Answer to Question 1
By themselves, software and other SCIS components cannot provide actionable knowledge for supply chain managers. Data must be collected and synchronized so that it can be used by skilled individuals in the planning and execution of supply chain processes. Scorecards and dashboards are also needed to monitor performance and make necessary adjustments. With these requirements satisfied, managers are able to take full advantage of SCIS data analysis and decision support capabilities. They are also properly positioned to pursue supply chain excellence.
Data collection of relevant information is needed at every point in the supply chain. Whether it is captured via bar codes, radio-frequency identification, or other technology, the information must be relevant, accurate, and accessible to users in real time. A lack of timely information leads to dysfunctional decisions that spread across the supply chain.
Data synchronization focuses on the timely and accurate updating of item information within and across enterprises to ensure dependable, consistent product information within a company's systems and between business partners. It is critical for every organization in the supply chain to have standardized, complete, accurate, and consistently aligned data in their SCIS to perform at peak effectiveness. It is impossible for supply chain partners to effectively collaborate, utilize automatic identification, or leverage demand-driven replenishment techniques if the product, price, or invoice data being transferred are inaccurate. Thus, organizations must clean and align data internally before sharing it with partners.
Furthermore, processes have to be in place to maintain high-data quality. This requirement has both technology and organizational structure implications. First, the organization must be willing to make data management processes a priority. Second, there must be strong business ownership of product data and aligned SCIS that enables access to timely, accurate data. Those who succeed will achieve inventory and logistics cost reductions, as well as fewer out-of-stock situations.
Answer to Question 2
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