Unit14LogisticsInformationManegement1.docx
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Unit14LogisticsInformationManegement1.docx
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Unit14LogisticsInformationManegement1
UnitFourteenLogisticsInformationManagement
PartOneText
SupplyChainInformationSystem
Theimportanceofinformationinlogisticsmanagement
Priortothe1980s,asignificantportionoftheinformationflowsbetweenfunctionalareaswithinanorganization,andbetweenlogisticsorganizations,werepaper-based.However,thesepaper-basedtransactionsandcommunicationswereslow,unreliableanderrorprone.Duringthisperiod,informationwasoftenoverlookedasacriticalcompetitiveresourcebecauseitsvaluetologisticswasnotclearlyunderstood.By1980,mostfirmscametorealizethevitalimportanceofinformationandthetechnologiesthatmakethisinformationavailable.
By1980,theinformationrevolutionwasinfullswing.Manystandardbusinessprocessesandfunctionssuchascustomerorderprocessing,inventorymanagementandpurchasingwerealteredthroughtheuseofcomputertechnology1.Severalwell-knownfirmsinvolvedinlogisticsrelationshipsowemuchoftheirsuccesstothenotionofinformationsharing.ThemostremarkableexamplesareProcter&GambleandWal-Mart.
Nowinformationisviewedasthekeytosuccessfulsupplychainmanagementbecause“noproductflowsuntilinformationflows”2.Thus,theinventorymanagerneedsdirectaccesstotheorganization’sinformationsystemtoproperlyadministermaterialsflowintoandwithintheorganization.Accurateandtimelyinformationallowsafirmtominimizeinventories,improveroutingandschedulingoftransportationvehicles,andgenerallyimprovecustomerservicelevels.Sincethesupplychainhasbecomethekeyopportunitytogaincompetitiveadvantage,seniormanagementneedstoconstantlyremindtheirorganizationsthatanimprovedSCISperformanceisabusinessissue,notalogisticsorcomputersystemissue.
Timelyandaccurateinformationhasbecomeverycriticalinlogisticssystemdesignandoperations.Therearemainlythefollowingfourreasons.First,customersperceiveinformationaboutorderstatus,productavailability,deliverytracking,andinvoicesasanecessarydimensionofcustomeraccommodation.Customersdemandreal-timeinformation3.Second,withthegoalofreducingtotalsupplychainassets,managersrealizethatinformationcanbeusedtoreduceinventoryandhumanresourcerequirements,Inparticular,requirementsplanningbasedoncurrentinformationcanreduceinventorybyminimizingdemanduncertainty4.Third,informationincreasesflexibilitywithregardtohow,whenandwhereresourcesmaybeutilizedtogainstrategicadvantages5.Fourth,enhancedinformationtransferandexchangeutilizingtheInternetisfacilitatingcollaborationandredefiningsupplychainrelationships6.
Informationsystemfunctionality
Supplychaininformationsystems(SCIS)arethethreadthatlinkslogisticsactivitiesintoanintegratedprocess7.Theintegrationbuildsonfourlevelsoffunctionality:
⑴transactionsystem,⑵managementcontrol,⑶decisionanalysis,and⑷strategicplanning.Figure12.1illustrateslogisticsactivitiesanddecisionsateachlevelofinformationfunctionality.Asthepyramidshapesuggests,managementcontrol,decisionanalysis,andstrategicplanningenhancementsrequireastrongtransactionsystemfoundation.
Figure12.1
⑴Transactionsystem
TransactionsystemistheheartofSCIS,whichinitiatesandrecordsindividuallogisticsactivities8.Transactionsystemincludesorderentry,inventoryassignment,orderselection,shipping,pricing,andinvoicingandcustomerinquiry9.Transactionsystemischaracterizedbyformalizedrules,procedures,andstandardizedcommunications;alargevolumeoftransactionsandanoperational,day-to-dayfocus10.Throughouttheprocess,thefirmandcustomerexpectreal-timeinformationtobeavailableconcerningorderstatus.
⑵Managementcontrol
ThissecondSCISlevel,managementcontrol,focusesonperformancemeasurementandreporting.Performancemeasurementisnecessarytoprovidefeedbackregardingsupplychainperformanceandresourceutilization11.WhileitisnecessarythatSCISreporthistoricalsystemperformance,itisalsoimportantthatSCISbeabletoidentifyoperationalexceptionsastheyarebeingprocessed12.Exceptioninformationisusefultohighlightpotentialcustomeroroperationalproblems.Forexample,proactiveSCISshouldbeabletopredictfutureinventoryshortagesbasedonforecastrequirementsandplannedinventory.Exceptionreportingshouldalsoidentifypotentialtransportation,warehouse,orlaborconstraints.Whilesomecontrolmeasures,suchascost,arewell-defined,othermeasures,suchasserviceandquality,arelessspecific.Forexample,customerservicecanbemeasuredinternally,fromtheenterprise’sperspective,orexternally,fromthecustomer’sperspective.Whileinternalmeasuresarerelativelyeasytotrack,informationconcerningexternalmeasuresismoredifficulttoobtain,sinceitinvolvesthecustomer.
