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Chapter 9

COMMERCE 2KA3 Chapter Notes - Chapter 9: Supply Chain, Customer Relationship Management, Business Process


Department
Commerce
Course Code
COMMERCE 2KA3
Professor
A L I R M O N T A Z E M I
Chapter
9

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Commerce 2KA3
Chapter 9: Enterprise Applications to Manage Supply Chains and Respond to
Customers
Enterprise Systems
Companies are becoming increasingly more connected both internally and with other
companies
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Enterprise Software: is built around thousands of predefined business processes that
reflect best practices. Companies implementing this software must first select the function
of the systems they wished to use and then map their business processes to predefined
business process in the software. Enterprise systems provide much valuable information
for improving management decision-making. Corporate headquarters has access to up-to-
the-minute data on sales, inventory, and production
Supply Chain Management Systems
If you mange a small firm that makes a few products or sells a few services, chances are you
will have a small number of suppliers. But if you manage a firm that produces more
complex products and services, then you will have hundreds of suppliers and your
suppliers will have their own set of suppliers. You now need to coordinate that activities of
hundreds or even thousands of other firms in order to produce your products and services
Supply chain: is a network of organizations and business processes for procuring raw
materials, transforming these materials into intermediate and finished products, and
distributing the finished products to customers. It links suppliers, manufacturing plants,
distribution centres, retail outlets, and customers to supply goods and services from source
through consumption. Material, information, and payments flow through the supply chain
in both directions. Goods start through the supply chain, are transformed into intermediate
products, and finally, into finished products. The upstream portion of the supply chain
includes the company’s suppliers, the suppliers and the processes for managing
relationships with them. The downstream portion consists of the processes for
distributing and delivering products to the final customers.
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