2 IMPORTANCE OF INFORMATION MANAGEMENT The development of radically new information and communication technologies driven by internet have enabled companies to deploy revolutionary methods of building levels of competitive advantage.With the advent of e-commerce, new business models can be architected leveraging supply chains to create new regions of strategic advantage and market place value.Responsiveness to customer demand, and overall customer satisfaction, cannot be achieved without proper management of both the goods movement and information flow throughout the supply chain.
3 The Importance of Information This CTR relates to the material on p. 99 and provides a context for discussing marketing research and marketing information systems.Instructor’s Note: This information is extra- textual.Dynamic MarketingEnvironmentWhyInformationIsNeededThe Importance of InformationA marketing information system is valuable for the information tools it provides in relation to the following areas:The Marketing Environment. Companies compete in an environment of social, legal, cultural, technological, natural, and competitive forces. Information on each aspect of the environment is crucial to effective market planning.Discussion Note: You may wish to discuss the role of environmental monitoring or scanning in class. Information gathering can be serendipitous or it can be planned. While not all environmental information needs can be identified in advance, it is possible to approach research and information systems planning with an eye to setting up ways of collecting information in an on-going fashion.Customer Needs and Wants. If environmental forces cause the company to seek information in a larger context, customer needs and wants focus the attention on the target market. Without information, identifying need and wants is guesswork -- or fortune telling.Competitors. The actions of competitors cannot go unnoticed by the company. Innovative companies not only identify competitive actions and offerings, they also consume competitors products -- in small quantities of course! For example, to understand the value of a competitors automobile it makes sense to drive it for awhile as a customer would and evaluate it in that fashion.Strategic Decision Making. Strategy formulation depends upon accurate & timely information most of all.CompetitionCustomerNeedsStrategicPlanning
4 BUISNESS MANAGEMENT SYSTEMS (MR, DRP, ERP, PDM, EIP AND CPFR)
5 MR - MARKET RESEARCHMarket research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market.Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets.Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.
6 QUESTIONS THAT CAN BE ANSWERED THROUGH MARKET RESEARCH What is happening in the market? What are the trends? Who are the competitors?How do consumers talk about the products in the market?Which needs are important? Are the needs being met by current products?
7 TYPES OF MARKET RESEARCH Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product.In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product.
8 STUDIES CARRIED UNDER MARKET RESEARCH Study of market trendsCustomer analysisCompetitor analysisRisk analysisProduct researchAdvertising research
9 The Marketing Research Process Defining the Problem and the Research ObjectivesDeveloping the Research PlanThe Marketing Research ProcessThe Marketing Research ProcessThis CTR corresponds to Figure 4-2 on p. 104 and relates to the material on ppInstructor’s Note: The CTR presents an overview of the research process. Details of each step are presented on subsequent CTR’s.Implementing the Research PlanInterpreting and Reporting the FindingsThe Research ProcessDefining the Problem and Research Objectives. Before researcher can provide managers with information, they must know what kind of problem the manager wishes to solve. Specifying a behaviorally-based information problem clearly is often hard to do. Objectives for research may be exploratory, descriptive, or causal.Discussion Note: One key is to remind students that people report problem symptoms more often than they identify problems. Objectives for research can only be linked to clear problem definitions.Developing the Research Plan and Collecting Information. Developing the plan includes the following steps: (1) Determining specific information needs; (2) Surveying secondary information sources; (3) Planning the primary data collection if necessary; (4) Choosing the contact method and sampling procedure appropriate; and (5) Presenting the plan to the client for approval.Implementing the Plan - Collecting and Analyzing the Data. In implementing the plan care must be taken that all personnel involved in collecting and analyzing data understand clearly the purpose of the research and are adequately trained and experienced to complete it professionally.Interpreting and Reporting the Findings. Interpreting research findings may involve statistical analyses or not but these tools of analysis should not be confused with the action-oriented information needed by marketing managers. Research is valuable only in its use to make better marketing decisions. Reports of findings should always be in the style and language of how the information will be used by the manager.
