Copyright @2014 Dilbert

Course Name: Global Logistics & Supply Chain Management (LSCM)

Course Code: ICMI 331

09. SUPPLY CHAIN

TECHNOLOGIES
Learning Outlines
• Need for Information
• Supply Chain Information Flows
• Six Drivers of Supply Chain Excellence
• Use of Technology and Barriers
• Model of Supply Chain Excellence
• Supply Chain Software Categories
• Enterprise Resource Planning
• Radio-Frequency Identification
• Business Intelligence
Why do we need information?

• The manager’s direct line of sight to supply chain processes is very limited;
- Relevant information uses to make effective forecasts and operational decisions.
- Information drives effective decisions and actions.
• Information is needed for supply chain partners to perform as anticipated;
- Information technologies facilitates timely and cost-efficient sharing of information between
supply chain partners.
- Information sharing mitigates bull-whip effect.
- Information contributes to the seven R’s.
• Information uses to evaluate performance of key functions.
• Information technologies that helps to engage customer into the supply chain.
Change in Consumer Behavior
E-Commerce/Online Retailing
E-Commerce (Cont’d)
E-Commerce (Cont’d)
Supply Chain Information Flows

Figure 6-1: Supply

Chain Information Flow
(Chapter 6, pp.190)

● Accessible
● Relevant
● Accurate
● Timely
● Transferable
Six Drivers of Supply Chain Excellence

Connectivity

Visibility Collaboration

Supply Chain
Excellence

Optimisation Speed

Execution
Framework for Managing Supply Chain Information System (SCIS)

Figure 6-4: Master Model

of Supply Chain Excellence
(Chapter 6, pp.116)
3
Re-plan, evaluate alternatives & inform outcome
2
1
Detecting, signaling & corrective action

Web-based system, monitoring & controlling

Connectivity, speed & optimisation

4
Technology Capabilities in LSCM

Re-plan, evaluate alternatives & inform outcome

Agents-Automated Decision Making

Detecting, signaling & corrective action

Exception Management

Web-based System Controlling, Monitoring

Visibility

Connectivity, speed & optimisation

Planning & Execution Infrastructure
Examples of Supply Chain Technologies

Events 1. Decide what you want to 2. Decide what activities and 3. Drive toward
know and measure information you need to be resolution of problems to
told about the appropriate systems
Measure Monitor/Notify Simulate/Control
1) Orders • Customer-satisfaction level • Late deliveries or • Choose alternative
across products notifications or past-due transportation modes or
dates alternative suppliers
2) Shipment • On-time shipments • Late arrivals of shipments • Notify of lateness
• Carrier pick-up performance • Projected carrier pick-up • Choose alternative
levels schedule carriers or alternative
modes of transportation
3) Inventory • Inventory levels and • Stock-outs • Determine alternative
adherence to safety-stock • Inventory below safety source of inventory
levels levels • Increase orders to
supplies
Figure 6-1: Supply Chain Event Management (Chapter 6, pp.202)
Enterprise Resource Planning (ERP)

• ERP systems are multimodule application

software platforms that help organizations
manage the important parts of their businesses.
• ERP systems branch out to include supplier
relationship management, customer
relationship management, and other supply
chain components, the connections between
SCIS and ERP grow stronger.
• ERP system provides a mechanism for supply
chain members to efficiently share information.
ERP (Cont’d)

Figure 6-6: ERP

Integration of Supply Chain
Technology Capabilities
(Chapter 6, pp.204)
Type of ERP Implementation

• Best-of-breed - pick the best application for each individual function. Disadvantage-
software may not integrate well but this may not be a major issue in future.
• Single integrator solution - pick all the desired applications from a single vendor
• Implementation Problems:
− Lack of top management commitment
− Lack of adequate resources
− Lack of proper training
− Lack of communication
− Incompatible system environment
ERP’s Advantages & Disadvantages

Pros
- Added visibility reduce supply chain inventories
- Helps to standardize manufacturing processes
- Measure performance & communicate via a standardised method

Cons
- Substantial time & capital investment
- Complexity
- Firms adapt processes to meet ERP system
ERP Software Providers

The 3 major ERP providers are now –

• SAP
• Oracle
• Microsoft
• Salesforce
• Other small software firms provide applications (e.g., Sage’s MAS90) as well as full ERP
solutions but lack applistructure - the merger of enterprise application and infrastructure
technology
Radio Frequency Identification (RFID)
RFID for Supply Chain Management
Automates the supply chain:
• Materials Management – goods automatically counted and logged as they enter the supply
warehouse
• Manufacturing – assembly instructions encoded on RFID tag provide information to computer
controlled assembly devices
• Distribution Center – shipment leaving DC automatically updates ERP to trigger a replenishment
order and notify customer for delivery tracking
• Retail Store – no checkout lines as scanners link RFID tagged goods in shopping cart with buyers
credit card
Software Options

• commercial software

• in-house solutions
− choose between single vendor suites, applications from multiple vendors, consider licensing
versus on-demand purchases

• solutions packages
− determine what types of applications are needed and how they should be purchased
Purchase Options

• Software vendors
− Installed on the buyer’s powerful client-server systems
− Downside is high capital investment and complex deployment associated with conventional
licensed applications

• Application Service Providers

− ASP owns and operates the software application and its servers that run the application with
access via the Internet.
Suggested Videos

(1) Module 12: Supply Chains and Information Technology

Duration: (3:53)
User: wpcareyschool - Added: 05/05/10
YouTube URL: http://www.youtube.com/watch?v=SXDvHgjRNDQ

(2) Tesco Homeplus Virtual Subway Store in South Korea

Duration: (2:31)
User: recklessnutter - Added: 25/06/11
YouTube URL: http://www.youtube.com/watch?v=fGaVFRzTTP4

(3) What is Cloud Computing?

Duration: (3:20)
User: sfdcmktg - Added: 26/02/09
YouTube URL: http://www.youtube.com/watch?v=ae_DKNwK_ms

(4) Picking winning supply-chain technologies

Duration: (4:46)
Source:
https://www.mckinsey.com/business-functions/operations/our-insights/picking-winning-supply-chain-technologies
References

• Coyle, Langley, Gibson, Novack & Bardi (2013), Supply Chain Management: A Logistics
Perspective (with Student CD-ROM), Ninth Edition, South-Western, Cengage Learning.
Chapter 6

• Wisner, J., G. Keong Leong, and Keah-Choon Tan, (2012), Principles of Supply Chain
Management: A Balanced Approach, 3rd Edition, South-Western, Cengage Learning,
Academic Internet Publishers, Inc. Chapter 7