Supply Chain Management technologies: RFID and XML

Chapter 2Slide 2 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 3 Principles of Information Systems, Fifth Edition Applications Check out: POS terminal Inventory tracking (Wal-Mart, DoD) Animal tagging Secure car key (Toyota) Purchase gasoline (Mobil) Doorway access control

Chapter 2Slide 4 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 5 Principles of Information Systems, Fifth Edition Active tags Active tag Uses a battery to respond More range, up to 1Km 3-5 year battery life Can cost several dollars

Chapter 2Slide 6 Principles of Information Systems, Fifth Edition 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?

Chapter 2Slide 7 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 8 Principles of Information Systems, Fifth Edition RFID challenges Interference with object or other readers Range Data formats and standardization Different countries allocate different frequencies Cost for readers, tags and system

Chapter 2Slide 9 Principles of Information Systems, Fifth Edition Bar Code vs. RFID scanning 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

Chapter 2Slide 10 Principles of Information Systems, Fifth Edition

Chapter 2Slide 11 Principles of Information Systems, Fifth Edition

Chapter 2Slide 12 Principles of Information Systems, Fifth Edition UPC versus EPC 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 !

Chapter 2Slide 13 Principles of Information Systems, Fifth Edition RFID supply chain integration 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

Chapter 2Slide 14 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 15 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 16 Principles of Information Systems, Fifth Edition SCM Life Cycle

Chapter 2Slide 17 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 18 Principles of Information Systems, Fifth Edition EDI Activities

Chapter 2Slide 19 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 20 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 21 Principles of Information Systems, Fifth Edition 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!

Chapter 2Slide 22 Principles of Information Systems, Fifth Edition 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

Chapter 2Slide 23 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 24 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 25 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 26 Principles of Information Systems, Fifth Edition 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.

Chapter 2Slide 27 Principles of Information Systems, Fifth Edition XML rules Each element tag is user-defined, within angle brackets: … Each element can have sub-parts: 515 Loudon Rd. Loudonville

Chapter 2Slide 28 Principles of Information Systems, Fifth Edition XML Schema definition file Rules besides “well-formed” XML: Order of elements … Data type: string, date or decimal Optional elements: minOccurs=“0”

Chapter 2Slide 29 Principles of Information Systems, Fifth Edition On Your Own Coors Case worksheet XML exercise Online quiz