10 Marketing Research Process Step 1. Defining the Problem & Marketing Research Process Step 1. Defining the Problem & Research ObjectivesGathers preliminary informationthat will help define the problemand suggest hypotheses.ExploratoryResearchDescriptiveResearchDescribes things such as consumers’attitudes and demographicsor market potential for a product.CausalResearchTest hypotheses about cause-and-effect relationships.
11 Marketing Research Process Step 2. Develop the Research Plan This CTR relates to the material on ppTeaching Tip: Students may not realize research seeks both primary and secondary information for marketing decision making. The need for careful and complete research information requires attention to both kinds of information.Determine the Specific Information NeededSecondary DataData collected from other sources for other reasons serves as secondary data. Key factors to consider when using secondary information include:Relevant. Secondary research must fit the needs of the project. It is especially important that categories used previously match the same definitions you are using (like target market). Also, measurement units must be the same.Teaching Tip: For example, you cannot determine an “average” income from secondary research that reports respondents as having incomes as:Group 1: $10,000 to $14,999; 10 membersGroup 2: $15,000 to $19,999; 20 membersGroup 3: $20,000 to $24, membersThis is categorical, not interval-scaled data. An average cannot be determined.Accurate. You must be able to determine that the data were reliably collected and reported.Current. The information must be up-to-date enough for the current project decisions.Impartial. The information must have been objectively collected and reported.Discussion Note: Impartiality also refers to ensuring that the researcher had no a priori agenda. For example, the Tobacco Institute continues to fund research projects designed to not find a relationship between cigarette smoking and lung cancer.SecondaryPrimaryInformation collectedfor the specific purposeat hand.Information that hasbeen previouslycollected.Both Must Be:RelevantAccurateCurrentImpartial
12 Primary Data Collection Process Step 1. Research Approaches This CTR relates to information on ppObservational ResearchGathering data by observing people,actions and situations(Exploratory)Primary DataDecisions on primary information needs include:Research Approaches. There are three common approaches for gathering primary data.Observations are linked to actual behaviors but may not help in understanding why people act as they do.Surveys can help describe reasons for people's behavior and provide the research with flexibility. But surveys can be plagued by problems in completion and demand characteristics from several factors.Experimental methods help identify cause and effect relationships but controlling for extraneous variables is usually difficult in real world situations.Survey ResearchAsking individuals aboutattitudes, preferences orbuying behaviors(Descriptive)Experimental ResearchUsing groups of people todetermine cause-and-effectrelationships(Causal)
13 Primary Data Collection Process Step 2. Contact Methods Collecting InformationThis CTR corresponds to the material in Table 4-3 on p. 112 and relates to the material on ppContact MethodsData Collection MethodsMail Questionnaires. This method provides excellent control over the effects of having an interviewer influencing the respondents answers. Since no interviewer is present, no interpersonal influences are possible. Mail questionnaires may elicit more honest and in-depth information. Discuss with your class the kind of problems that may require this kind of information, such as social marketing issues on health care concerns. Still, lack of ability to distinguish respondents from nonrespondents makes inference to the general population difficult.Telephone Interviewing. Being able to control the sample and complete the data collection quickly are assets of telephone interviewing. Many marketing contexts, such as person marketing in political campaigns, need almost overnight information on the effectiveness of the latest promotions. Telephone technology can reach diverse geographic markets of interest and can be linked to computers for easy data analysis. Problems with respondent cooperation may becoming increasingly important over time.Personal Interviewing. Personal interviewing is very flexible and can provide a rich and deep volume of data for the researcher. Also, personal interviewers can follow-up unexpected or unusual responses that other collection methods are not prepared to handle. Using groups in personal interviews can also reveal social influences that may be important in consumer decision making.
14 Primary Data Collection Process Step 3. Developing a Sampling Plan Who is to besurveyed?Probability orNon-probabilitysampling?Sample -representativesegment of thepopulationHow should thesample bechosen?How manyshould besurveyed?
