Information Technology for Supply Chain Management 1.Electronic Data Interchange (EDI) 2.Material Requirements Planning (MRP) 3.Manufacturing Resource Planning (MRP II) 4.Enterprise Resource Planning (ERP) 5.Supply Chain Management Systems (SCM) 6.Customer Relationship Management (CRM) 7.Internet-based Software

1. Siddharth Kumar Rai
siddharthkumarrai45@gmail.com
9560331260
Siddharth is an accomplished professional with 7.5+ years of experience in Project
Management, Business Analysis, Client Relationship Management, Requirements Elicitation,
Designing & Optimizing Workflows, Gap Analysis, Change Management, Software
Documentation, Stakeholder Management. Experience in delivering multiple IT Projects
within scope, time and cost parameters in coordination with Onshore or Offshore
Developers, Business Analysts, Test Analysts and Third-Party Vendors.
Professional Synopsis
Demonstrated track record of accomplishing program/product objectives by overseeing
multiple project activities across Schedule Management (definition and sequencing of tasks,
resource estimation, duration estimation, schedule development, and schedule control
activities), Integration Management (project plan development, project plan execution, and
integrated change control activities), Scope Management (project initiation, scope planning,
scope definition and scope change control activities), Risk Management, Resolving Project
Impediments, Facilitating Audit Clearance, Project Reporting, Determining System
Improvements & Change Implementation.

2. I. What is SCM?

3. Supply Chain Management
(SCM) Systems
 SCM is the process of effectively
managing the components of an
extended value chain--from suppliers,
through manufacturing and distribution
chain, and to the consumers.
 SCM information systems use technology to
more effectively manage supply chains

4. Why Supply Chain
Management?
Parts $5,000
Labor 4000
Overhead 2000
Management
Marketing 3000
Total Cost $14,000
1950-1980s Manufacturing
• 50 years ago, U.S. is the only country
that can manufacture cars.
● You buy a car from GM, all the money
will go to the GM.
1980-2000s Supply Chain
Management
• Today, foreign parts and labors are
much cheaper than that in US.
● You buy a car from GM, only a portion
of money will go to the GM.

5. Value Chain Analysis

6. Benefits of Value Chain Analysis -
Disintermediation to the Consumer
Manufacturer
Manufacturer
Manufacturer
Distributor Retailer
Retailer
Customer
Customer
Customer
Cost/
Sweate
r
$48.50
$40.34
$20.45

7. Service
 The concept of Supply Chain
Management is also applied to Service.
 Business Process Management or
Business Process Reengineering

8. Stockless Inventory Compared to Traditional and
Just-in-time Supply Methods

9. II. Information Systems for
SCM

10. 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)

11. III. ERP

12. 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.

14. Origins of ERP Systems
 ERP systems grew out of a function called materials
requirements planning (MRP) which was used to
allocate resources for a manufacturing operation
 MRP systems software ultimately became very
complex allowing for efficiencies of scale not
previously possible
 Even more sophisticated MRP II systems began to
replace MRP systems in the 1980s
 By the early 1990s, other enterprise activities were
being incorporated into ERP systems

15. Origins of ERP Systems
 Today, an ERP system can encompass,
but is not limited to, the following
functions:
 Sales and order entry
 Raw materials, inventory, purchasing,
production scheduling, and shipping
 Accounting
 Human resources
 Resource and production planning

16. Major ERP Systems
 SAP R/3
 Oracle
 PeopleSoft (have been merged by
Oracle)
 Toyota uses PeopleSoft and SAP
 Microsoft Dynamics (formerly Microsoft
Business Solutions - Great Plains)

17. E-Business and ERP Systems
 An e-business must keep track of and process a
tremendous amount of information
 Businesses realized that much of the information they
needed to run an e-business — stock levels at
various warehouses, cost of parts, projected shipping
dates — could already be found in their ERP system
databases
 A major part of the online efforts of many e-
businesses involved adding Web access to an existing
ERP system

18. E-Business and ERP Systems
 Many e-businesses want the same
things from their business
infrastructure
 Thus, rather than custom build
applications, many companies prefer
to use prepackaged ERP system
software, which is often more efficient
and less expensive to implement

