates the major enterprise planning and monitoring modules. The modules include (1) sales and
operations planning, (2) supply chain visibility and event management, and (3) supply chain compliance. Since
many of these activities involve interaction with other members of the supply chain, effective applications require
substantial standardization with other firm functions and supply chain partners.
SUPPLY CHAIN INFORMATION SYSTEM MODULES

COMMUNICATION TECHNOLOGY
Communication technology is the hardware and technical
software that facilitates information exchange between the
systems and physical infrastructure within the firm and
between supply chain partners.

CONSUMER CONEECTIVIY
The rapid development and deployment of the Internet has
added a new dimension to the interface between firms and
their customers. Both retailers and manufacturers are
increasingly in direct Internet contact with the end
consumers (communication—ordering and after-sale connectivity).
SUPPLY CHAIN INFORMATION SYSTEM MODULES

REVERSE LOGISTICS
Refers to the access that Internet offers as a fast and accurate
way to facilitate and track the product repair or replacement
process.
There are four related forces: (1) integrated management and supply
chain processes, (2) responsiveness, (3) financial sophistication, and
(4) globalization.

BLOCKCHAIN
It is a communications technology that facilitates secure
communication between financial and supply chain
institutions. The original information is maintained in a
permanent and public information trail, or chain of
transactions.
SUPPLY CHAIN INFORMATION SYSTEM MODULES
SUMMARY

We Provide Advice When Your Business Needs It Not

Just When You Ask For It!

Supply chain information systems provide the backbone and nervous system for the modern
supply chain. The enterprise resource planning system is the backbone as it includes the data
warehouse and the capabilities to complete supply chain transactions such as order entry,
inventory receipts, and shipping. Key requirements for the ERP system are data integrity,
consistency, and transparency. The requirements for the transaction system are security,
flexibility, and speed.
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ALL RIGHTS BELONG TO:

DR. LUIS ALFARO
DIRECTOR OF PORTS, LOGISTICS AND SCM
SOUTHSTAR MANAGEMENT INSTITUTE, DA NANG, VIETNAM
SUMMARY
STUDY QUESTIONS
3
CHALLENGE QUESTIONS
THANK YOU!