15 Primary Data Collection Process Step 4. Research Instruments QuestionnaireWhat to ask?Form of eachquestion?Wording?Ordering?Mechanical DevicesPeople MetersGrocery ScannersGalvanometerTachistoscope
16 Marketing Research Process Step 3. Implementing the Research Plan CollectionofDataResearchPlanProcessing ofDataAnalyzing theData
17 Marketing Research Process Step 4. Interpreting and Reporting Findings Interpret the FindingsDraw ConclusionsReport to Management
18 DRP - DISTRIBUTION RESOURCE PLANNING Distribution Resource Planning (DRP) is a method used in business administration for planning orders within a supply chain.DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements.
19 VARIABLES USED BY DISTRIBUTION RESOURCE PLANNING the on-hand inventory at the end of a period.the backordered demand at the end of a period.the required quantity of product needed at the beginning of a period.the constrained quantity of product available at the beginning of a period.the recommended order quantity at the beginning of a period.
20 INFORMATION REQUIRED BY DRP the demand in a future period.the scheduled receipts at the beginning of a period.the safety stock requirement for a period.the on-hand inventory at the beginning of a period.
21 ERP - What is it?ERP is a generic term used to describe a comprehensive information system designed to integrate all the business processes found in an enterprise.Efficiency and productivity are improved through the integration of information and the removal of duplicate information and processes.
22 ERP - ENTERPRISE RESOURCE PLANNING The term ERP originally implied systems designed to plan the use of enterprise-wide resources.Enterprise Resource Planning (ERP) systems integrate (or attempt to integrate) all data and processes of an organization into a unified system.A typical ERP system will use multiple components of computer software and hardware to achieve the integration.A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.
23 The Current Scenario Islands of Information Difficult to get timely & accurate informationHeterogeneous Hardware & Softwareplatforms & practicesPoor connectivity between differentorganizational locationsSticking with obsolete technologyResist to changeLack of proven man-power to developintegrated softwareEnterprise Resource Planning
24 Why ERP? For Management – to know what is happening in the company One solution for better ManagementFor cycle time reductionTo achieve cost control & low working capitalTo marry latest technologiesTo shun the geographical gapsTo satisfy the customers with high expectationsTo be Competitive & for survivalEnterprise Resource Planning
25 Evolution of ERP 1960’s - Systems Just for Inventory Control 1970’s - MRP – Material Requirement Planning(Inventory with material planning & procurement)1980’s - MRP II – Manufacturing Resources Planning(Extended MRP to shop floor & distribution Mgnt.)Mid 1990’s - ERP – Enterprise Resource Planning(Covering all the activities of an Enterprise)2000 onwards – ERP II – Collaborative Commerce(Extending ERP to external business entities)Enterprise Resource Planning
26 ERP – Expectations Integrating all the functions Integrating the systems running in all the locationsTransparency of information using a singledata source across the organizationSoftware must be responsiveModularFlexibleEasy to add functionalitiesProvide growth pathEnterprise Resource Planning
27 ERP – Options Enterprise Resource Planning OPTION 1 – MAKE [Using Internal resources]Developing a custom-built ERP package, specific to therequirements of the organization, with the help of thein-house IT departmentOPTION 2 - BUYGoing for Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSoft etc.OPTION 3 – MAKE [using External resources]requirements of the organization, with the help of asoftware solution providerEnterprise Resource Planning
28 EXAMPLE: MODULES IN AN ERP Manufacturing - Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing FlowSupply Chain - Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission CalculationFinancials - General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets
29 Customer Relationship Management (CRM) - Sales and Marketing, Commissions, Service, Customer Contact and Call Center supportHuman Resources - Human Resources, Payroll, Training, Time & Attendance, Rostering, BenefitsData Warehouse Management - Self-Service interfaces for Customers, Suppliers, and EmployeesDecision Support System.
31 ADVANTAGES design engineering (how to best make the product). order tracking from acceptance through fulfillment.the revenue cycle from invoice through cash receipt.managing interdependencies of complex Bill of Materialstracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced).the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
32 DISADVANTAGESPersonnel turnover; companies can employ new managers lacking education in the company's ERP system, proposing changes in business practices that are out of synchronization with the best utilization of the company's selected ERP.Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed.Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage.ERP systems can be very expensive to install often ranging from 30,000 US Dollars to 500,000,000 US Dollars for multinational companies.
