ch12 Information Technology and the Supply Chain.pptVIP

8/29/00 S. Chopra / Demand Planning Chapter 12Information Technology and the Supply Chain Outline The Role of Information Technology in the Supply Chain The Supply Chain IT Framework Customer Relationship Management Internal Supply Chain Management Supplier Relationship Management The Transaction Management Foundation The Future of IT in the Supply Chain Supply Chain Information Technology in Practice Role of Information Technologyin a Supply Chain Information is the driver that serves as the “glue” to create a coordinated supply chain Information must have the following characteristics to be useful: Accurate Accessible in a timely manner Information must be of the right kind Information provides the basis for supply chain management decisions Inventory Transportation Facility Characteristics of UsefulSupply Chain Information Accurate Accessible in a timely manner The right kind Provides supply chain visibility Use of Information in a Supply Chain Information used at all phases of decision making: strategic, planning, operational Examples: Strategic: location decisions Operational: what products will be produced during today’s production run Use of Information in a Supply Chain Inventory: demand patterns, carrying costs, stockout costs, ordering costs Transportation: costs, customer locations, shipment sizes Facility: location, capacity, schedules of a facility; need information about trade-offs between flexibility and efficiency, demand, exchange rates, taxes, etc. Role of Information Technologyin a Supply Chain Information technology IT Hardware and software used throughout the supply chain to gather and analyze information Captures and delivers information needed to make good decisions Effective use of IT in the supply chain can have a significant impact on supply chain performance The Importance of Informationin a Supply Chain Relevant information available throughout the supply chain allows managers to make decisions that take into account all stages