BIS 255-Chapter 11 Part One

An application used in all functions of a business that supports decision making throughout the organization
EX: an enterprise resource planning system is used to coordinate operations, resources, and decision making between manufacturing, production, marketing, and human resources

An integrated network consisting of an organization, its suppliers, transportation companies, and brokers used to deliver goods and services to customers.
exist in both service and manufacturing organizations, although the chain's complexity can vary widely in different organizations and industries

Major links: suppliers, manufacturing facilities, distribution centers, and customers

Organizations can include real estate, the travel industry, temporary labor, and advertising
major links: suppliers(service providers), distribution centers(such as travel agencies), and customers

The process of working with suppliers and other partners in the supply chain to improve procedures for delivering products and services
SCM system coordinates the following functions:-procuring materials (can include resources and information, for example, in service organizations)-transforming materials into intermediate and finished products or services-distributing finished products or services to customers

-product flow: management activities in this area trace the movement of goods from suppliers to customers; customer service and support are included in this flow-information flow: management activities in this area involve overseeing order transmissions and delivery status updates; this area encompasses the entire order-processing cycle-finances flow: management activities in this area consist of handling credit terms, payment schedules, and consignment and title ownership arrangements

-location: where should manufacturing facilities be placed?-inventory: when should an order be placed? how much should be ordered?-production: what should be produced? how much should be produced?-transportation: which transportation systems will reduce costs and expedite the delivery process

Solutions include: SAP Oracle JDA Software Ariba Manhattan Associates

Enables business partners to send and receive information on business transactions.
many companies substitute EDI for printing, mailing, and faxing paper documents, such as purchase orders, invoices, and shipping notices

-transaction acknowledgements-financial reporting-invoice and payment processing-order status-purchasing-shipping and receiving-inventory management and sales forecasting

Using the internet and web protocols for EDI lowers the cost of transmitting documents-includes more security risks than traditional EDI

Improves information sharing throughout the supply chain, which helps reduce costs for information transmission and improve customer service

-purchasing/procurement: purchasing and paying for goods and services online, bargaining and renegotiating prices and term agreements, using global procurement strategies-inventory management: providing real-time stock information, replenishing stock quickly and efficiently, tracking out of stock items-transportation: customers using the internet for shipping and delivery information-order processing: checking order placement and order status, improving the sped and quality of order processing, handling returned gods and out of stock notifications to customers-customer service: responding to customers' complaints, issuing notifications (such as product recalls), providing around the clock customer service-production scheduling: coordination just in time inventory programs with vendors and suppliers, coordinating production schedules between companies and their vendors and suppliers, conducting customer demand analysis

A third-party exchange (a B2B business model) that provides a platform for buyers and sellers to interact with each other and trade more efficiently online
help businesses maintain a competitive edge by increasing efficiency and effectiveness in the supply chain

-providing opportunities for sellers and buyers to establish new trading partnerships-providing a single platform for prices, availability, and stock levels that's accessible to all participants-solving time constraint problems for international trade and making it possible to conduct business around the clock-making it easy to compare prices and products form a single source instead of spending time contacting each seller-reducing marketing costs more than traditional sales channels can