33 ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability.ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies—this is cited as one of the main causes of their failure.Systems can be difficult to use.Systems are too restrictive and do not allow much flexibility in implementation and usage.
34 Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits.There are frequent compatibility problems with the various legacy systems of the partners.The system may be over-engineered relative to the actual needs of the customer.
35 PDM - PRODUCT DATA MANAGEMENT/ PRODUCT LIFECYCLE MANAGEMENT Product Data Management (PDM) is a category of computer software used to control data related to products.PDM creates and manages relations between sets of data that define a product, and store those relationships in a database.Product Data Management is focused on capturing and maintaining information on products and/or services through its development and useful life.
36 PDM MODULE INCLUDES Part Number Part Description Supplier/Vendor Vendor Part Number and DescriptionUnit of MeasureCost/PriceSchematic or CAD DrawingMaterial Data Sheets
37 PDM ADVANTAGES Track and manage all changes to product related data Accelerate return on investment with easy setup;Spend less time organizing and tracking design data;Improve productivity through reuse of product design data;Enhance collaboration.
38 FIELDS OF USENPD—New Product Development: Design, manufacture and R&D of new products e.g. consumer appliances, automotive, automotive components, aerospace and defence.CPD—Customised Product Development: Design and manufacturing of customised products as per customer requirement e.g. heavy engineering.EPC: Engineering, procurement and construction industries e.g. infrastructure projects.
39 EIP – ENTERPRISE INFORMATION PORTAL An enterprise information portal (EIP) is a software package that gives an enterprise a relatively easy and systematic way to create a Web site that will serve as a single gateway to a company's information and knowledge base for employees and possibly for customers, business partners, and the general public as well.
40 Portal Characteristics Presenting information to the user that the user requires in a standard format with a standard interface.Secure delivery of information while making the complexities of security, as well as access to disparate information sources, transparent to the user.Transmitting information.Support for user interactivity.
41 EIP – ENTERPRISE INFORMATION PORTAL An enterprise portal, is a framework for integrating information, people and processes across organizational boundaries.It provides a single point of entry, often in the form of a web-based user interface, and is designed to aggregate information through application-specific portlets.Enterprise Information Portals enable users to jump from business intelligence systems to ERP applications to sales reports, all without leaving their browsers.
43 Enterprise Information Portal goals: Establish a competitive advantageIncrease ROIImprove business processesIncrease employee productivityEnable collaboration between employees, suppliers, and customersProvide universal access to corporate resourcesMaintain a consistent view of corporate data and information
44 ELEMENTS OF EIPAccess/search: Access/search allows a user to get all the information needed (but no more) in the desired context. For example, a loan officer does not need marketing information to approve a loan. An EIP makes sure the loan officer gets only the information needed.Categorization: An EIP categorizes all information so that it is delivered to the user within the context needed (think of the subject structure on Yahoo)Collaboration: An EIP allows individuals to collaborate regardless of geographical location.Personalization: The information provided to individuals using an EIP is personalized to that person’s role, preferences, and habits.
45 Expertise and profiling: Expertise and profiling is essential for the collaboration element of an EIP. Individuals within an enterprise are profiled according to their experience and competencies. If an individual needs to collaborate with others, he can choose those that are qualified for the project.Application integration: This allows individuals to deliver, access, and share information regardless of applications used.Security: This provides information to users based on security clearance. The user logs on and is given access only to information that the user is authorized to access.
46 User Management and Security Single sign-on and authentication.Automatically identifying users and their roles.Secure database access.Connecting to other systems.
47 Single Sign-On and Authentication To logon to a computer users must be authenticatedby the Active Directory.The user’s credentials are then passedtransparently to the portal and through to other back office systems.
48 User IdentificationWhen a user enters the portal the only informationknown about them is their usernameActive DirectoryPortal databaseA linked data source was created between the SQL Server and the Active Directory.This link facilitates retrieving information about the user the first time they access the portal, and also keeps the user’s active directory information up to date.
49 User IdentificationUser InformationActive DirectoryThe user information in the Active Directory is maintained according to corporate standards.The information retrieved from the Active Directory is analyzed and then used to deliver the appropriate content to the user’s customized home page.
