INFORMATION TECHNOLOGY IN THE SUPPLY CHAIN

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INFORMATION TECHNOLOGY IN THE SUPPLY CHAIN
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AGENDA

• INTRODUCTION
• STRATEGY AND PLANNING
• E-BUSINESS IN SUPPLY CHAIN

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INTRODUCTION

• LOGISTICS DECISIONS
• LOCATING WAREHOUSES
• INVENTORY POLICIES
• ORDER ENTRY SYSTEMS
• MODES OF TRANSPORTATION

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INTRODUCTION

• LIS COMPONENTS
• SUPPLIER INFORMATION
• MANUFACTURER
• DISTRIBUTION AND RETAILING
• DEMAND

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INTRODUCTION

• LIS CHARACTERISTICS
• ACCURATE
• TIMELY
• ACCESSIBLE
• RIGHT KIND

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AGENDA

• STRATEGY AND PLANNING

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STRATEGY

• CORPORATE
• LOGISTICS

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STRATEGY CORPORATE

• OBJECTIVES
• FINANCIAL
• MARKETING
• OPERATING
• OTHER

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STRATEGY CORPORATE

• VISIONING
• CUSTOMERS
• SUPPLIERS
• COMPETITORS
• COMPANY

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STRATEGY CORPORATE
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STRATEGY CORPORATE
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STRATEGY CORPORATE TO FUNCTIONAL
EXTERNAL FACTORS
CORPORATE PLANS
MARKETING
MFR.
FINANCE
LOGISTICS
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STRATEGY LOGISTICS

• OBJECTIVES COST
• SUPPORTING THE MARGIN
• REDUCING UNIT COST
• CARRIER AND MODES
• WAREHOUSE OPS.
• OTHER

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STRATEGY LOGISTICS

• OBJECTIVES CAPITAL
• INCREASE TURNOVER
• REDUCING ASSET BASE
• NETWORK DESIGN
• OWNERSHIP DECISIONS

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STRATEGY LOGISTICS
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STRATEGY LOGISTICS

• OBJECTIVES SERVICE
• CUSTOMER ORIENTATION
• ATTACK

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STRATEGY LOGISTICS
GOALS AND STRATEGIES

• LINKS
• FACILITIES
• OP. STRATEGIES
• INVENTORY
• IT/IS
• MH
• TRAFFIC
• PLAN CONTROL
• ORGANIZATION

CSL
ILP
ILM
PERF. MSRS.
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LOGISTICS PLANNING

• LEVELS
• AREAS
• CONCEPTUALIZING
• TIMING

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LOGISTICS PLANNING - LEVELS
STRATEGIC
TACTICAL
OPERATING
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LOGISTICS PLANNING - LEVELSTRANSPORT EXAMPLE
STRATEGIC

• NETWORK
• MODE

TACTICAL

• CARRIER
• SERVICE

OPERATING

• REPLENISH
• ROUTING
• CLAIMS

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LOGISTICS PLANNING - AREAS
TRANSPORT
CUSTOMER SERVICE GOALS
LOCATION
INVENTORY
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LOGISTICS PLANNING - CONCEPT
NETWORK
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LOGISTICS PLANNING - CONCEPT
LINKS
INFORMATION
TRANSPORTATION
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LOGISTICS PLANNING - CONCEPT
NODES
CUSTOMERS
VENDORS
FACTORIES
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LOGISTICS PLANNING - CONCEPT
FLOWS
INFORMATION
GS
TITLE
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LOGISTICS PLANNING IT EVOLUTION

• LEGACY SYSTEMS
• ERP
• ANALYTICAL APPLICATIONS

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LOGISTICS PLANNING IT EVOLUTION

• FUTURE
• BEST IN BREED V INTEGRATED
• SHIFTS IN PLATFORMS

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CAPITAL BUDGETING
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CAPITAL BUDGETING
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CAPITAL BUDGETING
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CAPITAL BUDGETING
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CAPITAL BUDGETING SETTING UP THE PROBLEM

• DETERMINE INITIAL CAPITAL OUTLAY
• DETERMINE ANNUAL COST SAVINGS
• DETERMINE DEPRECIATION SCHEDULE
• DETERMINE TAXES

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CAPITAL BUDGETING SETTING UP THE PROBLEM

• DETERMINE NET, NET
• ADD BACK DEPRECIATION
• APPLY DISCOUNT FACTOR

• DETERMINE AFTER TAX NET CF

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CAPITAL BUDGETING SETTING UP THE PROBLEM
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CAPITAL BUDGETING SETTING UP THE PROBLEM
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CAPITAL BUDGETING SETTING UP THE PROBLEM
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E-BUSINESS IN SUPPLY CHAIN

• INTRODUCTION
• FRAMEWORK
• VALUE CHAIN
• SUPPLY CHAIN
• DIGITAL ECONOMY

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E-BUSINESS IN SUPPLY CHAIN

• PRIMARY COMPONENTS
• E-BUSINESS INFRASTRUCTURE
• E-BUSINESS
• E-COMMERCE
• NETWORKS

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INTRODUCTION

• SOME WHOLLY NEW
• INTERNET PURE PLAYS
• BUSINESS MODELS

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INTRODUCTION

• MORE
• CLICK AND MORTAR
• UNDERSTANDING VALUE CHAINS
• UNDERSTANDING SUPPLY CHAINS
• OPTIMIZING VALUE AND SUPPLY CHAINS

