IntroductiontoEnterpriseResourceSystems

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LearningObjectives

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  Identifythefollowingaspectsofcustomerrelationshipmanagement(CRM),enterpriseresourcemanagement(ERP),andsupplychain(SCM)mgtsystems:  Businessprocessessupported  Customerandbusinessvalueprovided  Potentialchallengesandtrends

CustomerRelationshipManagement(CRM)–TheBusinessFocus

WhatDoesCRMDoForAnOrganization?

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WhatDoesCRMDoForAnOrganization?

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 Providescustomer‐facingemployeeswithasingle,completeviewofeverycustomerateverytouchpointandacrossallchannels

  Providesthecustomerwithasingle,completeviewofthecompanyanditsextendedchannels

  Integratesandautomatesmanyofthecustomerservingprocesses

 CreatesanITframeworkofWeb‐enabledsoftware&databasesthatintegratestheseprocesseswiththerestofthecompany’sbusinessoperations

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CRMBenefitsAndChallenges

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 Allowsabusinesstoidentifyitsbestcustomers Makespossiblereal‐timecustomization&personalizationofproducts&servicesbasedoncustomerwants,needs,buyinghabits,&lifecycles

  Enablesacompanytoprovideconsistentcustomerserviceexperienceacrosstheorganization

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CRMFailures

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 Duetolackofunderstanding&preparation.  CRMisnotasilverbullet

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TrendsinCRM

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 OperationalCRM AnalyticalCRM CollaborativeCRM Portal‐basedCRM

EnterpriseResourcePlanning(ERP):TheBusinessBackbone

HowDoesAnERPHelpAnOrganization?

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EnterpriseResourcePlanning

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 Servesasacross‐functionalenterprisebackbonethatintegrates&automatesmanyinternalbusinessprocessesandinformationsystems

 Helpscompaniesgaintheefficiency,agility,&responsivenessneededtosucceedtoday

 Givesacompanyanintegratedreal‐timeviewofitscorebusinessprocesses

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EnterpriseResourcePlanning(continued)

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 ERPsoftwaresuitestypicallyconsistofintegratedmodulesof…  Manufacturing  Distribution  Sales  Accounting  HumanResourceManagement

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BenefitsofERPSystems

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  Qualityandefficiency  Helpsimprovethequalityandefficiencyofcustomerservice,

production,&distributionbycreatingaframeworkforintegratingandimprovinginternalbusinessprocesses

  DecreasedCosts  Reductionsintransactionprocessingcostsandhardware,software,

andITsupportstaff

  Decisionsupport  Providescross‐functionalinformationonbusinessperformanceto

assistmanagersinmakingbetterdecisions

  Enterpriseagility  Resultsinmoreflexibleorganizationalstructures,managerial

responsibilities,andworkroles

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BiggestChallengeofERP

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  CostsofERP  ThecostsandrisksoffailureinimplementinganewERPsystemaresubstantial.

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CausesofERPFailures

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  Underestimatingthecomplexityoftheplanning,development,andtrainingrequired

  Failuretoinvolveaffectedemployeesintheplanning&developmentphasesandchangemanagementprograms

  Tryingtodotoomuch,toofast

  Insufficienttraining  Believingeverythingthesoftwarevendorsand/orconsultantssay

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TrendsInEnterpriseResourcePlanning

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  FlexibleERP Web‐enabledERP  Inter‐EnterpriseERP  E‐BusinessSuites

SupplyChainManagement:TheBusinessNetwork

WhatIsSupplyChainManagement?

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SupplyChainManagement

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 Across‐functionalinter‐enterprisesystemthatusesITtohelpsupport&managethelinksbetweensomeofacompany’skeybusinessprocessesandthoseofitssuppliers,customers,&businesspartners.

 Goalistocreateafast,efficient,&low‐costnetworkofbusinessrelationships.

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WhatDoSupplyChainManagementToolsDo?

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Supply Chain Management Definition

Supply chain management tools enable managers to make informed business decisions about the operation of their supply chain

Supply Chain Management

Overview

Supply chain management tools facilitate planning and production scheduling based on known business constraints

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SCMCapacityConstraints

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-- OR --

Can only drill one piece of metal

at a time

Computer processing and storage capacity

not infinite

“How do I decide what to do on which piece of equipment,

and when?”

Managing a supply chain would be easy if we had

unlimited resources

Supply Chain Manager

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SCMToolslevels

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Event Management

Order Management

Inventory Management

Warehouse Management

Production Planning

Supply Planning

Demand Planning

Network Design

SCM Service Offering

Operational Planning

Tactical Planning

Strategic Planning

Real time / Minutes

Hours / Days

Weeks / Months

Quarters Years

Supply Chain Planning Tools Supply Chain Execution Tools

Transportation Management

Source: BAH

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SupplyChainPlanningProcess

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Supply Planning

 Balances unconstrained demand against high level supply chain constraints

 Reflect order priority and due dates

Network Design

 Design where to place production facilities and optimize the end to end chain

 Construct alternate flow scenarios that incorporate associated constraints

Production Planning

 Decompose the supply plan into sub assembly / production needs by site

 Balance production capacity across sites

Production Scheduling

 Optimize processing flows, sequence, and timing

 Produce a finite capacity production schedule

Demand Planning

 Anticipate demand based on historical trends and current conditions

 Perform what if analysis - highlight the impact of changing demand drivers

Hours / Days

Weeks / Months Quarters Years Planning

Horizon

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SupplyChainExecutionProcess

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Order Management  Record customer

orders and track status from receipt to final delivery

 Direct efficient response to orders with dynamic cost / benefit analysis of options

Inventory Management

 Streamline information movement and provide tight inventory control

 Inventories replenished using kanban, min-max, or reorder point

Event Management

 Monitor and manage critical planning and event information  Broadcast alert notification and present response alternatives based on pre determined

business rules

Transportation Management

 Optimize and track outbound and inbound shipping

Warehouse Management

 Optimization and management of warehouse processes

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SCMVendors

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  Althougheachofthevendorsclaimtoprovideanendtoendsolution,theyactuallyfallintotwodistinctcamps

  FirstaretheERPvendorswhoprovideastrongsolutionforintegratingthedataenvironmentandprovidingvisibility

  SecondaretheSCMvendorswhoproviderobustoptimizationsolutions

  Incombination,withanERPvendorprovidingthedataenvironmentandaSCMvendorprovidingtheoptimizationsolution,youcanachieveaveryelegantsolution

Leading SCM Vendors

ERP Focused

 Oracle  SAP  JD Edwards  Peoplesoft  Invensys / Baan

SCM Focused

 i2  Manugistics  Aspentech  Logility

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BenefitsofSupplyChainManagement

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  Canprovidefaster,moreaccurate  orderprocessing  reductionsininventorylevels  quickertimetomarket  lowertransactionandmaterialscosts  strategicrelationshipswithsuppliers

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ChallengesofSupplyChainManagement

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  Lackofproperdemandplanningknowledge,tools,andguidelines

  Inaccurateoroveroptimisticdemandforecasts  Inaccurateproduction,inventory,andotherbusinessdata

  Lackofadequatecollaboration

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