Supply Chain Logistics Management Chapter 8: Enterprise Resource Planning and Extension Systems

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Typical Legacy System Status

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Enterprise Application Market 2000 Fig. 8-2 Buyer-side In-side (Retail) Seller-side Supply Chain $4B $21B 2004? e.g.i2, Manugistics Aspen, SAP APO, IBS ERP $17B $21B 2004? e.g., SAP, Oracle, Peoplesoft, JDEdwards CRM $4B $20B 2004? e.g., Siebel, Clarify, Oracle, Vantive, Onyx eProcurement $1B? $5B 2004? e.g., Ariba, Commerce One, mySAP, i2 Enterprise Application Integration (EAI) $0.5B $5B 2004? e.g., MQ Series, Forte, BEA, Neon, TIBco, Vitria Call/Contact Centers (IVR, ACD, CTI) e.g., Nortel, Cisco, Lucent, Genesys, Kana ( , WWW) Data Warehouse $1B e.g., Oracle, Teradata Intranet ( Web) & PC Msoft: $20B e.g., Lotus Notes, Exchange, MS-Office Marketplace eCommerce $3B $16B 2004? e.g., Broadvision, Sterling, Vignette, Oracle, Freemarkets, Commerce One, mySAP Overall EA Market: 1999$27B 2004 $78B? © Peter Seddan?? June ????

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Central Database Reporting Applications Service Applications Sales and Delivery Applications Inventory and Supply Applications Manufacturing Applications Financial Applications Human Resource Management Applications Employees Managers and Stakeholders Sales Force and Customer Service Reps Customers Back-office Administrators and Workers Suppliers Harvard Business Review July-Aug 1998 ANATOMY OF AN ENTERPRISE SYSTEM

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Supply Chain System Architecture Strategic Objectives Procurement Requirements Manufacturing Requirements Logistics Requirements Capacity Constraints Order Management Procurement Transportation and Shipping Distribution Operations Order Processing Forecasting Inventory Deployment Inventory Management Operations Planning-Coordinating

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Logistics Requirements +Forecasts (sales, marketing, input, histories, accounts) +Customer Orders (current orders, future committed orders, contracts) +Promotions (promotion, advertising plans) =Period Demand -Inventory-on-hand -Planned Receipts Period Logistics Requirements

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. APS System Modules Requirements Optimization Demand Management ERP/Legacy System Resource Allocation Resource Management

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Operations System Functionality Order ManagementOrder ProcessingInventory Management Distribution Operations Transportation and Shipping Procurement Order entry (manual, electronic, blanket, Create blanket orderForecast analysis and modeling Assign and track storage locations Carrier selectionMatch and pay Credit checkGenerate invoiceForecast data maintenance and updates Inventory cycle counting Carrier schedulingOpen order review Inventory availabilityGenerate order selection documents Forecast parameter selection Labor schedulingDispatchingPurchase order entry Order acknowledgement Inventory reservation Forecast technique selection Equipment scheduling Document preparation Purchase order maintenance Order modificationProcess blanket order Inventory parameter selection Lot controlFreight paymentPurchase order receipt Order pricingRelease reserved inventory Inventory simulation and testing Order selection location replenishment Performance measurement Purchase order status Order status inquiryReassign order source Inventory requirements planning ReceivingShipment consolidation and routing Quote request Price and discount extension Release blanket order Promotion data integration Put awayShipment ratingRequirements communication Promotion checkVerify shipmentReplenishment order build, release, and scheduling StorageShipment scheduling Schedule receipt appointment Returns processing Define service objectives Performance measurement Shipment tracing and expediting Supplier history Service management Vehicle loading

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. TMS Extension System Functionality Order Consolidation Route Optimization Carrier Rate Management EDI Links With Carriers Internet Based Shipment Tracking Integrated Claims Management Identify Most Economical Mode Parcel, Less-than-Truckload, Truckload, Pool Distribution, Stops in Transit Calculate Best Route Carrier Selection Based on Cost and Service Including Performance

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Execution Systems Enterprise –Warehouse Management Systems (WMS) –Transportation Management Systems (TMS) –Integrated transportation tracking Manufacturing –Shop floor control Customer Relationship Management (CRM) –Promotion planning and accounting –Mix customization and integration

Supply Chain Logistics Management, First Edition, Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Enterprise Execution SuiteVAS Planned Cross Dock ReverseLogistics Receiving Putaway Cycle Count Pick TaskManagement QA Replenishment Pack Opportunistic Cross Dock InventoryControl Work Order Management Ship YardManagement LaborManagement WarehouseOptimization Core WMS Functionality Translation and Messaging Bus Backbone ERPTMSOMSSCPMaterialHandlingEquipment Advanced WMS Functionality Advanced WMS Functionality