readings icon presentation iconquiz iconresources icon

2.4 Integrating the supply chain information systems

The ERP systems are required to provide a common data platform for the supply chain, but these are essentially systems to improve processes within the four walls of the firm. The trend suggests that firms will need to shift focus from internal to external. Research carried out by Forrester Research in the USA suggests that most firms that had been deploying internally focused application software are beginning to move towards new outward focused software. Table 2.1 shows the difference between outward and inward facing applications.

Table 2.1 Source: Stacie Kilgore 2001. ( Ascet, vol 3, 'Supply network apps take off')

 

Inward Facing Apps.

Outward Facing Apps.

buy

purchasing

supply planning and optimization

e-procurement.

supplier portals

make

product data management (PDM) and product planning

demand planning and forecasting

production planning and scheduling

collaborative product design and development

collaborative planning, forecasting and replenishment (CPFR) and
vendor managed inventory (VMI).

move

fulfilment
(including warehouse management)

transportation planning

order processing and order fulfilment.

international trade logistics (ITL).

transportation execution

sell

software to monitor performance of internal business processes and key performance indicators

software to assess trading partner performance and track supply chain activities (e.g., shipment status tracking)

 

The ideal situation in the management of supply chain future would warrant ERP systems which are dynamic and capable of interacting with data from outside sources without manual intervention. This is a feature which is still in development stage.

The exorbitant costs associated with ERP implementation act as a barrier against implementation of ERP and integration. The DSS tools allow an alternative under the situation with the limitation that data is dispersed among various servers within the organisation and it would require considerable effort to assemble it.

back page arrow Back Page - Next Page next page arrow