NAME: SHAIKH FAIZAN HASHMATULLAH

ROLL NO: 10 CLASS: TYBMS / MARKETING

SUBJECT : LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Information Technology and Logistics
 What Is Logistics and Supply Chains?

 A supply chain is the network of suppliers,

distributors and subcontractors used by a
manufacturer to source its raw materials,
components and supplies. Logistics companies store,
transport and distribute supplies and work-in-
progress within the supply chain and distribute
finished products to customers or intermediaries.
Integrating supply chain and logistics operations
improves efficiency and reduces costs, increasing the
manufacturer’s competitive advantage.
 IT and Supply Chain Integration

 Supply chain management (SCM) is concerned with

the flow of products and information between
supply chain members’ organizations. Recent
development in technologies enables the
organization to avail information easily in their
premises. These technologies are helpful to
coordinates the activities to manage the supply
chain. The cost of information is decreased due to
the increasing rate of technologies. 
Supply chain organizational functions

 All enterprises participating in supply chain

management initiatives accept a specific role to
perform. They also share the joint belief that they
and all other supply chain participants will be better
off because of this collaborative effort. Power within
the supply chain is a central issue. There has been a
general shift of power from manufacturers to
retailers over the last decades. Retailers sit in a very
important position in term of information access for
the supply chain.
How IT can be applied in Supply Chain
Management
 Electronic Commerce: It is the term used to describe
the wide range of tools and techniques utilized to
conduct business in a paperless environment.
Electronic commerce therefore includes electronic
data interchange, e-mail, electronic fund transfers,
electronic publishing, image processing, electronic
bulletin boards, shared databases and
magnetic/optical data capture. Companies are able
to automate the process of moving documents
electronically between suppliers and customers
How IT can be applied in Supply Chain
Management
 Data warehouse: Data warehouse is a consolidated
database maintained separately from an
organization’s production system database. Many
organizations have multiple databases. A data
warehouse is organized around informational
subjects rather than specific business processes.
Data held in data warehouses are time dependent,
historical data may also be aggregated.
How IT can be applied in Supply Chain
Management
 Enterprise Resource planning (ERP) tools: Many
companies now view ERP system (eg. Baan, SAP,
People soft, etc.) as the core of their IT
infrastructure. ERP system have become enterprise
wide transaction processing tools which capture the
data and reduce the manual activities and task
associated with processing financial, inventory and
customer order information. 
Importance of Information Technology
on Logistics
 Competitiveness and business improvement
 Flexibility and accessibility
 Customers and employees
 Increased intelligence
 From 4P to 4E
 Product -> Experience
 Locate a customer impression and promote over and over
 Place -> Everyplace
 Intercept and contact potential customers in every ways
 Price -> Exchange
 Aim for customers’ engagement, attention and permission
 Promotion -> Evangelism
 Inspire customers to share their enthusiasm with others
 Functions of Information Technology
in Logistics
 Transportation
 Transport management
 Inventory
 Inventory management
 Warehouse management
 Administration
 Collaborative planning
 Forecasting
 Order management
 Inter-organizational information exchange
 Customer relationship, advertising and promotion
Standards
 RosettaNet

 RosettaNet is a standard for exchanging

electronic data between organizations
 XML-based interfaces
Connecting Organizations With..What?

A ?????????? B
ORACLE SAP
 Connecting Organizations With
RosettaNet

A B
RosettaNet
ORACLE SAP
 RosettaNet Consortium

 Includes major IT organizations:

 IBM, Microsoft, Oracle, SAP, Cisco Systems,
Compaq, Nokia, Seagate, Motorola and Intel
 Represented in
 USA, Malaysia, Europe, Japan, Taiwan, China,
Singapore, Australia and Thailand
 RosettaNet in Thailand

 RosettaNet Thailand was established in 2006

 Stakeholders:
 Government
 NSTDA, EEI, FTI, TPI
 Industry
 WD, Seagate, Hitachi, Fujitsu, Intel, HP, IBM, Sony,
Toyota, Honda, GM, Ford, Daimler-Chrysler
 Academia
 AIT, KMITL, KMUTNB, CU
 Goals of RosettaNet Thailand

 Within 2009
 Being implemented in 30 organizations
 Produce 400 trained personnel
 Being taught in 8 academic institutes
 RosettaNet Framework

 Partner Interface Processes (PIPs)

 A Master Dictionary
 A Messaging System
 Partner Interface Processes (PIPs)

 Sequences of steps in executing a business

process between two partners
 Include:
 Activities
 Roles of the partners
 Documents
 Securities
 Clusters -> Segments -> PIPs
 PIPs Clusters

 Cluster 0 – RosettaNet Support

 Cluster 1 – Partner Product and Service Review
 Cluster 2 – Product Introduction
 Cluster 3 – Order Management
 Cluster 4 – Inventory Management
 Cluster 5 – Marketing Information Management
 Cluster 6 – Service and Support
 Cluster 7 – Manufacturing
 PIPs Cluster 4 [Inventory Management]

 Segment 4A – Collaborative Forecasting

 Segment 4B – Inventory Allocation
 Segment 4C – Inventory Reporting
 Segment 4D – Inventory Replenishment
 Segment 4E – Sales Reporting
 PIPs Segment 4A [Collaborative Forecasting]

 PIP 4A1 – Notify of Strategic Forecast

 PIP 4A2 – Notify of Embedded Released Forecast
 PIP 4A4 – Notify of Planning Release Forecast
 PIP 4A5 – Notify of Forecast Reply
 PIP 4A6 – Notify of Forecasting Exception
 PIP 4A1 [Notify of Strategic Forecast]

 Purpose
 To issue a Sales Forecast Notification to a Forecast
Recipient
 The periodicity and time horizons of the Sales Forecast, as
well as many other parameters, are specified in a Trading
Partner Agreement (TPA)
 The Forecast Recipient has no commitment to be able to
supply the product specified in the forecast
 The forecast is provided for planning purposes only
PIP 4A1 [Notify of Strategic Forecast]
 Success Stories

Partners Implementation Results

Arrow Carrier Six weeks of Reduced a batch delivery cycle

implementation from 5 days to overnight

Bourns TTI PIP 3A2 [Request Price and Reduced inventory information access
Availability] from 1 week delay to real time

Compaq Delta PIP 3A4 [Request Purchase Reduced order processing lead time to
(Taiwan) Order] and PIP 3A7 [Notify several minutes
of Purchase Order Update]

Intel WPI PIP 3A4 [Request Purchase Reduced order processing lead time
(Taiwan) Order] and PIP 3A7 [Notify
of Purchase Order Update]