1. Supply Chain Management System 2. SAP solution 3. Value Chain for competitive advantag.pptx

Presentation topic:
1. Supply Chain Management System
2. SAP solution
3. Value Chain for competitive advantage


Content should explain the concepts in detail

1. Abbottabad University Of Science and Technology 1 Management Information System Instructor: Mir Jamal Prepared by Muhammad Rashid Roll no. (9501) Bs SE 7th

2. Outline 1. Supply chain management Components Benefits Case study 2. SAP solution Solution breadth Deployment Benefits Challenges 2

3. Continue.. 3. Value Chain Analysis Business process Michael Porter’s Value chain Activities Competitive Advantages Porter’s five forces Implement strategy Adapting to competitive environment 3

4. Supply Chain Management (SCM) Maximizing Total Supply Chain Effectiveness and Profitability

5. Definition "SCM involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability." Managing resources to meet customer demand Coordinating with suppliers, manufacturers, and distributors Optimizing logistics and transportation Improving communication and collaboration 5

6. Four Basic Components of Supply Chain Management 1. Supply Chain Strategy Defining the strategy for managing resources to meet customer demand Aligning with business objectives 2. Supply Chain Partners Selecting and managing partners for raw materials, services, and finished products Defining pricing, delivery, and payment processes Monitoring partner relationships 6

7. Continue.. 3. Supply Chain Operations Scheduling production activities (testing, packaging, delivery) Measuring productivity and quality 4. Supply Chain Logistics Managing product delivery processes (orders, warehouses, carriers, returns, invoicing) 7

8. Benefits of SCM Software "SCM software can enable an organization to generate efficiencies within the supply chain by automating and improving information flows." Automating tasks and processes Improving communication and collaboration Increasing visibility and transparency Reducing costs and improving profitability 8

9. Wal-Mart and P&G: A Successful SCM Implementation "Wal-Mart and P&G implemented a successful SCM system, linking Wal-Mart's distribution centers directly to P&G's manufacturing centers ." Real-time information exchange Reduced inventory and order-processing costs Improved supply chain efficiency and responsiveness 9

10. SCM System Diagram 10

11. Benefits of Effective Supply Chain Management Decrease buyer power Increase supplier power Increase switching costs to reduce threat of substitutes Create entry barriers to reduce threat of new entrants Increase efficiencies and competitive advantage through cost leadership 11

12. Conclusion "Effective and efficient supply chain management systems can enable an organization to achieve a competitive advantage and improve its bottom line." 12

13. SAP Solutions

14. Definition SAP (Systems Applications and Products) is a leading provider of enterprise application software that helps businesses of all sizes manage their operations effectively. In the realm of MIS, understanding SAP solutions is crucial as they represent a significant technology used by many organizations for critical business functions. Core Functionality: At its heart, SAP offers an integrated suite of software applications that streamline various aspects of a business. Traditionally, this has been focused on Enterprise Resource Planning (ERP) which integrates core business areas like finance, accounting, human resources, manufacturing, and supply chain management 14

15. Solution Breadth: SAP has evolved beyond core ERP to encompass a wider range of solutions, including: Customer Relationship Management (CRM): Managing interactions and fostering relationships with customers. Supply Chain Management (SCM): Optimizing procurement, inventory management, and logistics. Human Capital Management (HCM): Managing the employee lifecycle from recruitment to retirement. Business Technology Platform (BTP): A platform for building and extending SAP applications or integrating them with other systems. Industry-Specific Solutions: Tailored solutions for specific industries like healthcare, retail, or manufacturing. 15

16. Deployment Options: SAP solutions can be deployed in various ways to cater to different needs: On-Premise: Software is installed and run on the company's own servers. Cloud: Software is accessed through the internet, with SAP managing the infrastructure. Hybrid: A combination of on-premise and cloud deployment. 16

17. Benefits of SAP Solutions: Implementing SAP solutions can offer several advantages for organizations, including: Improved operational efficiency: Streamlined processes and better data visibility. Enhanced decision-making: Real-time data insights for informed choices. Increased productivity: Automation and improved collaboration. Greater agility: Ability to adapt to changing business needs. 17

18. Challenges of SAP Solutions: While beneficial, SAP solutions also come with some challenges: High Cost: The initial investment in software, implementation, and ongoing maintenance can be significant. Complexity: SAP systems can be complex to implement and use, requiring specialized skills and training. Integration Issues: Integrating SAP with existing systems can be challenging. 18

19. Technical Architecture: SAP HANA: This in-memory database platform is the backbone of modern SAP solutions. It allows for real-time data processing and analytics, enabling faster decision-making. Modular Design: SAP solutions are built on a modular architecture, where individual modules address specific business functions. This allows for customization based on an organization's unique needs. Integration Technologies: SAP provides various tools and technologies to integrate its solutions with other enterprise systems and applications. 19