50 Secure Database Access The web server communicates with the portal database through a set of stored procedures.This strategy allows for a separation between database access and the user interface.Users are granted access to certain stored procedures, but are not granted any access to the underlying data in the database except through the stored procedures.
51 Secure Database Access Users can only access data through stored procedures.The stored procedure enforces which data is returnedto the user.Users cannot directly access the database or theUnderlying tables directly.
52 Connecting to other systems The web server can either create a secure connection to obtain resources from another system;Or, the user’s credentials can be passed through to the remote database or system if the system supports this type of authentication.
53 CPFR – COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT Collaborative Planning, Forecasting and Replenishment (CPFR) is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand.Links sales and marketing best practices to supply chain planning and execution processesObjective is to increase availability to the customer while reducing inventory, transportation and logistics costs
54 FEATURES OF CPFRCPFR is a concept that aims to enhance supply chain integration by supporting and assisting joint practices.CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.Information shared between manufacturers and retailers aids in planning and satisfying customer demands through a supportive system of shared information.Efficiency is created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners.
55 CPFR evolved from Efficient Consumer Response (ECR). A Brief HistoryCPFR evolved from Efficient Consumer Response (ECR).ECR: Improve supply chain performance through better coordination of marketing, production, and replenishment activities.
56 Prior to ECRRelationships often adversarial.Little or no joint planningLack of information sharing results in “unpredictable” ordering patterns, excessive inventories, service failures,… In 1987, P&G and Wal-Mart pioneered in Continuous Replenishment Process (CRP)Information sharingJoint demand forecastingCoordinated shipments.
57 CPFR extends ECR’s business processes to include: Information systems for capturing and transferring POS, inventory, and other demand & supply information between trading partnersFormalized sales forecasting and order forecasting processesFormalized exception handling processesFeedback systems to monitor and improve supply chain performance
58 Why CPFR?Reduce variance between your Supply and your customers Demand through jointly derived plans.Increase Revenue.Competitive Advantage: Win with your partner mentality - “My chain is better than your chain”.More accurate collaborative plans equates to more accurate/automatic execution transactions.
59 CPFR Benefits: Demand Enhanced Relationship Greater Sales Implicitly, CPFR strengthens an existing relationship and substantially accelerates the growth of a new one.Buyer and seller work hand-in-hand from inception through fruition on business plan, base, and promotional forecasts.Continual CPFR meetings strengthen this relationship.Greater SalesThe close collaboration needed for CPFR implementation drives the planning for an improved business plan between buyer and seller.The strategic business advantage directly translates to increased category sales.
60 Improved Technology ROI Through the CPFR process, technology investments for internal integration can be enabled with higher quality forecast information.Your company will benefit by driving internal processes with common, high-quality data.Improved Overall ROIAs other processes improve, the return on investment from CPFR can be substantial.Increased Customer SatisfactionWith fewer out-of-stocks resulting from better planning information, higher store service levels will prevail, offering greater consumer satisfaction.
61 CPFR Benefits: Supply Improved Order Forecast Accuracy CPFR enables a time-phased order forecast that provides additional information, greater lead time for production planning, and improved forecast accuracy vs. either stand-alone VMI/CRP or other industry tools.Inventory ReductionsCPFR helps reduce forecast uncertainty and process inefficiencies.How much inventory does your company hold to “cover up” for forecasting errors or a trading partner’s inability to have the product available in a timely manner?With CPFR, product can be produced to actual order instead of storing inventory based on forecast.
62 Improved Product Offering Category ManagementBefore beginning CPFR, both parties inspect shelf positioning and exposure for targeted SKUs to ensure adequate days of supply, and proper exposure to the consumer.This scrutiny will result in improved shelf positioning and facings through sound category management.Improved Product OfferingBefore CPFR implementation, the buyer and seller collaborate on a mutual product scheme that includes SKU evaluation and additional product opportunities.
