Chapter 5 outline

Chapter 5 outline - Chapter 5 Information Technology...

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Chapter 5 Information Technology Framework Supply Chain (SC) Info. Systems (IS) initiate and track info. regarding processes, facilitate info. sharing w/in the firm and b/w SC partners, and assist in mgmt. decision making. IS Functionality o Customers’ perceive info. as a necessary dimension of customer accommodation and demand real-time info. o Info can be used to reduce inventory and HR requirements o Info. increases flexibility with resource utilization o Utilizing the internet is collaborating and redefining SC relationships o Supply Chain Info. System (SCIS)- link logistic activities into an integrated process; 4 levels of functionality; pyramid starting from bottom Transaction system- formalized rules, procedures and standard comm.; initiate and record individual logistics activities and functions; foundation of strategic planning enhancements Management control- focuses on performance measurement and reporting; provides feedback regarding SC performance and resource utilization Identifies potential customer or operational problems- inv. shortages or constraints Decision analysis- focuses on software tools to assist managers in comparing alternatives to improve effectiveness Strategic planning- organizes data into a relational database; focuses on info. to evaluate and refine SC and logistics strategy Comprehensive IS Integration o A comprehensive system initiates, monitors, assists in decision making and reports on activities required to complete operations and planning o Enterprise Resource Planning (ERP) or legacy systems- backbone of firms’ logistics IS; maintain current and historical data and processes transactions to monitor performance; ERP replaced legacy systems in 1990s b/c of a common and consistent database (data warehouse); Supply chain planning (SCP)- develops forecasts and determines production and movement requirements Customer Relationship Mgmt (CRM)- info. sharing b/w customers, sales force and operations mgmt.; provides current info. on sales history, shipment, order status; better manage customer orders o Comm. Systems- info. flow across the SC; info. consists of real-time data on company operations and inbound material, production, inventory, customer shipment, and new customer orders o Execution systems- work w/ERP to provide functionality to support logistic operations; Transportation mgmt systems (TMS)- routing, consolidation; Warehouse mgmt. systems (WMS)- receiving, storing; and Yard mgmt. Systems (YMS)- tracks inventory in facility yards o Planning systems Advanced planning and scheduling (APS)- evaluate SC alternatives and advice in decision making under tight decision time constraints Use historical and current data to access solutions to constraints such as: production, facility, transportation, inventory, or raw material limitations
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Strategic planning- when there are a large number of alternatives and outside data needed; SC network design or structural analyses
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Chapter 5 outline - Chapter 5 Information Technology...

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