SCM 460 GLOBAL SUPPLY CHAIN STRATEGY
Dr. Alex Rodrigues
Information Technology
Information System Functionality
• There are four reasons why timely and accurate information has become more critical for effective logistics systems design and operations:
– Customers perceive information about order status, product availability, delivery schedule, shipment tracking, and invoices as necessary elements of total customer service.
– Information can be used to reduce inventory and resource requirements.
– Information increases flexibility with regard to how, when, and where resources may be utilized.
– Enhanced information transfer and exchange enables responsive type of supply chains.
Information System Functionality
• Supply Chain Information
Systems (SCIS) are the thread that links logistics activities into an integrated process.
• The integration builds on 4 levels of functionality:
–
–
–
–
(1) Transaction Systems
(2) Management Control
(3) Decision Analysis
(4) Strategic Planning
Information Functionality
Strategic
Planning
Strategic
Alliance
Formulation
Development and refinement of capabilities and opportunities
Focused/profit-based customer service analysis
Decision
Analysis
Management
Control
Transaction
Systems
Vehicle routing and scheduling
Inventory levels and management
Network/facility location and integration
Vertical integration vs. third-party/outsourcing
Financial measurement: cost Quality Measurement
Productivity Measurement
Asset management
Customer Service Measurement
Order entry
Order Selection
Customer Inquiry
Inventory Assignment
Shipping
Pricing and Invoicing
Supply Chain Information Systems (SCIS) are the thread that links logistics activities into an integrated process. The integration builds on four levels of functionality.
SCIS Characteristics and Justification
Development
Characteristics
Justification
Strategic
Planning
Competitive Advantage
High Risk
Extensive
Options
Analysis/evaluation
Decision
Analysis
Identification and evaluation of competitive alternatives
Significant user expertise and training
Effectiveness-driven activity focus
Performance control systems
Management
Control
Measurement of competitive capability and addition of potential improvement areas
Feedback for performance evaluation
Proactive direction to users
High hardware and software systems cost
Structured training for a large number of users
Efficiency-driven activity focus
Transaction
Systems
Competitive qualification Class 16 -Topics
• Topic 1:
– Understand the three worlds of IT
• Topic 2:
– Understand the role of Big Data Analytics in
Supply Chain Management
• Topic 3:
– Examples of common Supply Chain
Management Technology: SCM Software,
RFID
Reading 1: Mastering the
Three Worlds of Information Technology
• IT is a general-purpose technology
– Complemented by changes in the way companies get work done
• Better-skilled workers
• Higher levels of teamwork
• Redesigned processes
• New decision rights
• IT: complex interplay between technologies, capabilities and complements. Don’t predict the financial benefits that will accrue from
IT efforts; focus on gaining the IT-based capabilities desired
• Strategic resources are valuable, rare, inimitable and non-substitutable
– IT system itself not a strategic resource
– Successful implementation of IT, with appropriate business process is a strategic resource!
Reading 1: Mastering the
Three Worlds of Information Technology
• Three-Categories of Work-Changing IT
– Function IT – make execution of stand-alone tasks more efficient
• Enhancing experimentation capacity
• Increasing precision
– Network IT – provides a means by which people can communicate with each other
• Facilitating collaboration
• Allowing expressions of judgment
• Fostering emergence
– Enterprise IT – restructures interactions among groups or employees or business partners
• Redesigning business processes
• Standardizing work flows
