Information Technology and Logistics

Importance of Information Technology on Logistics

Competitiveness and business improvement Flexibility and accessibility Customers and employees Increased intelligence

From 4P to 4E

Product -> Experience Locate a customer impression and promote over and over

Place -> Everyplace Intercept and contact potential customers in every ways

Price -> Exchange Aim for customers’ engagement, attention and permission

Promotion -> Evangelism Inspire customers to share their enthusiasm with others

Functions of Information Technology in Logistics

Transportation Transport management

Inventory Inventory management Warehouse management

Administration Collaborative planning Forecasting Order management Inter-organizational information exchange Customer relationship, advertising and promotion

Standards

RosettaNet

RosettaNet is a standard for exchanging electronic data between organizations

XML-based interfaces

Many of the RosettaNet related slides are adapted from Dogac (2009?) [http://www.srdc.metu.edu.tr/~asuman/grenoble/_Dogac_RosettaNetFV.ppt]

Connecting Organizations With..What?

AORACLE

BSAP

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Connecting Organizations With RosettaNet

AORACLE

BSAP

RosettaNet

RosettaNet Consortium

Includes major IT organizations: IBM, Microsoft, Oracle, SAP, Cisco Systems,

Compaq, Nokia, Seagate, Motorola and Intel Represented in

USA, Malaysia, Europe, Japan, Taiwan, China, Singapore, Australia and Thailand

RosettaNet in Thailand

RosettaNet Thailand was established in 2006 Stakeholders:

Government NSTDA, EEI, FTI, TPI

Industry WD, Seagate, Hitachi, Fujitsu, Intel, HP, IBM, Sony,

Toyota, Honda, GM, Ford, Daimler-Chrysler Academia

AIT, KMITL, KMUTNB, CU

Goals of RosettaNet Thailand

Within 2009 Being implemented in 30 organizations Produce 400 trained personnel Being taught in 8 academic institutes

Source: http://wiki.nectec.or.th/ext/OpenStudyGroup/RosettaNet

RosettaNet Framework

Partner Interface Processes (PIPs) A Master Dictionary A Messaging System

Partner Interface Processes (PIPs)

Sequences of steps in executing a business process between two partners

Include: Activities Roles of the partners Documents Securities

Clusters -> Segments -> PIPs

PIPs Clusters

Cluster 0 – RosettaNet Support Cluster 1 – Partner Product and Service Review Cluster 2 – Product Introduction Cluster 3 – Order Management Cluster 4 – Inventory Management Cluster 5 – Marketing Information Management Cluster 6 – Service and Support Cluster 7 – Manufacturing

Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx

PIPs Cluster 4 [Inventory Management]

Segment 4A – Collaborative Forecasting Segment 4B – Inventory Allocation Segment 4C – Inventory Reporting Segment 4D – Inventory Replenishment Segment 4E – Sales Reporting

Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx

PIPs Segment 4A [Collaborative Forecasting]

PIP 4A1 – Notify of Strategic Forecast PIP 4A2 – Notify of Embedded Released Forecast PIP 4A4 – Notify of Planning Release Forecast PIP 4A5 – Notify of Forecast Reply PIP 4A6 – Notify of Forecasting Exception

Source: http://www.rosettanet.org/dnn_rose/tabid/3482/Default.aspx

PIP 4A1 [Notify of Strategic Forecast]

Purpose To issue a Sales Forecast Notification to a Forecast

Recipient The periodicity and time horizons of the Sales Forecast, as

well as many other parameters, are specified in a Trading Partner Agreement (TPA)

The Forecast Recipient has no commitment to be able to supply the product specified in the forecast

The forecast is provided for planning purposes only

PIP 4A1 [Notify of Strategic Forecast]

Example of XML in RosettaNet<Pip3C4InvoiceRejectNotification> <fromRole> <PartnerRoleDescription> <ContactInformation> <contactName> <FreeFormText>Intel Buyer</FreeFormText> </contactName> <EmailAddress>buyer@intel.com</EmailAddress> <facsimileNumber> <CommunicationsNumber>888-888-8888</CommunicationsNumber> </facsimileNumber> <telephoneNumber> <CommunicationsNumber>555-555-5555</CommunicationsNumber> </telephoneNumber> </ContactInformation> <GlobalPartnerRoleClassificationCode>Invoice Reject Provider</GlobalPartnerRoleClassificationCode> <PartnerDescription> <BusinessDescription> <GlobalBusinessIdentifier>047897855</GlobalBusinessIdentifier> <GlobalSupplyChainCode>Electronic Components</GlobalSupplyChainCode> </BusinessDescription> <GlobalPartnerClassificationCode>End User</GlobalPartnerClassificationCode> </PartnerDescription>…………..

There are total of 132 PIPs

Success Stories

Partners Implementation Results

Arrow Carrier Six weeks of implementation

Reduced a batch delivery cycle from 5 days to overnight

Bourns TTI PIP 3A2 [Request Price and Availability]

Reduced inventory information access from 1 week delay to real time

Compaq Delta (Taiwan)

PIP 3A4 [Request Purchase Order] and PIP 3A7 [Notify of Purchase Order Update]

Reduced order processing lead time to several minutes

Intel WPI (Taiwan)

PIP 3A4 [Request Purchase Order] and PIP 3A7 [Notify of Purchase Order Update]

Reduced order processing lead time