Enterprise Resource Planning, 1st
Edition by Mary Sumner
Chapter 9:
Trang 2© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner9-2/20
Objectives
•Examine the supply chain participants•Acknowledge the interrelationships
among business processes that support the supply chain
•Understand the role of ERP in supporting eBusiness
Trang 3Supply Chain Management (SCM)
•Integrated planning of the activities in a supply chain
•Planning and control of flow of goods, services, money, and information
•Allows customers and suppliers to partner together
– Maximize responsiveness and flexibility– Reducing costs and paperwork
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Supply Chain Relationships
• Can be maintained by manufacturer
– Continuous replenishment– Can link into POS systems
• Cross-docking
• Creates linkages between supplier and
retailer
– Lower costs
– Better customer service– Increased profitability
• Information sharing along supply chain
Trang 5Supply Chain Management (SCM), continued
• Benefits
– Cost reduction
– Inventory reduction
– Cycle time improvement– Improved customer service
• Integration requires commitment to strategy,
process, organization, and technology
– What linkages should be established– Communications
Trang 7Partnership Evolution
• VMI
– Responsibility of inventory management on supplier
– Supplier monitors level and replenishes inventories
– No risk of stockouts– Quicker response time
– Retailer reduces inventory and administration costs
– Supplier gets more business– No expedited orders
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SCM Evolution
• Electronic linkages facilitate JIT systems
• Reduced costs, improved response time,
Trang 9eBusiness Value Chain
•Evolution of virtual value chain
– Provides information-based channels– Changed from transaction-based to
contract-based relationships
– Moved from vertically integrated to selective sourcing
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eProcurement
• eProcurement
– RFBs on web
– Bidding more competitive
• Free-market bidding levels playing field
– Increased choices
Trang 11B2B Hubs
•B2B hubs
– Spot sourcing of operating inputs– Systematic sourcing of inputs
– Bring suppliers of similar or
complementary products together at one web site
ã One-stop shopping
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eSupply Chain
• Facilitates real-time updates across chain
–From consumers to suppliers–Greater ability to fill orders
Trang 13Business Intelligence with ERP Data
• Data warehouse
– Repository for making management decisions– Data integrity accomplished by cleaning
– Consistent formatting applied
• Data mart
– Data storage for specific set of users
• Special data analysis
• Data mining
– Analysis of data for trends, sales forecasting, inventory management
• Identifies problem, develops research, collects and
Trang 15Future of ERP
• Increased integration through SCM
• ASPs will provide cost efficiency and access
to latest technology
• Netsourcing
– Renting ERP services, applications, and infrastructure over web
– Additional risks in migration, contracts
– Internal IT capabilities must be maintained
• Application software integration of legacy
systems with ERP
– Plug and play
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Case: Data Solutions
•Specializes in network implementation and management
– Provides network services to companies with no internal networking analyst or IT manager
– Uses legacy accounting software for financial accounting and financial
management
Trang 17Case: TechKnowledge
•Disitributor of presentation technologies
•Wants to netsource back-office functions
– Has no internal IT capability
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Featured Article: Leveraging the ERP Backbone?
• Dow Corning implemented SAP’s Business
Information Warehouse
– Integrate global business processes
• Gain efficiency and reduce costs
• Wanted to fully automate
– Improve business intelligence
• Consolidate internal and external information
– Replaced legacy systems on mainframes– Beta-tested system
• Important to evaluate software with all details decided
– Hopes to facilitate rapid scale-up of data warehouse capabilities
Trang 19Summary
• Supply chain management offers an
integrated planning and control of goods, services, money, and information between suppliers and customers
– Produces lower costs and reduced inventories– Improves customer service
– Increases profitability
• Virtual value chains provide
information-based channels
– Contract-based
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Summary, continued
•eProcurement employs web-based
RFBs
– More competitive and more choices of suppliers
•eSupply chains facilitate real-time updates, responding to customer needs
•Business intelligence is increased by