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Concepts and Definitions:

Concepts and Definitions SUPPLY CHAIN:- supply chain refers to the flow of materials, information, payments, and services from raw material suppliers, through factories and warehouses, to the end customers. A supply chain also includes the organizations and processes that create and deliver products, information, and services to the end customers. tasks involved :-1.purchasing, 2.payment flow, 3.materials handling, 4. production planning and control, 5.logistics and warehousing, 6. inventory control, 7. distribution and delivery

Concepts and Definitions:

Concepts and Definitions SUPPLY CHAIN MANAGEMENT:- The function of supply chain management (SCM) is to plan, organize, and coordinate all the supply chain’s activities. Also refers to a total systems approach to managing the entire supply chain.

Concepts and Definitions:

Concepts and Definitions SCM SOFTWARE. SCM software refers to software intended to support specific segments of the supply chain, especially in manufacturing, inventory control, scheduling, and transportation. This software concentrates on improving decision making, optimization, and analysis.

Concepts and Definitions:

Concepts and Definitions E-SUPPLY CHAIN. When a supply chain is managed electronically, usually with Web-based software, it is referred to as an e-supply chain .

Concepts and Definitions:

Concepts and Definitions SUPPLY CHAIN FLOWS. There are three flows in the supply chain: materials, information, and financial flows. ● Materials flows. These are all physical products, new materials, and supplies that flow along the chain. Included in the materials flows are returned products, recycled products, and materials or products for disposal. ● Information flows. All data related to demand, shipments, orders, returns, schedules, and changes in the above are information flows. ● Financial flows. Financial flows include all transfers of money, payments, credit card information and authorization, payment schedules, e-payments and credit-related data.

Concepts and Definitions:

Concepts and Definitions BENEFITS. The goals of modern SCM are to reduce uncertainty and risks in the supply chain, thereby positively affecting inventory levels, cycle time, business processes, and customer service. All these benefits contribute to increased profitability and competitiveness.

The Components of Supply Chains:

The Components of Supply Chains (1) upstream, where sourcing or procurement from external suppliers occur, (2) internal, where packaging, assembly, or manufacturing take place, and (3) downstream, where distribution or dispersal take place, frequently by external distributors. (4) product life cycle

Types of Supply Chains:

Types of Supply Chains There are several major types of supply chain. These types can be classified into four categories: Integrated make-to-stock, continuous replenishment, build-to-order, channel assembly.

The Supply Chain and the Value Chain:

The Supply Chain and the Value Chain


SUPPLY CHAIN PROBLEMS Problems along the supply chain stem mainly from two sources: (1) from uncertainties, (2) from the need to coordinate several activities, internal units, and business partners. uncertainties :- demand forecast, delivery times , Quality problems

The Evolution of Computerized Supply Chain:

The Evolution of Computerized Supply Chain material requirements planning (MRP) manufacturing resource planning (MRP II), enterprise resource planning (ERP)

Systems Integration:

Systems Integration

Benefits of systems integration:

Benefits of systems integration Tangible benefits: inventory reduction, personnel reduction, Productivity improvement, order management improvement, financial-close cycle improvements, IT cost reduction, procurement cost reduction, cash management improvements, revenue/profit increases, transportation logistics cost reduction, maintenance reduction, on-time delivery improvement.

Benefits of systems integration:

Benefits of systems integration Intangible benefits: information visibility, new/improved processes, customer responsiveness, standardization, flexibility, globalization, business performance.


TYPES OF INTEGRATION There are two basic types of systems integration: internal and external. Internal integration refers to integration between applications, and or between applications and databases, inside a company. For example, one may integrate the inventory control with an ordering system, or a CRM suite with the database of customers.


TYPES OF INTEGRATION External integration refers to integration of applications and/or databases among business partners. An example of this is the suppliers’ catalogs with the buyers’ e-procurement system. External integration is especially needed for B2B and for partner relationship management (PRM) systems . The most obvious external integration is that of linking the segments of the supply chain, and/or connecting the information that flows among the segments.


TYPES OF INTEGRATION Another way of defining value chain integration is as a process of collaboration that optimizes all internal and external activities involved in delivering greater perceived value to the ultimate customer.



