8/12/2019 Coyle Chapter 6 PowerPoint Slides http://slidepdf.com/reader/full/coyle-chapter-6-powerpoint-slides 1/26 Chapter 6 Supply Chain Technology —Managing Information Flows Learning Objectives After reading this chapter, you should be able to do the following: Appreciate the overall importance of information to supply chain management. Understand the role of information technology in the supply chain. Explain the key components of an integrated supply chain information system. Describe and differentiate between the primary types of supply chain solutions and their capabilities. Discuss the critical issues in technology selection and implementation processes. Recognize the role of emerging technologies for improving supply chain information management.
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Information, along with materials and money, mustreadily flow across the supply chain to enable theplanning, execution, and evaluation of key functions.
Each participant in the supply chain needs relevantinformation to make effective forecasts andoperational decisions.
Existing supply chain information technologies
support timely, cost-efficient sharing of informationbetween suppliers, manufacturers, intermediaries,logistics services providers, and customers.
information is the lifeline of business, driving effectivedecisions and actions. It is especially critical to supplychain managers because their direct line of sight tosupply chain processes is very limited.
A wide variety of information is needed for a supplychain to perform as anticipated.
The seven R’s
information must be accessible, relevant, accurate,timely, and transferable
RFID is an automatic identification method. RFID tags consist of amicrochip and a printed antenna that can be packaged into many forms,such as a label, or imbedded in between the cardboard layers in acarton or product packaging.
Unique product identification information, in the form of a universalelectronic product code (EPC) identifying the manufacturer, productcategory, and individual item, is stored on these 96-bit tags.
RFID technology costs must continue to decline to make producttagging economically feasible; equipment issues such as reader range,
sensitivity, and durability must improve; the case for supplier return oninvestment of RFID mandates must be made; and consumer privacyissues must be resolved.
Summary In order for supply chain managers to utilize information, it must be
readily accessible, relevant to their decision making needs, accurate,timely, and in a format that can be shared.
When properly implemented, information technology supports criticalsupply chain capabilities and strategies, including supply chain
connectivity, product visibility, partner collaboration, and processoptimization.
A well-designed SCIS framework links people, processes, andtechnology in a manner that provides actionable information andenhances decision making.
Timely data collection and synchronization support supply chainvisibility, exception management, and effective response to changingcustomer requirements.
Summary Supply chain software falls into four general categories: planning toolsfor forecasting and related activities, execution systems formanagement of day-to-day processes, event management tools tomonitor supply chain flows, and business intelligence applications thathelp organizations analyze performance.
Given the potential stumbling blocks, software selection andimplementation are not a minor undertaking. Needs must be assessed,software options studied, technical issues addressed, and importantquestions asked before major SCIS investments are made.
Change is the norm when it comes to supply chain technologies. It is
critical that developments related to RFID and other innovations areunderstood so that organizations can take full advantage of worthwhiletechnologies.