63 CPFR ACTIVITIESStrategy & Planning Establish the ground rules for the collaborative relationship. Determine product mix and placement, and develop event plans for the period.Demand & Supply Management Project consumer (point-of-sale) demand, as well as order and shipment requirements over the planning horizon.Execution Place orders, prepare and deliver shipments, receive and stock products on retail shelves, record sales transactions and make payments.Analysis Monitor planning and execution activities for exception conditions. Aggregate results, and calculate key performance metrics. Share insights and adjust plans for continuously improved results.
64 The CPFR Process Once Qtr. Wk, Mo Wk, Mo 1. Front-End Agreement Collaborative PlanningQtr.2. Joint Business PlanSellerOrder Forecast3. Create Sales Forecast4. Identify exceptions5. Resolve exceptionsCollaborative ForecastingWk, Mo6. Create Order Forecast7. Identify exceptions8. Resolve exceptionsCollaborative ReplenishmentWk, MoBuyer9. Generate OrderSales Forecast
66 MEANING OF BPRThe fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.- Hammer and Champy, 1993
67 OBJECTIVES OF BPRStreamlining management processes and formalising communications,Eliminating unproductive activities in the operational processes,Improving decision making capability,Improving collaborative creation of work products such as documentation, specifications, designs, etc.,Strengthening synergy in the team member’s approach to problem solving and taking cognizance of important changes.
68 BPR - Steps Understand Simplify/Improve Automate Step 1 Step 2 Step 3 Understand the existing systems associated with all the functionalitiesDraft & frame the possibilities & ways to simplify or Improve or eliminate the processesImplement with the help of ERPBusiness Process Re-engineering
69 BPR AND SCMThe primary strategies of SCM are intra and inter organizational synergy while the primary aspect of BPR is lean, core process synergy.Both have the common denominator of customer focus.SCM and BPR are two complementary philosophies. After full and successful BPR, functional and internal integration, in SCM jargon will be fulfilled.
70 PARALLELS BETWEEN BPR AND SCM Area for changeBPR terminologySCM terminologyProcessElimination of wasteSpeed up core processesConcentration on core processesReduce non value added activitiesLead time reductionTo do what it does bestPeopleBoard level commitmentMulti-skilled & inquisitive workforceAttitudinal changesSCM champion at board levelTechnologyTechnological changesIT-a key to BPRTreat vendors as adversariesIT-a key to SCMPartnership sourcingInnovationCustomer focusConstant product/process innovationStreamline processesConstant innovation at the interfacesof the companyAnalysisNo Analysis by paralysisTake a holistic viewUse aggregate modeling to redesign and take a systems view
71 NEED OF BPR IN SCMTo transform a business from an inward looking to flexible outward looking business.Giving a wider perspective to the organization, seeking core processes and creating learner structures.To identify the bottlenecks in the systems and areas requiring change which are essential to remain competitive.
72 REQUIREMENTS FOR BPR IMPLEMENTATION Create a climate of commitment for its members to a higher purpose.Foster organic partnership through knowledge networking.Install an environment for taking responsible leadership.Encourage and empower the members for developing extra-ordinary breadth of perspectives.Create capacity for change and involve in eventuating total quality and productivity in every endeavour.
74 BPR in the Supply Chain scenario Harrington’s (1991) steps to streamlining:Bureaucracy eliminationDuplication eliminationValue-added assessmentSimplificationProcess cycle time reductionError proofingUpgradingSimple languageStandardizationSupplier partnersBig picture improvementAutomation and/or mechanization
75 IMPLEMENTATION OF BPR AND SCM BPR ScenarioProcess based on adverserelations within processes.Poor information flow.Limited concept of customerProcess identificationProcess simplificationAutomate if possibleFinding the customerLearn processesBusiness process orientedContinual search forCustomer focusedchainImprovements PossibleImplement ChangesImprovement RealizedSCM ScenarioProcess based on adverserelations within processes.Poor information flow.Limited concept of customer.Process identificationProcess simplificationAutomate if possibleFinding the customerLearn processesBusiness process orientedContinual search forCustomer focusedchain
76 CONCLUSIONRe-engineering the supply chain shows significant improvements in cost reductions and thereby helps in gaining competitive advantage. BPR continually searches for step changes and strategically phase these ideas in the supply chain.