IT & for SCM Chap 9 王仁宏 助理教授 國立中正大學企業管理學系 ©Copyright 2001 製商整合科技中心

A Step Back: Information Technology Internal and external systems connecting the parts of the firm to each other, customers and suppliers Companies employ various systems: –Decision support systems –Warehouse management systems –Production planning and tracking –Transaction and sales processing –Communications systems: , Intranets

Information Technology Competitive advantage through advanced IT –Banking –Retail (Wal-Mart - satellite connected IT) –Airlines (American Airlines Reservation System, Sabre) –Trucking and Shipping (FedEx - tracking)

Goals of IT in SCM (1/3) Collect and store information on each product from production to delivery/purchase point –Provide complete visibility –Tracking –Alerting Figure 9.1

Goals of IT in SCM (2/3) Access any data in the system from a single point of contact. This is complicated by the fact that one may need information which resides –in various locations within one company –in different companies Figure 9.2

Goals of IT in SCM (3/3) Analyze and plan activities based on total supply chain information. –Decision Support Systems –Advanced Planning Systems Figure 9.4

How are these Goals Achieved? 1. Standardization 2. Infrastructure 3. Electronic Commerce 4. Supply Chain System Components 5. Integration-related issues

1. Standardization various forces are making this happen –market forces –interconnectivity –reduced costs in software –Internet-based standards –economies of scale Examples: , EDI

Emerging Standards Supply Chain Operations Reference Model (SCOR) Collaborative Planning Forecasting And Replenishment (CPFR) Value Chain Initiative (VCI) - Microsoft’s attempt at a common standard for data exchange in real time ERP vendor-based standards

Enterprise Resource Planning Many companies are in the process of setting up Enterprise Resource Planning (ERP) systems which –Include an enterprise-wide database –Create an enterprise-wide transaction backbone to facilitate communications –Tie in all the facilities into worldwide financial systems

ERP System Providers SAP Oracle J.D. Edwards PeopleSoft Baan

2. Infrastructure The software and hardware around which the IT system is built Components include –hardware interface/presentation devices: PC, voice mail, terminals, Internet devices, PDAs anywhere, anytime graphical display Wintel standards vs. Java standards –communicatons: , EDI, groupware, location tracking

–Databases legacy databases: hierarchical or network, large, transaction data, COBOL relational databases: related, SQL object databases: picture or graphic data, so store different kinds of information data warehouses: combine data from other system databases datamarts: smaller version of data warehouses groupware databases

–system architecture and devices legacy systems using mainframe or minicomputers accessed through “dumb” terminals PCs were connected by means of LANs then extended with WANs client/server computing –shift more computing onto the server and more traffic onto the network –easy to add new modules and functions –add complexity

3. Electronic Commerce The replacement of physical processes with electronic ones The creation of new models for collaboration between customers and suppliers Examples include:

Taxonomy: –level 1: one-way communication: , FTP, browser –level 2: database access: inquireies, forms, purchasing, tracking –level 3: data exchange: EDI, clearinghouse –level 4: sharing processes: CRPT, business communities, VCI

4. Supply Chain Component DSS for Supply Chain Processes: Demand planning tools Supply Chain Design Production planning Distribution planning Transportation planning

5. Integrating Supply Chain IT Manugistics’s Supply Chain Compass Model: –Stage I: Fundamentals - focus on quality –Stage II: Cross-functional teams - serve customers –Stage III: Integrated Enterprise - drive business efficiency –Stage IV: Extended supply chain - create market value –Stage V: Supply chain communities: be a market leader Figure 9.3

Table 9.4 Comparison of ERP and DSS Implementation

Table 9.5 Priorities when Implementing DSS

Table 9.6 “Best of breed” versus ERP package