Introduction to Supply Chain management(Lesson 2)

Edited By JQuek

The Technology concept and rationale. The advantages and disadvantages of

information technology. B2B e-Commerce and supply chain information

systems Decision support system. Risk on decision making.

Objectives for today’s lesson

1. Why use Technology?a) gain supply chain visibility,b) improve operating efficiency,c) use data to strategically manage

business

The Technology concept and rationale

1. Transportation Management Systems (TMS)2. Warehouse Management Systems (WMS)3. Global Visibility Tools4. Labor Management

Types of Supply Chain Information Systems (SCIS)

The management of transportation operations of all types, including

a) tracking and managing every aspect of vehicle maintenance,

b) fuel costing, routing and mapping, c) warehousing, communications, d) EDI implementations, traveler and cargo handling, e) carrier selection and managementf) accounting.

What is a transportation management systems (TMS)?

A software application which supports the daily operations of a warehouse. The software application allows for a system of centralized management of warehousing tasks including

a) inventory control, b) tracking and c) the location of stock items.

What is a warehouse management systems (WMS)?

Visibility means more than just awareness of where materials are at a given point in time or the amount of goods in a warehouse. Instead, visibility means a window into a wider range of data, supply chain processes, events, and patterns that enable automation, dynamic responses, and predictability.

Global Visibility Tools are software that will enable a supply chain to be more VISIBLE to the world

What are Global Visibility Tools (GVT)

A Labor supply chain comprises all of the manual functions required to receive, build and deliver products from supplier to customer, and to provide customer support.

To manage this labor supply chain, one must be able to monitor & control

a) Time and attendanceb) Performance Managementc) Incentives and rewardsd) Scorecards and Analytics

What is Labor Management?

Information sharing Auto updates/ auto renewal/ auto request/ auto

supply the ability for companies to collaborate

Collaborations are designed for the mutual benefit of all parties

Better use of existing resources and paves the way for a larger profit margin

Benefits of Technology usage in SCM

Resistance from vendors:1. high cost for initial set up2. lack of trust

How to overcome:◦ 1. able to see the profit potential on their end

of the arrangement◦ 2. Create/ develop strong relationship

Drawbacks : From Vendors

Resistance from employees:1. costs them their jobs2. feel that their work is more tedious or more

complicated

3. software mistakes: tend to make them in losing faith in the system How to Overcome:

1. train them to trust the system & the company

2. train them to adopt the system & able to cope with technology.

Drawbacks : From Employees

Supply chain performance is a key factor in a company's competitiveness

leading organizations are meeting the performance challenge through adopting Internet tools, build-to-order / mass customization programs, vendor managed inventory and other productivity initiatives.

Understanding the very latest systems, practices and world-class performance

Other concerns

on-time delivery, cycle time reduction, cost control, inventory carrying costs, fill rates: % of customer or consumption

orders satisfied from stock at hand. measure of an inventory's ability to meet demand.

return rates: % of returned products

Focus in SCIS

lead time: The amount of time that elapses between when a process starts and when it is completed

cash-to-cash conversion, days sales outstanding, days payables outstanding, Internet tools,

Focus in SCIS (Cont’d)

the exchange of products, services, or information between businesses rather than between businesses and consumers, through:

a. Company Web sitesb. Product supply and procurement

exchanges (e-procurement site)c. Specialized industry portalsd. Brokering sitese. Information sites

Business-to-Business (B2B)

Some decisions are better made by people: (flexibility, intuition, wisdom)

Some decisions are better made by computers DSS allow computers and people to work

together to make better decisions, range from spreadsheets to expert systems.

computer-based information system that supports business or organizational decision-making activities.

Decision support systems (DSS)

Demand planning Supply planning: distribution resource planning

system (DRP) Manufacturing planning and scheduling

Areas of DSS

Monetary cost Overemphasize decision making Transfer of power Obscuring responsibility Status reduction Information overload

Disadvantages of DSS