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Customers
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Supply Chain Management
Sourcing - Procurement
Enterprise Resource Planning
Internal Business Processes
Customer Relationship Management
Marketing – Sales - Service
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Enterprise Application ArchitectureEnterprise Application Architecture
Enterprise
Business Systems
Production
Planning
Integrated
Logistics
Accounting
and Finance
Human
Resources
Sales,
Distribution,
Order
Management
Customer/
Employee
Enterprise
Resource Planning
The Technological Backbone The Technological Backbone
of e-Businessof e-Business
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Human Resources
Finance and Accounting
Demand
Planning
Manufacturing
Planning
Logistics
Planning
Distribution
Planning
Order
Entry
Enterprise Resource Planning
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Purchasing
& Accounts
Payable
MRP
Inbound
Inventory
Plant Mgmt.
Manufacturing
& Production
Scheduling
Inventory
Control &
Warehousing
Distribution
& Accounts
Receivable
Enterprise
Resource Planning
The Business Value of ERPThe Business Value of ERP
Benefits of ERPBenefits of ERP
•Quality and Efficiency
•Decreased Costs
•Decision Support
•Enterprise Agility
Failures in ERP Do ExistFailures in ERP Do Exist
Enterprise
Resource Planning
Causes of ERP Failures Causes of ERP Failures
•Underestimating the Complexity of
Planning, Development, and
Training Needed
•Failure to Involve Affected
Employees
•Trying to do Too Much Too Fast
•Over Reliance by Company on
Claims of Software Companies
Enterprise
Resource Planning
SCM Software Helps Firms Reengineer and SCM Software Helps Firms Reengineer and
Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes
Supply Chain
Life Cycle
SCM
Functional
Processes
SCM
Integrated
Solution
Supplier Manufacturer CustomerRetailer
The Internet
Collaborative
Fulfillment
Shared
Market Data
Commit ScheduleMake Deliver
Strategic Sourcing
and Procurement
Forecast and Demand Planning
Customer Order Fulfillment Service
Distribution Network and Warehouse Operations
Transportation and Shipment
Management
Production
Logistics
SCM: The Business Network
SCM: The Business Network
Supply Chain Management : aSupply Chain Management : a
top strategic objective for many top strategic objective for many
firms firms
•The Right Products
•The Right Place
•The Right Time
•In the Proper Quantity
•At an Acceptable Cost
Business Value Goals
Rapid Demand Fulfillment
Collaborative Supply
Chain Planning and
Execution
Customer Value Goals
Give customers what they
want, when and how they
want it, at the lowest cost
Interenterprise
Coordination of
Manufacturing and
Business Process
Effective
Distribution and
Channel Partnerships
Responsiveness and
Accountability
to Customers
Objectives of Supply Chain Objectives of Supply Chain
ManagementManagement
SCM: The Business Network
SCM: The Business Network
Objective of SCM Efficiently Objective of SCM Efficiently
Manages this Process by: Manages this Process by:
•Forecasting Demand
•Controlling Inventory
•Enhancing Business
Relationships
•Receiving Feedback and Status
of Every Link of the Chain
Benefits and Challenges of Benefits and Challenges of
SCMSCM
SCM: The Business Network
•Lack of Proper Planning
Knowledge, Tools, and
Guidelines
•Inaccurate Demand Forecasts
•Lack of Adequate
Collaboration
•Software Itself Immature