Systems can support a business at two levels: one is it can support the business operation and another it can support the decision process. System support aims at cost reduction through increase in productivity, improved customer service, improved decisions through more accurate input data and integration of various functions through a common database. Several softwares in Enterprise Resource Planning have immensely contributed to an efficient distribution management in an enterprise. All these ERP-related software packages provide studies on existing processes and procedures, information and material flow patterns, workloads at various points, organization structure, existing systems in place and number of persons using them.

1. Chapter-04
Systems in Distribution
Management
Systems in Distribution Management

2. System Support
• Increased complexities in logistics
functions computer and system supports
are an integral part of the distribution
process
• Can be at two levels
1. System supporting the operation
2. System supporting the decision process
Systems in Distribution Management

3. Aims of system support
• Cost reduction through increase in
productivity
• Improved customer service
• Improved decisions through more accurate
input data
• Integrate various functions through a
common data base
Systems in Distribution Management

4. Software programmes
• One stage application programs, served
limited purpose of speeding up individual
operations, maintaining accuracies in
those respective areas.
• Cross functional integration of information
such as stock records and sales records
or the two functions ran software which
were separate and not interconnected
Systems in Distribution Management

5. ERP
• Enterprise resource planning have
contributed enormously to this initiative
• ERP software packages, such as SAP, J
D Edwards, Oracle prepares a brief of the
integration and information needs
Systems in Distribution Management

6. ERP
• The packages provides studies on
– The existing processes and procedures
– The information and material flow patterns
– The workloads at various points
– The organization structure
– The existing systems in place
– The IT language platform in use
– No. of persons using system
Systems in Distribution Management

7. IT head should collect following
details
• All tasks and activities that are followed in
the organization
• The linkages between several functions
• The dependence of any task in one
function on another task
• Evaluate the activities and procedures in
the light of industry best standards
Systems in Distribution Management

8. IT head should collect following
details
• Estimate the type and extent of master
data to be created
• Agree on the system disciplines that will
be required to be maintained.
Systems in Distribution Management

9. ERP System will help organization
in
• Happening online, which in other words
mean, any task taking place anywhere will
be in the system
• Will enable the company to have real time
data, because the task taking place on
the system is being recorded as data
Systems in Distribution Management

10. Example 1 of optimizers
Factory
1 Guwahati
C&FA
CWH
Factory
2
Systems in Distribution Management

11. Example 2 of optimizers
Factory
1
Guwahati
CWH
Kolkata
Factory
2 Hyderabad
Systems in Distribution Management

12. Implementing technology means
• Extending the ambit of real time, online
transaction processing, backwards up to
suppliers.
• Hooking up the sales/delivery/stock
system of the distributor, or retailer.
• Such initiatives com with substantial costs
Systems in Distribution Management

13. Summary
• System support can be at two levels
1. System supporting the operation
2. System supporting the decision process
• ERP software packages, such as SAP, J D
Edwards, Oracle prepares a brief of the
integration and information needs
• Cross functional integration of information such
as stock records and sales records or the two
functions ran software which were separate and
not interconnected
Systems in Distribution Management