Logistics Information System Integration Based on Supply Chain Management

Source: Internet
Author: User

1. Characteristics of logistics information in the Supply Chain Management Environment

The supply chain is an intermediate product and final product from the procurement of raw materials by controlling the information flow, logistics, and capital flow of core enterprises, finally, the sales network sends the product to the consumer. suppliers, manufacturers, distributors, retailers, and end users are connected into a full functional network chain structure. Supply chain management is a cross-industry management of the flow of goods, information and funds in the supply chain in the production and circulation process. It involves all aspects of enterprise and enterprise management and serves as trade partners between enterprises, work together to maximize the common economic benefits. The most important thing about supply chain management is to adopt integrated ideas and methods and apply advanced information technology to achieve its management goals.

Logistics is an important part of the supply chain. It runs through the entire supply chain. In traditional logistics systems, logistics activities are distributed across different economic departments or different functional departments within an enterprise, logistics Information is also scattered in different links and different functional departments. Information about logistics operations is primarily exchanged between adjacent upstream and downstream links of the supply chain, the entire supply chain is delivered step by step. Communication and sharing between logistics and information is very slow and lags behind many management activities. In the supply chain management environment, in addition to information exchange in the adjacent links of the supply chain, information is shared throughout all links of the supply chain. Information Transmission is no longer in a chain-like structure step by step, instead, it is in a grid structure, as shown in figure 1. This makes the logistics information no longer limited to a certain logistics link. Any node in the entire supply chain can see this information transparently and grasp the market demand and supply chain operation in a timely manner, at the same time, the necessary management, coordination and organization work should be carried out based on this, so that the logistics in the supply chain can be synchronized, more accurate and rapid.

Compared with the traditional logistics system, the logistics information in the supply chain management environment has the characteristics of wide information sources, strong dynamic characteristics, large amount of information, and many types, logistics Information Management in the supply chain management environment is more complex, and the task of Logistics informatization construction to support supply chain management is more arduous.

2 Analysis of Logistics informatization construction in China

2.1 achievements made in Logistics informatization construction in China

China's Logistics informatization construction is mainly implemented by some logistics enterprises and logistics departments of some enterprises, most affiliated to the entire Informatization Construction of enterprises, looking at its development process, the company has made the following achievements: First, it has paid more attention to informatization construction, A considerable part of them have prepared for the informatization construction in terms of organization, planning, investment budget, and personnel training. Second, the level of information infrastructure construction is improved, and the information application environment is improved. The computer and network access rates of enterprises have been improved, and the coverage rates and application scope of various networks have also increased. Third, the construction and application of various information systems have brought positive changes and obvious benefits to enterprises. The survey shows that through information technology, it can reduce costs, shorten production cycles and operation time, expand product sales revenue, increase liquidity turnover, and improve delivery capability on schedule, and thus bring direct economic benefits to enterprises.

2.2 problems in Logistics Information Integration in China

At present, the overall level of logistics information system construction and application in China is still not high, and the level of system integration and resource sharing is low. This problem has become a bottleneck restricting the application of advanced ideas in supply chain management, the specific performance is as follows:

2.2.1 unclear requirements for logistics information system integration. Although from the current development trend of Logistics informatization in China, objectively speaking, the logistics information system is already in urgent need of internal networking, connection up and down, and external horizontal connection, in addition, some enterprises have come to the subjective idea that system integration is the focus of Logistics informatization construction in the next step. However, the vast majority of enterprises are not clear about what content is integrated and how resources are shared, the underlying reason is that most logistics enterprises carry out information construction based on their traditional advantageous services. Some systems use advanced information technology to simulate existing manual operations, lack of essential understanding and re-planning of the entire logistics business process in the supply chain management environment, thus the integration of the logistics information system does not know where to start.

