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Module 5 - Supply Chain Management

Information technology is crucial to supply chain management as it provides accurate and accessible information to make rational business decisions across key areas like facilities, inventory, transportation, and sourcing (paragraph 1). Information is used at both strategic and operational levels for decisions about location, production, and more (paragraph 2). The supply chain framework focuses on four macro processes - customer relationship management, internal supply chain management, supplier relationship management, and transaction management foundation - that are interlinked and drive overall profitability (paragraphs 3-4). These macro processes involve activities like marketing, order fulfillment, sourcing, and enterprise resource planning (paragraphs 5-9).

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Pooja Shah
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2K views9 pages

Module 5 - Supply Chain Management

Information technology is crucial to supply chain management as it provides accurate and accessible information to make rational business decisions across key areas like facilities, inventory, transportation, and sourcing (paragraph 1). Information is used at both strategic and operational levels for decisions about location, production, and more (paragraph 2). The supply chain framework focuses on four macro processes - customer relationship management, internal supply chain management, supplier relationship management, and transaction management foundation - that are interlinked and drive overall profitability (paragraphs 3-4). These macro processes involve activities like marketing, order fulfillment, sourcing, and enterprise resource planning (paragraphs 5-9).

Uploaded by

Pooja Shah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Supply Chain Management

Chapter 16 Information Technology and the Supply Chain


17-1

Role of Information Technology in a Supply Chain


Information is the driver that serves as the glue to create a coordinated supply chain Information must have the following characteristics to be useful:
Accurate Accessible in a timely manner Information must be of the right kind

Usage of Information technology (IT):


Hardware and software used throughout the supply chain to gather, analyze and circulate information This information is the basis for making rational business decisions
17-2

Role of Information Technology in a Supply Chain continued


Information provides the basis for key SCM decisions:
Facility (location, capacity, schedules) Inventory (carrying costs, stock out costs, ordering costs) Transportation (customer locations, shipment sizes) Sourcing (in-house, outsource) Pricing and Revenue management (maximize revenue from available resources)

Information is used at different phases of decision making:


Strategic: Location decisions Operational: What products to manufacture during todays production run?
17-3

The Supply Chain IT Framework


The Supply Chain Macro Processes:
Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM) Transaction Management Foundation (TMF)

Why focus on the Macro Processes?


Performance of a company closely linked to performance of the supply chain Every stage within the supply chain is inter-linked and must work together to increase overall profitability
17-4

Macro Processes in a Supply Chain


Supplier Relationship Management (SRM) Internal Supply Chain Management (ISCM) Customer Relationship Management (CRM)

Transaction Management Foundation (TMF)

17-5

Customer Relationship Management (CRM) Customer Relationship Management (CRM) consists of processes that take place between an enterprise and its customers downstream in the supply chain
CRM processes:

17-6

Marketing Selling Order management Call/Service center

Internal Supply Chain Management (ISCM) Internal Supply Chain Management (ISCM) includes all internal processes involved in planning and fulfilling a customer order
ISCM processes:
Strategic Planning overall supply chain network design Demand Planning Forecasting and analyzing demand impact Supply Planning Factory planning, Inventory planning Fulfillment Fulfilling orders, transportation, warehousing Field Service After sales service, spare parts inventory

There must be strong integration between ISCM and CRM processes


17-7

Supplier Relationship Management (SRM) Supplier Relationship Management (SRM) comprises of processes involving interaction between the enterprise and suppliers upstream in the supply chain
SRM processes:
Design Collaboration Source Negotiate Buy Supply Collaboration

There is a natural fit between ISCM and SRM processes


17-8

Transaction Management Foundation (TMF)


Transaction Management Foundation (TMF) is the foundation on which CRM, ISCM and SRM rest Includes Enterprise Resources Planning (ERP) systems and its components TMF is necessary for CRM, ISCM and SRM to function and communicate with each other The extent to which TMF enables integration across CRM, ISCM and SRM determines its value
17-9

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