Introduction to operations and supply chain management 3e bozarth chapter 12sup

 Describe what business process management BPM tools and cloud computing are and how they might impact future operations and supply chain activities... Supply Chain Organizational Leve

Supply Chain Information Systems

Chapter 12 - Supplement

 Describe and differentiate among ERP, DSS, CRM, SRM, and logistics applications

 Describe what business process management (BPM) tools and cloud computing are and how they might impact future

operations and supply chain activities.

Laudon and Laudon, © 2003 Pearson Education

Supply Chain Organizational Levels

 Execution and transaction processing

 Routine decision making

 Tactical planning

 Strategic decision making

Supply Chain Information Needs

Table 12S.1

A Map of Supply Chain Information Systems

Figure 12S.2

Supply Chain Information Systems

 Customer Relationship Management (CRM) – Planning and control activities and information systems that link a firm with its downstream customers.

 Market analysis, sell process, order management, call/service center management

 Supplier Relationship Management (SRM) – Planning and control activities and information systems that link a firm with is upstream suppliers.

 Design collaboration, sourcing decisions, negotiations, buy process, supply collaboration

Supply Chain Information Systems

 Internal Supply Chain Management –

Information flows between higher and lower levels of planning and control systems within

an organization.

Supply Chain Information Flows

Figure 12S.1

Supply Chain Information Systems

 Enterprise Resource Planning (ERP) systems– Large, integrated, computer-based business transaction processing and reporting systems.

 ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly

integrated package that uses a common database.

 Traditional strengths in routine decision making and in execution and transaction processing.

 Captures data to support higher-level decision support systems (DSS).

ERP Systems

Figure 12S.3

ERP Systems

Integrating ERP Systems with Legacy and Best-in-class Applications

Figure 12S.4

Supply Chain Information Systems

 Decision support systems (DSS) - based information systems that allow users

Computer-to analyze, manipulate, and present data in a manner that aids higher-level decision

making

Supply Chain Information Systems

 Network Design Applications – Logistics

information systems that address such term strategic questions as facility location and sizing and transportation networks.

long- Often using simulation and optimization modeling

Supply Chain Information Systems

 Warehouse and transportation planning

systems

 Allocating “fixed” logistics capacity in the best

possible way given business requirements

 Warehouse management and transportation execution systems

 Initiating and controlling the movement of

materials between supply chain partners

Supply Chain Trends

 The emergence of sophisticated business process management (BPM) tools

 Cloud computing

BPM Tools

 Business process modeling tools – Software tools that aid

business teams in the analysis, modeling, and redesign of

business processes Harmon, © 2007 Morgan Kaufmann

 Graphically design processes, simulate the performance of new

processes, develop cost estimates.

 Business process management systems (BPMS) products– Software tools that allow analysts to model processes and then automate the execution of the process at run time.

Harmon, © 2007 Morgan Kaufmann

 Develop process maps, define business rules, carry out future business activity.

Cloud Computing

 Cloud computing – A model for enabling

ubiquitous, convenient, on-demand network access to a shared pool of configurable

computing resources that can be rapidly

provisioned and released with minimal

management effort or service provider

interaction.

Cloud Computing

 Benefits

 Makes it easier for firms to outsource key portions

of business process information flows to outside firms.

 Allows individual or computer systems to upload and retrieve information through a wide range of devices virtually anywhere.

 Makes supply chain information flows faster, more flexible, and cheaper than ever.

Impact of Information Technology

on Supply Chain Management

 Visibility – Allows managers to “see” the physical

and monetary flows in the supply chain and better manage them.

 Mirroring – Replaces certain physical processes with virtual ones.

 Creation of new customer relationships – Taking raw information and organizing, selecting, synthesizing, and distributing it in a manner that creates whole new sources of value.

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