Cooperative Systems: an Information Systems Model for Industry Value Chain Management

THE COOPERATIVE Systems model provides an information systems framework for a value chain management approach to the sugar industry. It uses modern computer and communication technologies to integrate data and systems and provide tools across the industry value chain to assist decision making at the individual business level, and to support and implement whole of value chain management strategies. The framework consists of a central database underlying a web portal. The portal provides a common, standard interface to computer applications operating on the database that provide information and operational support for the members of the value chain. Members interact with the portal via communication networks and end-user systems appropriate to their situation. A number of computer systems and tools are being developed and trialled on this framework to demonstrate potential savings and benefits. They include paddock recording systems, variety selection tools, cane quality and analysis systems, harvester monitoring and tracking, and electronic consignment. An alternative cane payment system based on NIR analysis has also been developed. The research and its ‘spin-offs’ have generated considerable interest in the Mackay region. With the strong focus on a whole of value chain approach being adopted in the Central Region’s business plan, it is likely that the proposed new cane payment system and other elements of the Cooperative Systems model will be adopted on a broad scale in 2005 and beyond. Introduction In 2001, Mackay Sugar launched a web portal as part of a multi-pronged strategy to streamline communications in the supply chain (Crane and Fleming, 2003). The strategy was focused on communications between the mill and growers and harvesting contractors to manage cane supply operations more efficiently with less staff in the field. It was noted then that the web portal would also provide infrastructure to integrate data and information systems across the value chain to assist decision making and add value for its members. In 2003, Mackay Sugar, in partnership with Canegrowers Mackay, Queensland Mechanical Cane Harvesters Association and BSES, obtained SRDC funding for a Fleming, G.F. Proc. Aust. Soc. Sugar Cane Technol., Vol. 27: 2005 __________________________________________________________________________ 41 ‘Cooperative Systems’ project to develop systems and pilot value chain management concepts. The project is still in progress. This paper gives an overview of progress to date, and the preliminary results obtained. The cooperative systems model McNurlin and Sprague (1989) define cooperative systems as inter-organisational computer systems where two or more parties with different objectives collaborate on their development and operation. In essence, they are systems that work together for the mutual benefit of separate organisations that share a business relationship. The Cooperative Systems Model applies these principles to management of the sugar industry value chain. The emergence of technologies for collecting and distributing information, including the Internet, satellite imagery, NIR and mobile communications, provides the tools to integrate data and systems across the industry to support informed decision making optimised for both the individual activity and the overall value chain. The sugar industry value chain The Cooperative Systems Model provides an information ‘hub’ for the industry value chain, as shown in Figure 1.