Introduction to operations and supply chain management 3e bozarth chapter 12sup

Supply Chain Information Systems Chapter 12 - Supplement Chapter Objectives Be able to:  Explain why information flows are a necessary part of any supply chain  Describe in detail how supply chain information needs vary according to the organizational level and the direction of the linkages (upstream or downstream)  Describe and differentiate among ERP, DSS, CRM, SRM, and logistics applications  Describe what business process management (BPM) tools and cloud computing are and how they might impact future operations and supply chain activities Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Information System  Information system – A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making, coordination, and control in an organization Laudon and Laudon, © 2003 Pearson Education Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Organizational Levels  Execution and transaction processing  Routine decision making  Tactical planning  Strategic decision making Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Information Needs Table 12S.1 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - A Map of Supply Chain Information Systems Figure 12S.2 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Information Systems  Customer Relationship Management (CRM) – Planning and control activities and information systems that link a firm with its downstream customers  Market analysis, sell process, order management, call/service center management  Supplier Relationship Management (SRM) – Planning and control activities and information systems that link a firm with is upstream suppliers  Design collaboration, sourcing decisions, negotiations, buy process, supply collaboration Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Information Systems  Internal Supply Chain Management – Information flows between higher and lower levels of planning and control systems within an organization Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Information Flows Figure 12S.1 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - Supply Chain Information Systems  Enterprise Resource Planning (ERP) systems– Large, integrated, computer-based business transaction processing and reporting systems  ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly integrated package that uses a common database  Traditional strengths in routine decision making and in execution and transaction processing  Captures data to support higher-level decision support systems (DSS) Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 10 ERP Systems Figure 12S.3 Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 11 ERP Systems Figure 12S.4 Integrating ERP Systems with Legacy and Best-in-class Applications Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 12 Supply Chain Information Systems  Decision support systems (DSS) - Computerbased information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 13 Supply Chain Information Systems  Network Design Applications – Logistics information systems that address such longterm strategic questions as facility location and sizing and transportation networks  Often using simulation and optimization modeling Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 14 Supply Chain Information Systems  Warehouse and transportation planning systems  Allocating “fixed” logistics capacity in the best possible way given business requirements  Warehouse management and transportation execution systems  Initiating and controlling the movement of materials between supply chain partners Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 15 Supply Chain Trends  The emergence of sophisticated business process management (BPM) tools  Cloud computing Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 16 BPM Tools  Business process modeling tools – Software tools that aid business teams in the analysis, modeling, and redesign of business processes Harmon, © 2007 Morgan Kaufmann  Graphically design processes, simulate the performance of new processes, develop cost estimates  Business process management systems (BPMS) products– Software tools that allow analysts to model processes and then automate the execution of the process at run time Harmon, © 2007 Morgan Kaufmann  Develop process maps, define business rules, carry out future business activity Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 17 Cloud Computing  Cloud computing – A model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 18 Cloud Computing  Cloud Model      On-demand self-service Broad network access Resource pooling Rapid elasticity Measured service Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 19 Cloud Computing  Benefits  Makes it easier for firms to outsource key portions of business process information flows to outside firms  Allows individual or computer systems to upload and retrieve information through a wide range of devices virtually anywhere  Makes supply chain information flows faster, more flexible, and cheaper than ever Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 20 Impact of Information Technology on Supply Chain Management  Visibility – Allows managers to “see” the physical and monetary flows in the supply chain and better manage them  Mirroring – Replaces certain physical processes with virtual ones  Creation of new customer relationships – Taking raw information and organizing, selecting, synthesizing, and distributing it in a manner that creates whole new sources of value Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 21 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2013 Pearson Education, Inc publishing as Prentice Hall 12S - 22 .. .Chapter Objectives Be able to:  Explain why information flows are a necessary part of any supply chain  Describe in detail how supply chain information needs vary according to the organizational... applications  Describe what business process management (BPM) tools and cloud computing are and how they might impact future operations and supply chain activities Copyright © 2013 Pearson Education,... Hall 12S - Supply Chain Information Systems  Customer Relationship Management (CRM) – Planning and control activities and information systems that link a firm with its downstream customers  Market