BMGT495- Chapter 5 Notes – I. II. III.

BMGT495- Chapter 5 Notes – I. II. III.

Chapter Five: Information Technology II. Information System Functionality A. Increase in importance A.1. Customers perceive info regarding order status, product availability, delivery tracking, and invoices as necessary dimension of customer accommodation A.2. With the goal of reducing total SC assets, mangers realize that info can be used to reduce inventory and HR requirements A.3. Info creases flexibility with regard to how, when, and where resources may be utilized to achieve competitive advantage A.4. Enhanced info transfer and exchange utilizing the Internet is facilitating collaboration and redefining SC relationships B. Supply Chain Information Systems- (SCIS) B.1. Transaction System- characterized by formal rules, procedures, and standardized communications B.1.a) Initiate and record individual logistic activities and their outcomes B.1.b) Functionality includes order entry, inventory assignment, order selection, shipping, pricing, invoicing, and customer inquiry B.2. Management Control- focuses on performance measurement and reporting B.2.a) Performance dimensions include cost, customer service, productivity, quality, and asset management measures B.2.b) Exceptional info is useful to highlight potential customer/operational problems B.3. Decision Analysis- focuses on software tools to assist managers in identifying, evaluating, and comparing strategic and tactical alternatives to improve effectiveness B.3.a) Analyses include SC design, inventory management, resource allocation, transportation routing, and segmental profitability B.3.b) Also used to manage customer relationships by determining trade-offs associated with having satisfied and successful customer B.4. Strategic Planning – organizes and synthesizes transaction data into a relational database that assists in strategy evaluation III. Supply Chain Information System Modules A. Enterprise Resource Planning – system which maintains current and historical data and processes to initiate and monitor performance B. ERP Data Warehouse B.1. Central Database – relational information repository for the entire ERP system; is relational because it relates and links info regarding operational entities so that there is minimal info redundancy B.1.a) Customer File – contains info describing the firm’s customers B.1.b) Product-Price File – contains info describing the products/services offered by the firm B.1.c) Supplier File – lists the firm’s suppliers for materials/services B.1.d) Order File – contains info regarding all open orders in some stage of processing or fulfillment f