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CMB 636 Week 3 Chapters 10 - 12. Instructor Takis Kinis. Slides are compiled from our text. Chapter 12. SUPPLY CHAIN MANAGEMENT. The average company spends nearly half of every dollar that it earns on production

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Cmb 636 week 3 chapters 10 12

CMB 636 Week 3Chapters 10 - 12

Instructor

Takis Kinis




Supply chain management
SUPPLY CHAIN MANAGEMENT

  • The average company spends nearly half of every dollar that it earns on production

  • In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains


Basics of supply chain
BASICS OF SUPPLY CHAIN

  • The supply chain has three main links:

    • Materials flow from suppliers and their “upstream” suppliers at all levels

    • Transformation of materials into semifinished and finished products through the organization’s own production process

    • Distribution of products to customers and their “downstream” customers at all levels


Basics of supply chain1
BASICS OF SUPPLY CHAIN

  • Organizations must embrace technologies that can effectively manage supply chains



Information technology s role in the supply chain
INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN

  • IT’s primary role is to create integrations or tight process and information linkages between functions within a firm


Information technology s role in the supply chain1
INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN

  • Factors Driving SCM


Visibility
Visibility

  • Supply chain visibility – the ability to view all areas up and down the supply chain

  • Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain


Consumer behavior
Consumer Behavior

  • Companies can respond faster and more effectively to consumer demands through supply chain enhances

  • Demand planning software – generates demand forecasts using statistical tools and forecasting techniques


Competition
Competition

  • Supply chain planning (SCP)software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain

  • Supply chain execution (SCE) software – automates the different steps and stages of the supply chain


Competition1
Competition

  • SCP and SCE in the supply chain


Speed
Speed

  • Three factors fostering speed


Supply chain management success factors
SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS


Supply chain management success factors1
SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

  • SCM industry best practices include:

    • Make the sale to suppliers

    • Wean employees off traditional business practices

    • Ensure the SCM system supports the organizational goals

    • Deploy in incremental phases and measure and communicate success

    • Be future oriented


Scm success stories
SCM SUCCESS STORIES

  • Top reasons why more and more executives are turning to SCM to manage their extended enterprises


Scm success stories1
SCM SUCCESS STORIES

  • Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains

  • DSSs allow managers to examine performance and relationships over the supply chain and among:

    • Suppliers

    • Manufacturers

    • Distributors

    • Other factors that optimize supply chain performance




Customer relationship management crm
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

  • CRM enables an organization to:

    • Provide better customer service

    • Make call centers more efficient

    • Cross sell products more effectively

    • Help sales staff close deals faster

    • Simplify marketing and sales processes

    • Discover new customers

    • Increase customer revenues


Recency frequency and monetary value
RECENCY, FREQUENCY, AND MONETARY VALUE

  • An organization can find its most valuable customers by using a formula that industry insiders call RFM:

    • How recently a customer purchased items (recency)

    • How frequently a customer purchases items (frequency)

    • How much a customer spends on each purchase (monetary value)



The ugly side of crm why crm matters more now than ever before
THE UGLY SIDE OF CRM: WHY CRM MATTERSMORE NOW THAN EVER BEFORE


The ugly side of crm why crm matters more now than ever before1
THE UGLY SIDE OF CRM: WHY CRM MATTERSMORE NOW THAN EVER BEFORE



Using analytical crm to enhance decisions
USING ANALYTICAL CRM TO ENHANCE DECISIONS

  • Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

  • Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers


Using analytical crm to enhance decisions1
USING ANALYTICAL CRM TO ENHANCE DECISIONS

  • Operational CRM and analytical CRM


Customer relationship management success factors
CUSTOMER RELATIONSHIP MANAGEMENT SUCCESS FACTORS

  • CRM success factors include:

    • Clearly communicate the CRM strategy

    • Define information needs and flows

    • Build an integrated view of the customer

    • Implement in iterations

    • Scalability for organizational growth



Enterprise resource planning erp
ENTERPRISE RESOURCE PLANNING (ERP)

  • At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system


Enterprise resource planning erp1
ENTERPRISE RESOURCE PLANNING (ERP)

  • ERP systems automate business processes


Bringing the organization together
BRINGING THE ORGANIZATION TOGETHER

  • ERP – bringing the organization together


Bringing the organization together1
BRINGING THE ORGANIZATION TOGETHER

  • ERP – bringing the organization together



Integrating scm crm and erp
INTEGRATING SCM, CRM, AND ERP

  • SCM, CRM, and ERP are the backbone of e-business

  • Integration of these applications is the key to success for many companies

  • Integration allows the unlocking of information to make it available to any user, anywhere, anytime


Integrating scm crm and erp1
INTEGRATING SCM, CRM, AND ERP

  • SCM and CRM market overviews


Integrating scm crm and erp2
INTEGRATING SCM, CRM, AND ERP

  • General audience and purpose of SCM, CRM and ERP


Integration tools
INTEGRATION TOOLS

  • Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together

    • Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications

    • Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors


Integration tools1
INTEGRATION TOOLS

  • Data points where SCM, CRM, and ERP integrate


Enterprise resource planning erp2
ENTERPRISE RESOURCE PLANNING (ERP)

  • ERP systems must integrate various organization processes and be:

    • Flexible

    • Modular and open

    • Comprehensive

    • Beyond the company


Enterprise resource planning s explosive growth
ENTERPRISE RESOURCE PLANNING’S EXPLOSIVE GROWTH

  • SAP boasts 20,000 installations and 10 million users worldwide

  • ERP solutions are growing because:

    • ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses

    • ERP addresses the need for global information sharing and reporting

    • ERP is used to avoid the pain and expense of fixing legacy systems



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