⑶Decisionanalysis
ThethirdSCISlevel,decisionanalysis,focusesonsoftwaretoolstoassistmanagersinidentifying,evaluating,andcomparingstrategicalternativestoimproveeffectiveness13.
Typicalanalysisincludessupplychaindesign,inventorymanagement,resourceallocation,routing,cost-benefitanalysisofoperationaltradeoffsandarrangements.Itmayincludemodelingandanalysistool,whichcanreportawiderangeofpotentialalternatives.Unlikemanagementcontrol,decisionanalysisfocusedonevaluatingfuturetacticalalternatives,anditneedstoberelativelyunstructuredandflexibletoallowconsiderationsofawiderangeofoptions.Theusersneedrelativelymoreexpertisetouseit.Decisionanalysisemphasizesshiftsfromefficiencytowardseffectiveness.Decisionanalysissystemmayincludedecisionsupportsystem(DSS),enterpriseresourceplanning(ERP),artificialintelligenceapplication,andsimulation/modelingsystem.
⑷Strategicplanning
Strategicplanningsystem,thelastlevel,focusesoninformationsupporttodevelopandrefinesupplychainstrategy.Oftenitisanextensionofthedecisionanalysislevel.Examplesofstrategicplanningdecisionsincludethedesirabilityofstrategicalliances,developmentandrefinementofmanufacturingcapabilitiesandmarketopportunities,aswellascustomerresponsivenesstoimprovedservice.
Comprehensiveinformationsystemintegration
AcomprehensiveSCISmainlyincludesthefollowingfourcomponents:
⑴EnterpriseResourcePlanning(ERP),⑵Communicationsystems,⑶Executionsystems,and⑷Planningsystems.EnterpriseResourcePlanning(ERP)isthebackboneofmostfirms’logisticsinformationsystem.
EnterpriseResourcePlanning(ERP)
ERPwasaconceptdevelopedbyGartnerGroupdescribingthenextgenerationofmanufacturingbusinesssystemsandmanufacturingresourceplanning(MRPII)software.
EnterpriseResourcePlanning,orERP,referstoatypeofcomputerapplicationsnowprevalentinmanydifferentorganizationsacrosstheworld.EPRisthemajorsoftwarecomponentoflogisticsinformationsystems.EPRprovidesthedatabaseandthetransactioncapabilitytoinitiate,track,monitor,andreportoncustomerandreplenishmentorders14.ERPsystemtypicallyincludesfinancial,accounting,andhumanrecoursecapability.Table12.2illustratesthetraditionalandemergingcapabilitiesofERPsystem.
Typical
Advanced
Accountspayableandreceivable
Collaborativeplanning,forecasting,andreplenishment
Generalledger
Customerrelationshipmanagement
Humanresourcemanagement
Supplychaineventmanagement
Billofmaterials
Web-enabledapplications
Inventorycontrol
Advanceplanningandscheduling
Routings
Ordermanagement
Projectrequirementsplanning
Executionsystems
Table12.2ERPsystemcapability
ThetechnologyusedinERPwillgiveusersbothsoftwareandhardwareindependenceaswellasaneasyupgradepath.KeytoERPisthewayinwhichuserscantailortheapplicationbehaviorsoitisintrinsicallyeasytouse.
TheERPmanagementmethodologybuildsonthetheorythatanenterprisecanmaximizeitsreturnsbymaximizingtheutilizationofitsfixedsupplyofresources.Andinformationtechnology,withitsincreasingcomputerpowerandtheabilitytocorrelatepiecesofinformation,hasproventobethebesttooltodoso.
ERPsystem,intheory,canhelpwithalltheback-officeadministrationtasksofmostcompanies.Sayyouarerunningabicycleshop.Onceyoumakeasale,youentertheorderontheERPsystem.Thesystemthenupdatesthestockofbicyclesintheshop,incorporatethesaleinthefinancialledgers,printsoutaninvoice,andcanpromptyoutopurchasemorebicyclestoreplacetheonesthatyouhavesold.TheERPsystemcanalsohandlerepairordersandmangethesparepartsstocks.Itcanalsoprovideautomatedtoolstohelpyouforecastfuturesalesandtoplanactivitiesoverthenextfewweeks.Theremayalsobedatequerytoolspresenttoenablesophisticatedmanagementreportsandgraphstobegenerated,Inaddition,thesystemmayhandlethereturnthedefectiveitemsfromunhappycustomers.
Inadditiontofacilitateintegration,ERPsystemsarebeginningtoincludetwoadditionalsystemcomponents,SupplyChainPlanning(SCP)andCustomerRelationshipManagement(CRM)15.TheCRMsystemisanewerapplicationdesignedtofacilitateinformationsharingbetweencustomers,salesforce,andoperationsmanagement.CRMprovidessalesrepresentativesandcustomerswithcurrentinformationregardingsaleshistory,shipmenthistory,orderstatus,promotionalsummary,andshipmentinformation.Suchtimelyandaccurateinformationexchangecanbettermanagecustomerorders.
WordsandExpressions
accommodation[əˌkɔmə'deiʃən]n.asettlementofdifferences;适应;和解;
allocation[ælə'keiʃən] n.
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