Appunti Advanced supply chain planning

MAKE YOUR OWN STANDARD

You can do this only if you are big enough. For example Amazon has a ASIN code, which is the coding standard for the products sold on its platform, for some products they reuse the code (i.e., ISBN for codes) and for other they make new ones. The same happens for large car manufacturers, if you want to do business with them you must change coding for each company you interact with. There will never be integration so a small player must speak more languages to survive.

The steps are the same as before, the problems are the same. You still have to create a language and to reinvent the exchanging of information. For example, ASIN is the standard amazon is using, it is customized and created by them.

Advantage: I'm doing business with the big company. I am forced to use the standard by the big guy (like amazon) but at least I am doing business with it.

Disadvantage: I'm forced to use the data sharing platform of the big company. I have to make every company to

accept my standard.ASIN: Amazon standard identification number. Amazon is using its own standard and say to the companies:if you have to work with me you have to use my standard. If you are big like amazon it is not so difficult.

3. ALIGN TO INDUSTRY PRACTISES

From one of the previous pack of slides:

The first way has standardization advantages, as everyone does the same thing (easy and cheap), but also cons (everybody has to change). The second way is a pro for large companies, you have to accept it but you can do business with these large players which are the best in the market (it is a business opportunity).

The new idea has to beat the two advantages, it cannot be costly, and it must be beneficial, otherwise nobody would adopt it. It must have good reasons.

The issue is similar to the one of network externalities, as more users there are the higher the value of being part of the network. In certain industry and in certain territories the platforms for SaaS are de facto standards. For example,

1. Coordination and integration. A lot of value for the community. Simple and value creating. Very strong. In certain industries and territories, these platforms are becoming de facto standards.
2. The only thing that matters is the customer.
3. Advantage: if every company join the cloud application, they can talk. For example, if everybody is using GtNexus for transportation and logistics, we can use the platform to communicate. All investment is just to enter the application, you don't have to convince companies, buy the application etc. It is all there.
4. This picture is very important. Go back to the lessons if you do not know what it means.
5. BLOCKCHAIN

Fourth way. It doesn't work for three reasons:

1. Blockchain is distributed database technology instead of a centralized one. We have thousands of copies of the database. It is competitor of SAP, Oracle etc. If you are using blockchain you are not solving at all the problem (identify, capture and share).
2. It is designed to cope with the

The problem of data sharing in a trustless environment is addressed by the keyword of blockchain, which is trustless. It operates in an environment where trust between parties is not present. However, it cannot be used in a supply chain where trust is crucial for the functioning of the chain.

Supply chain management involves physical flows and real monetary flows, not just digital data. Therefore, using a blockchain does not solve the problem. The steps to establish a data architecture that enables tracking and tracing must be resolved regardless of whether a blockchain architecture is used.

Furthermore, the blockchain is not the appropriate solution for all applications. Its design is specifically tailored to facilitate data sharing in a trustless environment.

So, do you need a blockchain?

Only when trust is absent and there is a strong temptation for opportunistic advantage. Blockchain can be utilized in a trustless environment. However, if you trust the people involved, you can save money by not using a blockchain.

Blockchain is a good tech for many things but not for supply chain management.

Blockchain is not secure, the security depends on people.

It can work in an environment where nobody should trust each other.

It was created for currency, in order to prevent any possible double spending of cryptocurrency.

Note that online TTP is an online trusted third party (this is GS1) you use a replicated DB as it is much cheaper, the lack of trust is a cost.

Only if not all writers are known or not all trusted it is reasonable to use the blockchain solution.

There is no way that an IoT device can write on a blockchain. But the IoT have to rely on an Oracle third party.

The real problem is how to create the business advantage for companies who share the ecosystem.

12. BENEFITS EVALUATION

You may be asked to perform some assignment in a company environment, you should be able to figure out the implication of the task. There is no option to answer "I don't know", just as if you are Google and the company.

situation- To-be situation: something will not change, something else yes. New process, new activities, new drivers. new spending - You compare the first thing and the second efficiency benefits

Problem: data are difficult to be found, a lot of unreasonable assumption (use of resources can be reduced, people can be neglected, not true that the technology is always working so you cannot really expect this reduction). Every time we exploit the new technologies for efficiency benefits we will probably fail because nowadays the efficiency margins are very low.

Example: the pharma case

2. EFFECTIVENESS BENEFITS

Carrying about the customers, selling more and better. The business is not losing the customer, keeping the loyalty.

Steps:

1. Understand what effectiveness really mean in that industry and related KPIs
2. Identify a quantitative method to assess the impact on the selected KPIs
3. Translate KPI variation into monetary terms, four option

o Direct analytical evaluation: you can write a