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Chapter 1 Information
Technology and Supply
Chain Management

              SCM 614
            Dr. Huei Lee
     Eastern Michigan University

     Copyright© 2003-2007, Huei Lee
Stockless Inventory Compared to Traditional and
          Just-in-time Supply Methods
Information Technology for
Supply Chain Management
   Software Systems
       Electronic Data Interchange (EDI)
       Material Requirements Planning (MRP)
       Manufacturing Resource Planning (MRP II)
       Enterprise Resource Planning (ERP)
       Supply Chain Management Systems (SCM)
       Customer Relationship Management (CRM)
       Internet-based Software
   Network Infrastructure
       Wide Area Network
       Internet (for E-commerce: B2B, B2C)
III. ERP
Enterprise Resource Planning
(ERP) Systems
    Enterprise resource planning (ERP) is a
     term used to refer to a system that links
     individual applications (for example,
     accounting and manufacturing applications)
     into a single application that integrates the
     data and business processes of the entire
     business.
IT in SCM
Major ERP Systems
   SAP
   Oracle
IV. Supply Chain Systems
Supply Chain Management
(SCM) Systems
   The two basic types of SCM system software are:
   Supply Chain Planning software (SCP): uses
    mathematical models to predict inventory levels
    based on the efficient flow of resources into the
    supply chain
   Supply Chain Execution software (SCE): is used
    to automate different steps in the supply chain such
    as automatically sending purchase orders to vendors
    when inventories reach specified levels
Major Supply Chain Planning
(SCP) Players
   Oracle
   SAP
       Advanced Planner and Optimizer (APO)
Levels of SAP APO


   Supply Network Design (SND)
   The Supply Chain Cockpit (SCC)
   Demand Planning (DP)
   Supply Network Planning (SND)
   Collaborative Planning,
   Forecasting, and Replenishment
   (CPFR)
   …
                                    SAP R/3
IT in SCM
PARTIAL SAP CLIENT LIST




  Spacenet
Some SAP Products

   APO
   Customer Relationship Management
    (CRM)
   Business process improvement (BPI)
   Strategic Enterprise Management (SEM)
   Business Warehouse (BW)
V. Hardware Considerations
for SCM systems
Intranet vs. Extranet
   Intranet is to use Internet technology
    and protocol (TCP/IP) for the internal
    communications
   Extranet is to use Internet technology
    and protocol for the internal and
    suppliers’ communications
Network Infrastructure: Wide
        Area Networks (WANs)
   WAN Technologies
       Ordinary telephone line and telephone modem.
       Send your data over the Internet securely, using
        Virtual Private Network (VPN) technology




                                               VPN

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IT in SCM

  • 1. Chapter 1 Information Technology and Supply Chain Management SCM 614 Dr. Huei Lee Eastern Michigan University Copyright© 2003-2007, Huei Lee
  • 2. Stockless Inventory Compared to Traditional and Just-in-time Supply Methods
  • 3. Information Technology for Supply Chain Management  Software Systems  Electronic Data Interchange (EDI)  Material Requirements Planning (MRP)  Manufacturing Resource Planning (MRP II)  Enterprise Resource Planning (ERP)  Supply Chain Management Systems (SCM)  Customer Relationship Management (CRM)  Internet-based Software  Network Infrastructure  Wide Area Network  Internet (for E-commerce: B2B, B2C)
  • 5. Enterprise Resource Planning (ERP) Systems  Enterprise resource planning (ERP) is a term used to refer to a system that links individual applications (for example, accounting and manufacturing applications) into a single application that integrates the data and business processes of the entire business.
  • 7. Major ERP Systems  SAP  Oracle
  • 9. Supply Chain Management (SCM) Systems  The two basic types of SCM system software are:  Supply Chain Planning software (SCP): uses mathematical models to predict inventory levels based on the efficient flow of resources into the supply chain  Supply Chain Execution software (SCE): is used to automate different steps in the supply chain such as automatically sending purchase orders to vendors when inventories reach specified levels
  • 10. Major Supply Chain Planning (SCP) Players  Oracle  SAP  Advanced Planner and Optimizer (APO)
  • 11. Levels of SAP APO Supply Network Design (SND) The Supply Chain Cockpit (SCC) Demand Planning (DP) Supply Network Planning (SND) Collaborative Planning, Forecasting, and Replenishment (CPFR) … SAP R/3
  • 13. PARTIAL SAP CLIENT LIST Spacenet
  • 14. Some SAP Products  APO  Customer Relationship Management (CRM)  Business process improvement (BPI)  Strategic Enterprise Management (SEM)  Business Warehouse (BW)
  • 16. Intranet vs. Extranet  Intranet is to use Internet technology and protocol (TCP/IP) for the internal communications  Extranet is to use Internet technology and protocol for the internal and suppliers’ communications
  • 17. Network Infrastructure: Wide Area Networks (WANs)  WAN Technologies  Ordinary telephone line and telephone modem.  Send your data over the Internet securely, using Virtual Private Network (VPN) technology VPN