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