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scm_ch12 - Supply Chain Management From Vision to...

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Supply Chain Management: From Vision to Implementation Chapter 12: Information Sharing
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2 Chapter 12: Learning Objectives 1. Discuss how technology enables an information sharing capability to support SC collaboration. 1. Describe the various SC-related information technologies and information systems that have been developed over the past several decades. 1. Discuss the role of ERP systems as a collaboration enabler as well as the difficulties associated with their implementation.
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3 Chapter 12: Learning Objectives 1. Discuss the impact of the Internet and e- commerce on supply chain management. 1. Identify what information should be shared, who should be sharing this information along the supply chain, and the challenges involved in information sharing.
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4 The Importance of Information Modern information technologies make supply chain integration possible. Information technologies have facilitated business globalization. Information technologies make differentiation along new vectors possible.
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5 We believe those companies that position themselves to take advantage of the Internet to build information partnerships with their suppliers and customers, have the potential to fundamentally change the face of global competition … and change our definition of the value we provide to our customers and constituents. - Michael Dell The Importance of Information
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6 The Importance of Information 1. Real-time information regarding availability, delivery, shipping, and invoices allows for improved customer satisfaction. 2. Substituting information for inventory or other resources reduces costs. 3. Information can be used to increase flexibility. 4. Information sharing is redefining supply chain relationships.
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7 Information Strategy Information technology strategies are comprised of two components: Connectivity – technology makes it possible for various people, teams, functions, and organizations to work together. Willingness – information is power, sharing information means relinquishing some power.
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8 Information Strategy – A Warning Information technology is an enabler, not a silver bullet. Automating bad processes simply helps to make mistakes faster. The wrong technology strategy adds neither real value or improves customer satisfaction.
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9 Information Systems – A History “Dark Ages” 1960s-1970s Era of Material Management 1980 1985 1991 Era of Supply Chain Management 1995 2000 2006 EOQ ROP MRP MPR II DRP FAX JIT QR CPR ECR TOC VMI ARP RF MES ERP APS XDM CPFR CRM ERP II ECM RFID EDI Adapted from Davis and Spekman “The Extended Enterprise”
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10 Information Systems – Interaction
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11 Enterprise Resource Planning (ERP) ERP Systems – a single database surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm.
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