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Supply Chain Management

Systems
Clover Infotech
What is Supply Chain
Management?
• A cross functional system using
information technology to help manage
some of a company’s key business
processes such as those of its suppliers,
customers, and other business partners.
Process of SCM:
• SCM systems include the flow of
– Raw materials
– Producing products
– Providing service
– Delivering the product to the end consumer.
Goals of an SCM system:

• Speed
• Efficiency
• Reduce Cost
• Improve Supply chain cycle times (to get a
company’s products from concept to
market)
Five Basic Components:
1. Plan
2. Source
3. Make
4. Deliver
5. Return
Plan
• Develop strategies in order to meet
customer’s needs and demands.

• Plan to develop high quality


products with a lower cost at a fast
pace.
Source
• Decide where your products will
come from. Who will be your
supplier?

• Helps the company know who


they can rely on to deliver their
products in a timely manner.
Make
• Where the source is going to
manufacture their product.

• Includes scheduling, testing,


packaging, and preparing the
product for distribution

• How much inventory should they


produce?
Deliver
• Where the company decides what
distribution carrier to use in order to
successfully get their orders fulfilled.

• How fast can they get their products to


their consumers?

• Involves how the company is going to


receive their payments.
Return
• Involves the products that the
customers are not satisfied with
that get sent back to the
company.

• Are the customers satisfied with


their service?
History of an SCM system:

• 1960’s- First inventory software developed


• 1970’s- Material Requirements Planning
was introduced.
• 1980’s- Market demand increased which
led to managing material flow
through SCM systems.
• 1990’s-NOW- SCM systems are more
technologically enabled.
Oracle SCM:
• Forecasting
• Innovating Logistics
• Benefits
– Predictability
– Adapting and
Innovating
– Alignment
Oracle’s Customer Results

• Improving productivity
• Reducing their costs
• Decreasing processing time
• Cutting errors
• Increasing volume discounts
SCM vs. ERP

• ERP integrates all functions of a business


in a unified manner.

• SCM is a more specialized system.


ERP Business Functions:
Points of differences:
• Comprehensive
• Complexity
• Sourcing Tables
• Handling of Constraints
• Functionality
• Speed of processing requests
Accounting Operations

HR Finance Marketing
Model of ERP and SCM systems working together:

Accounting Finance Operations Human Marketing


Resources

SCM
System

ERP
System