Question
This assignment is for you to connect the list of performance measures (Ch 13) with the appropriate supply chain information system (SCIS) needed (Ch 14)
This assignment is for you to connect the list of performance measures (Ch 13) with the appropriate supply chain information system (SCIS) needed (Ch 14) to be able to calculate the measure. You can't measure anything unless you collect the appropriate data.
For each measure, list the information systems that would be involved with the measure and thereby provide the necessary data.
This is not an easy assignment. It is asking you to investigate how a supply chain measure is actually conducted, that is the business processes involved, and then decide on an Information System that gathers the data from these processes.
Let's nail down some key measures from each of the categories that will be used to determine the associated business process. Here's a list of the measures that I want to see in the assignment.
Category - Time:
Measure T1: Order Cycle Time (done for you below)
Measure T2: On-time delivery/receipt
Category - Quality:
Measure Q1: Overall customer satisfaction
Measure Q2: Processing accuracy
Category - Cost:
Measure C1: Days sales outstanding
Measure C2: Cost to serve (done for you below)
Measure C3: Cash-to-cash cycle time
Below, I have shown you how the Measure T1: Order Cycle Time is performed as a business process:
Order received from customer: Marketing & Sales SCIS
Order is processed:
Picking: Warehouse SCIS
Packing: Warehouse SCIS
Contact transportation carrier: Warehouse SCIS
Prepare delivery waybill for transportation carrier: Warehouse SCIS
Order is delivered to customer: Transportation carrier SCIS link
"Order Cycle time" now has the appropriate data needed for the Measure...we have connected the Measure with the Supply Chain IT systems that can provide the data. Three IT systems are involved with this performance Measure. Each of these steps needs some kind of information technology system to be involved. In some cases the same IT system is used, but some are IT systems from the transportation company.
Here's another example for C2 above:
Measure C2: Cost to serve
Receive communications from customer: Marketing SCIS
Add up all the communications from all customers: Marketing SCIS
Find out the cost of labour for dealing with these customers: HR SCIS
Calculate the average cost of serving the customer: Accounting SCIS
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