Discussion 5

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chopra_scm5_ch17.pptx

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Information Technology in a Supply Chain

PowerPoint presentation to accompany

Chopra and Meindl Supply Chain Management, 5e

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https://fortune.com/2017/09/01/supply-chain-manufacturing-technology/

Learning Objectives

Understand the importance of information and information technology in a supply chain

Know at a high level how each supply chain driver uses information

Understand the major applications of supply chain information technology and the processes that they enable

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Role of IT in a Supply Chain

Information provides the foundation on which supply chain processes execute transactions and managers make decisions

Hardware, software, and people throughout a supply chain that gather, analyze, and execute upon information

Information must be accurate

Information must be accessible in a timely manner

Information must be of the right kind

Information must be shared

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Role of IT in a Supply Chain

Information is used when making decisions about

Facility

Inventory

Transportation

Sourcing

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 to proactively improve supply chain performance

Enterprise software forms the foundation of a supply chain IT system

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The Supply Chain Macro 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 to supply chain performance, firms must focus on macro processes

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The Supply Chain Macro Processes

Figure 17-1

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SRM: https://www.youtube.com/watch?v=XibS0susCP8

Customer Relationship Management

The processes that take place between an 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 macro processes

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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 Management Foundation

Early ERP systems focused on transaction management and process automation

Current focus on improving decision making in the three macro processes

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The Transaction Management Foundation

Figure 17-3

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The Future of IT in the Supply Chain

The three SCM macro processes will continue to drive the evolution of enterprise software

Three important trends

The growth in software as a service (SaaS)

Increased availability of real-time data

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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Risk Management in IT

Mitigating strategies

Install new IT systems in an incremental fashion

Run duplicate systems to make sure the new system is performing well

Implement only the level of complexity that is needed

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Supply Chain IT in Practice

Select an IT system that addresses the company’s key success factors

Take incremental steps and measure value

Align the level of sophistication with the need for sophistication

Use IT systems to support decision making, not to make decisions

Think about the future

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Summary of Learning Objectives

Understand the importance of information and information technology in a supply chain

Know at a high level how each supply chain driver uses information

Understand the major applications of supply chain information technology and the processes that they enable

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https://erau.kanopy.com/video/supply-chain-understanding-risk-factors

https://fortune.com/2017/09/01/supply-chain-manufacturing-technology/

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