supply chain logistics management chapter 7: information networks
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Supply Chain Logistics Management
Chapter 7: Information Networks
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Information Functionality
StrategicAlliance
Formulation
Development and refinement of capabilities
and opportunities
Focused/profit-based customer service analysis
Order entryInventory Assignment
Order SelectionShipping
Customer InquiryPricing and Invoicing
Vehicle routing and schedulingInventory levels and management
Network/facility location and integrationVertical integration vs. third-party/outsourcing
Financial measurement: costAsset management
Quality MeasurementProductivity MeasurementCustomer Service Measurement
StrategicPlanning
DecisionAnalysis
ManagementControl
TransactionSystems
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
High Risk
Extensive Options
Analysis/evaluation
Significant user expertise and training
Effectiveness-driven activity focus
Performance control systems
Feedback for performance evaluation
Proactive direction to users
Competitive qualification
Characteristics Justification
SCIS Characteristics and Justification
Competitive Advantage
High hardware and software systems cost
Structured training for a large number of users
Efficiency-driven activity focus
Measurement of competitive capability and
addition of potential improvement areas
Identification and evaluation of competitive alternatives
Strategic Planning
Decision Analysis
Management Control
Transaction Systems
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TransportationManufacturing to W arehouse
Manufacturing Plant
TransportationW arehouse to Custom er
Sales Info
ForecastingSystem s
Host / ERPOMS
TMS
AdvancedPlanningSystem
ManufacturingExecution
System
EDIInternet
EDIInternet
RFDC or BarcodeScanner or Pager
W arehouse(W MS)
W arehouse(W MS)
EDIInternetRFDC
RFDC RFDC
EDIInternet
or RFDC
EDIInternet
or RFDC
RFDC or Pager
Supply ChainVendors
Host / ERP
EDIInternet
EDIInternet
Headquarters
Scanners
Retail Custom ersW ith POS Scanners
ExchangePortal
POSScanner Data
YMSYMS
Integrated Supply Chain
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TransportationManufacturing to W arehouse
Manufacturing Plant
TransportationW arehouse to Custom er
Sales Info
ForecastingSystem s
Host / ERPOMS
TMS
AdvancedPlanningSystem
ManufacturingExecution
System
EDIInternet
EDIInternet
RFDC or BarcodeScanner or Pager
W arehouse(W MS)
W arehouse(W MS)
EDIInternetRFDC
RFDC RFDC
EDIInternet
or RFDC
EDIInternet
or RFDC
RFDC or Pager
Supply ChainVendors
Host / ERP
EDIInternet
EDIInternet
Headquarters
Scanners
Retail Custom ersW ith POS Scanners
ExchangePortal
POSScanner Data
YMSYMS
Enterprise Resource Planning
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Capabilities of ERP Systems
Traditional Capabilities• Bill of materials
• A/P and A/R
• General ledger
• Inventory control
• Order Entry
• Purchasing
• Project requirements planning
• Routings
• Capacity requirements planning
Emerging Capabilities• Enterprise application
integration• Visibility• Collaborative planning,
forecasting and replenishment
• Customer relationship management
• Web-enabled applications• Hosting
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TransportationManufacturing to W arehouse
Manufacturing Plant
TransportationW arehouse to Custom er
Sales Info
ForecastingSystem s
Host / ERPOMS
TMS
AdvancedPlanningSystem
ManufacturingExecution
System
EDIInternet
EDIInternet
RFDC or BarcodeScanner or Pager
W arehouse(W MS)
W arehouse(W MS)
EDIInternetRFDC
RFDC RFDC
EDIInternet
or RFDC
EDIInternet
or RFDC
RFDC or Pager
Supply ChainVendors
Host / ERP
EDIInternet
EDIInternet
Headquarters
Scanners
Retail Custom ersW ith POS Scanners
ExchangePortal
POSScanner Data
YMSYMS
Communication Modules
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TransportationManufacturing to W arehouse
Manufacturing Plant
TransportationW arehouse to Custom er
Sales Info
ForecastingSystem s
Host / ERPOMS
TMS
AdvancedPlanningSystem
ManufacturingExecution
System
EDIInternet
EDIInternet
RFDC or BarcodeScanner or Pager
W arehouse(W MS)
W arehouse(W MS)
EDIInternetRFDC
RFDC RFDC
EDIInternet
or RFDC
EDIInternet
or RFDC
RFDC or Pager
Supply ChainVendors
Host / ERP
EDIInternet
EDIInternet
Headquarters
Scanners
Retail Custom ersW ith POS Scanners
ExchangePortal
POSScanner Data
YMSYMS
Extension Modules
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TransportationManufacturing to W arehouse
Manufacturing Plant
TransportationW arehouse to Custom er
Sales Info
ForecastingSystem s
Host / ERPOMS
TMS
AdvancedPlanningSystem
ManufacturingExecution
System
EDIInternet
EDIInternet
RFDC or BarcodeScanner or Pager
W arehouse(W MS)
W arehouse(W MS)
EDIInternetRFDC
RFDC RFDC
EDIInternet
or RFDC
EDIInternet
or RFDC
RFDC or Pager
Supply ChainVendors
Host / ERP
EDIInternet
EDIInternet
Headquarters
Scanners
Retail Custom ersW ith POS Scanners
ExchangePortal
POSScanner Data
YMSYMS
APS Modules
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Application Service Providers
Benefits• Cost savings - Not necessary to
purchase or upgrade software
• Staffing - ASP provides technical staff to support implementation and maintenance
• Flexibility - Client can remotely access software with a web browser
Risks• Security - Proprietary
information possibly vulnerable due to ASP failures
• Infrastructure - ASP requires high-speed internet connection
• History - No clear business model yet
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Comparison of Communication Transaction Formats
Quantity Unit No.Paper formatDescription Price ANS X.12 format
3 Cse 6900 Cellulose sponges 12.75 IT13.CA.127500.VC.6900 N/L12 Ea P450 Plastic pail 0.475 IT1.12.EA.4750.VC.P450 N/L4 Ea 1640Y Yellow dish drainer 0.94 IT1.4.EA.9400.VC.1640Y N/L1 Dz 1507 6" plastic flower pot 3.40 IT1.1.DZ.34000.VC.1507 N/L
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Primary Logistics Industry EDI Standards
• UCS (Uniform Communication Standards): Grocery• VICS (Volunteer Inter-Industry Communication Standards
Committee): Mass Merchandisers• WINS (Warehouse Information Network Standards):
Warehouse Operators• TDCC (Transportation Data Coordinating Committee):
Transportation Operators• AIAG (Automotive Industry Action Group): Automotive
Industry
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Value-Added Networks (VAN’s)
Manufacturer
Mass Merchant
Grocery Retailer
VANUCC 128
UCS code
VICS code
The VAN collects transaction messages and information from a manufacturer and then translates those messages and information into appropriate industry-specific
communication standards.
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Single Firm Exchange Portal
Procurement
Manufacturing
Logistics
Exchange Portal
Suppliers Service Providers Customers
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Automobile Industry Exchange Portal
SupplierA
SupplierB
SupplierC
SupplierD
Tier 2 Suppliers
JohnsonControls
Delphi Vistcom
Covisint.comInfomediary
DaimlerChrysler
FordGeneralMotors
Major Automotive Suppliers
Automobile OEM’s
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Cross Industry Exchange Portal
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and CooperCopyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Logistics Satellite Communication Applications
GeostationarySatellite
OrdersInventory StatusCredit Verification
Location UpdateDirectionsDelivery Notification
Retail Stores Headquarters