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‹#› Het begint met een idee
CHAPTER 9 – INFORMATION TECHNOLOGY
IN A SUPPLY CHAIN
Dung H. Nguyen
Faculty of International Economic Relations
University of Economics and Law

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Vrije Universiteit Amsterdam
 The role of IT in a supply chain
 The supply chain IT framework
 The future of IT in a supply chain
 Risk management in IT
CONTENTS
CONTENTS
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Vrije Universiteit Amsterdam
THE ROLE OF IT IN A SUPPLY CHAIN
THE ROLE OF IT IN A SUPPLY CHAIN
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• must be accurate
• must be accessible in a timely manner
• must be of the right kind
• must be shared
Information is crucial to supply chain performance because it
provides the foundation on which supply chain processes execute
transactions and managers make decisions.

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Vrije Universiteit Amsterdam
INFORMATION AND OTHER DRIVERS OF SC PERFORMANCE
INFORMATION AND OTHER DRIVERS OF SC PERFORMANCE
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Competitive Strategy
Supply Chain Strategy
Efficiency Responsiveness
Facilities
Supply chain structure
Cross-Functional Drivers
Logistical Drivers
Inventory Transportation
Information Sourcing Pricing
Source: Chopra and Meindl (2016)

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Vrije Universiteit Amsterdam
THE SUPPLY CHAIN IT FRAMEWORK
THE SUPPLY CHAIN IT FRAMEWORK
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Source: Chopra and Meindl (2016)

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Vrije Universiteit Amsterdam
CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
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• Marketing: improve marketing decisions on pricing and profitability
• Sell: improve the sell process
• Order management: enable visibility of orders
• Call/service center: improve service operations

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Vrije Universiteit Amsterdam
INTERNAL SUPPLY CHAIN MANAGEMENT
INTERNAL SUPPLY CHAIN MANAGEMENT
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• Strategic planning: focuses on the network design of the supply chain
• Demand planning: forecasting demand
• Supply planning: factory planning and inventory planning
• Fulfillment: transportation and warehousing management
• Field service: scheduling service

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Vrije Universiteit Amsterdam
SUPPLIER RELATIONSHIP MANAGEMENT
SUPPLIER RELATIONSHIP MANAGEMENT
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• Design collaboration: design of products, sharing of engineering
change orders
• Source: qualification of suppliers, supplier evaluation and selection,
contract management
• Negotiate: Negotiations with suppliers
• Buy: creation, management, and approval of purchase orders
• Supply collaboration: facilitate collaborative forecasting and planning

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Vrije Universiteit Amsterdam
THE FUTURE OF IT IN A SUPPLY CHAIN
THE FUTURE OF IT IN A SUPPLY CHAIN
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• The growth in cloud and software as a service
• Increased availability of real-time data
• Increased use of mobile technology
• Increased use of social media

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Vrije Universiteit Amsterdam
RISK MANAGEMENT IN IT
RISK MANAGEMENT IN IT
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• Risk of a negative impact on operations
• Risk in installing new IT systems
• IT problems: software glitches, power outages, viruses

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Vrije Universiteit Amsterdam
RISK MANAGEMENT IN IT
RISK MANAGEMENT IN IT
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• Install new IT systems in an incremental fashion
• Make sure the new system is performing well
• Implement only the level of complexity that is needed

12.
‹#› Het begint met een idee
CHAPTER 9 – INFORMATION TECHNOLOGY
IN A SUPPLY CHAIN
THANK YOU!