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International Symposium on Electronic Commerce and Security

Key Technology and System Design in Mobile Supply Chain Management


QI Yuan1,2, ZHAO Xiaokang2 ,ZHANG Qiong3
1 Lixin University of Commerce,Shanghai, 201620, China
2 Glorious-Sun School of Business & Management,Donghua University, Shanghai 200051, China
3 Literature School of Shanghai University, Shangha, 200444, China
nikkeshu@126.com, zxk@dhu.edu.cn, happyzhang269@126.com

Abstract convenient, time-saving, and highly accurate means of


capturing data on movements of goods and other events.
Mobile supply chain management is increasingly These capabilities simplify checking and monitoring tasks
recognized as an area offering significant potential for and provide up-to-date information on process status. And
generating improvements and creating competitive that’s exactly what companies need to create and manage
advantage to corporations. Obviously, high efficiency a sophisticated adaptive supply chain network. In
mobile chain network needs simultaneous and accurate addition, mSCM system can be used to streamline
information about demand, supply, sale, inventory, business processes of different business functions to
shipment and operational activities. However, there is ensure efficient flow and exchange of supply chain
little academic literature on how to realize these activities. In the practice of mSCM application, mySAP,
functions. This article attempts to sum up the key Oracle, Motorola and Guotong Supply Chain Corporation
technologies in mobile supply chain management system. have developed different mobile supply chain system to
Based the eight technologies that the authors has manage purchase, production quality, warehouse and
summarized, the article introduces three functional transportation.
modules in mobile supply chain management system. However, academic research on mSCM is lagging
Then the authors give the structure of the system and behind industry practice and there are few scholars who
describe what functions that the system can offer. The last have ever specially discussed on key technologies and
part of the article illustrates the applications of mobile system architecture of mobile SCM in domestic and
supply chain management system. foreign country. Therefore, it is hardly to find such papers
in this research field. In the related literatures, the authors
1. Introduction mainly involve the issues of mobile business, wireless
technology, mobile SCM soft wares advantages,
Nowadays supply chain involves managing a wide implementation and challenges. Based on this
range of business partners and passing information from background, this article attempts to provide some insights
partners to partners in a sequential fashion is simply not into key technologies, system architecture and design, and
good enough. Obviously, companies should replace its applications in mobile supply chain management.
traditional linear supply chains with adaptive supply chain The paper is organized as follows. In Section 2, we
networks in which partners are given simultaneous, will introduce eight key technologies in mSCM. In
accurate information about purchase, production, demand, Section 3, we will put forward system designing in mobile
supply, sale and other operational activities. On one hand supply chain and will describe what functions that the
by integrating telecommunications platform, mobile system can provide. In order to explain the system clearly
instruments, personal digital assistants (PDAs), radio section 4 will illustrate the applications of mSCM. The
frequency devices and onboard computers with supply last part of the paper will contain concluding comments.
chain management (SCM) systems, SCM has extended
the power of enterprise computing to new processes, 2. Key Technology in mSCM
people, and places. On the other hand the increasing use
of the Internet in a business-to-business context has 2.1. J2ME(Java 2 Micro Edition)
further improved SCM through real time collaboration
and access to worldwide markets. J2ME offers a robust, flexible environment for
Mobile SCM (mSCM) refers to the use of mobile applications running on mobile and other embedded
applications and devices to aid the conduct of supply devices such as mobile phones or PDAs. It consists of
chain activities, and ultimately help firms to gain cost flexible user interfaces, robust security, built-in network
reductions, supply chain responsiveness and competitive protocols, and support for networked and offline
advantage. The most obvious advantage of using wireless applications that can be downloaded dynamically.
or mobile technology in SCM is that it provides a Applications based on J2ME are portable across many

978-0-7695-3258-5/08 $25.00 © 2008 IEEE 258


DOI 10.1109/ISECS.2008.219

Authorized licensed use limited to: MIT Libraries. Downloaded on February 5, 2010 at 15:13 from IEEE Xplore. Restrictions apply.
devices, yet leverage each device's native capabilities.
These devices can be programmed by using the mobile WAP is an open international standard for applications
information device profile (MIDP), a set of Java APIs that uses wireless communication. Its principal application
which, together with the connected limited device is to enable access to the Internet from a mobile phones or
configuration (CLDC) provide a complete Java runtime PDAs. A WAP browser provides all of the basic services
environment. of a computer based web browser but simplified to
At the heart of J2ME are three core concepts: operate within the restrictions of a mobile phone. WAP
configuration, profile, and optional package. The defines a communications protocol as well as an
configuration is a complete Java runtime environment, application environment. In essence, it is a standardized
consisting of a Java virtual machine (VM) to execute Java technology for cross-platform, distributed computing.
byte code, native code to interface to the underlying Thus, WAP is very similar to the combination of HTML
system and a set of core Java runtime classes. A profile and HTTP except that it adds in one very important
adds domain-specific classes to a configuration to fill in feature: optimization for low-bandwidth, low-memory,
missing functionality and to support specific uses of a and low-display capability environments. These types of
device. An optional package is a set of application environments include PDAs, wireless phones, pagers, and
program interfaces (APIs) in support of additional, virtually any other communications devices.
common behaviors that don't really belong in one specific
configuration or profile. 2.5. XML (Extensible Markup Language)

