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LN6B_OrganizationalInformationSystems_V6 - MGCR 331...

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MGCR 331 – Information Systems (“IT Impacts on Organizations”) Organizational Information Systems Lecture Note 6 – PART B (This lecture note is divided into two parts: A and B) In the previous study note (LN6- Part A), we discussed ERP and CRM. In this lecture note, we describe supply chain management systems (SCM), Business Intelligence Systems (online transaction processing vs. online analytical processing, Data warehousing and data mining). We will also cover on-demand software, also referred as “Software as a service” (SaaS). Finally, we will discuss the considerations in managing organizational information systems effectively. 1.3 Supply Chain Management Systems (SCMS) Supply chain management systems are a type of enterprise information systems that manage the flow of material, money and information across the different participating organizations. They support the processing and flow of information about the availability, location and quantity of the different resources that are involved in manufacturing a product or in moving the finished product from warehouse inventory to distribution or sales. Supply chain management systems typically enable a firm to interface with their suppliers. As it should be evident, most large organizations (especially manufacturing organizations) cannot survive in today’s business environment without an efficient supply chain management system. One of the main challenges faced by businesses that maintain large inventories is the ability to sense rapid changes in the market and respond by adjusting their production and distribution functions. Supply Chain Management Systems provide this ability by enabling flow of information from market facing interfaces to warehouse inventory tracking. Sometimes, delay in transferring demand information to the warehouse could result in what is known as the bullwhip effect. Examples: Manugistics, I2 Logistics. SCM in Action: 1-800-Flowers.com 1-800-Flowers.com is a flowers arrangement and delivery enterprise, which has existed for more than 26 years. The company interfaces with many local florists who have access to nationally renowned floral arrangement specialists and also can deliver to local requests on time. It also has a distribution network in place so that quality products can be shipped to the customers overnight if needed. To accomplish this 1-800-Flowers.com has a supply chain system that manages inventory efficiently and interfaces with procurement and distribution. 1-800-Flowers.com uses SAS to provide flexible round the clock access to ordering functionality for its customers while providing access to critical operational data about customers for its 1
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employees. 1-800-Flowers.com also uses SupplyLogic an outsourced print supply chain solutions provider to manage its various requirements for gift related printing and packaging. SupplyLogic enables 1-800-Flowers.com to reduce operational costs, production costs; inventory costs while improving brand consistency, improved quality and service, and improved accounting efficiencies. Finally, due to the large volume of faxed orders, 1-800-Flowers.com uses
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