Information flows and Technology

Information flows and Technology

1. The role of information in global SC

   • Info is the key to unlock SC responsiveness to demand
   • Key drivers to develop SC info technologies: Info complexity, proliferation, diffusion, velocity and accuracy
   • How we store, retrieve and use info

2. Information visibility and transparency

   • Info visibility is the ability to see info at the various points across the SC as and when required
   • Barriers
     • Cultural: disparity in capabilities and info security of SC partners
     • Financial: immense costs for implementing and maintaining SC-spanning info technologies
     • Technical: SC partners must agree on what data to transmit, when and to whom
     • Organisational: divergent processes

3. Information technology applications

   • e-Business: now integral to trade &commerce in the world. Essential to maintain &improve SC performance
   • Electronic data interchange (EDI): electronic (automated) interchange of data between 2 or more companies
   • Enterprise resource planning (ERP): independent or dependent demand
     • Material requirements planning (MRP): plan &controle manufacture &assembly of orders with dependent demand
       • MRPII: MRP+business functions
     • Master production schedule (MPS): demand forecasts and customer orders
   • Collaborative planning, forecasting and replenishment (CPFR): schedules logistics between suppliers &customers
     • Basic: limited business processes in limited SC partners. Developed: greater data exchange between 2 partners. Advanced: beyond data exchange
   • Vendor Managed Inventory (VMI): enables vendor to manage stock replenishment and eliminates an echelon in SC.
   • Warehouse management system (WMS): essential to management &control of warehouses and DC's

4. Radio frequency identification (RFID)

   • Real-time visibility of point-of-sale data across the SC: agility
   • accurate and precise product traceability at any point in the SC at any time
   • Applications: -Asset tracking &management. -Increased security of freight. -Improved stock management &availablility. -Reduced error in product data handling

5. Global standards

   • Ensure a common data "language" is "spoken" between SC partners
   • GS1: manages standards for bar codes and RIFD tags for world's leading orgs
     • EPCglobal standards system (Electronic product code): different classifications for unique electronic product codes
     • Global Data Synchronisation Network (GDSN): up-to.date and accurate data on items identifies

6. SC knowledge management

   • Using info and synthesising it with other business info creates knowledge
   • Capture, storage, use and sharing of knowledge within an organisation
   • KM processes that span a SC
   • Knowing what to do with info enables an effective and efficient response to demand

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