Supply Chain Management Systems Lindsey Palmiotto Deanna Nicastro.

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Presentation transcript:

Supply Chain Management Systems Lindsey Palmiotto Deanna Nicastro

What is Supply Chain Management? A cross functional system using information technology to help manage some of a company’s key business processes such as those of its suppliers, customers, and other business partners.

Process of SCM: SCM systems include the flow of –Raw materials –Producing products –Providing service –Delivering the product to the end consumer.

Goals of an SCM system: Speed Efficiency Reduce Cost Improve Supply chain cycle times (to get a company’s products from concept to market)

Five Basic Components: 1. Plan 2. Source 3. Make 4. Deliver 5. Return

Plan Develop strategies in order to meet customer’s needs and demands. Plan to develop high quality products with a lower cost at a fast pace.

Source Decide where your products will come from. Who will be your supplier? Helps the company know who they can rely on to deliver their products in a timely manner.

Make Where the source is going to manufacture their product. Includes scheduling, testing, packaging, and preparing the product for distribution How much inventory should they produce?

Deliver Where the company decides what distribution carrier to use in order to successfully get their orders fulfilled. How fast can they get their products to their consumers? Involves how the company is going to receive their payments.

Return Involves the products that the customers are not satisfied with that get sent back to the company. Are the customers satisfied with their service?

History of an SCM system: 1960’s- First inventory software developed 1970’s- Material Requirements Planning was introduced. 1980’s- Market demand increased which led to managing material flow through SCM systems. 1990’s-NOW- SCM systems are more technologically enabled.

Oracle SCM: Forecasting Innovating Logistics Benefits –Predictability –Adapting and Innovating –Alignment

Oracle’s Customer Results Improving productivity Reducing their costs Decreasing processing time Cutting errors Increasing volume discounts

SCM vs. ERP ERP integrates all functions of a business in a unified manner. SCM is a more specialized system.

ERP Business Functions:

Points of differences: Comprehensive Complexity Sourcing Tables Handling of Constraints Functionality Speed of processing requests

HRMarketing AccountingOperations Finance

AccountingOperations SCM System ERP System MarketingHuman Resources Finance Model of ERP and SCM systems working together:

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