Supply Chain Management technologies: RFID and XML

1. Supply Chain Management technologies: RFID and XML

2. RFID: Radio Frequency Identification • Reader (transmitter/receiver) • Tags that respond to a radio frequency • Transmits unique Identifier 8-12 bytes (characters) at different frequency • Does not have to be line-of-sight • Lots of Applications Software Principles of Information Systems, Fifth Edition

3. Applications • Check out: POS terminal • Inventory tracking (Wal-Mart, DoD) • Animal tagging • Secure car key (Toyota) • Purchase gasoline (Mobil) • Doorway access control Principles of Information Systems, Fifth Edition

4. Passive vs. active tags • Passive tags • Uses transmitter RF signal for power • Long lifespan • Costs start at about twenty cents • Low frequency: range is less than 6 inches • High frequency: range up to 12 inches • Ultrahigh frequency: several yards Principles of Information Systems, Fifth Edition

5. Active tags • Active tag • Uses a battery to respond • More range, up to 1Km • 3-5 year battery life • Can cost several dollars Principles of Information Systems, Fifth Edition

6. RFID quiz • Q 1: What kind of tags are we using in lab? • Q 2: Does the orientation of the tag affect the ability to read its contents? (try all of the tags) • Q 3: Does placing a tag in a metal can affect the ability to read its contents? • Q 4: Why is the flat tag Read/Write? Principles of Information Systems, Fifth Edition

7. RFID advantages • Less human intervention • Real-time information flow as item changes state: • Off truck • Off shelf • Purchased by customer • Reduce lost or stolen inventory • Machine-to-machine communication • Package routing Principles of Information Systems, Fifth Edition

8. RFID challenges • Interference with object or other readers • Range • Data formats and standardization • Different countries allocate different frequencies • Cost for readers, tags and system Principles of Information Systems, Fifth Edition

9. Line of sight Right-side-up (must physically align carton) Can tear Limited amount of data No encryption Can read through objects Tag orientation less of a problem Can store megabytes of data, if needed Can be encrypted Bar Code vs. RFID scanning Principles of Information Systems, Fifth Edition

10. Principles of Information Systems, Fifth Edition

11. Principles of Information Systems, Fifth Edition

12. Universal Product Code For Bar coding Contains MFR ID number (5 digits) and Item Number (5 digits) Electronic Product Code for RFID apps. Contains 96 bits: EPC manager ID (MFR) Object class Serial number Can track a particular case of toothpaste ! UPC versus EPC Principles of Information Systems, Fifth Edition

13. Supplier: Store EPC & pallet contents on DB EPC has supplier-ID and database key. Ship pallet with tag Buyer /shipper: Pallet arrives automatically scanned for EPC Get contents from Supplier DB RFID supply chain integration Principles of Information Systems, Fifth Edition

14. RFID future • RFID tag as a sensor • Temperature: spoilage • Package opened: drugs • Larger memory: • Car repair history • Medical history • Can we recycle RFID tags? • Chip-kill technology • Privacy: track movement of people (ID card, E-ZPASS) or post-sale disposition of items. Principles of Information Systems, Fifth Edition

15. Supply Chain Management (SCM) Definition: • A cross-functional inter-enterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners Principles of Information Systems, Fifth Edition

16. SCM Life Cycle Principles of Information Systems, Fifth Edition

17. Electronic Data Interchange (EDI) Definition: • Involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners • Standard industry format to send RFQ, PO, Receiving notice, payment notice, Invoice, Payment remittance notice, etc. • Now being replaced by Web and XML. Principles of Information Systems, Fifth Edition

18. EDI Activities Principles of Information Systems, Fifth Edition

19. SCM Planning Functions • Supply Chain Design – optimize network of suppliers, plants, and distribution centers • Forecasting customer demand by sharing demand and supply forecasts instantaneously across suppliers and distributors Principles of Information Systems, Fifth Edition

20. SCM Execution Functions • Materials Management – share accurate inventory and procurement order information, ensure materials required for production are available in the right place at the right time. • Collaborative Manufacturing – optimize plans and schedules while considering resource, material, and dependency constraints Principles of Information Systems, Fifth Edition

21. SCM Execution Functions • Collaborative Fulfillment –order management, vehicle scheduling, and support the entire logistics process, including picking, packing, shipping, and delivery in foreign countries • Supply Chain Event Management – monitor every stage of the supply chain process, from price quotation to the moment the customer receives the product, and receive alerts when problems arise – visibility! Principles of Information Systems, Fifth Edition

22. Business Value of SCM Benefits of SCM: • Reduces production and distribution costs • More information => • less inventory, less lead times needed • Improves timeliness of shipments • Increases supply chain “velocity” • More accurate fulfillment • Improves “visibility” of supply chain Principles of Information Systems, Fifth Edition

23. SCM Benefits • Fewer employees needed to manage supply chain • Better customer satisfaction: less stock-outs • Strategic relationship with suppliers, enables new business partnerships: • Collaborative Planning, Forecasting, and Replenishment systems (CPFR). • Collaborative downstream customer service, marketing, and relationship management. Principles of Information Systems, Fifth Edition

24. Technical Challenges of SCM • Acquisition of secure extranet • Software can be confusing, contradictory and not sculpted to their needs – difficult to implement. • Emerging standards, high costs. Principles of Information Systems, Fifth Edition

25. Organizational challenges • Changes company structure: resistance from employees wedded to traditional processes, leads to lack of adequate collaboration among marketing, production, and inventory management departments within a company • Supplier reluctance or incompatibility issues. • Lack of proper demand planning knowledge: leading to inaccurate or overoptimistic demand forecasts. Need new tools and guidelines. Principles of Information Systems, Fifth Edition

26. Fun with XML • Standard way to describe structured data within an organization or across the Web (metadata included in file). • Can check validity using a set of rules in a schema definition (xsd) file, using a validating XML parser. Principles of Information Systems, Fifth Edition

27. XML rules • Each element tag is user-defined, within angle brackets: • <purchaseOrder> … </purchaseOrder> • Each element can have sub-parts: • <Address> • <street> 515 Loudon Rd. </street> • <city> Loudonville </city> • </Address> Principles of Information Systems, Fifth Edition

28. XML Schema definition file • Rules besides “well-formed” XML: • Order of elements • <xsd:sequence> … </sequence> • Data type: string, date or decimal • <xsd:element name=“zip” type=“xsd:decimal” /> • Optional elements: • minOccurs=“0” Principles of Information Systems, Fifth Edition

29. On Your Own • Coors Case worksheet • XML exercise • Online quiz Principles of Information Systems, Fifth Edition