Introduction to Enterprise Resource Planning
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The document provides an introduction to enterprise resource systems, focusing on key areas like customer relationship management (CRM), enterprise resource planning (ERP), and supply chain management (SCM). It describes their functions, benefits, challenges, and current trends, emphasizing their importance in business operations. The document highlights the integrated nature of these systems in enhancing efficiency, customer service, and decision-making while outlining the potential pitfalls in their implementation.
Introduction to Enterprise Resource Planning
- 2. 2 Learning Objectives Identify the following aspects of customer relationship management (CRM), enterprise resource management (ERP), and supply chain (SCM) mgt systems: Business processes supported Customer and business value provided Potential challenges and trends 2
- 3. Customer Relationship Management (CRM) – The Business Focus
- 5. 5 What Does CRM Do For An Organization? Provides customer‐facing employees with a single, complete view of every customer at every touch point and across all channels Provides the customer with a single, complete view of the company and its extended channels Integrates and automates many of the customer serving processes Creates an IT framework of Web‐enabled software & databases that integrates these processes with the rest of the company’s business operations 5
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- 8. 8 CRM Benefits And Challenges Allows a business to identify its best customers Makes possible real‐time customization & personalization of products & services based on customer wants, needs, buying habits, & life cycles Enables a company to provide consistent customer service experience across the organization 8
- 10. 10 Trends in CRM Operational CRM Analytical CRM Collaborative CRM Portal‐based CRM 10
- 11. Enterprise Resource Planning (ERP): The Business Backbone
- 13. 13 Enterprise Resource Planning Serves as a cross‐functional enterprise backbone that integrates & automates many internal business processes and information systems Helps companies gain the efficiency, agility, & responsiveness needed to succeed today Gives a company an integrated real‐time view of its core business processes 13
- 14. 14 Enterprise Resource Planning (continued) ERP software suites typically consist of integrated modules of… Manufacturing Distribution Sales Accounting Human Resource Management 14
- 15. 15 Benefits of ERP Systems Quality and efficiency Helps improve the quality and efficiency of customer service, production, & distribution by creating a framework for integrating and improving internal business processes Decreased Costs Reductions in transaction processing costs and hardware, software, and IT support staff Decision support Provides cross‐functional information on business performance to assist managers in making better decisions Enterprise agility Results in more flexible organizational structures, managerial responsibilities, and work roles 15
- 16. 16 Biggest Challenge of ERP Costs of ERP The costs and risks of failure in implementing a new ERP system are substantial. 16
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- 18. 18 Causes of ERP Failures Underestimating the Trying to do too much, too complexity of the planning, fast development, and training Insufficient training required Believing everything the Failure to involve affected software vendors and/or employees in the planning & consultants say development phases and change management programs 18
- 19. 19 Trends In Enterprise Resource Planning Flexible ERP Web‐enabled ERP Inter‐Enterprise ERP E‐Business Suites 19
- 20. Supply Chain Management: The Business Network
- 22. 22 Supply Chain Management A cross‐functional inter‐enterprise system that uses IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners. Goal is to create a fast, efficient, & low‐cost network of business relationships. 22
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- 24. 24 What Do Supply Chain Management Tools Do? Supply chain management tools enable managers to make informed business Supply Chain Management Definition decisions about the operation of their supply chain Supply chain management tools facilitate Supply Chain planning and production scheduling Management based on known business constraints Overview 24
- 25. 25 SCM Capacity Constraints Managing a supply chain would be easy if we had unlimited resources “How do I decide what to do on which piece of equipment, and when?” Can only drill one piece of metal at a time -- OR -- Computer processing and storage capacity not infinite Supply Chain Manager 25
- 26. 26 SCM Tools levels SCM Service Offering Strategic Planning Network Design Demand Planning Supply Planning Production Planning Tactical Planning Warehouse Management Transportation Management Order Management Inventory Management Operational Planning Event Management Real time / Hours / Weeks / Quarters Years Minutes Days Months Supply Chain Planning Tools Supply Chain Execution Tools Source: BAH 26
- 27. 27 Supply Chain Planning Process Demand Planning Anticipate demand based on historical trends and current conditions Network Design Perform what if analysis Design where to place - highlight the impact Production Planning Production Scheduling production facilities of changing demand drivers Decompose the supply Optimize processing and optimize the end plan into sub flows, sequence, and to end chain assembly / production timing Construct alternate flow needs by site Produce a finite scenarios that Balance production capacity production incorporate Supply Planning capacity across sites schedule associated constraints Balances unconstrained demand against high level supply chain constraints Reflect order priority and due dates Planning Weeks / Hours / Years Quarters Horizon Months Days 27
- 28. 28 Supply Chain Execution Process Inventory Warehouse Transportation Order Management Management Management Management Record customer Streamline information Optimization Optimize and orders and track movement and status from receipt provide tight and track outbound to final delivery inventory control Direct efficient Inventories management of and inbound response to orders replenished using warehouse shipping with dynamic cost / kanban, min-max, or benefit analysis of reorder point processes options Event Management Monitorand manage critical planning and event information Broadcast alert notification and present response alternatives based on pre determined business rules 28
- 29. 29 SCM Vendors Although each of the vendors claim to provide an end to end solution, they actually fall into two distinct camps Leading SCM Vendors First are the ERP vendors who provide a ERP Focused SCM Focused strong solution for integrating the data environment and providing visibility Oracle i2 Second are the SCM vendors who SAP Manugistics provide robust optimization solutions JD Edwards Aspentech In combination, with an ERP vendor Peoplesoft Logility providing the data environment and a Invensys / Baan SCM vendor providing the optimization solution, you can achieve a very elegant solution 29
- 30. 30 Benefits of Supply Chain Management Can provide faster, more accurate order processing reductions in inventory levels quicker time to market lower transaction and materials costs strategic relationships with suppliers 30
- 31. 31 Challenges of Supply Chain Management Lack of proper demand planning knowledge, tools, and guidelines Inaccurate or overoptimistic demand forecasts Inaccurate production, inventory, and other business data Lack of adequate collaboration 31
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