19. Cost of Implementing ERP
Systems
 Most businesses need extensive help from
consultants to configure their ERP system
software around their existing business
practices, or to suggest changes in business
practices in order to better fit the ERP system
requirements
 This process of mutual adaptation is called
systems integration
 The consultants who supervise the
integration process are often referred to as
systems integrators

20. Outsourcing ERP Systems
 One response to the challenge of
managing a complex ERP system is to
outsource it
 Some businesses choose to outsource
not only the installation but also the
ERP system software

21. IV. Supply Chain Systems

22. Supply Chain Management
(SCM) Systems
 A typical SCM system might address the
following issues:
 Planning
 Vendor selection
 Manufacturing
 Logistics
 Customer relationship

23. Supply Chain Management
(SCM) Systems

24. Supply Chain Management
(SCM) Systems
 With the advent of the Internet, e-businesses
began to demand different things from their
SCM systems
 Most importantly, SCM systems vendors
(largely the same vendors that provide ERP
systems software) had to modify their
products to include a Web-based interface
 The ultimate goal of a business ERP system is
complete optimization of internal business
processes

25. 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

26. Major Supply Chain Planning
(SCP) Players
 i2 Technologies
 i2’s strength began with its powerful
Advanced Planning and Scheduling (APS)
 Manugistics
 Oracle
 SAP
 Advanced Planner and Optimizer (APO)

27. SAP Advanced Planner and
Optimizer (APO)

28. Supply Network Design (SND)
The Supply Chain Cockpit (SCC)
Demand Planning (DP)
Supply Network Planning (SND)
Collaborative Planning,
Forecasting, and Replenishment
(CPFR)
…
Levels of SAP APO
SAP R/3

29. Oracle Supply Chain Planning
 Oracle Supply Chain Planning is part of the
Oracle E-Business Suite's family of Supply
Chain Management solutions
 It includes
 Demand Planning
 Collaborative Planning
 Inventory Optimization
 Manufacturing Scheduling, and
 Global Order Promising

30. Customer Relationship
Management (CRM) Systems
 Customer relationship management (CRM)
systems, sometimes called e-CRM systems,
use technology to help an e-business manage
its customer base
 CRM allows an e-business to match customer
needs with product plans and offerings,
remind customers of service requirements,
and determine what products a customer has
purchased

31. V. CRM

33. Salesforce.com

34. Muiti-channels CRM

35. Data Mining/Web
Mining/Business Intelligence
 Data mining is the process of using
mathematical techniques to look for
hidden patterns in groups of data,
thereby discovering previously unknown
relationships among the many pieces of
information stored in a database
 A data warehouse is a database that
contains huge amounts of data, such as
customer and sales data

36. What does Data Mining Do?
Explores
Your Data
Finds
Patterns
Performs
Predictions
Query, Reporting,
Analysis
Data Mining
Why
How
What

37.  Data acquisition from
source systems and
integration
 Data transformation
and synthesis
 Data enrichment,
with business logic,
hierarchical views
 Data discovery via
data mining
 Data presentation
and distribution
 Data access for
the masses
Integrate Analyze Report

38. SQL Server 2005 Algorithms
Decision Trees Clustering Time Series
Sequence
Clustering
Association Naïve Bayes
Neural Net
Plus: Linear
and Logistic Regression

39. Relationship among SCM, ERP,
CRM
SCM ERP
CRM
Broader SCM

40. V. SAP R/3

43. PARTIAL SAP CLIENT LIST
Spacenet

44. BEFORE SAP R/3
Systems didn’t talk to the extent processes
required, in spite of 20 years of IS labor
Human glue was required:
 to fill-in where systems don’t talk
 to reconcile multiple views of data to arrive at an
“answer”
 to monitor “hold-points” to ensure procedures are
followed amidst the disorganization of being part
paper and part automated
 to bridge systems and paper processes

