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2. Explain how supply chain management is used
Describe customer relationship management systems
Describe knowledge management systems
Describe enterprise resource planning systems

3. Enterprise System
Application used in all the functions of a business which supports decision making throughout the organization
Supply chain
Integrated network consisting of an organization, its suppliers, transportation companies, and brokers
Used to deliver goods and services to customers

4. 11.1 Supply Chain Configuration

5. Supply Chain Management (SCM)
Process of working with suppliers and other partners in the supply chain to improve procedures for delivering products
Functions
Procuring materials
Transforming materials into intermediate and finished products
Distributing finished products to customers

6. Supply Chain Management (SCM)
Communication in SCM system takes place among
Product flow
Information flow
Finances flow
Key decisions in SCM
Location
Inventory
Production
Transportation

7. Electronic Data Interchange (EDI)
Enables business partners to exchange information
Expedites delivering accurate information
Web-based EDI: Using the Internet and Web protocols to transmit documents
Lowers cost
Platform independent and easy to use

8. Drawbacks of EDI
Uses proprietary standards
Cost per partner is higher when the number of partners is small
Organizations can use the Internet and Open EDI to perform the same function as EDI

9. Improves information sharing throughout the supply chain
Internet-Enabled SCM
Improves information sharing throughout the supply chain
Improves SCM activities
Purchasing/procurement
Inventory management
Transportation
Order processing
Customer service
Production scheduling

10. Helps maintain a competitive edge in the supply chain
E-Marketplaces
Third-party exchange that provides a platform for buyers and sellers to interact and trade efficiently
Helps maintain a competitive edge in the supply chain
Provides opportunities for sellers and buyers to establish partnerships
Offers a single platform for prices, availability, and stock levels that’s accessible to all participants

11. E-Marketplaces Solves time constraint problems for international trade
Makes it easy to compare prices and products from a single source instead of spending time contacting each seller
Reduces marketing costs more than traditional sales channels

12. E-Distributor http://www.powersourceonline.com/ http://www.farms.com/
Marketplace owned and operated by a third party that provides an electronic catalog of products
Maintenance, repair, and operations (MROs) services including services from different vendors
Example of a horizontal market
Offers fast delivery of a wide selection of products and services, at lower prices
Helps companies reduce the time and expense of searching for goods

13. Brings traditional auctions to customers around the globe
Online Auctions
Brings traditional auctions to customers around the globe
Makes it possible to sell far more goods and services than at a traditional auction
Based on the brokerage business model which brings buyers and sellers together
Cost-effective for selling excessive inventory
Reverse auctions
Invite sellers to submit bids for products and services
One-to-many relationship (choose the seller)

14. Collaborative Planning, Forecasting, and Replenishment
Used to coordinate supply chain members through point-of-sale (POS) data sharing and joint planning
Aims to improve operational efficiency and manage inventory
Advantages: Decreases merchandising, inventory, and logistics costs

15. Collaborative Planning, Forecasting, and Replenishment
Ensures that inventory and sales data are shared across the supply chain
Exception management: Planning for handling unforeseen problems
Lessons learned during the process can be used in future planning

16. CPFR Process

17. Customer Relationship Management (CRM)
Consists of the processes a company uses to track and organize its contacts with customers
Improves services offered to customers
Uses customer contact information for targeted marketing
Involves marketing strategies which focus on long-term relationships
Identifying customer segments

18. Customer Relationship Management (CRM)
Improving products to meet customers’ needs
Improving customer retention
Identifying a company’s profitable and loyal customers
Helps organizations make use of data, and knowledge to understand customers
Gives organizations complete picture of their customers

19. CRM Activities
Sales automation
Order processing
Marketing automation
Customer support
Knowledge management
Personalization technology

20. Implemented with either on-premise CRM or Web-based CRM approach
CRM Applications
Implemented with either on-premise CRM or Web-based CRM approach
Software packages available for setting up a CRM system
Amdocs CRM
Optima Technologies ExSellence
Infor CRM
SAP mySAP
Oracle PeopleSoft CRM
Oracle Siebel

21. Features of Software Packages
Salesforce automation
eCRM or Web-based CRM
Survey management
Automated customer service

22. Personalization Technology
Personalization: Process of satisfying customers’ needs, building customer relationships, and increasing profits
Design goods and services that meet customers’ preferences better
Customization: Allows customers to modify the standard offering
Selecting a different home page to be displayed each time you open your Web browser

23. Personalization Technology
Using personalization requires gathering customer information
Preferences and shopping patterns
Used by companies to improve customer service
Implementation requires
Internet, databases
Data warehouse/data marts
Data-mining tools
Mobile networks

24. Collaborative Filtering (CF)
Search for specific information or patterns, using input from multiple business partners and data sources
Identifies groups of people based on common interests and recommends products
Works well for a single product category
Drawback: Needs a large sample of users and content to work well
Fails to make recommendations across unrelated categories

25. Knowledge Management (KM)
Draws on concepts of organizational learning, culture, and best practices to convert tacit knowledge into explicit knowledge
Creates a knowledge sharing culture in an organization
Eliminates obstacles to sharing knowledge
Technique to improve CRM systems
Identifying, storing, and disseminating facts about how to perform tasks

26. Knowledge Management (KM)
Knowledge repository
Stores knowledge of experts
Created for employees to refer to when needed
Knowledge management system consists of using groupware
Other tools and technologies
DBMSs, data-mining tools, decision support systems

27. Contributions of Knowledge Management System to Organizations
Promote innovation by encouraging free exchange of ideas
Improve customer service by reducing response time
Increase revenue by reducing the delivery time for products and services
Improve employee retention rates by rewarding employees for their knowledge

28. Chief Knowledge Officer (CKO)
Position created by organizations because of the importance of
Knowledge
Knowledge management
Knowledge management systems
Responsible for overseeing knowledge management within an organization

29. Chief Knowledge Officer (CKO)
Ensures knowledge resources are properly collected stored, and disseminated among the decision-makers
Ensures organization profits from knowledge resources
Tries to maximize the return on investment (ROI) related to KM, KMS and processes

30. Enterprise Resource Planning (ERP)
Integrated system that collects and processes data
Manages and coordinates resources, information, and functions throughout an organization
Includes hardware, software, procedures, and input from all functional areas
Uses a unified database to store data for various functions

31. ERP Configuration

32. ERP Components

33. Benefits of a Well-designed ERP System
Increased:
Availability and timeliness of information
Data accuracy and improved response time
Improved:
Customer satisfaction
Employee satisfaction
Planning and scheduling
Supplier relationship
Reliability of information

34. Benefits of a Well-designed ERP System
Reduced:
Inventory costs
Labor costs
Order-to-fulfillment time

35. ERP Systems
Drawbacks
High cost
Difficulties in installation
Needs extensive training
Compatibility problems with legacy systems
Available as modules so an organization can purchase only required components
Keeps costs down for organizations

36. Collaborative filtering (CF)
Collaborative planning, forecasting, and replenishment (CPFR)
Customer relationship management (CRM)
Customization
e-marketplace
Electronic data interchange (EDI)
Enterprise resource planning (ERP)

37. Enterprise system
Knowledge management (KM)
Online auction
Personalization
Reverse auction
Supply chain
Supply chain management (SCM)

38. Supply chains exist in both service and manufacturing organizations, although the chain’s vary in different organizations and industries
CRM system helps organizations make better use of data and knowledge to understand their customers
ERP systems use a unified database to store data for various functions