CHAPTER 12 : INTEGRATING THE ORGANIZATION FROM END TO END-ENTERPRISE RESOURCE PLANNING (ERP)

Enterprise resource planning systems serve as the organization's backbone in providing fundamental decision-making support.

The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system's individual application components (called modules), supporting diverse business functions such as accounting, manufacturing, marketing, and human resources.

ERP Integration Data Flow

ERP PROCESS FLOW

THE EVOLUTION OF ERP
ERP

• materials planning
• order entry
• distribution
• general ledger
• accounting
• shop floor control

ENTENDED ERP

• scheduling
• forecasting
• capacity planning
• ecommerce
• warehousing
• logistics

ERP-II

• project management
• knowledge management
• workflow management
• customer relationship management
• human resource management
• portal capability
• integrated financial

INTEGRATING SCM, CRM, AND ERP
= backbone of e-business

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

INTEGRATION TOOLS

middleware :
= several different types of software that sit in the middle of ans provide connectivity between two or more software applications.

= middleware translates information between disparate systems.

enterprise application integration (EAI) middleware:
= represents a new approach to middleware by packaging together commonly used functinally, such as providing prebuilt links to popular enterprise applications.

PRIMARY USERS AND BUSINESS BENEFITS OF STRATEGIC INITIATIVES

INTEGRATIONS BETWEEN SCM, CRM, AND ERP APPLICATIONS

CHAPTER 11 : Building a Customer-centric Organization-CRM

Customer relationship management (CRM) is a means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.

To guarantee that every customer has a highly satisfying online buying experience, the company asks the dealers to agree to a number of standards including:

• Checking online orders twice daily
• Shipping online orders within 24 hours
• Responding to customer inquiries within 24 hours

A primary component of managing a customer relationship is knowing when and why the customer is communicating with the company.

THE BENEFITS OF CRM

-Enables a firm to treat customers as individuals, gaining important insights into their buying preferences and shopping behaviors.

Firms can find their most valuable customers by using the RFM formula-recency, frequency, and monetary value.

• How recently customer purchased items
• How frequently a customer purchases items
• The monetary value of each customer purchase

EVOLUTION OF CRM

OPERATIONAL AND ANALYTICAL CRM

OPERATIONAL CRM TECHNOLOGIES

CHAPTER 10 : EXTENDING THE ORGANIZATION-SUPPLY CHAIN MANAGEMENT

BASICS OF SUPPLY CHAIN


A supply chain:

=consists of all parties involved, directly or indirectly, in the procurement of a product or raw material.


Supply Chain Management (SCM):
=involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.


3 main links of supply chain :

1. Materials flow from suppliers and their upstream suppliers at all levels.
2. Transformation of materials into semi finished and finished products, or the organization's own production processes.
3. Distribution of products to customers and their downstream customers at all levels.

A TYPICAL SUPPLY CHAIN

5 Basic Supply Chain Management Activities:

1. PLAN = prepare to manage all resources required to meet demand.
2. SOURCE = build relationships with suppliers to procure raw materials.
3. MAKE = Manufacture products and create production schedules.
4. DELIVER = plan for transportation of goods to customers.
5. RETURN = support customers and product returns.

INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN

Information technology's primary role in SCM is creating the integrations or tight process and information linkages between functions within a firm.

THE INTEGRATED SUPPLY CHAIN

Factors driving supply chain management :

1. 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.
2. CONSUMER BEHAVIOR
   = Demand planning software generates demand forecasts using statistical tools and forecasting techniques.
3. COMPETITION
   = Supply chain management software can be broken down into
      (1) supply chain planning software
      (2) supply chain execution software
   both increase a company's ability to compete.
   = Supply chain planning (SCP) software uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory.
   = Supply chain execution (SCE) software automates the different steps and stages of the supply chain.
4. SPEED
   = A company is able to satisfy continually changing customer requirements efficiently, accurately, and quickly.

SOFTWARE CORRELATION TO THE SUPPLY CHAIN

Supply Chain Management Success Factors
 There are three (3) :

Seven Principles of Supply Chain Management

Keys to SCM success :

1. Make the sale to suppliers
2. Wean employees off traditional business practices
3. Ensure the SCM system supports the organizational goals
4. Deploy in incremental phases and measure and communicate success
5. Be future oriented