Chopra Scm5 Ch17

17
Information
Technology in a
Supply Chain
PowerPoint presentation to accompany
Chopra and Meindl Supply Chain Management, 5e
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.
17-1
1-1
Learning Objectives
1. Understand the importance of information
and information technology in a supply
chain
2. Know at a high level how each supply
chain driver uses information
3. Understand the major applications of
supply chain information technology and
the processes that they enable
17-2
Role of IT
in a Supply Chain
Information provides the foundation on which
supply chain processes execute transactions

and managers make decisions
Hardware, software, and people throughout a
supply chain that gather, analyze, and execute
upon information
1.
2.
3.
4.
Information must be accurate

Information must be accessible in a timely manner
Information must be of the right kind
Information must be shared
17-3
Role of IT
in a Supply Chain
Information is used when making

decisions about
1.
2.
3.
4.
5.
Facility
Inventory
Transportation
Sourcing
Pricing and revenue management
17-4
The Supply Chain IT Framework
Provides access and reporting of supply
chain transaction data

Advanced systems layer a level of
analytics that uses transaction data to
proactively improve supply chain
performance
Enterprise software forms the foundation
of a supply chain IT system
17-5
The Supply Chain

Macro Processes
Customer Relationship Management (CRM)

Internal Supply Chain Management (ISCM)
Supplier Relationship Management (SRM)
Rest on Transaction Management Foundation
(TMF), basic enterprise resource planning (ERP)

systems
When enterprise performance is closely linked to
supply chain performance, firms must focus on
macro processes
17-6
The Supply Chain

Macro Processes
Figure 17-1
17-7
Customer Relationship
Management
The processes that take place between
an enterprise and its customers

downstream in the supply chain
Marketing
Sell
Order management
Call/service center
17-8
Internal Supply Chain Management
Strategic Planning
Demand Planning
Supply Planning
Fulfillment
Field Service
There must be strong integration
between the ISCM and CRM macro
processes
17-9
Supplier Relationship Management
Design Collaboration
Source
Negotiate
Buy
Supply Collaboration
There is a natural fit between ISCM
and SRM processes
17-10
Supplier Relationship Management
Figure 17-2
17-11
The Transaction Management

Foundation
Early ERP systems focused on
transaction management and process

automation
Current focus on improving decision
making in the three macro processes
17-12
The Transaction Management

Foundation
Figure 17-3
17-13
The Future of IT in the Supply Chain
The three SCM macro processes will
continue to drive the evolution of

enterprise software
Three important trends
1. The growth in software as a service (SaaS)
2. Increased availability of real-time data
3. Increased use of mobile technology
17-14
Risk Management in IT
Installing new systems

Revised business processes
Integration
Problems can shut down the business

Software glitches
Power outages
Viruses
17-15
Risk Management in IT
Mitigating strategies
Install new IT systems in an incremental
fashion
Run duplicate systems to make sure the new
system is performing well
Implement only the level of complexity that is
needed
17-16
Supply Chain IT in Practice

1. Select an IT system that addresses the
companys key success factors
2. Take incremental steps and measure value
3. Align the level of sophistication with the need
for sophistication
4. Use IT systems to support decision making,
not to make decisions
5. Think about the future
17-17
Summary of Learning Objectives

1. Understand the importance of information
and information technology in a supply
chain
2. Know at a high level how each supply
chain driver uses information
3. Understand the major applications of
supply chain information technology and
the processes that they enable
17-18
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system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
17-19

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17

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Information provides the foundation on which

supply chain processes execute transactions

Information must be accurate

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Information is used when making

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Supply Chain IT Framework

Provides access and reporting of supply

chain transaction data

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Supply Chain

Customer Relationship Management (CRM)

(TMF), basic enterprise resource planning (ERP)

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Supply Chain

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The processes that take place between

an enterprise and its customers

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Internal Supply Chain Management

Supplier Relationship Management

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Supplier Relationship Management

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Transaction Management

Early ERP systems focused on

transaction management and process

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Transaction Management

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

The Future of IT in the Supply Chain

The three SCM macro processes will

continue to drive the evolution of

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Installing new systems

Problems can shut down the business

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Supply Chain IT in Practice

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

Summary of Learning Objectives

Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall.

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