2.2. GPRS (General Packet Radio Service) XML establishes an open standard for defining data
elements on a Web page and business-to-business
GPRS refers to a mobile data service available to users documents. It uses predefined tags and allows tags to be
of Global System for Mobile Communications (GSM) and defined by the developer of the page. Thus, virtually any
mobile phones. It is the world's most ubiquitous wireless data items, such as "product," "sales rep" and "amount
data service, available now with almost every GSM due," can be identified, allowing Web pages to function
network and it is a connectivity solution based on Internet like database records. By providing a common method for
protocols that supports a wide range of enterprise and identifying data, XML supports business-to-business
consumer applications. GPRS can be used for services transactions and has become the format for electronic data
such as Wireless Application Protocol (WAP) access, interchange and Web services. XML is recommended by
Short Message Service (SMS), Multimedia Messaging the World Wide Web Consortium. In addition, it is a fee-
Service (MMS), and for Internet communication services free open standard. In mSCM the goal of it is to enable
such as email and World Wide Web (www) access. For generic SGML to be served, received, and processed.
operators, the adoption of GPRS is a fast and cost-
effective strategy that not only supports the real first wave 2.6. OTA (Over the Air)
of mobile Internet services, but also represents a big step
towards 3GSM (or wideband-CDMA) networks and OTA is a standard for the transmission and reception of
services. The implementation of GPRS requires also some application-related information in a wireless
additional nodes and changes to the now being network communications system. By simply selecting the desired
structure. content from a dedicated Internet site or phone line, the
users can receive content via SMS or WAP without the
2.3. 3G(The Third Generation) need for synching or cables. OTA messages can be
encrypted to ensure user privacy and data security. In the
Along with W-CDMA, 3G was the big rage in the late practice, as mobile devices accumulate new applications
90's, with proponents announcing that it was the Killer and become more advanced, OTA configuration has
Wireless Application because of its ability to become increasingly important as new updates and
simultaneously transfer voice data (the phone call) and services come on stream. Further more, increased
other non-voice data such as music, photographs, video, application of Java technology in wireless devices
email, instant messaging, and information downloads. 3G inevitably means there will be many more applications
networks can use a variety of present and future wireless available to download over the air.
network technologies, including GSM, CDMA, TDMA,
WCDMA, CDMA2000, UMTS and EDGE, and this 2.7. Mobile IP
flexibility seemed to make its future as the primary mobile
standard assured. Mobile IP means an Internet Engineering Task Force
(IETF) standard communications protocol that is designed
to allow mobile device users to move from one network to
2.4. WAP(Wireless Application Protocol)
another while maintaining a permanent IP address. Using

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Mobile IP, nodes may change their point-of-attachment to Having received the information, the enterprises of the
the Internet without changing their IP address. This allows supply chain submit the information that they need to send
the users to maintain transport and higher-layer to the telecommunication platform. Once the integrated
connections while moving. Mobile IP is most often found telecommunication operators having received the
in wired and wireless environments where users need to information from the Internet, the next step is to store,
carry their mobile devices across multiple LAN subnets transform and separate different information. The final
with different IP addresses. In mSCM it may for example step is to send the separating information to specific
be used in roaming between overlapping wireless systems. mobile terminals. Thus, the mSCM system achieves
information interaction in different supply chain
2.8. Bluetooth enterprises and users.

Bluetooth is a standard and communications protocol 3.2. Functional Modules in mSCM


primarily designed for low power consumption, with a
short range (power-class-dependent: 1 meter, 10 meters, Three are three functional modules in mSCM platform.
100 meters) based on low-cost transceiver microchips in They are system platform, system terminal and client
each device. Bluetooth enables these devices to terminal. Tab.1 shows the functions of three modules in
communicate with each other when they are in range. The mSCM platform.
key features of Bluetooth wireless technology are Table 1 Functional Modules in mSCM platform
robustness, low power, and low cost. In mSCM, by using Receiving information to terminals
radio communications devices, the users do not have to be Sending information to terminals
in line of sight of each other, and can even be in other Data transmission and Information processing
System
rooms, as long as the received transmission is powerful Positioning and messaging (voice) scheduling
Platform
enough. In this way, the system offers services that enable Address and information feedback management
the connection of devices and the exchange of a variety of SMS enquiry and
data classes between these devices. SMS notification
Receiving real-time data
System Uploading information
3. System Architecture and Design in mSCM Terminal Mobile Positioning
SMS receiving and sending
3.1. Structure of mSCM System Mobile Positioning
Scheduling by SMS(voice)
Client
There are three levels in mSCM System. The first level Terminal
Data collecting
is the users and the enterprises that use the terminal Information managing and retrieving
mobile device of mSCM as communication instruments. Letter notification
The second level refers to the mobile supply chain
network, which includes mobile communications service 3.3. Main Functions of mSCM System
providers, communications networks and integrated
communication operators and Internet networks. The third Mobile supply chain system supports the interface of a
level is the system platform itself, which consists of mobile client device with a networked computer system.
supply chain management platform and mSCM platform. This application provides the ability to perform shop floor
Fig.1 shows the structure of mSCM platform. and warehouse transactions from any location in a facility
In mSCM system, the users submit information by using wireless radio frequency devices and other mobile
means of the mobile terminal, and the terminal transmits devices that can be hand-held, wearable, ring scanner
the information to the integrated telecommunication systems, and lift truck mounted. Transactions entered
operators through the mobile communication service through mobile applications can be processed either
providers. After processing the data or the information, immediately or asynchronously. Tab.2 has shown the five
the integrated telecommunication operators send it via the functions of mSCM system.
Internet to mobile supply chain management platform.

