物流管理英语Chapter 6教案

Chapter 6 Information Technology in a

Supply Chain

教学目的和要求：

1、Understand the importance of information and information

technology in a supply chain

2、Know at a high level how the supply chain drivers use

information

3、Describe the various SC-related information technologies

and information systems that have been developed over the

past several decades

4、Understand the major applications of supply chain

information technology and the processes that they enable

5、Discuss the impact of information technology on supply

chain management in the future

教学重点：

1、The importance of information and information technology in

a supply chain

2、How the supply chain drivers use information

3、The various SC-related information technologies and

information systems that have been developed over the

past several decades

4、The major applications of supply chain information

technology and the processes that they enable

5、The impact of information technology on supply chain

management in the future

教学过程：

1. New Words and Expressions

2. The Role of IT in a Supply Chain

Information is a key supply chain driver because it serves as the glue that allows the other supply chain drivers to work together with the goal of creating an integrated, coordinated supply chain.

Information is crucial to supply chain performance because it

provides the foundation on which supply chain processes execute transactions and manages make decisions.

IT consists of the hardware, software, and people throughout a supply chain that gather, analyze, and execute upon information.

Information is the key to the success of a supply chain because it enables management to make decisions over a broad scope that crosses both functions and companies.

Information is a key ingredient not just at each stage of the supply chain, but also within each phase of supply chain decision making —from the strategic phase to the planning phase to the operational phase.

1) Facility

Determining the location, capacity, and schedules of a facility requires information on the trade-offs among efficiency and flexibility, demand, exchange rates, taxes, and so on.

2) Inventory

Setting optimal inventory policies requires information that includes demand patterns, costs of carrying inventory, costs of stocking out, and cost of ordering.

3) Transportation

Deciding on transportation networks, routings, modes, shipments vendors requires information including costs, customer locations, and shipment sizes to make good decisions.

4) Sourcing

Information on product margins, prices, quality, delivery lead times, and so on, are all important in making sourcing decisions.

5) Pricing and revenue management

Te set pricing policies, one needs information on demand, both its volume and various customer segment’s willingness to pay, as well as many supply issues such as the product margin, lead time, and availability.

3. Brief History of Information System Connectivity

The development of SC information systems closely follows the inside-outside development approach. The development of these systems began with a very narrow focus on inventory and has gradually expanded to encompass other areas of the organization, progressively building on the structure of previous applications. Economic order quantity (EOQ) and reorder point (ROP) systems were followed by material requirements planning (MRP) systems, which helped determine when orders should be placed for various components to avoid stockouts and excess inventory. Distribution requirements planning (DRP) systems, which extended MRP thinking to the distribution network, helped determine the correct amount of products to produce as well as the correct locations to which to ship finished goods.

These systems were followed by just-in-time (JIT), quick response (QR), continuous product replenishment (CPR), and efficient consumer response (ECR) systems that helped better match buyers’ demands with the production and delivery of suppliers. These systems naturally grew into other systems such as vendor-managed inventory (VMI), where organizations are responsible for managing the inventory levels of their customers.

Customer relationship management (CRM) systems complemented these systems, helping companies track and analyze customer behavior. CRM systems also enabled managers to evaluate the effect of specific sales and marketing efforts. The term customer relationship management (CRM) encompasses all strategies, methodologies, tools, and other technology-based capabilities that help an enterprise organize and manage its customer relationships. The focus of CRM is on providing optimal

value to customers through pre-sale interactions, sales processes, and post-sale interactions.

4. The Supply Chain IT Framework

From an enterprise’s perspective, all processes within its supply chain can be categorized into three main areas: processes focused downstream, processes focused internally, and processes focused upstream.

Customer relationship management (CRM)

Internal supply chain management (ISCM)

Supplier relationship management (SRM)

1) Customer Relationship Management

The CRM macro process consists of processes that take place between an enterprise and its customers downstream in the supply chain. The goal of the CRM macro process is to generate customer demand and facilitate transmission and tracking of orders. Weakness in this process results in demand being lost and a poor customer experience because orders are not processed and executed effectively.

Marketing

Sell

Order management

Call/service center

2) Internal Supply Chain Management

ISCM is focused on operations internal to the enterprise. ISCM includes all processes revolved in planning for and fulfilling a customer order.

Strategic planning

Demand planning

Supply planning

Fulfillment

Field service

3) Supplier Relationship Management

SRM includes those processes focused on the interaction between the enterprise and suppliers that are upstream in the supply chain. The major SRM processes are the design collaboration, sourcing, negotiation, buy, and supply collaboration processes.

4) The Transaction Management Foundation

5. Supply Chain IT in Practice

Select an IT system that addresses the company’s key success factors. Every industry and even companies within an industry can have very different key success factors. By key success factors, we mean the two or three elements that really determine whether or not a company is going to be successful. It is important to select supply chain IT systems that are able to give a company an advantage in the areas most crucial to the success of the business.

One way to help ensure success of IT projects is to design

them so that they have incremental steps.

Use IT systems to support decision making, not to make

decisions.

Think about the future. Although it is more difficult to make a decision about an IT system with the future in mind than the present, it is very important that managers include the future state of the business in the decision processes.

6. The Future of IT in the Supply Chain

Most likely to occur: SC executives expect an increased demand for on-line technical information, an increased integration role for the purchasing functions of organizations, the elimination of human intervention in the procurement-through-payables transaction process, an improvement in efficiencies as a result of Web-based systems, and the continued use of Internet/Web-based links with suppliers.

Least likely to occur: Based on what SC executives believe is unlikely to happen, we can draw the following conclusions:

Web-based tools will not erode the leverage advantages

of larger buyers

Industry-sponsored e-markets will not become primary

sourcing tools

Reverse auctions will not account for more than 20

percent of the spend

Neutral e-markets are less likely to be utilized than

industry sponsored e-marketplaces

Strategic alliances/relationships will not become less

important as a result of e-commerce

1) ERP Ⅱ

SC-wide information connectivity

2) E-Marketplaces

One unique application of the Internet has been the creation of e-marketplaces. In terms of SCM, e-marketplaces can add value by helping companies identify new resources of supply or new customers. They can also help facilitate transactions

between buyers and suppliers by being mediator between the various parties.

3) Radio frequency technology

RFID tags have the potential to deliver a completely new level of transparency to supply chains and their customers.

4) Electronic on-line bidding events: the reverse auction Reverse auctions are when suppliers bid for a buyer’s business. These auctions result in a downward pressure on the price of the product or service being sold. Electronic reverse auctions are simply auctions that take place over the Internet or some other electronic technology.