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FRAMEWORK VALUE CHAIN

• Collection of activities
• Design
• Create
• Market
• Deliver
• Support

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FRAMEWORK VALUE CHAIN

• Primary Activities
• Inbound logistics
• Production Operations
• Outbound Logistics
• Marketing and Sales
• Service

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FRAMEWORK VALUE CHAIN

• Support Activities
• Procurement
• Technology
• Human Resource
• Firm Infrastructure

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FRAMEWORK VALUE CHAIN
Infrastructure
HRM
Technology
Support Activities
Procurement
Inbound Logistics
Outbound Logistics
POM
MKTG
Service
Primary Activities
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FRAMEWORK SUPPLY CHAIN

• SYSTEMS
• ANALYSIS
• ENGINEERING
• LOGISTICS

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FRAMEWORK SUPPLY CHAIN
VV
V
M
C
CC
FC
WHERE

• VV VENDORS VENDOR
• V VENDOR
• M MANUFACTURER
• C CUSTOMER
• CC CUSTOMERS CUSTOMER
• FC FINAL CONSUMER

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Source Benchmarking Partners
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FRAMEWORK DIGITAL ECONOMY
INFORMATION
INTERNET
COMPUTERS
COMMUNICATIONS
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FRAMEWORK DIGITAL ECONOMY

• Macro Implications

E-commerce
E-business
Internet
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COMPONENTS E-BUSINESS INFRASTRUCTURE

• DEFINITION
• SHARE OF TOTAL ECONOMIC INFRASTRUCTURE USED TO
  SUPPORT PROCESSES AND TRANSACTIONS

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COMPONENTS E-BUSINESS INFRASTRUCTURE

• INCLUDES
• HARDWARE
• SOFTWARE
• TELECOM NETWORKS
• SUPPORT SERVICES
• HUMAN CAPITAL

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COMPONENTS E-BUSINESS INFRASTRUCTURE

• EXAMPLES?

• CLIENTS, SERVERS, ROUTERS
• VARIOUS CHANNELS
• SYSTEM AND APPLICATION SOFTWARE

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COMPONENTS E-BUSINESS INFRASTRUCTURE

• EXAMPLES?

• Support Services
• Web development
• Web hosting
• Consulting
• Electronic Payment
• Human Capital

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COMPONENTS E-BUSINESS

• DEFINITION
• ANY PROCESS CONDUCTED OVER COMPUTER-MEDIATED
  NETWORK

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COMPONENTS E-BUSINESS

• INCLUDES
• PRODUCTION
• CUSTOMER
• INTERNAL MANAGEMENT

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COMPONENTS E-BUSINESS

• EXAMPLES PRODUCTION?

• PROCUREMENT
• ORDERING
• STOCK REPLENISHMENT
• PAYMENT PROCESSING
• SUPPLIER MANAGEMENT
• PROCESS AND PRODUCTION CONTROL

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COMPONENTS E-BUSINESS

• EXAMPLES CUSTOMER?

• MARKETING
• SELLING
• ORDER PROCESSING
• ORDER PAYMENT
• CUSTOMER MANAGEMENT
• CUSTOMER SUPPORT

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COMPONENTS E-BUSINESS

• EXAMPLES INTERNAL?

• TRAINING
• HRM SERVICES
• INFORMATION SHARING
• VIDEO CONFERENCING
• RECRUITING

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COMPONENTS E-COMMERCE

• DEFINITION
• ANY TRANSACTION COMPLETED OVER COMPUTER-MEDIATED
  NETWORK INVOLVING TRANSFER OF OWNERSHIP

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COMPONENTS E-COMMERCE

• CONSIDERATIONS AND QUESTIONS

• MUST IT HAVE VALUE?
• FREE DOWNLOADS?
• WHAT IS A TRANSACTION?
• SEARCH ON, BUY OFF?

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COMPONENTS COMPUTER-MEDIATED NETWORKS

• DEFINITION
• ELECTRONICALLY LINKED DEVICES THAT COMMUNICATE
  INTERACTIVELY OVER NETWORK CHANNELS

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COMPONENTS COMPUTER-MEDIATED

• INCLUDES
• LINKED ELECTRONIC DEVICES
• INTERNET-ENABLED
• NETWORKS

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COMPONENTS COMPUTER-MEDIATED

• EXAMPLES LINKED DEVICES?

• COMPUTERS
• PDA
• webTV

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COMPONENTS COMPUTER-MEDIATED

• EXAMPLES INTERNET-ENABLED

• CELL PHONES
• PCS
• INTERACTIVE TELEPHONE SYSTEMS

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COMPONENTS COMPUTER-MEDIATED

• EXAMPLES NETWORKS

• TELECOMMUNICATION
• EDI
• ANSI X12
• EDIFACT

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COMPONENTS COMPUTER-MEDIATED

• EXAMPLES NETWORKS

• VAN/EDI
• INTRANETS
• EXTRANETS
• INTERNET

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SUMMARY AND CONCLUSIONS