Chapter 1 Information Technology and Supply Chain Management

SCM 614Dr. Huei Lee

Eastern Michigan University

Copyright© 2003-2007, Huei Lee

Stockless Inventory Compared to Traditional and Just-in-time Supply Methods

Information Technology for Supply Chain Management Software Systems

Electronic Data Interchange (EDI) Material Requirements Planning (MRP) Manufacturing Resource Planning (MRP II) Enterprise Resource Planning (ERP) Supply Chain Management Systems (SCM) Customer Relationship Management (CRM) Internet-based Software

Network Infrastructure Wide Area Network Internet (for E-commerce: B2B, B2C)

III. ERP

Enterprise Resource Planning (ERP) Systems

Enterprise resource planning (ERP) is a term used to refer to a system that links individual applications (for example, accounting and manufacturing applications) into a single application that integrates the data and business processes of the entire business.

Major ERP Systems

SAP Oracle

IV. Supply Chain Systems

Supply Chain Management (SCM) Systems The two basic types of SCM system software

are: Supply Chain Planning software (SCP):

uses mathematical models to predict inventory levels based on the efficient flow of resources into the supply chain

Supply Chain Execution software (SCE): is used to automate different steps in the supply chain such as automatically sending purchase orders to vendors when inventories reach specified levels

Major Supply Chain Planning (SCP) Players

Oracle SAP

Advanced Planner and Optimizer (APO)

Supply Network Design (SND)

The Supply Chain Cockpit (SCC)

Demand Planning (DP)

Supply Network Planning (SND)

Collaborative Planning, Forecasting, and Replenishment (CPFR)

…

Levels of SAP APO

SAP R/3

PARTIAL SAP CLIENT LIST

Spacenet

Some SAP Products

APO Customer Relationship Management

(CRM) Business process improvement (BPI) Strategic Enterprise Management

(SEM) Business Warehouse (BW)

V. Hardware Considerations for SCM systems

Intranet vs. Extranet

Intranet is to use Internet technology and protocol (TCP/IP) for the internal communications

Extranet is to use Internet technology and protocol for the internal and suppliers’ communications

Network Infrastructure: Wide Area Networks (WANs)

WAN Technologies

Ordinary telephone line and telephone modem.

Send your data over the Internet securely, using Virtual Private Network (VPN) technology

VPN