SCM A logistics perspective – Coyle, 9th edition
Chapter 6 – Operations production planning (p183)
7Rs: right information, partners, quantity, format, place, time, cost
Information must be: accessible, relevant, accurate, timely, transferable
IT has a direct positive impact on organizational performance, internal collaboration and external
collaboration
Drivers of sustainable supply chain practice: optimization, synchronization, adaptability, velocity (speed
for end-to-end flows), profitability (or connectivity, visibility, collaboration, optimization, execution, and
speed).
People, poor planning, wide variety of software and budget are a major barriers to the effective use of
IT.
SC leaders should follow 10 golden rules for success compiled by Favilla and Fearne:
1. Secure the commitment of senior management.
2. Remember that it is not just an information technology project.
3. Align the project with business goals.
4. Understand the software capabilities.
5. Select partners carefully.
6. Follow a proven implementation methodology.
7. Take a step-by-step approach for incremental value gains.
8. Be prepared to change business processes.
9. Keep end users informed and involved.
10. Measure success with key performance indicators (KPIs).
Supply chain information system (SCIS) - information systems that automate the flow of information
between a firm and its suppliers to optimize the planning, sourcing, manufacturing, and delivery of
products and services. They also have the capacity to collect and synchronize data, manage exceptions,
and help streamline key processes, among other capabilities.
To develop SCIS, it needs well integrated foundation of people, processes and technology.
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, Supply chain software categories:, supply chain planning (demand, capacity) and supply chain execution
(from the time of the order until it’s fulfilled), supply chain event management (data in real time from
multiple sources, monitor shortages etc.), business intelligence (reports for internal planning,
operations and control, performance vs goals etc.). Other tools include – supply chain collaboration
tools, data synchronization applications and database software.
Internal logistics activities—order management, warehouse management, inventory management,
labor optimization, and transportation management
ERP systems - software platforms that help organizations manage activities and integrate information
SC Technology implementation: needs assessment, software selection (development alternatives,
solutions packages, purchase options (ASP), technical issues, data standardization (EDI, XML, EFT),
application integration (API)).
Service-oriented architecture (SOA)—the underlying structure supporting communications between
services with “plug and play” functionality. A service is defined as a unit of work to be performed on
behalf of some computing entity, such as a human user or another program. SOA defines how two
computing entities interact in such a way as to enable one entity to perform a unit of work on behalf of
another entity.
SCM innovations: Radio frequency identification, cloud computing, mobile computing
3PLs as technology providers – lower transporting costs, on-demand solution, better integrated system
capabilities.
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