1. Supply Chain Management Common Learning Block II Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 13-2 Role of Supply Chain Technology To Provide Visibility and Transparency of Movements within the Supply Chain Provides an Enabling Role in Today’s Complex Supply Chain Timely Updates Leads to Successful Customer Management LO1

3. 13-3 Systems and Technology Overview Computer Technology Evolved in the last 65 years Since early 1970’s – Modern Technology Computer Chips Initially, systems were Silo-based Created redundancy Added to company’s labor costs Inconsistency in information recorded LO1

4. 13-4 Systems and Technology Overview Common Notes in silo-based systems: “I thought computers were supposed to make things easier”. “We keep adding people just to keep it running”. “How much inventory do we have?” “Based on which system?” LO2

5. 13-5 Systems and Technology Overview Computer systems that are not integrated can lead to: Different data / Lack of Updates / Excess Labor / Mistrust of the Information / & Bad Decision-Making Departmental Software addressing the needs of specific departments does not take full advantage of modern technology LO3

6. 13-6 Systems and Technology Overview Corporations now realize the benefits of accurate and Single-Source Information Real Financial Benefit of Computerization is: Cross-functional Serving many departments Using few systems Technology has enabled multiple departments such as Manufacturing, Purchasing, & Marketing to access the same data from a single source LO4

7. 13-7 Corporate-Wide Supply Chain Technology Enablers ERP (Enterprise Resource Plan) –Manages the entire corporate enterprise Controls transactions like sales & ordering Manages the General Ledger Manages Financial Tracking ERP is an integrated system Entire organization gets common information Transaction updates system-wide LO5

8. 13-8 Benefits of Technology in Supply Chain Management Optimize Performance Identify New Opportunities Supply Chain Management, its systems, processes and controls are necessities in global commerce Supply Chain Management is an opportunity center to maintain and improve performance while containing and reducing costs. LO5

9. 13-9 Types of Supply Chain Operational Technologies Supply Chains are now global and can be divided into four primary categories: Decision Support Systems (Network Design/Transportation Mgmt. Systems) Communications Technology (EDI/Internet/Satellites/Fiber Optic Cables) Processing Technology (CAD/Automated Storage & Retrieval/Radio Frequency) Integrative Technology (ERP/CRM) LO6

10. 13-10 Technology Selection and Implementation System Implementation is Optimal for Labor and Data Entry Various Systems should be thought of as stand-alone or modules of integrated systems Each decision about implementing new systems should be evaluated on whether to use best in class or integrated modules LO7

11. 13-11 Selecting The System You Need Determine Needs, Requirements, and Wants U.S. Economic Recession of the 1980’s Global Competition (China) Create a Scorecard (Identifying requirements and assigning proportionate value) Test all requirements against various systems and rank accordingly LO7

12. 13-12 Evaluating & Buying A System Define Requirements – Industry Type / Wish List / Scalability / Stability of Vendor / Costs Weighted Scorecard defines the comparative value of the requirements See Example on Page 15 LO7

13. 13-13 Evaluating and Buying A System Absolute Requirements Weighted Scorecard is a valuable tool in industry for making valuable evaluations in selecting from multiple choices LO8

14. 13-14 Steps to Purchasing Software Define Needs and Requirements Develop a Weighted Scorecard Vendors should demonstrate the requirements in the scorecard If a vendors system does not meet your absolute requirements, they should not bother demonstrating their product/service Can help firms obtain economies of scale LO8

15. 13-15 Steps to Purchasing Software Get top management buy-in to ensure successful implementation Get endorsement from workers Ensure proper budgeting to include: Set-up Training Testing Support LO8

16. 13-16 Supply Chain Technology Trends Bar Code Printing & Scanning QR Code Radio Frequency Identification Drones Data Analytics Cloud Computing LO9