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Information is the driver that serves as the glue to create a coordinated supply chain Information must have the following characteristics to be useful:
Effective use of IT in the supply chain can have a significant impact on supply chain performance
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)
Supply Chain Management (SCM) Systems A typical SCM system might address the following issues:
Planning Vendor selection Manufacturing Logistics Customer relationship
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
Customer Relationship Management (CRM) The processes that take place between an enterprise and its customers downstream in the supply chain Key processes:
Marketing Selling Order management Call/Service center
Send your data over the Internet securely, using Virtual Private Network (VPN) technology
PSDN VPN
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There must be strong integration between the ISCM and CRM macro processes
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Earlier systems focused on automation of simple transactions and the creation of an integrated method of storing and viewing data across the enterprise
Real value of the TMF exists only if decision making is improved The extent to which the TMF enables integration across the three macro processes determines its value
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Select an IT system that addresses the companys key success factors Take incremental steps and measure value