Supply Chain Management Systems

Lindsey Palmiotto

Deanna Nicastro

What is Supply Chain Management?

• A cross functional system using information technology to help manage some of a company’s key business processes such as those of its suppliers, customers, and other business partners.

Process of SCM:

• SCM systems include the flow of– Raw materials– Producing products– Providing service– Delivering the product to the end consumer.

Goals of an SCM system:

• Speed

• Efficiency

• Reduce Cost

• Improve Supply chain cycle times (to get a company’s products from concept to market)

Five Basic Components:

1. Plan

2. Source

3. Make

4. Deliver

5. Return

Plan

• Develop strategies in order to meet customer’s needs and demands.

• Plan to develop high quality products with a lower cost at a fast pace.

Source

• Decide where your products will come from. Who will be your supplier?

• Helps the company know who they can rely on to deliver their products in a timely manner.

Make• Where the source is going to

manufacture their product.

• Includes scheduling, testing, packaging, and preparing the product for distribution

• How much inventory should they produce?

Deliver

• Where the company decides what distribution carrier to use in order to successfully get their orders fulfilled.

• How fast can they get their products to their consumers?

• Involves how the company is going to receive their payments.

Return

• Involves the products that the customers are not satisfied with that get sent back to the company.

• Are the customers satisfied with their service?

History of an SCM system:

• 1960’s- First inventory software developed

• 1970’s- Material Requirements Planning was introduced.

• 1980’s- Market demand increased which led to managing material flow through SCM systems.

• 1990’s-NOW- SCM systems are more technologically enabled.

Oracle SCM:

• Forecasting• Innovating Logistics• Benefits

– Predictability– Adapting and

Innovating– Alignment

Oracle’s Customer Results

• Improving productivity

• Reducing their costs

• Decreasing processing time

• Cutting errors

• Increasing volume discounts

SCM vs. ERP

• ERP integrates all functions of a business in a unified manner.

• SCM is a more specialized system.

ERP Business Functions:

Points of differences:

• Comprehensive

• Complexity

• Sourcing Tables

• Handling of Constraints

• Functionality

• Speed of processing requests

HR Marketing

Accounting Operations

Finance

Accounting Operations

SCM System

ERP System

MarketingHuman Resources

Finance

Model of ERP and SCM systems working together:

Supply Chain Concept

• http://www.youtube.com/watch?v=oMVvVrg3NWE&feature=related