Chopra Scm5 Ch17

8/10/2019 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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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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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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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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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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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


7/1917-7Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall .

The Supply ChainMacro Processes

Figure 17-1



Customer RelationshipManagement

The processes that take place betweenan enterprise and its customers

downstream in the supply chain Marketing Sell Order management Call/service center



Internal Supply Chain Management

Strategic Planning Demand Planning

Supply Planning Fulfillment Field Service There must be strong integration

between the ISCM and CRM macroprocesses



Supplier Relationship Management

Design Collaboration Source Negotiate Buy Supply Collaboration There is a natural fit between ISCM

and SRM processes



Supplier Relationship Management

Figure 17-2



The Transaction ManagementFoundation

Early ERP systems focused ontransaction management and process

automation Current focus on improving decision

making in the three macro processes



The Transaction ManagementFoundation

Figure 17-3



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



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



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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Chopra Scm5 Ch17