1、1-1,Chapter 16Information Technology and the Supply Chain,Supply Chain Management(3rd Edition),4-2,Outline,The Role of Information Technology in the Supply Chain The Supply Chain IT Framework Customer Relationship Management Internal Supply Chain Management Supplier Relationship Management The Trans

2、action Management Foundation The Future of IT in the Supply Chain Supply Chain Information Technology in Practice,4-3,Role of Information Technologyin a Supply Chain,Information is the driver that serves as the “glue” to create a coordinated supply chain Information must have the following character

3、istics to be useful: Accurate Accessible in a timely manner Information must be of the right kind Information provides the basis for supply chain management decisions Inventory Transportation Facility,4-4,Characteristics of UsefulSupply Chain Information,Accurate Accessible in a timely manner The ri

4、ght kind Provides supply chain visibility,4-5,Use of Information in a Supply Chain,Information used at all phases of decision making: strategic, planning, operational Examples: Strategic: location decisions Operational: what products will be produced during todays production run,4-6,Use of Informati

5、on in a Supply Chain,Inventory: demand patterns, carrying costs, stockout costs, ordering costs Transportation: costs, customer locations, shipment sizes Facility: location, capacity, schedules of a facility; need information about trade-offs between flexibility and efficiency, demand, exchange rate

6、s, taxes, etc.,4-7,Role of Information Technologyin a Supply Chain,Information technology (IT) Hardware and software used throughout the supply chain to gather and analyze information Captures and delivers information needed to make good decisions Effective use of IT in the supply chain can have a s

7、ignificant impact on supply chain performance,4-8,The Importance of Informationin a Supply Chain,Relevant information available throughout the supply chain allows managers to make decisions that take into account all stages of the supply chain Allows performance to be optimized for the entire supply

8、 chain, not just for one stage leads to higher performance for each individual firm in the supply chain,4-9,The Supply Chain IT Framework,The Supply Chain Macro Processes Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM) Plus: Trans

9、action Management Foundation Figure 16.1 Why Focus on the Macro Processes? Macro Processes Applied to the Evolution of Software,4-10,Macro Processes in a Supply Chain(Figure 16.1),Supplier Relationship Management (SRM),Internal Supply Chain Management (ISCM),Customer Relationship Management (CRM),Tr

10、ansaction Management Foundation (TFM),4-11,Customer Relationship Management,The processes that take place between an enterprise and its customers downstream in the supply chain Key processes: Marketing Selling Order management Call/Service center,4-12,Internal Supply Chain Management,Includes all pr

11、ocesses involved in planning for and fulfilling a customer order ISCM processes: Strategic Planning Demand Planning Supply Planning Fulfillment Field Service There must be strong integration between the ISCM and CRM macro processes,4-13,Supplier Relationship Management,Those processes focused on the

12、 interaction between the enterprise and suppliers that are upstream in the supply chain Key processes: Design Collaboration Source Negotiate Buy Supply Collaboration There is a natural fit between ISCM and SRM processes,4-14,The Transaction Management Foundation,Enterprise software systems (ERP) Ear

13、lier systems focused on automation of simple transactions and the creation of an integrated method of storing and viewing data across the enterprise Real value of the TMF exists only if decision making is improved The extent to which the TMF enables integration across the three macro processes deter

14、mines its value,4-15,The Future of IT in the Supply Chain,At the highest level, the three SCM macro processes will continue to drive the evolution of enterprise software Software focused on the macro processes will become a larger share of the total enterprise software market and the firms producing

15、 this software will become more successful Functionality, the ability to integrate across macro processes, and the strength of their ecosystems, will be keys to success,4-16,Supply Chain Information Technology in Practice,Select an IT system that addresses the companys key success factors Take incremental steps and measure value Align the level of sophistication with the need for sophistication Use IT systems to support decision making, not to make decisions Think about the