C8LO#2

Supply Chain Management System

Transcript

1. Chapter 8 : Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Management Information System (CSC408) Erny Arniza Ahmad Faculty of Computer and Mathematical Sciences Universiti Teknologi MARA (UiTM) Kedah
2. Learning Objective #2 How do enterprise systems help businesses achieve operational excellence? How do supply chain management systems coordinate planning, production, and logistics with suppliers? How do customer relationship management systems help firms achieve customer intimacy? What are the challenges posed by enterprise applications and how are enterprise applications taking advantage of new technologies? Supply Chain Management Systems
3. Supply Chain Management Systems Supply chain groups Upstream Suppliers that deal directly with a manufacturer and their suppliers. Downstream Distributors and those that deliver products to customers. Internally The employees that transform materials, components, and services into the actual products. Upstream Downstream • Network of organizations and business processes for procuring raw materials, transforming them into products, and distributing the products to customers. Supply Chain
4. Nike’s Supply Chain
5. Information Systems and Supply Chain Management Supply Chain Management Systems The effects of timely and untimely information Inefficiencies cut into a company’s operating costs Waste up to 25 percent of operating expenses Strategy Just-in-time strategy Components arrive as they are needed Safety stock Buffer for lack of flexibility in supply chain Information about product demand gets distorted as it passes from one entity to next across supply chain Finished goods shipped after leaving assembly line Bullwhip effect
6. The Bullwhip Effect
7. Supply Chain Management Software Supply chain management software can provide information up and down the chain and help everyone involved do a better forecasting job. Types of Supply Chain Management Systems Supply chain planning systems •Model existing supply chain •Enable demand planning •Optimize sourcing, manufacturing plans •Establish inventory levels •Identify transportation modes Supply chain execution systems •Manage flow of products through distribution centers and warehouses •Coordinate activities with supply chain partners. •Handle complex interdependencies among various supply chain processes. •Allow users to balance the costs of transportation, delivery, and handling.
8. Global Supply Chains And The Internet Issues Greater geographic distances and time differences Additional costs for transportation, inventory, and local taxes and fees Varying performance standards Foreign government regulations Cultural differences
9. Global Supply Chains And The Internet Globalization encouraged outsourcing all related operations to third-party logistics providers. Logistic providers offer Web-based software to give customers a better view of their global supply chains Customers are able to check a secure Web site to monitor inventory and shipments, helping them run their global supply chains more efficiently. 9
10. Push-based model production master schedules are based on forecasts or best guesses of demand for products products are “pushed” to customers Early supply chain management model also known as build-to- stock Pull-based model production are based on actual customer orders or purchases trigger events in the supply chain made possible by Web- based tools also known as a demand-driven or build-to-order model 10 Supply Chain Management Systems Models
11. Push-Versus Pull-Based Supply Chain Models
12. Business Value Of SCM Systems • Internet enables move from sequential supply chains to concurrent supply chains • Complex networks of suppliers can adjust immediately • The Internet could create a “ digital logistics nervous system” throughout the supply chain 12 sequential supply chains information and materials flow sequentially from company to company concurrent supply chains information flows in many directions simultaneously among members of a supply chain network
13. The Emerging Internet-Driven Supply Chain
14. Supply Chain Management Systems The benefits of implementing an integrated, networked supply chain management system Match supply to demand Reduce inventory levels Improve delivery service Speed product time to market Use assets more effectively
15. Supply Chain Management Systems • Improve customer service and responsiveness • Reduce costs • Increase sales • Utilize cash better In turn a company can: 15 By making the supply chain more efficient a company can save millions of dollars, improve its relationships with its customers, and sell more products.
16. Reference Kenneth C. Laudon And Jane P. Laudon, Management Information Systems: Managing the Digital Firm, 14th edition (Global Edition), Pearson Prentice Hall, 2016. 16