17
Information
Technology in a
Supply Chain
PowerPoint presentation to accompany
Chopra and Meindl Supply Chain Management, 5e
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.
17-1
1-1
Learning Objectives
1. Understand the importance of information
and information technology in a supply
chain
2. Know at a high level how each supply
chain driver uses information
3. Understand the major applications of
supply chain information technology and
the processes that they enable
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall. 17-2
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
1. Information must be accurate
2. Information must be accessible in a timely manner
3. Information must be of the right kind
4. Information must be shared
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Role of IT
in a Supply Chain
Information is used when making
decisions about
1. Facility
2. Inventory
3. Transportation
4. Sourcing
5. 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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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
1. The growth in software as a service (SaaS)
2. Increased availability of real-time data
3. Increased use of mobile technology
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall. 17-14
Risk Management in IT
Installing new systems
Revised business processes
Integration
Problems can shut down the business
Software malfunctions
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
1. Select an IT system that addresses the
companys key success factors
2. Take incremental steps and measure value
3. Align the level of sophistication with the need
for sophistication
4. Use IT systems to support decision making,
not to make decisions
5. Think about the future
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall. 17-17
Summary of Learning Objectives
1. Understand the importance of information
and information technology in a supply
chain
2. Know at a high level how each supply
chain driver uses information
3. Understand the major applications of
supply chain information technology and
the processes that they enable
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall. 17-18
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall. 17-19
