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Supply Chain Technologies

Supply Chain Technologies. Dr. Dale S. Rogers Nevada Logistics Institute Supply Chain Technologies 19 August 2011. Flow Management. Physical Flows. Information Flows. Financial Flows. Analytics. Analytics. Predictive Modeling. Decision Support Systems. Business Intelligence

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Supply Chain Technologies

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  1. Supply Chain Technologies Dr. Dale S. Rogers Nevada Logistics Institute Supply Chain Technologies 19 August 2011

  2. Flow Management Physical Flows Information Flows Financial Flows

  3. Analytics Analytics Predictive Modeling Decision Support Systems Business Intelligence Competency Center Data Mining Statistical Analysis

  4. Consolidation and Complexity Analytics Software Company WMS Software Company Data Synchronization & Warehousing Software Company TMS Software Company SCV Software Company Software Company Order Management Network Location Supply Chain Planning Software Company

  5. Source: Erik Brynjolfsson, MIT E-Commerce Center

  6. “Rules of Thumb” • Total company IT costs should equal approximately 1% of total revenue • Supply chain IT costs should consist of 15-20% of total IT budget

  7. 2010 AMR Supply Chain Top 25 • Apple • Procter & Gamble • Cisco Systems • Wal-Mart Stores • Dell • PepsiCo • Samsung Electronics • IBM • Research In Motion • Amazon.com • McDonald’s • Microsoft • The Coca-Cola Company • Johnson & Johnson • Hewlett-Packard • Nike • Colgate-Palmolive • Intel • Nokia • Tesco • Unilever • Lockheed Martin • Inditex • Best Buy • Schlumberger

  8. “The Network is the Computer”

  9. “The Network is the Computer” • Movement away from traditional software • Transparent ASPs • Focus on Middleware • The Network is the Computer

  10. Always On, Always Connected • Converting information into insights • Managing time and staying focused on high priority tasks • Staying on the same page as colleagues • Managing the balance between work and family life Source: Digital Workstyle: The New World of Work. (2005) A Microsoft White Paper

  11. Knowledge Data Information Insight Simplification and Insight

  12. Business Rules Restrictions Heuristics Triggers Timing Computations Inference

  13. Bucket Brigade • Information can move quickly inside the walls. • Data flow to “information machine” a bucket brigade. • Web allows move to shared data pipeline. • Linkages are the key 1858 Rumsey fire wagon. Supplied with water by bucket brigade.

  14. Types of SCM Planning Strategic Network Planning Demand Planning Purchasing & Materials Requirements Planning Transport Planning & Distribution Planning Demand Fulfillment & APS Production Planning & Scheduling Master Planning

  15. 19th Century Electricity Generator

  16. Computing as a Utility

  17. Amazon Web Services

  18. Amazon Web Services • Computing power for $.10 an hour • Storage $.15 per gigabyte per month • Revenues of $100 million for Amazon

  19. Cisco Supply Chain

  20. Cloud Computing • Reduced need to own software • Have computing and data in the “cloud” • 3,000 firms per day moving to Google Apps

  21. Software as a service (Saas) Traditional Software On-DemandUtility Plug In, SubscribePay-per-Use Build Your Own

  22. Cost Avoidance

  23. Cloud Adoption • The long-term shift toward Web-based software is apparently taking a bit longer than expected. According to a new survey from research outfit NPD, 73% of PC users have never tried a Web-based office productivity suite. And of those who have, only a paltry 0.5% have been impressed enough to abandon their desktop office applications. • ”It would seem, then, that while 90% of computing will someday reside in “the cloud,” as Google CEO Eric Schmidt recently claimed, it isn’t going to reside there for quite a while. • “Maybe in the next 30, but not in the next five,” says Burton Group analyst Guy Creese, who suggests consumer adoption of SAAS will follow a path similar to that of consumer adoption of electricity in the late 1800s. “If you look at the electricity-adoption curve, it mimics what is happening now,” Creese explains. “People made their own electricity for the first 30 years. It was only in 1910, when Samuel Insull began creating electricity holding companies, that businesses and people decided it was easier and cheaper for someone to take over the task. If you figure usable PCs were invented in 1975, we’re about 30 years into a 50- to 60-year adoption cycle. People move a lot slower than technologists want them to; that’s why I think Microsoft’s ’software and services’ viewpoint is the less exciting but more sensible one.”

  24. 10 Years 2 Years 2/10 Rule • 2 years of excited “buzz” • 10 years before technology “blossoms”

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