SCM - Info sharing
SCM - Info sharing
- Define the current process “as is”
- Create cross-functional implementation team of subject matter experts
- Check what changes can be expected in the years in which you write off the costs
- Define the “to be” business processes
- State the final objective
- Identify what the ERP system will replace
- Define project scope (years, money)
- Develop the system
- Work through all final “bugs” and then “flip the switch.”
- Never-ending implementation
- Importance of process mapping: Modelling data and processes is needed. The ERP cannot be better than its model. Difficult skill.
Exceptions are key!
- Process redesign: But process design often means job
- Use of consultants
- Rapid technological change
- Excessive cost
- Resistance to change
- Errors during implementation
- No real-time integrated management information
- Manual data entering (errors, time...)
- Lack of inter-enterprise integration
- No standards
What is ERP?
- One system
n for all business processes
n Sales, order management, procurement, distribution,
production, warehouse management, finance, etc.
- Standard software
n With central database
n For many companies in many industries
n Making it specific by parameterization
- ‘Company brain’
E-commerce can reduce costs by:
- Centralization of inventory and shipping locations
- Reduction of safety stock
- Consolidation of inbound transportation join
- Real-time capture and use of demand and inventory information
E-commerce can enhance revenue by:
- Removing time and location constraints
- Eliminating intermediaries
- Allowing real-time access to demand and inventory data
- Allowing instantaneous introduction of products and product mixes
- Allowing the customer to instantly pay for orders reducing cash-to cash cycle time
- Using social media
Types (table 12.2 p. 384):
- Project / specification managers
- Supply consolidators Amazon, Funda
- Liquidity creators (e.g. auctions) Ebay,
- (Demand) Aggregators GrouOn,
- Transaction facilitators paypal,
some Web trends
- Health services
Needed for interoperability
- Reference models
- Databases (inf-21306)
- Standardisation bodies (EAN, ...)
- Big companies
- Open access movements
Different info standards
- Technical standards – how to exchange info
o network protocols, e.g. TCP/IP & PPP
o transport protocols, e.g. HTTP, FTP, SMTP
- Syntax standards – how to specify info / format
o coding standards, e.g. GS1 article code (GTIN)
o electronic message format, e.g. XML-based
- Semantic standards – what does info mean
o Message content definitions (e.g. UN/CEFACT) / ontologies
- Process standards – why and when exchange info
o Reference Models, e.g. SCOR
- Organisational / legal standards –conditions info exchange
o WTO, NAFTA, EU, ASEAN
1.Connectivity – technology makes it possible for various
people, teams, functions, and organizations to work together.
2.Willingness – information is power, sharing information
means relinquishing some power
- while gaining power as a group.
- N.B. depends on business strategy!
- RFID(Radio Frequency
IDentification, “electronic bar code”)
- Most companies share (operational) information during the late growth and maturity phases of the product life cycle.
- Increased (strategic) information sharing during the
design/introduction and decline phases could have a greater
n Design – early supplier involvement
n Introduction – improved forecast accuracy
n Decline – avoidance of obsolete inventory
The importance of info
1.Enable SC integration, 'transparency'
- History transparency: traceability (tracking and tracing)
- Operational transparency: truck load planning
- Strategic transparency: ‘from scale to skill’
2.Information can be valuable:
- Customer likes real-time information
(availability, delivery, shipping, and invoices)
- Less costly than inventory.
- Can increase flexibility.
- Redefines supply chain relationships (e.g. VMI)
- Facilitates globalization.