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Integrated Communication Internet
Operators Network

Mobile Communication
Network Supply Chain
Platform

Mobile Communication
Service Providers Mobile Supply Chain
Platform

Mobile
Terminals

Information
Interaction
Enterprise in Enterprise in
Terminal Supply Chain Supply Chain
Users chain
Business
Activities

Figure 1 Structure of mSCM platform

Table 2 Five functions of mSCM system.


Name of The mSCM solution takes supply chain visibility to
Function Description
Function new levels. It facilitates a convenient, time-saving, and
Collecting production and management highly accurate means of capturing data on movements of
information for enterprises in supply chain by
using of specific communication terminals,
goods and other events. These capabilities simplify
Data collecting checking and monitoring tasks and provide up-to-date
value-added services platform and client
and sending information on process status, which can be shown in
terminal software
Having the function of management-related mobile production management, mobile inventory
information enquiry management, mobile shipment planning, mobile sales
Providing the services of mobile positioning management and Event Management.
Mobile for customers based on the location of the
positioning terminals through mobile LBS, GPS or 4.1. Mobile Production
mobile positioning function of 3 G.
Sending short messages to designated
communication terminals and achieving
In combination with bar code scanning, data entry
Scheduling by using mobile applications enables for a more efficient
interaction with the terminals after getting the
Platform usage of time, improved time-motion, and an ability to
vehicles or personnel information by initiative
positioning perform validation and corrections online and real time.
Taking the initiative to submits information to Manufacturing workers can use handheld mobile devices
Information
submitting
communication terminals with the help of the to view work instructions anywhere on the factory floor.
internet platforms They can confirm the completion of tasks output and
Friendly human voice instruction collect production data. And the supervisors can monitor
Short message Control the car by SMS Technical production-line behavior on the spot by calling up data
services specifications
from process control systems on their handheld devices.
Remote sound monitoring
Providing customer with voice services by
In addition, with the help of Event Management
specific communication terminals application, data entries can trigger notifications and
Voice services follow-on activities to keep production rolling.
Providing customer with voice VPN services,
basic voice services and value-added services 4.2. Mobile Inventory Management
4. mSCM Application

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In order to streamline inventory control and maintain management of all activities involved in sourcing
accurate counts, the mSCM bar coding solution can track procurement conversion or logistics management
the inventory critical to companies. The mSCM mobile activities and watches over the processes inventories and
inventory management solution includes easy-to-use other events that take place across the supply chain. There
screens for handhelds, hardware, software, are several basic steps that mSCM solution helps
implementation services, and user support that work companies manage events in the entire supply chain. The
together to provide a reliable inventory option. It also fist step is to detect existing and upcoming problems by
enables companies to incorporate bar code scanning to comparing actual performance with expected
manage parts inventory. With the mSCM bar inventory performance. The second step is to resolve problems by
control client, organizations can reduce duplicate items, merging managerial attention, holistic information, and
and enable people to track or locate key inventory items. collaborative problem-solving procedures. The third step
Furthermore, the search criteria can be configured to is to learn from historic event data. And the last step is to
search every store room for a specific part and arrange it adapt performance targets or operating procedures to
for transfer to a job location. prevent future problems.

4.3 Mobile Shipment Planning 5. Conclusion


With mSCM, the users can create a shipment order The article explores the key technologies in mobile
and tender it to a selected freight forwarder. The supply chain management. Of the eight technologies, the
forwarder can access the online tendering application authors try to explain how they are used in mSCM system.
from a mobile device and accept, reject, or modify the The article introduces system platform, system terminal
planned shipment order. If forwarder refuse the tender or and client terminal the three modules in mSCM platform.
does not reply within the expected time frame, the mSCM Importantly, based on three modules, the authors develop
event management module will trigger an alert. The the structure of mSCM platform and describe what
logistics manager receives an alert, such as a text message functions that the mSCM system can provide. In addition,
on a mobile PDA, and can then find an alternate company the article has analyzed how mSCM system is used in
without delay. mobile production management, mobile inventory
management, mobile shipment planning, mobile sales
4.4. Mobile Sale management and Event Management.

With the mSCM terminals handsets, the users References


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