Chapter 12 – Enterprise Applications to Manage Supply Chains and Respond to Customers.docx

4 Pages

Information Technology Management
Course Code
ITM 102
Sam Lampropoulos

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Chapter 12 – Enterprise Applications to Manage Supply Chains and Respond to Customers What are enterprise systems?  Suite of integrated software modules and a common central database  The database collects data from many different divisions and departments in a firm and from a large number of business processes  Information collected from one process and can be accessed and used to other processes in the firm Enterprise Software:  Built around thousands of predefined business processes that reflect best practice o Finance/Account: General ledger, accounts payable o Human resources: Personnel administration, payroll o Manufacturing/production: Purchasing, shipping o Sales/marketing: Order processing, billing, sales planning  To implement, firms: o Select functions of the system they wish to use o Map business processes to software processes  Use software’s configuration tables for customizing Business Value of Enterprise Software:  A more uniform Organization  More efficient operations and customer-driven business processes  Firm-wide information for improved decision making The Supply Chain  A network of organizations and business processes for procuring raw materials, transforming these materials into goods Information Systems and Supply Chain Management:  Inefficiencies cut into a company’s operating costs o Can waste up to 25% of operating expenses  Just-in-time Strategy: o Components arrive as they are needed o Finished goods shipped after leaving assembly line  Safety Stock o Buffer for lack of flexibility in supply chain  Bullwhip effect o Information about product demand gets distorted as it passes from one entity to next across supply chain Supply Chain Management Software:  Supply Chain planning systems o Model existing supply chain o Demand planning o Optimize sourcing, manufacturing plans o Establish inventory levels o Identifying transportation modes  Supply Chain execution System o Manage flow of products through distribution centers and warehouses Global Supply Chains and the Internet  Before internet, supply chain coordination hampered by difficulties of using disparate internal supply chain systems  Enterprise system supply some integration of internal supply chain processes but not designed to deal with external supply chain processes  Intranets and Extranets o Intranets: To improve coordination among internal supply chain
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