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Information within the Supply Chain
This includes information about:

customer demand, inventory levels, production…

Information shared by all members throughout
the supply chain is crucial for performance &
decision-making!
Key demands:

 Accuracy
 Timeliness

The organisation needs to have appropriate information
systems, relative to its strategy & business environment
ITC

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2-1

Legacy Systems for Specific Functions
Human
Resources

Engineering

Finance &
Accounting

Sales &
Marketing

Logistics

HQ &
Branches

Operations

Function
Server &
Database

Function
Server &
Database

Function
Server &
Database

Function
Server &
Database

Function
Server &
Database

Function
Server &
Database

Function
Server &
Database

ITC

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2-3

Evaluation of Legacy Systems

Advantages:

 Cheap upgrade
 Customised
 Easy to track information &
transactions

Disadvantages:

Too specific
No linkage within the organisation
Little or no communication with other systems
No transparency of information used for decision
making
 Inflexibility





ITC

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2-5

ERP Systems Integrate the
Organisation, Customer and Suppliers
Engineering

Operations
Sales &
Marketing

Human
Resources
Supplier
Relationship
Management

Central
CentralDatabase
Database
and Servers

Finance &
Accounting

Customer
Relationship
Management

Logistics
Headquarters
and Branches

ITC

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Evaluation of ERP Systems
Advantages





Increased control
Decreased cost due to faster data flow
Facilitated information sharing
Modular design covers different functions which
can be customised to specific organisational needs

Disadvantages

 Difficult to implement
 Expensive
 Weak analytical capabilities

ITC

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2-1

IT and your company
What type of IT systems are employed in your company? What are they
used for?
Do the systems your company uses resemble Legacy systems or ERP
systems? What leads you to this conclusion?
What do you see as the advantages and disadvantages of your systems?
With your knowledge of Legacy and ERP systems, can you see any way of
overcoming the disadvantages you identified above?

ITC

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3-1

Operational
Analytical Applications
Operational applications provide support
for specific logistics operations
Types of application:






ITC

Inventory management systems (IMS)
Manufacturing execution systems (MES)
Transportation execution systems (TES)
Transport management systems (TMS)
Warehouse management systems (WMS)
Yard management systems (YMS)
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3-3

Evaluation of
Analytical Applications
Advantages
 Involve much more than data processing
 Provide optimal solutions and alternatives

Disadvantages
 Issues outside the given parameters may also
impact on the decision-making process
ITC

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Create a matrix
2
...
Analyse ways of improving the current situation
by comparing costs of new investments with its
benefits

ITC

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3-6

Action Point

6
...
Start by identifying
processes or entities in the supply chain of your company
...

Which are your supply chain’s worst performing areas? Compare these to
areas in your IT positioning grid
...


ITC

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4-1

Bar Coding and Scanning

Bar coding and scanning are computer readable & track
products at warehouses & retail outlets

Bar codes with different amounts of space & information have
been developed
...
4-2

Satellite Technology
Satellite technology is used for
communication across broad
geographic areas and can have global
reach
Large volumes of information are
quickly communicated
ITC

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4-4

Geographic Information Systems
Geographic Positioning Systems (GPS) &
Geographic Information Systems (GIS) are
integrated computer mapping & spatial
database management systems
GPS & GIS systems provide a broad array of
functions for geographically referenced data:





ITC

Storage
Retrieval
Management
Analysis
Display

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4-6

Electronic Data Interchange
(EDI)
EDI refers to a computer exchange between
companies for high-volume transactions of
business documentation in standardised
formats
Value-added networks (VAN) can cope with
and exchange different standards
...
4-7

The Internet

INTERNET

Internet technology together with personal
computer systems offer relatively cheap and
reliable means of integrating information
systems across the supply chain
The Internet offers:
 A standard format for business documentation
using a single exchange language (eXtensible
markup language)
 Exchange portals for supply chain members
ITC

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Exchange Portals
Exchange portals are sites on the Internet that
allow supply chain members to communicate
information on raw materials, products, price, &
to place orders and bids

There are three main types of portals:
 Single firm exchange portals
 Industry-based exchange portals
 Cross-industry based exchange
portals
ITC

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Action Point

6
...
4-12

Action Point

6
...


ITC

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5-1

Action Point

6
...
4-14



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