Role of IT. in a Supply Chain. Information Technology. in a Supply Chain. Use of Information

Transcription

1 Information Technology in a Supply Chain Role of IT 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 Copyright 2010 Pearson Education, Inc Copyright 2010 Pearson Education, Inc Use of Information Information provides supply chain visibility 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. Copyright 2010 Pearson Education, Inc Source : M. Christoper, Logistics & Supply Chain, 4th, 2011

2 Role of Information Technology 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 Copyright 2010 Pearson Education, Inc The Importance of Information According to a survey by the Aberdeen Group, the most important challenge facing supply chain professionals is supply chain visibility as reported by nearly 80 percent of respondents. 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 The Supply Chain IT Framework The Supply Chain Macro Processes Customer Relationship (CRM) Internal Supply Chain (ISCM) Supplier Relationship (SRM) Plus: Transaction Foundation (basic ERP, infrastructure and integration software) Organizations need to shift focus from internal processes to the entire supply chain Copyright 2010 Pearson Education, Inc Copyright 2010 Pearson Education, Inc

3 Macro Processes Supplier Relationship (SRM) Internal Supply Chain (ISCM) Customer Relationship (CRM) Transaction Foundation (TFM) Customer Relationship 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 SuperOffice CRM demo SuperOffice CRM demo 2 Salesforce CRM demo Copyright 2010 Pearson Education, Inc Copyright 2010 Pearson Education, Inc Internal Supply Chain 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 SAP Business One SCM module JDA software video Copyright 2010 Pearson Education, Inc Supplier Relationship 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 ARIBA Supplier Relationship Copyright 2010 Pearson Education, Inc

4 The Transaction Foundation The development of ERP 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 Copyright 2010 Pearson Education, Inc SAP demo 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 Source : SCDigest, CSCO Insight, Supply Chain Executive Brief titled Five Strategies for Reducing Supply Chain Network Inventories, 250 respondents. Copyright 2010 Pearson Education, Inc

5 Supply Chain Event Supply Chain Event Monitoring the planned sequence of activities and reporting of any divergence. Intelligent nodes with pre-defined decision rules monitor flow along the critical path and issue alerts. With XML communications across the internet even organizations with different IS can be linked together. Enables an active approach to supply chain risk. Copyright 2010 Pearson Education, Inc Copyright Source : M Christoper, Pearson Logistics Education, & Inc. Supply Chain, 4th, Risk in IT Installing new systems Revised business processes Integration Software glitches Power outages Viruses 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 Copyright 2010 Pearson Education, Inc Copyright 2010 Pearson Education, Inc