CHAPTER 9 – INFORMATION TECHNOLOGY

IN A SUPPLY CHAIN

Faculty of International Economic Relations

University of Economics and Law

1 Het begint met een idee

CONTENTS

 The role of IT in a supply chain

 The supply chain IT framework
 The future of IT in a supply chain
 Risk management in IT

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THE ROLE OF IT IN A SUPPLY CHAIN

Information is crucial to supply chain performance because it

provides the foundation on which supply chain processes execute
transactions and managers make decisions.

• must be accurate
• must be accessible in a timely manner
• must be of the right kind
• must be shared

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INFORMATION AND OTHER DRIVERS OF SC PERFORMANCE

Competitive Strategy

Supply Chain Strategy

Efficiency Responsiveness
Supply chain structure

Logistical Drivers

Facilities Inventory Transportation

Information Sourcing Pricing

Cross-Functional Drivers

Source: Chopra and Meindl (2016)

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THE SUPPLY CHAIN IT FRAMEWORK

Source: Chopra and Meindl (2016)

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CUSTOMER RELATIONSHIP MANAGEMENT

• Marketing: improve marketing decisions on pricing and profitability

• Sell: improve the sell process
• Order management: enable visibility of orders
• Call/service center: improve service operations

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INTERNAL SUPPLY CHAIN MANAGEMENT

• Strategic planning: focuses on the network design of the supply chain

• Demand planning: forecasting demand
• Supply planning: factory planning and inventory planning
• Fulfillment: transportation and warehousing management
• Field service: scheduling service

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SUPPLIER RELATIONSHIP MANAGEMENT

• Design collaboration: design of products, sharing of engineering

change orders
• Source: qualification of suppliers, supplier evaluation and selection,
contract management
• Negotiate: Negotiations with suppliers
• Buy: creation, management, and approval of purchase orders
• Supply collaboration: facilitate collaborative forecasting and planning

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THE FUTURE OF IT IN A SUPPLY CHAIN

• The growth in cloud and software as a service

• Increased availability of real-time data
• Increased use of mobile technology
• Increased use of social media

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RISK MANAGEMENT IN IT

• Risk of a negative impact on operations

• Risk in installing new IT systems
• IT problems: software glitches, power outages, viruses

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RISK MANAGEMENT IN IT

• Install new IT systems in an incremental fashion

• Make sure the new system is performing well
• Implement only the level of complexity that is needed

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 CHAPTER 9 – INFORMATION TECHNOLOGY
IN A SUPPLY CHAIN

THANK YOU!

12 Het begint met een idee