Integrating Upward Supporting managers and executives

Objectives  Discuss how supply chain information systems support managers and executives  Describe techniques for use of data for managerial decision making  Introduce interorganizational systems

Supply chain information systems VENDORMANUFACTURERCUSTOMER material flow information flow

Decision analysis tools  Demand Planning  understanding and estimation of both short-term and long-term customer demand patterns  Supply Planning  optimal positioning of resources to meet demand  Demand Fulfillment  provision of rapid, reliable, and accurate responses to orders

Executive information systems  Balanced Scorecard: tracking of financial & nonfinancial measures  Business Planning and Simulation: simulation & scenario analyses of markets & competitors  Business Editor: collection & categorization of information from multiple sources  Stakeholder Relationship Management: two- way communication of business information  Performance Management: real-time monitoring & analysis of organization activity

Data warehouses  Storage of massive amounts of data for analytical use  Data are extracted from transactional systems  Data are not real-time

Data mining  Involves extraction of important analytical information from data warehouse to identify key success factors and business drivers  Technology required:  Massive databases (data warehouses)  Powerful multiprocessor computers  Mathematical and statistical data mining algorithms

Interorganizational systems 2 nd Tier Supplier 2 nd Tier Supplier 2 nd Tier Customer 2 nd Tier Customer Extended Supply Chain Customer sellbuy Traditional Supply Chain Add Value Supplier

Summary  Discussed how supply chain information systems support managers and executives  Described techniques for use of data for managerial decision making  Introduced interorganizational systems