45. Pump/Motor Run
Time
Work Order
System
Catalog
Accounts Payable
Disbursements
Real Property
DOE FIMS
DOE DISCAS
Purchasing
General Ledger
Bench Stock
Control
Bar Coding
Fixed Assets
Inventory Control
System
Off-site Vendor
Custody
Payroll
Personnel
Paper
Journal
Entry
Request
Paper
Paper
receivers
Paper
Invoices
Paper
parts
order
Paper
Purchase
Requisition
Legacy System
Legend
Centra EDM/PDM
Engineering
Change Control
Log
Paper
ECP
Paper
Contract
MRP Models
batch file
batch file
batch file
batch file
Paper
Stock
level
decision
Security
Training
Paper
checks
Artemis Project
Fund Accounting
Primavera
Schedules
Paper
milestone
definitions
Logistics Support
Analysis

46. Logistics Support
Analysis
Pump/Motor Run
Time
Work Order
System
Catalog
Accounts Payable
Disbursements
Security
Real Property
DOE FIMS
DOE DISCAS
Purchasing
General Ledger
Bench Stock
Control
Bar Coding
Fixed Assets
Inventory Control
System
Off-site Vendor
Custody
Payroll
Personnel
Paper
Records
Journal
Entry
Request
Paper
Paper
receivers
Paper
Invoices
Paper
parts
order
Paper
Purchase
Requisition
Legacy System
Legend
Centra EDM/PDM
Engineering
Change Control
Log
Paper
ECP
Paper
Contract
MRP Models
batch file
batch file
batch file
batch file
Paper
Stock
level
decision
Training
Paper
checks
Artemis Project
Fund Accounting
Primavera
Schedules
Paper
milestone
defnitions
Human
Glue

47. PROCESS EFFICIENCY
Realized through ability to reduce the
personnel requirements to perform the
process
Transfer into processes that were able to
meet customer requirements

48. 1
SAP R/3
 Omni-functional
 Fully integrated
 Process-oriented
 Off-the-shelf
THE KEY ENABLER: ONE SYSTEM
SAP R/3
Single Central
Database
Financial
Accounting
Controlling
Fixed
Assets
Mgt.
Workflow
Exec.
Information
& Report
Writer
Materials
Mgt.
Sales &
Distribution
Production
Planning
Quality
Mgt.
Project
System
Plant
Maintenance
Human
Resources
FI
CO
AM
PS
MM
PM
HR
WF
PP
SD
QM

49. Some SAP Products
 R/3
 APO
 Customer Relationship Management
(CRM)
 Business process improvement (BPI)
 Strategic Enterprise Management (SEM)
 Business Warehouse (BW)

50. VI. SCM/ERP for Small Businesses
– Microsoft Dynamics

51. Microsoft Dynamics
Screenshot

52. Microsoft Dynamics
 Formerly Microsoft Business Solutions – Great
Plains
 With Microsoft Dynamics, you can bring supply-chain
functions online and make information available for
team collaboration—wherever your employees,
vendors, partners and suppliers are.
 Business portal functionality lets you provide supply-
chain functions, documents, and information to
people across the chain, both inside and outside of
the organization.
 And you can use the same portal technology to let
your executives review and augment performance—
when, where, and how they need to.

53. Why Microsoft Dynamics is for
small businesses?
 Hardware considerations
 Database requirements

54. VI. Information Technology
for for E-Business

55. TOOLS FOR WEB PAGE DEVELOPMENT &
SITE MAINTENANCE
 Languages:
 HTML
 CGI (Common Gateway Interface)
 CSS (Cascading Style Sheets)
 Javascript
 Java (Java Applet)
 XML/XSL
 Software:
 Front Page
 Microsoft Word
 Macromedia Flash Player
 http://www.macromedia.com/software/flash/
 Macromedia Dreamweaver

56. V. Hardware Considerations
for SCM systems

57. 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

58. Network Infrastructure: Wide
Area Networks (WANs)
 WAN Technologies
 Ordinary telephone line and telephone modem.
 Point-to-Point Leased lines (such as T1 line)
 Public switched data network (PSDN)
 Such as ATM, Frame Relay
 Send your data over the Internet securely, using
Virtual Private Network (VPN) technology
PSDN
VPN

59. Global Considerations in Using
SCM/ERP Systems
 Time differences
 Language issues
 Currency exchange rates
 Tax
 Different accounting systems
 Internet and security restrictions
 Culture and religion holidays