20. Implementation Considerations: Business Process Reengineering (BPR): Implementing SAP often necessitates rethinking and reengineering existing business processes to optimize them for the new system. Data Migration: Migrating data from legacy systems to SAP can be a complex process requiring careful planning and execution. Change Management: A successful SAP implementation requires a robust change management strategy to address user resistance and ensure adoption of the new system. 20

21. Security and Compliance: Data Security: SAP solutions offer robust security features to protect sensitive business data. User Access Controls: Granular control over user access to ensure data integrity and prevent unauthorized access. Regulatory Compliance: SAP solutions can help organizations comply with various industry regulations and data privacy laws. 21

22. The Future of SAP: Cloud Adoption: There's a growing trend of migrating SAP solutions to the cloud, offering increased scalability, flexibility, and reduced IT overhead. Artificial Intelligence (AI) and Machine Learning (ML): SAP is integrating AI and ML capabilities into its solutions to automate tasks, improve forecasting, and provide intelligent insights. Internet of Things (IoT): SAP is leveraging IoT to connect machines and devices to its platform, enabling real-time data collection and process optimization. 22

23. Additional Considerations: SAP SuccessFactors: A cloud-based human capital management (HCM) suite focused on talent management, employee experience, and learning. SAP Analytics Cloud: A suite of cloud-based analytics solutions for business intelligence, data visualization, and predictive analytics. SAP Leonardo: An open digital innovation platform for building intelligent applications using the Internet of Things (IoT), blockchain, and machine learning. 23

24.   Value Chain Analysis Understanding How to Create Competitive Advantage

25. What is a Business Process? Definition: A standardized set of activities that accomplish a specific task, such as processing a customer's order. A business process is a series of steps that are followed to achieve a specific goal or objective. It involves a set of activities that are performed in a specific order to produce a desired outcome. Example: A company's order fulfillment process might include activities such as receiving and processing customer orders, picking and packing products, and shipping products to customers. 25

26. Michael Porter's Value Chain Approach Definition: A framework for analyzing the activities that create value for customers and identifying opportunities to create competitive advantage. Porter's value chain approach views an organization as a series of processes that add value to the product or service. It identifies two types of activities: primary value activities and support value activities. Primary value activities: These are the activities that directly add value to the product or service, such as manufacturing, marketing, and sales. Support value activities: These are the activities that support the primary value activities, such as human resource management, technology development, and procurement. 26

27. Primary Value Activities Primary value activities are the activities that directly add value to the product or service. They are the activities that create the product or service and deliver it to the customer. Examples: Inbound logistics: receiving, storing, and distributing raw materials Operations: manufacturing, testing, and packaging products Outbound logistics: storing, transporting, and delivering products to customers Marketing and sales: promoting and selling products to customers Service: providing after-sales service and support to customers 27

28. Support Value Activities Support value activities are the activities that support the primary value activities. They are the activities that provide the necessary resources and infrastructure for the primary value activities to take place. Examples: Firm infrastructure: managing the organization's overall strategy and direction Human resource management: recruiting, training, and developing employees Technology development: developing and maintaining the organization's technology infrastructure Procurement: purchasing raw materials, equipment, and services 28

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30. Value Chain Analysis Value chain analysis is a method for evaluating the activities that create value for customers and identifying opportunities to create competitive advantage. Steps: Identify the primary and support value activities Evaluate the cost and performance of each activity Identify opportunities to improve the efficiency and effectiveness of each activity Develop strategies to create competitive advantage 30

31. Competitive Advantage Decision The competitive advantage decision involves evaluating the opportunities to create competitive advantage and selecting the strategies that will have the greatest impact. Options: Target high value-adding activities to enhance their value Target low value-adding activities to increase their value Perform a combination of the two 31

32. Using IT to Add Value Information technology (IT) can be used to add value to both primary and support value activities. Examples: Primary value activities: using IT to automate manufacturing processes, improve supply chain management, and enhance customer service Support value activities: using IT to improve human resource management, streamline procurement processes, and enhance technology development 32

33. Value Chain Analysis and Porter's Five Forces Porter's Five Forces framework can be used in conjunction with value chain analysis to evaluate the competitive environment and identify opportunities to create competitive advantage. The Five Forces: Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products or services Competitive rivalry among existing competitors 33

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35.   Implementing Strategy Implementing strategy involves putting the selected strategies into action and allocating the necessary resources to support them. Steps: Develop a detailed plan for implementing the strategy Allocate the necessary resources (e.g. people, equipment, budget) Establish metrics to measure performance and progress Monitor and adjust the strategy as needed 35

36. Adapting to the Competitive Environment The competitive environment is constantly changing, and organizations must adapt to these changes to remain competitive. Strategies: Continuously monitor the competitive environment 36