Information integration in supply chains, Unified information...

Information integration in supply chains

Based on the results of the study of Chapter 9, students should:


• the essence and basic elements of a single information space (EIP) in supply chains;

• the role of ERP-systems in the construction of EIP supply chain contractors;

• classification and functionality of APS-systems;

• principles of functioning of electronic document management systems

• Advantages of using systems and technologies of electronic document management in the DRM

be able to

• to carry out information integration of supply chain contractors;


technologies of electronic document circulation of contractors of supply chains.

Single Information Space - the Basis for Integration of Counterparties in Supply Chains

Planning and controlling supply chains should be considered both in the organizational and managerial and in the information aspect. This means that the construction of an integrated SCM system begins with organizational changes and the creation of integrated information models and technologies for planning and managing supply chains.

And only after synchronization of all the main business processes, development of strategy and conceptual SCM-models (such as SCOR-mod), it is possible to start work on the introduction of information systems that support integrated supply chain management.

Typically, the stage of development and implementation of information technology is the final step in creating the organizational structure of the UCP. At the same time, its most important component is the creation of a single information space (EIP), i.e. an integrated planning and management environment, coordination and communication of all supply chain counterparties.

The development of the UIS for the implementation of the goals of the DRM is largely determined by the decisions made at the stages of business process reengineering and the development of the integrated planning and supply chain management model. In connection with these, various options are possible for building an information support system for SCM solutions.

The main objectives of information integration of supply chains are [26]:

• Achieve the necessary level of information openness (transparency) with respect to needs, capacity utilization and stock levels in the chain;

• Operational forecasting of demand, capacity planning and inventory levels;

• monitoring of key business processes and timely detection of deviations and irregularities in the functioning of the supply chain.

The effectiveness of solutions in supply chains is largely determined by the information infrastructure supporting the execution of business chain processes. Due to the high complexity of integrating processes in the supply chain, tasks arise that can not be realized with the help of information systems of the same class. Each business process of the supply chain is performed by various contractors and is often supported by several information systems. This information infrastructure is called the single information space of supply chain contractors.

The single information space of supply chain contractors is a set of heterogeneous (heterogeneous) information systems of various economic functionality integrated with each other for the purpose of constant information exchange and intended to create a unified environment for coordinating actions and interaction of participants in chains deliveries at realization by them of the basic functions of management (planning and controlling) in a mode of real time.

Given the complexity, complexity of modern supply chains, the effectiveness of integrated management is directly related to the use of appropriate information technologies for automated processing, accounting and storage of information, as well as to support decision-making processes.

The basic elements of the UIS are [26]:

• ERP (enterprise resource planning systems) - systems that act as an information base for supply chain counterparties

• APS (advanced planning systems - systems for extended planning) - systems designed for planning business processes at the inter-organizational level [19]; ​​

• SCEM and SCMo - supply chain monitoring systems;

• CRM and SRM are systems for coordinating relationships with suppliers and customers.

ERP-systems provide planning and management of both material and financial resources of any enterprise that is part of the supply chain. The most important prerequisite for the central role of ERP-systems in the transition to the UCI ideology was the possibility of creating with the help of these systems a UTI based on a set of integrated applications that support all the main aspects of the management activities of enterprises - the planning of resources (financial, labor, material) for the production of goods services), operational management of the implementation of plans (including supply, marketing, contract management), all types of accounting, analysis of business results.

The content of modern ERP-systems in the field of production and logistics in supply chains is the idea of ​​optimal planning of available resources for the production of final products, taking into account the capacity utilization. This process takes place at the strategic, tactical and operational levels according to the scheme "Sales and Production Planning - MRP - Calendar Planning - Manufacturing Management".

The steps in this scheduling scheme are executed consecutively from top to bottom ( top-down ) based on the specified production cycle time (planned time). The needs and capacities are planned separately from each other. When planning the demand for materials, the unrealistic assumption is based on the fact that at any time the necessary capacities will be available. In reality, different orders compete for the same resources (equipment and jobs). This creates unforeseen queues (expectations) and there is an increase in the time of production cycles due to the inevitable increase in the planned time. In addition, there is practically no accounting for bottlenecks.

Since the planning process is performed in the batch mode , it can last for hours or even a whole shift, which leads to differences in the newly generated production plans with reality. Consequently, this kind of planning is neither a means of intelligent solution to planned problems, nor a means of supporting decision-making and optimization. And yet the main problem of ERP-systems is not planning as such, but the need for constant "rescheduling", which can never lead to time-appropriate results in the supply chain. In order to overcome this situation, in practice in the field of operational management of production, as a rule, empirical methods are applied in addition to special software tools.

