chopra scm5 ch17
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PowerPoin t p resen tat ion to accom panyChop ra and Meindl Sup ply Chain Management , 5e
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
17Information
Technology in aSupply Chain
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17-2Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
Learning Objectives
1. Understand the importance of informationand information technology in a supplychain
2. Know at a high level how each supplychain driver uses information
3. Understand the major applications ofsupply chain information technology andthe processes that they enable
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17-3Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
Role of ITin a Supply Chain
Information provides the foundation on whichsupply chain processes execute transactionsand managers make decisions
Hardware, software, and people throughout asupply chain that gather, analyze, and executeupon information1. Information must be accurate2. Information must be accessible in a timely manner3. Information must be of the right kind4. Information must be shared
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17-4Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
Role of ITin a Supply Chain
Information is used when makingdecisions about
1. Facility2. Inventory3. Transportation
4. Sourcing5. Pricing and revenue management
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17-5Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
The Supply Chain IT Framework Provides access and reporting of supply
chain transaction data Advanced systems layer a level of
analytics that uses transaction data toproactively improve supply chainperformance
Enterprise software forms the foundationof a supply chain IT system
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17-6Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .
The Supply ChainMacro Processes
Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM)
Supplier Relationship Management (SRM) Rest on Transaction Management Foundation
(TMF), basic enterprise resource planning (ERP)systems
When enterprise performance is closely linked tosupply chain performance, firms must focus onmacro processes
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The Supply ChainMacro Processes
Figure 17-1
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Customer RelationshipManagement
The processes that take place betweenan enterprise and its customers
downstream in the supply chain Marketing Sell Order management Call/service center
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Internal Supply Chain Management
Strategic Planning Demand Planning
Supply Planning Fulfillment Field Service There must be strong integration
between the ISCM and CRM macroprocesses
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Supplier Relationship Management
Design Collaboration Source Negotiate Buy Supply Collaboration There is a natural fit between ISCM
and SRM processes
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Supplier Relationship Management
Figure 17-2
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The Transaction ManagementFoundation
Early ERP systems focused ontransaction management and process
automation Current focus on improving decision
making in the three macro processes
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The Transaction ManagementFoundation
Figure 17-3
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The Future of IT in the Supply Chain
The three SCM macro processes willcontinue to drive the evolution of
enterprise software Three important trends1. The growth in software as a service (SaaS)
2. Increased availability of real-time data3. Increased use of mobile technology
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Risk Management in IT
Installing new systems Revised business processes
Integration Problems can shut down the business
Software glitches
Power outages Viruses
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Supply Chain IT in Practice
1. Select an IT system that addresses thecompany
s key success factors2. Take incremental steps and measure value3. Align the level of sophistication with the need
for sophistication4. Use IT systems to support decision making,
not to make decisions5. Think about the future
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Summary of Learning Objectives
1. Understand the importance of informationand information technology in a supplychain
2. Know at a high level how each supplychain driver uses information
3. Understand the major applications ofsupply chain information technology andthe processes that they enable
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