Supply Chain Enterprise Resources Planning

1. CHAPTER 4 Supply Chain, Enterprise Resources Planning, and Business Processes Engineering 4-

10. Supply Chain 2 nd Tier Suppliers 2 nd Tier Suppliers 2 nd Tier Suppliers 1 st Tier Suppliers 1 st Tier Suppliers Assembly/ Manufacturing and Packaging Distribution Centers Retailers Customers The Generic Process Upstream Internal Downstream Corrugate Paper Co. Lumber Company Label Manufacturing Grain Producer Processing Facility Distribution Centers Stores Customers The Cereal Manufacturing Process Packaging Grain Cereal Packaged Cereal Box Paperboard Labels

13. The Evaluation of Computerized Aids Inventory Purchasing Production scheduling MRP 1960 Production Management + MRP Finance, labor MRP II 1970 Major Manufacturing Resources + MRP II All internal resources ERP 1980 Coordinated Manufacturing and Service Transactions + ERP Internal customers and suppliers Internal SCM 1990 Extended ERP/SCM + Internal ERP/SCM External suppliers and customers Extended SCM 2000 Extreme/ Integration +

30. Need for Information Integration Business processes across functional areas and organizational boundaries. Distribution Logistics, Services Purchasing Finance R & D Production Sales Distribution Vendors, Suppliers Organization Customers Product development Order fulfillment Planning, resourcing, and control Customer service

35. Ford’s Process Redesign Payment OLD PROCESS Purchasing Ford receiving Accounts payable Supplier Purchase order Copy of purchase order Goods Receiving document Invoice 500 Employees NEW PROCESS Purchasing Ford receiving Accounts payable Supplier Purchase order Goods Payment 125 Employees Data-base

37. Push-based Supply Chain vs. Pull-based Supply Chain PUSH PULL Manufacturer Retail Distribution Center Retail Store Customers Purchase Merchandise Manufacturer Retail Distribution Center Retail Store Customers Purchase Merchandise

40. Networked vs. Hierarchical Organization Hierarchical Organization Networked Organization Formal Highly structured Manage Control Direct Employees a cost Information management -owned Hierarchical Organizations Risk avoidance Individual contributions Informal Loosely structured Delegate/lead Ownership/participation Empower Employees an asset Information shared ownership Flatter Organizations Risk management Team contributions          

41. From Hierarchy to a Network Hierarchical Organization Flattened Organization Network Organization

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