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Module 14 Information Technology in A Supply Chain

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10 views

Module 14 Information Technology in A Supply Chain

Uploaded by

arhamali133
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 17

Chapter 16

Information
Technology
in a Supply Chain

16-1

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Role of IT
in a Supply Chain
 Information is the driver that serves as the “glue” to
create a coordinated supply chain
 Information must have the following characteristics to
be useful:
 Accurate
 Accessible in a timely manner
 Information must be of the right kind
 Information provides the basis for supply chain
management decisions
 Inventory
 Transportation
 Facility
16-2

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Characteristics of Useful
Supply Chain Information
 Accurate
 Accessible in a timely manner
 The right kind
 Shared
 Provides supply chain visibility

16-3

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Use of Information
in a Supply Chain
 Information used at all phases of decision making: strategic,
planning, operational
 Examples:
 Strategic: location decisions
 Operational: what products will be produced during today’s production
run

16-4

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Use of Information
in a Supply Chain
 Inventory: demand patterns, carrying costs, stockout costs,
ordering costs
 Transportation: costs, customer locations, shipment sizes
 Facility: location, capacity, schedules of a facility; need
information about trade-offs between flexibility and efficiency,
demand, exchange rates, taxes, etc.

16-5

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Role of Information Technology
in a Supply Chain
 Information technology (IT)
 Hardware and software used throughout the supply chain to gather and
analyze information
 Captures and delivers information needed to make good decisions
 Effective use of IT in the supply chain can have a significant impact
on supply chain performance

16-6

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


The Importance of Information
in a Supply Chain

 Relevant information available throughout the supply chain allows


managers to make decisions that take into account all stages of the
supply chain
 Allows performance to be optimized for the entire supply chain, not
just for one stage – leads to higher performance for each individual
firm in the supply chain

16-7

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


The Supply Chain IT
Framework
 The Supply Chain Macro Processes
 Customer Relationship Management (CRM)
 Internal Supply Chain Management (ISCM)
 Supplier Relationship Management (SRM)
 Plus: Transaction Management Foundation
 Figure 16.1
 Why Focus on the Macro Processes?
 Macro Processes Applied to the Evolution of Software

16-8

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Macro Processes in a Supply Chain
(Figure 16.1)

Supplier Internal Customer


Relationship Supply Chain Relationship
Management Management Management
(SRM) (ISCM) (CRM)

Transaction Management Foundation (TFM)

16-9

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Micros of Supply Chain
Managment

17-10

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Customer Relationship Management

 The processes that take place between an enterprise and its customers
downstream in the supply chain
 Key processes:
 Marketing
 Selling
 Order management
 Call/Service center

16-11

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Internal Supply Chain Management

 Includes all processes involved in planning for and fulfilling a


customer order
 ISCM processes:
 Strategic Planning
 Demand Planning
 Supply Planning
 Fulfillment
 Field Service
 There must be strong integration between the ISCM and CRM
macro processes

16-12

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Supplier Relationship Management

 Those processes focused on the interaction between the


enterprise and suppliers that are upstream in the supply
chain
 Key processes:
 Design Collaboration
 Source
 Negotiate
 Buy
 Supply Collaboration
 There is a natural fit between ISCM and SRM processes

16-13

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


The Transaction Management Foundation

 Enterprise software systems (ERP)


 Earlier systems focused on automation of simple transactions and the
creation of an integrated method of storing and viewing data across the
enterprise
 Real value of the TMF exists only if decision making is improved
 The extent to which the TMF enables integration across the three macro
processes determines its value

16-14

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


The Future of IT in the Supply Chain

 At the highest level, the three SCM macro processes will


continue to drive the evolution of enterprise software
 Software focused on the macro processes will become a
larger share of the total enterprise software market and
the firms producing this software will become more
successful
 Functionality, the ability to integrate across macro
processes, and the strength of their ecosystems, will be
keys to success

16-15

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Risk Management in IT

 Installing new systems


 Revised business processes
 Integration
 Software glitches
 Power outages
 Viruses

16-16

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.


Supply Chain Information
Technology in Practice
 Select an IT system that addresses the company’s key success factors
 Take incremental steps and measure value
 Align the level of sophistication with the need for sophistication
 Use IT systems to support decision making, not to make decisions
 Think about the future

16-17

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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