1. Supply Chain Information Systems
Chapter 12 - Supplement

2. 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.

3. 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

4. Supply Chain Organizational Levels
Execution and transaction processing
Routine decision making
Tactical planning
Strategic decision making

5. Supply Chain Information Needs
Table 12S.1

6. A Map of Supply Chain Information Systems
Figure 12S.2

7. 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

8. Supply Chain Information Systems
Internal Supply Chain Management – Information flows between higher and lower levels of planning and control systems within an organization.

9. Supply Chain Information Flows
Figure 12S.1

10. 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).

11. ERP Systems
Figure 12S.3

12. ERP Systems Integrating ERP Systems with
Legacy and Best-in-class Applications
Figure 12S.4

13. Supply Chain Information Systems
Decision support systems (DSS) - Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making

14. Supply Chain Information Systems
Network Design Applications – Logistics information systems that address such long-term strategic questions as facility location and sizing and transportation networks.
Often using simulation and optimization modeling

15. 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

16. Supply Chain Trends
The emergence of sophisticated business process management (BPM) tools
Cloud computing

17. 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.

18. 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.

19. Cloud Computing Cloud Model On-demand self-service
Broad network access
Resource pooling
Rapid elasticity
Measured service

20. 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.

21. 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.

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Printed in the United States of America.