Information Technology and Logistics

Importance of Information Technology

on Logistics
 Competitiveness and business improvement
 Flexibility and accessibility
 Customers and employees
 Increased intelligence
 From 4P to 4E
 Product -> Experience
 Locate a customer impression and promote over and over
 Place -> Everyplace
 Intercept and contact potential customers in every ways
 Price -> Exchange
 Aim for customers’ engagement, attention and permission
 Promotion -> Evangelism
 Inspire customers to share their enthusiasm with others
 Functions of Information Technology
in Logistics
 Transportation
 Transport management
 Inventory
 Inventory management
 Warehouse management
 Administration
 Collaborative planning
 Forecasting
 Order management
 Inter-organizational information exchange
 Customer relationship, advertising and promotion
Standards
 RosettaNet

 RosettaNet is a standard for exchanging

electronic data between organizations
 XML-based interfaces

 Many of the RosettaNet related slides are adapted from Dogac (2009?)
[http://www.srdc.metu.edu.tr/~asuman/grenoble/_Dogac_RosettaNetFV.ppt]
Connecting Organizations With..What?

A ?????????? B
ORACLE SAP
 Connecting Organizations With
RosettaNet

A B
RosettaNet
ORACLE SAP
 RosettaNet Consortium

 Includes major IT organizations:

 IBM, Microsoft, Oracle, SAP, Cisco Systems,
Compaq, Nokia, Seagate, Motorola and Intel
 Represented in
 USA, Malaysia, Europe, Japan, Taiwan, China,
Singapore, Australia and Thailand
 RosettaNet in Thailand

 RosettaNet Thailand was established in 2006

 Stakeholders:
 Government
 NSTDA, EEI, FTI, TPI
 Industry
 WD, Seagate, Hitachi, Fujitsu, Intel, HP, IBM, Sony,
Toyota, Honda, GM, Ford, Daimler-Chrysler
 Academia
 AIT, KMITL, KMUTNB, CU
 Goals of RosettaNet Thailand

 Within 2009
 Being implemented in 30 organizations
 Produce 400 trained personnel
 Being taught in 8 academic institutes

Source: http://wiki.nectec.or.th/ext/OpenStudyGroup/RosettaNet
 RosettaNet Framework

 Partner Interface Processes (PIPs)

 A Master Dictionary
 A Messaging System
 Partner Interface Processes (PIPs)

 Sequences of steps in executing a business

process between two partners
 Include:
 Activities
 Roles of the partners
 Documents
 Securities
 Clusters -> Segments -> PIPs
 PIPs Clusters

 Cluster 0 – RosettaNet Support

 Cluster 1 – Partner Product and Service Review
 Cluster 2 – Product Introduction
 Cluster 3 – Order Management
 Cluster 4 – Inventory Management
 Cluster 5 – Marketing Information Management
 Cluster 6 – Service and Support
 Cluster 7 – Manufacturing
Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx
 PIPs Cluster 4 [Inventory Management]

 Segment 4A – Collaborative Forecasting

 Segment 4B – Inventory Allocation
 Segment 4C – Inventory Reporting
 Segment 4D – Inventory Replenishment
 Segment 4E – Sales Reporting

Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx
 PIPs Segment 4A [Collaborative Forecasting]

 PIP 4A1 – Notify of Strategic Forecast

 PIP 4A2 – Notify of Embedded Released Forecast
 PIP 4A4 – Notify of Planning Release Forecast
 PIP 4A5 – Notify of Forecast Reply
 PIP 4A6 – Notify of Forecasting Exception

Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx
 PIP 4A1 [Notify of Strategic Forecast]

 Purpose
 To issue a Sales Forecast Notification to a Forecast
Recipient
 The periodicity and time horizons of the Sales Forecast, as
well as many other parameters, are specified in a Trading
Partner Agreement (TPA)
 The Forecast Recipient has no commitment to be able to
supply the product specified in the forecast
 The forecast is provided for planning purposes only
PIP 4A1 [Notify of Strategic Forecast]
 Example of XML in RosettaNet
<Pip3C4InvoiceRejectNotification>
<fromRole> The
<PartnerRoleDescription>
<ContactInformation> r e ar
<contactName>
e to
<FreeFormText>Intel Buyer</FreeFormText>
</contactName> tal o
<EmailAddress>buyer@intel.com</EmailAddress>
f 13
<facsimileNumber>
<CommunicationsNumber>888-888-8888</CommunicationsNumber> 2 PI
</facsimileNumber>
<telephoneNumber>
Ps
<CommunicationsNumber>555-555-5555</CommunicationsNumber>
</telephoneNumber>
</ContactInformation>
<GlobalPartnerRoleClassificationCode>Invoice Reject Provider</GlobalPartnerRoleClassificationCode>
<PartnerDescription>
<BusinessDescription>
<GlobalBusinessIdentifier>047897855</GlobalBusinessIdentifier>
<GlobalSupplyChainCode>Electronic Components</GlobalSupplyChainCode>
</BusinessDescription>
<GlobalPartnerClassificationCode>End User</GlobalPartnerClassificationCode>
</PartnerDescription>
…………..
 Success Stories

Partners Implementation Results

Arrow Carrier Six weeks of Reduced a batch delivery cycle

implementation from 5 days to overnight

Bourns TTI PIP 3A2 [Request Price and Reduced inventory information access
Availability] from 1 week delay to real time

Compaq Delta PIP 3A4 [Request Purchase Reduced order processing lead time to
(Taiwan) Order] and PIP 3A7 [Notify several minutes
of Purchase Order Update]

Intel WPI PIP 3A4 [Request Purchase Reduced order processing lead time
(Taiwan) Order] and PIP 3A7 [Notify
of Purchase Order Update]