SCM 300 – MODULE 12
Module 12: Supply Chain Information Technology
Integrating a supply chain in the modern landscape is impossible without the proper information technology tools.
Building an IT system capable of supporting a global supply chain requires a clear set of objectives, an IT strategy,
and the correct tools to support the strategy.
This module attempts to provide a brief overview of the available IT
tools as well as a discussion of some of the issues important to managers in the position of making decisions about
(275) Customer Relationship Management (CRM) –
refers to planning and control
activities and information systems that link a firm with its downstream customers.
Ie. Market analysis, sell process, order management, call/service management
(275) Supplier Relationship Management (SRM)
– planning and control activities and
information systems that link a firm with its upstream suppliers
ie. Design collaboration, sourcing decisions, negotiations, buy process, supply
(279-80) Figure 5
– this diagram distinguishes the various applications by
organizational level and the direction of linkages.
(280) Enterprise Resource Planning (ERP) system –
large, integrated, computer
based business transaction processing and reporting systems. ERP systems pulls
together all of the classic business functions such as accounting, finance, sales, and
operations into a single, tightly integrated package that uses a common database.
(280) Figure 7
– Depicts the idea that few companies use ERP systems to serve all of
their information requirements. Rather, they will use ERP systems to meet the majority
of their needs and “plug in” preexisting legacy systems and best-in-class applications to
tailor the system to their exact needs.
(281) Decision Support Systems (DSS) –
computer based information systems that
allow users to analyze, manipulate, and present data in a manner that aids higher-level
(281) Network Design Applications –
logistics information systems that address such
long-term strategic questions as facility location and sizing, as well as, transportation
networks. These applications often make use of simulation and optimization modeling.
(282) SAP AG –
the single largest player in the SCM software arena, with an install
base of more than 60,000 sites and a market share of more than 50%. Its reputation
was built upon their ability to provide ERP systems that integrate tactical planning and
executional activities across all functions within an organization. Over time SAP has
been able to offer high-level strategic planning. SAP’s greatest strength is the fact that it
has developed integrated solutions tailored to over 20 different manufacturing,
distribution, and service industries. They have the added advantage of controlling the
standards by which the various application groups with interface with one another