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?) [

Connecting Organizations With..What? A ORACLE B SAP ??????????

Connecting Organizations With RosettaNet A ORACLE B SAP RosettaNet

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:

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:

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:

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:

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 Intel Buyer Invoice Reject Provider Electronic Components End User ………….. There are total of 132 PIPs

Success Stories PartnersImplementationResults ArrowCarrierSix weeks of implementation Reduced a batch delivery cycle from 5 days to overnight BournsTTIPIP 3A2 [Request Price and Availability] Reduced inventory information access from 1 week delay to real time CompaqDelta (Taiwan) PIP 3A4 [Request Purchase Order] and PIP 3A7 [Notify of Purchase Order Update] Reduced order processing lead time to several minutes IntelWPI (Taiwan) PIP 3A4 [Request Purchase Order] and PIP 3A7 [Notify of Purchase Order Update] Reduced order processing lead time