What Is ERP?:

What Is ERP? Enterprise resource planning (ERP) or just enterprise systems, is a process of planning and managing all resources and their use in the entire enterprise. ERP’s major objective is to integrate all departments and functions across a company onto a single computer system that can serve all of the enterprise’s needs

The First- Generation ERP:

The First- Generation ERP provides a single interface for managing all the routine activities performed in manufacturing—from entering sales orders, to coordinating shipping, to after-sales customer service As of the late 1990s, ERP systems were extended along the supply chain to suppliers and customers. They can incorporate functionality for customer interaction and for managing relationships with suppliers and vendors, making the system less inward-looking.

The First- Generation ERP:

The First- Generation ERP First-generation ERP aimed at automating routine business transactions. And indeed ERP projects do save companies millions of dollars. The first generation of ERP has traditionally excelled in its ability to manage administrative activities like payroll, inventory, and order processing. The reports generated by first-generation ERP systems gave planners statistics about what happened in the company, costs, and financial performance. Reports from first generation ERP systems provided a snapshot of the business at a point in time. But they did not support the continuous planning that is central to supply chain planning, which continues to refine and enhance the plan as changes and events occur, up to the very last minute before executing the plan.

Post–ERP (Second- Generation ERP):

Post–ERP (Second- Generation ERP) COMBINING ERP WITH SCM-SOFTWARE. The ERP approach is, “ How can I best take or fulfill your order? ” In contrast, the question for SCM software is, “ Should I take your order ?” Thus, the analytical SCM systems have emerged to ERP systems, to provide intelligent decision support or business intelligence capabilities.


BUSINESS PROCESS MANAGEMENT A business process is a collection of activities that take one or more kinds of inputs and create an output. Drivers of business process: Fitting commercial software Streamlining the supply chain Participating in private or public e-marketplaces. Improving customer service. Conducting e-procurement Enabling direct online marketing Reducing cost and improving productivity

Business processes across functional areas and organizational boundaries:

Business processes across functional areas and organizational boundaries

PowerPoint Presentation:

Business process management (BPM) is a new method for restructuring that combines workflow systems and redesign methods. This methodology covers three process categories— people-to-people, systems-to-systems, and systems-to-people interactions—all from a process-centered perspective.



BPM Failures:

BPM Failures FAILURES. high risk, inappropriate change management failure to plan, internal politics, lack of participation and leadership, inflexible software, lack of motivation, lack of top management support.

Product Lifecycle Management (PLM):

Product Lifecycle Management (PLM) Product lifecycle management (PLM) is a business strategy that enables manufacturers to control and share product-related data as part of product design and development efforts and in support of supply chain operations.

How Product Life Cycle Management Works.:

How Product Life Cycle Management Works.


CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Customer relationship management (CRM) recognizes that customers are the core of a business and that a company’s success depends on effectively managing relationships with them. CRM focuses on building long-term and sustainable customer relationships that add value both for the customer and the company

Three major types of CRM activities::

Three major types of CRM activities: operational, analytical, and collaborative. Operational CRM is related to typical business functions involving customer services, order management, invoice/billing, and sales/marketing automation and management. Analytical CRM involves activities that capture, store, extract, process, interpret, and report customer data to a user, who then analyzes them as needed. Collaborative CRM deals with all the necessary communication, coordination, and collaboration between vendors and customers.

eCRM. :

eCRM. The term eCRM (electronic CRM) being used , when customers started using Web browsers, the Internet, and other electronic touch points (e-mail, POS terminals, call centers, and direct sales). three levels of eCRM: (1 ) Foundational services include the minimum necessary services such as site responsiveness (e.g., how quickly and accurately the service is provided), site effectiveness, and order fulfillment. (2) Customer-centered services include order tracking, configuration and customization, and security/trust. These are the services that matter the most to customers. (3) Value-added services are extra services such as dynamic brokering, online auctions, and online training and education.


CUSTOMER SERVICE ON THE WEB. Providing Search and Comparison Capabilities Providing Free Products and Services. Providing Technical and Other Information and Service. Allowing Customers to Order Customized Products and Services Online. Letting Customers Track Accounts or Order Status


TOOLS FOR CUSTOMER SERVICE Personalized Web Pages FAQs. Chat Rooms. E-Mail and Automated Response. Call Centers. Troubleshooting Tools Wireless CRM.

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