Supply Chain Management Systems
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Transcript of Supply Chain Management Systems
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