In the course of its development, ERP systems from small local systems turned into powerful systems that gave rise to the hope for the possibility of implementing effective planning and management within the entire supply chain, accurate to details based on complex solutions and proven algorithms. Soon these hopes were dispelled as a result of the saturation of the market with goods and services and the demand became more differentiated, as well as the life cycles of products decreased. Powerful systems were not flexible enough to adequately respond to fluctuating demand, because their functional content was originally aimed at solving the tasks of planning and managing production within the enterprise.

It should be remembered that in the late 1990s, The CSRP standard ( customer synchronized resource planning), , which covers the interaction of the enterprise with customers: design of the work order, terms of reference, customer support, etc., was also developed [27]. If the MRP/MRP Η/ERP standards are oriented only to the internal organization of the enterprise, the CSRP standard includes the entire life cycle of the product: from designing it to customer requirements to after-sales service and after sales service. Thus, if the MRP, MRP II, ERP were oriented toward the internal organization of the enterprise, then the CSRP systems came out "for the gate" a separate enterprise and included in the concept of "resource planning the complete life cycle of the product from the design of the future product to the after-sales service and after sales service support.

Information systems act as a functional and technical infrastructure that ensures the integration of counterparties into the concept of the UCM. The objectives of this infrastructure are strategic supply chain configuration, supply chain planning and supply chain execution.

The question of the necessary and sufficient information support of business processes in the supply chains and optimization of their network structure is an important stage in the introduction of the concept of the UCP. Despite the fact that the main emphasis in the reviewed software applications is on integrated planning, without using the ideology of the UCP is indispensable. APS-class systems are part of the EIP and a significant part of the information for their actions and calculations is selected in other systems of accounting (ERP) class. Thus, the task of defining the system landscape and information architecture becomes complex.

The world leader in ERP and SCM solutions, SAP, has defined the UTI in the landscape of information systems as a platform that has a connection with both ERP-system and CRM and SRM-class systems [58]. First of all, the operation of SAP SCM requires information of a system nature (Figure 9.1).

The target system architecture offered by SAP [16]

Fig. 9.1. The target system architecture offered by SAP [16]

For the planning and controlling of supply chains, the architecture of information systems should be considered separately in the context of existing projects within the integrated planning system (Figure 9.2). Thus, it is possible to distinguish three contours of plan data, depending on the planning horizon and the transfer of actual information from the accounting systems.

As mentioned above, in the field of information technology, the planning and configuration of the network structure of the supply chains is supported by the advanced planning & amp; schedule (APS), or advanced planning systems - advanced scheduling and dispatching systems. Advanced Planning in this context can be interpreted as a new planning logic, by means of which it is possible to overcome the shortcomings of the traditional planning and management systems of a manufacturing enterprise.

With the advent of the concept of the UCP, there was a need for up-to-date information support. And it became obvious that the implementation of such support within the ERP-system overloaded with the functional is impossible, and whether such functionality will be claimed there is a big question. After all, if the ERP-system contains data on one or several legal entities that are part of the same group of companies, then the tasks of managing supply chains can cover several

Information support for integrated planning processes offered by SAP [16]

Fig. 9.2. Information support for integrated planning processes offered by SAP [16]

tens, and sometimes hundreds of counterparties interacting with each other as part of the promotion of the material flow from source to consumption. In other words, a system that supports supply chain planning must consolidate data from several different ERP systems, and the data is sufficiently specific and narrowly focused on the solution of a specific task. Thus, the implementation of such functionality in the ERP-system may not be in demand by the business, as it will entail a number of significant changes, which the business obviously will not do.

The planning methodology inherent in APS-systems is fundamentally different from the concept of systems of class MRP II [10]. The main functionality of APS-systems lies in the area of ​​ decision support. APS-systems have mathematical algorithms that meet high requirements for operational planning. These systems allow planning for limited capacities in view of bottlenecks, as well as simultaneous verification of compliance of capacity availability with requirements and constraints in the production plan. At the same time, the planning principle of APS-systems is based on the principle of interactivity: the planning department manager obtains visually the results of planning with indication of bottlenecks (for example, a part whose later production term causes deviation of the possible delivery date of the finished product from the date desired by the client). On the basis of such detailed information, the manager is able to take the appropriate control actions (for example, schedule an additional shift for the required date, workers or agree with the supplier on the urgent delivery or change in the volume of the planned delivery). In contrast to the MRP II concept, in the case of operational changes, the correction of existing plans takes place in APS-systems taking into account the changes in plans and planning history, and not completely new rescheduling.

thematic pictures

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