2.2.2 the construction of the logistics information system lacks guidance on integration methods. According to the investigation and statistics, the application of Logistics Information Systems in China is mostly at the operational level of basic logistics, such as bar code management, GPS, GIS, three-dimensional database, and call center, which are only applied in a certain stage of logistics enterprises and relevant departments of enterprises, and present a messy and scattered situation, lack of integration of logistics information management systems. Due to the lack of guidance on System Integration ideas, these systems often lack overall planning, overall design and process control at the beginning of construction. Different systems or modules are provided by different vendors, isolated construction and implementation lead to the majority of application systems in the "information isolated island" State. There are many single applications and department-level applications, and there are very few enterprise-level integrated applications, not to mention supply chain-level integration.

2.2.3 the soft environment of logistics information system integration is relatively lagging behind. Although the industry and enterprises have some plans for Logistics informatization construction, and some technical systems and standards are gradually introduced, the standards and standards are not perfect. If some standards or standards are not feasible, it is difficult to implement, but the logistics information standards between different industry fields are not unified, resulting in information exchange faults, it also forms a serious waste of resources invested by Logistics Information Technology of enterprises in China. In addition, there is a lack of effective management and coordination mechanisms for logistics information system integration at the supply chain level that has no subordinate relationship but only interests, which is difficult to control at the macro level, the direct consequence is that professional systems in various links are built in a "chimney" with incompatible data, inconsistent formats, non-shared resources, and non-intercommunication of information.

2.2.4 lack of compound talents for logistics information system integration and construction. The integration and construction of logistics information systems in the supply chain management environment is a complex and huge social system project, which requires a large number of specialized talents to focus on theoretical research and practical work, in particular, top-level design requires high-level compound talents who have a comprehensive understanding of information technology and system development and understand the operation and management of the entire logistics supply chain, however, the scarcity of such talents restricts the development of logistics information system integration.

The above problems indicate that the Logistics informatization construction in China is far from reaching the level supporting supply chain management. In particular, the integration of logistics information systems restricts the improvement of logistics capability in the entire supply chain management.

3 architecture of Integrated Logistics Information System Based on Supply Chain Management

The integration of information systems is neither a simple superposition of personnel, products and equipment nor a permanent task. In fact, it is not difficult to integrate several application systems into one application at a time. It is difficult to keep up with changes in requirements at any time and support dynamic system integration in a timely manner. Therefore, in this sense, the integration of information systems is the construction of integrated information systems. From the current situation and development trend of Logistics informatization construction in China, both the integration of existing application systems and the construction of logistics information systems should begin with the requirements of integrated logistics of supply chain management, in-depth analysis of the construction of an integrated logistics information system architecture to support dynamic integration of the logistics information system. In the supply chain management environment, the architecture of the integrated logistics information system can be represented by a three-dimensional model.

The first dimension is the logistics management layer in the supply chain. There are four bottom-up layers: business operation layer, operation management layer, strategic management layer, and supply chain management layer. The business operation layer is mainly responsible for collecting logistics information and automatic control of operations; the operation management layer is mainly responsible for some transaction processing systems and office automation systems; the strategic management system is mainly a comprehensive management information system, such as ERP. the supply chain management system mainly supports information flow management and sharing among enterprises. The logistics information system at different management levels has different requirements on the depth of information processing, but the management layer needs to be connected up and down.

The second dimension is based on logistics functions and fields, such as procurement, storage, production, sales, and transportation. These are the different business links that implement different functions and create value in the supply chain. Logistics runs through these links, and their information support systems mainly process different information and functions, such as the warehousing management system, customer relationship management system, and vehicle management system. The logistics information exchange and sharing needs between these different business fields and links.

The third dimension is based on the different content contained in the information system. There are four levels: hardware, software, information, and application. These are the basic elements of the Information System. Hardware and Software constitute the application platform, and information is the most important resource of the application, the effect of the logistics information system application depends on the perfect combination of man-machine-Technology-management.

The analysis shows that the relationship between the three dimensions and blocks of the above model is complex, and the requirements for integration are also diverse, however, we can build a logistics information system supporting supply chain management based on the system framework of the integrated logistics information system built by the model.

