4. What is a Supply Chain? “a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers” Types of transactions Physical flows Data flows
5. Information Flow Product descriptions, specifications, and prices Purchase order information such as quantities, required shipment dates, and addresses Planned and actual production, shipment, and delivery dates/times and status against such schedules Technical and engineering data on products, components, and equipment Accounting information such as prices, discounts, allowances, and account numbers, and Product quality data, such as test results, performance measurements, and warranties.
8. Impact of Globalization and Information Technology Intensified competition and the pressure to lower costs has increased Standardization of information technologies Global sprawl
18. Risks Categorization Capacity Risk Relates primarily to the integrity of a company's facilities or those of its business or outsourcing partners Intellectual Risk, Profitability Risk & Demand Risk Associated with customer demand fluctuation, new product development.
20. Global Supply Chain and Terrorism Use of commercial airliners as missiles Threat Categorization Transportation modes (air, road, rail, maritime) Entry points (airport, border crossings, ports, pickup/delivery points etc.) Threat areas (passengers, employees, cargo, shippers etc.)
21. Counter-Terrorism Initiatives Container Security Initiative (Advance Shipment Note) Addresses the potential threat of the container itself Considers the history of the container, not just the contents of the container C-TPAT (Customs-Trade Partnership Against Terrorism) Mechanism for companies to work with the U.S. Customs Service Intent is for companies to become known entities to the Customs Service and become a more trusted importer of goods to the United States
22. Counter-Terrorism Initiatives TAPA (Transported Asset Protection Association) Unique forum that unites global manufacturers, logistics providers, freight carriers, law enforcement agencies, and other stakeholders with the common aim of reducing losses from international supply chains Freight Security Requirements
23. Insecurity over Security Security risk of network infiltration and information theft Need for an authentication solution Authentication Techniques Fingerprint scanners and sensors Facial recognition Iris Scanning Tongue print check in military operations Digital Signatures and Certificates
26. Dynamic World Intensive competition Optimize Processes for increasing efficiencies and reducing costs Need End-to-end visibility: Capturing the data of material flows at all levels of the value chain Sense and Respond Item-level tracking RFID: Changing Face of Supply Chain Management
27. Bar Codes Most primitive form of tagging The information about an item can be captured using optical barcode scanners Limitations Damages Human Interaction and need for close line of sight Lack of Information Speed and Scalability
28. Radio Frequency Identification (RFID) e-tagging technology Enables passive object tagging Automatic data capture, using RF sensing as opposed to optical sensing in the case of barcodes
29. Benefits of RFID Reliable Range Amount of data that can be stored Automated data capture Total Visibility
30. Issues and Concerns with RFID Technical concerns Cost Integration Standards Consumer concerns
32. Auto-ID Smart Tag Combination of EPCs & RFID Low cost Open-standard based EPC: Electronic Product Code 96-bit code Uniquely identified PML: Product Markup Language Open-standard language like XML
37. Sarbanes-Oxley Act 2002 Corporate financial scandals of Enron "to protect investors by improving the accuracy and reliability of corporate disclosures made in agreement to the securities laws"
38. Implications on Supply Chain Inventory and Fixed Asset Reconciliation Material Transfers Segregation of Duties in the Procure-to-pay Process Viable SCM Processes Vital information for the CFO or chief compliance officer Vendor Managed Inventories Long Term Purchase Agreements Lease Agreements Letters of Intent
39. How to manage impact of SOX on Supply Chain Communicate all Business units on frequent basis Information technology Visibility From purchase orders to delivery orders Operations, inventories and other assets
41. Challenges to Supply Chain Automation Wider scope -> more player involved Technology disparity within intensified Systems not integrated Flexibility Cost optimization
43. Challenge: Adapting to technological change Cloud Computing is a computing paradigm in which tasks are assigned to a combination of connections, software, and services accessed over a network The ultimate form of globalization
44. Automating the Cloud Advantages lower-cost labour pools IT services without the infrastructure investment off-site operational efficiency CapEx Disadvantages A loss of infrastructure visibility Degree of blind faith
45. Next-Generation IT Automation CMDB (Configuration Management Database) A federated metadata repository Universally connect any business function to the IT components, processes, and infrastructure
47. Supply Chain Integration Event-driven Economy Demand –realized > Demand-satisfied Instantaneous Any direction, any system Exchanging Information isn’t enough B2B Application Integration vs. Supply Chain Integration
48. Integration Issues Traditionally Intra-organization Integrate external systems Impossible to get all member organizations to agree on a set of standards Need Layers and layers of middleware
49. Integration Issues Solution Agree on a single communications standard Common communications mechanism and middleware approach
50. Middleware Move information and shared business logic between applications Hide complexities of the source and target systems APIs Middleware Models Pub/Sub Request/Response
51. Electronic Data Interchange (EDI) Want to communicate? Common vocabulary Universally understood Messages structured in a standardized way Interpreted and acted on Exchange of electronic files in a standard format Easily processed Automated without human intervention
58. Service-oriented Integration Web Services Applications with business or process functionality Standardized XML interface Interoperability between disparate applications Service Oriented Architecture (SOA) Standards and infrastructure
59. Integration Standards Underlying Problem Lack of universally accepted and implemented standards Reduces opportunities for cost savings Duplication of effort Maintenance of redundant systems Investment in inefficient processes
60. Standards EDI Standards ANSI X12 Edifact UCCnet for Retail Supply Chains RosettaNet for High-tech Manufacturing VDA for Automobiles SWIFT for Financial Transactions
61. Strategic Supply Chains Shift from selling a product to offering a service Dynamic and resourceful Strategic collaboration between two organizations or business units End-of-life handling of products Minimize the physical material flow but maximize information flow from the order to the delivery cycle
62. Appendices RFID Case Study U.S. Army Achieves Real-Time Visibility of Supply Trucks Traveling in the Middle East Supply Chain Integration Case Study Invoice Payment Authorization Case Study Supply Chain Innovator, the Li & Fung Virtual Enterprise
