The benefits of information visibility

guineanscarletElectronics - Devices

Nov 27, 2013 (4 years and 1 month ago)

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1

Chapter

9

Information Flows and Technology

Lee, Yen
-
Feng


Introduction


Information flows:


Trigger and support physical flows.


Core sections


Role of information in GSC


Information visibility and transparency


IT applications


Radio frequency identification (RFID)


Supply chain knowledge management

Question


How can we order goods without IT systems?





How about Dell, IBM, HP…in USA?


International phone call? Costly


Time differences


Mail?

Waiting for weeks.


How can we manage without IT systems?


Order 1 item? 1minute per order


How about 1,000 items? 1
,
000 minutes = 16.66 hours

4

The role of information in global
supply chains


Three key flows in supply chain


1. Material


2. Resource


3. Information


Role of information flows:


Delivery products


At right time


In right quantity


To customer’s specification


5

The role of information in global
supply chains


Key drivers supply chain
IT:


Increasing information complexity


Increasing information proliferation


Increasing information diffusion


Increasing information velocity


Increasing information accuracy


Effective SCM


Timely and accurate information


Networked desktop


Laptops, PDAs


Mobile phones


Other electronic devices


Provide 24/7 visibility

6

Information visibility


Information visibility


A
bility to see information at the various points


A
cross the supply chain as and when required


To help to manage complexity


H
ighly desirable, but difficult to achieve


Effective information visibility


Facilitated by IT


Integrated and collaborative between partners.



7

Barriers to information visibility


Cultural:


R
eluctance to share information with partners


Financial:


H
igh costs of implementing


M
aintaining supply chain spanning
IT


Technical:


I
nformation systems
’ ability to
‘talk’ to each other
.


Hardware and Software


Partners’ capability


Information security


Organizational
:


A
lign the numerous disparate processes


A
cross multiple supply chain


H
ighly complex program of activities

8

The benefits of information visibility


Customer oriented operations


Time compression


Reduced schedule variability


Shorter planning periods


Consistent partnerships


Supply chain synchroni
z
ation and
coordination


A single point of control


Integrated information systems

IT applications


Information technologies (IT)


Material requirements planning (MRP)


Enterprise resource planning (ERP)


Collaborative planning forecasting and
replenishment (CPFR)


Electronic data change (EDI)


Warehouse management systems (WMS)


10

Figure 9.1 Information technologies in global logistics and supply
chain management (adapted from Sherer, 2005)

e
-
Business


As the utilization of information and
communication technologies (ICT) in
support of all the activities of
business.


Integral to trade and commerce


Allows customers to purchase on
-
line


Include all electronically information exchange


Essential to maintain and improve supply
chain.

12

Electronic Data Interchange

(EDI)


T
echnology for


E
lectronic interchange of data between companies


Automated without human intervention


Predominant uses:


1.
Purchase orders from customers to suppliers


2.
Invoices for payment from suppliers to customers


3.
Delivery schedule data


4.
Payment instructions


5.
Can be linked to an electronic funds transfer (EFT)
application to enable automated payment


RFID EDI

13

Enterprise Resource Planning

(ERP)


Company
-
wide computer software system
used to manage and coordinate all the
resources, information, and functions of a
business from shared data stores.


Developed in late 1980s


Core
application

today


S
pans an enterprise to integrate the various business
functions across multiple locations


In multinational manufacturing and logistic company


Offer visibility and integration


For planning and control of resources


14

Enterprise Resource Planning

(ERP)


Commonly requires


B
usiness process reengineering to align work
organization with the technology


Solution to integration problem


Need to consider the organization
structure


Requires:


1. financial


2. resource


3. time


15

Collaborative Planning, Forecasting and
Replenishment (CPFR)


Developed in late 1990s


Fill inter
-
organizational gap


Wal
-
mart: enable with first tier supplier


Scheduling logistics between suppliers
and customers


IT
-
enabled CPFR


E
ssential in high velocity supply chains such as
those of the major supermarkets


Commonly offered as a ‘bolt
-
on’ to ERP to
enable ERP to extend beyond a single
organi
z
ation

Warehouse management systems


Manage and control warehouse and
distribution center


18

Primary RFID applications in
logistics and SCM


RFID application


Tag
,
barcode

and readers


RFID

enabled receiving area


Trucks or products pass through the gate


Time and quantity are recorded
automatically


Do you have RFID applications?


Processing Amount

1

10

100

1,000


Human Labor

10 sec

100 sec

1,000 sec

1 hr 47 min


Barcode Scan

2 sec

20 sec

200 sec

33 min


RFID Tag

0.1 sec

1 sec

10 sec

1 min 40 sec


Source
:
http://www.itri.org.tw

19

Figure 9.2 A basic logistics
-
related RFID application

20

Primary RFID applications in
logistics and SCM


4 headings:


Asset tracking and management


Increased security of freight


Improved stock management and availability


Reduced errors in product data handling


Advantages:


Automatically identify and locate physical assets


Quick response supply chain


Resist extreme temperatures


Harmful chemicals


Scan multiple items


Reusable

21

Operational improvements from
RFID


Improvement


Shipping consolidation


Conveyance loading


Conveyance tracking


Shipment and item tracking


Verification


Storage


Item tracking within a manufacturing plant


Warehouse efficiency, reach, productivity and accuracy


Reduced retail out
-
of
-
stock, labor requirements, pilferage,
and phantom stock problems


RFID adopters


Walmart, Tescom Metro and Marks & Spencers

22

Predicted future applications of RFID


The ‘store of the future’:


Continuous shelf inventory checking


More frequent replenishment


‘Future warehousing’:


Reducing floor space requirements in warehouses


Enabling them to be located closer to urban areas


Increased customization in manufacturing:


Increase visibility of end customer requirements


RFID reduce 20%~67% cost of distribution

23

Supply chain knowledge
management


GLM:


Multitude of information and data


Filled with knowledge: Tacit and explicit


Knowledge management:


C
apture, storage, use and sharing of knowledge


SCKM


knowledge management processes that span a supply chain


Building up


C
omplex knowledge of demand


E
nables a supply chain to begin to
sense and respond

to actual
demand


Hence the knowledge creating supply chain is able to be


F
irst
-
to
-
market


G
aining competitive advantage

24

Supply chain knowledge
management


Supply
-
side and demand
-
side


Critical to managing supply chain
performance


Knowledge in individual


Critical to maintain & improving


Knowledge worker


Long
-
term supply chain improvement


Capture knowledge


Create knowledge


Make explicit






Thanks for your attention!