idea incubation

M0254 ERPSession #2 – Supply Chain
Jurusan Sistem Informasi
Universitas Bina Nusantara
Supply Chain
Supply chain refers to the flow of materials, information, payments, and services from raw material suppliers, through factories and warehouses (Value Chain), to the final consumer (Demand Chain). It includes tasks such as purchasing, payment flow, materials handling, production planning & control, logistics & warehousing, inventory control, and distribution. When it is managed electronically it is referred to as an e-supply chain.
Supply Chain Flows
Materials flows are all physical products, new materials, and supplies that flow along the chain.
Information flows relates to all data associated with demand, shipments, orders, returns and schedules.
Financial flows include all transfers of money, payments, credit card information, payment schedules, e-payments and credit-related data.
Supply Chains contribute to increased profitability and competitiveness.
Supply Chain – Automotive Supply Chain
Supply Chain – Toy Industry
Supply Chain Components
The supply chain involves three segments:
Upstream, where sourcing or procurement from external suppliers occur
Internal, where packaging, assembly, or manufacturing take place
Downstream, where distribution or dispersal take place, frequently by external distributors
It also includes the movement of information and money and the procedures that support the movement of a product or a service.
Organizations and individuals are also part of the chain.
Supply Chain Clasifications
There are several major types of supply chain
Integrated make-to-stock
Continuous replenishment
Build-to-order
Channel assembly
Supply Chain Problems
Adding value along the chain is essential for competitiveness, however problems exist especially in complex or long chains and in cases where many business partners are involved. These problems are due to uncertainties and the need to coordinate several activities, internal units, and business partners.
Demand forecasts are a major source of uncertainties
Competition
Prices
Weather conditions
Technological development
Customer confidence
Uncertainties exist in delivery times
Machine failures
Road conditions
Shipments
Quality problems may also create production delays
Supply Chain Problems - continue
Supply Chain Solutions
Information sharing among supply chain partners (c-commerce) sometimes referred to as the collaboration supply chain is one method to overcome problems in the flow.
Others are:
Optimal Inventory Levels
Supply Chain Coordination and Collaboration
Supply Chain Teams
Performance Measurement and Metrics
Various IT-Assisted Solutions
wireless technology
optimal shipping plans
strategic partnerships with suppliers
just-in-time
Supply Chain Solutions
Supply Chain Collaboration Management
Every company that has business partners has to manage the relationships with them. Information needs to flow between the firms and constantly updated and shared.
Manual methods include; phone, fax, and mail.
EDI is typically used by large corporations.
EC PRM functions include:
partner profiles
partner communications
lead management (of clients)
targeted information distribution
connecting the extended enterprise
partner planning
centralized forecasting
group planning
e-mail
price lists

Supply Chain Management
Global Supply Chains
Supply chains that involve suppliers and/or customers in other countries are referred to as global supply chains.
Companies go global (disperse the value chain) for a variety of reasons.
lower costs of materials, products, services and labor
availability of products that are unavailable domestically
the firm's global strategy
technology available in other countries
high quality of products
intensification of global competition
the need to develop a foreign presence to increase sales
fulfillment of counter trade
Global supply chains are usually longer than domestic ones, and more complex. Therefore, additional uncertainties are likely.
Computerized Supply Chain
The supply chain process is intertwined with the computerization of its activities. People have wanted to automate the processes along the chain to reduce cost, expedite processing, and reduce errors.
Material requirements planning (MRP) essentially integrates production, purchasing, and inventory management of interrelated products.
Manufacturing resource planning (MRP II), enhanced MRP methodology by adding labor requirements and financial planning.
Enterprise resource planning (ERP) further integrates the transaction processing as well as other routine activities in the entire enterprise.
Integrations continues along several paths
functional areas
Combining transaction processing and decision support
Business intelligence
CRM software
E-Commerce and Supply Chains
E-Commerce and Supply Chains
Computerized Supply Chain
Supply Chain Management Benefits
Tangible benefits:
Inventory reduction
Personnel reduction
Productivity improvement
Order management improvement
Financial-close cycle improvements
IT cost reduction
Procurement cost reduction
Cash management improvements
Revenue/profit increases
Transportation logistics cost reduction
Maintenance reduction
On-time delivery improvement