4. Logistics Information System Integration Strategy Based on Supply Chain Management

According to the current situation of logistics management and information construction in China, to make the logistics information system a powerful tool of supply chain management, we should adopt the following strategies to promote the integration of logistics information systems:

4.1 re-design the logistics process in the supply chain

Supply chain management is a new management mode that integrates the core competitiveness of enterprises. In this mode, the concept of enterprise resources can be expanded and more inclined to make rational use of external resources, it also enhances the initiative and responsiveness to the outside. Therefore, the integration of Logistics Information Systems Based on Supply Chain Management cannot only connect application systems that are isolated and distributed and developed using computers to imitate traditional manual business processes through a large number of interfaces, only by analyzing the logistics process of each link in the supply chain and re-designing the logistics process based on the concept of supply chain management can information system integration be established in the advanced management mode. On the other hand, the Logistics Integration Process of supply chain management is based on information technology. The reorganization of the logistics process of enterprises depends on the application of the integrated logistics information system, therefore, the integration of the logistics information system is also the process of logistics restructuring.

4.2 focus on the application of integrated information system development methodology

The integrated information system development methodology is a technical element for the construction of integrated information systems, such as models, languages, methods, and tools, and the quality of development teams and technicians, the business environment and the quality of end users, investment strength and distribution, development leadership and organization management, and other social elements, as well as a cognitive system composed of its interrelated processes, it is both philosophical and practical. Methodology Research focuses on developing common public methods and procedures. With a unified approach, we can design specific systems with different purposes to facilitate integrated integration and interoperability. The integrated information system development methodology in the supply chain management environment includes two parts: the high-level part and the low-level part. The High-level part is oriented to the entire supply chain to solve the overall planning and high-level design problems; the lower layer is designed for various business fields to solve the analysis, design, and construction problems of application systems. Two levels of work cannot be confused, but they must be closely linked.

4.3 establish a Public Information Platform

The general public information platform is a common information sharing method used for information sharing in the industry. Public information platforms can also be used for logistics information sharing in the supply chain. Public information platforms in the supply chain should be based on Internet technology to establish public websites to provide information services to everyone, but they are not the only and monopolized, its functions are mainly embodied in standardization and information sharing. These standards Implement unified and formal descriptions of heterogeneous products or information, the terms and regulations in the supply chain, conditions for organizations to join the supply chain, rights enjoyed, risks and obligations assumed, business operation procedures, fund settlement, Dispute Arbitration, accountability, and other issues can even be standardized information resources are solidified in the network.

4.4 establish a management mode to adapt to information integration.

As mentioned above, the construction of integrated logistics information system is a complex social system project, especially in the entire supply chain, who built the public information platform, who made the overall plan, who designed the whole logistics integration, and who managed the integrated information system construction, there must be some effective management mechanisms at a macro level. There are three main management mechanisms for the integration of logistics information systems in the supply chain: the first is the core enterprises in the supply chain according to the Internal Logistics Integration Methods of enterprises, this kind of management is extended throughout the entire supply chain logistics management, including the management of logistics information construction and logistics information system integration. The second is that enterprises will support information integration and outsourcing of the entire supply chain logistics, take advantage of third-party or even fourth-party logistics. The third is to establish a logistics alliance, different enterprises with the same development strategy, common interests, and complementary core competitiveness in the Supply Chain participate in the construction of Integrated Management Logistics and integrated information systems. In terms of operability, the first two are stronger, and the latter is more complicated in terms of organization and implementation. In addition, it is necessary to establish information sharing trust mechanisms, incentive mechanisms, and coordination mechanisms among supply chain partners, and introduce project management mechanisms and supervision systems in the construction of integrated information systems, this makes the integrated management system of the information system more effective.

In addition, there are some advanced technical support for information system integration, such as network platforms, data warehouses, middleware, and intelligent agents, their role in promoting the construction of integrated logistics information systems cannot be ignored. The integration of logistics information systems in supply chain management should be fully implemented by applying these advanced technologies as needed.

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.