Application of IT

May 30, 2007 0 comments

Development of purchasing systems

1. Infant

  • simple clerical system

2. Awakening

  • improved manual systems - Cardex
  • beginnings of computer system but no integration

3. Developing

  • more integrated systems
  • Material Requirements Planning (MRP)
  • computer linking and networking

4. Mature

  • fully integrated organizational database
  • Manufacturing Resource Planning (MRP II)
  • all purchasing information generated by computer

5. Avanced

  • electronic data interchange (EDI) between major suppliers and customers with resultant benefits

Integrated databases give the following advantages:

  • logistics
  • TQM
  • flexible manufacturing
  • automation
  • JIT
  • reduced strategic acquisition costs

Integrated databases give purchasing department real time information on;

  • orders placed/outstanding
  • turnover by supplier
  • stock position
  • accounts outstanding
  • production/customer requirements
  • vendor rating - delivery & quality
  • new developments/projects

Electronic Data Interchange

EDI is the Transfer of data from one computer to another by electronic means using agreed standards

Types of data Transferred:

1. Trade Data

  • Quotations, Purchase Orders, Achnowledgement Notes, Delivery Instructions etc.

2. Technical Data

  • Specifications
  • CADCAM

3. Query/Response

  • Travel Agent
  • Booking Agent
  • Process Checking by Customer

4. Monetary Data

  • BANK CLEARING SYSTEMS
  • Invoice Payment Systems, Electronic Funds Transfer at point of sale (EFTPOS) - SWITCH

E-Business/Commerce

Benefits:

  • Open 24 hrs
  • Short delivery
  • Better prices?

Problems:

  • Bankruptcy
  • Credit card security
  • hacking

Posted by Lisa
Categories: Supply Chain Management

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