MIS 3000 Exam #3 CH. 8.1

Role integrations play in connecting a corporation

Links different systems, applications, and data so they can communicate and work together as a unified whole

Supply Chain MGMT impact on business

decreases the power of its buyer (raise prices), increase its own supplier power (reduce costs), increase switching costs to reduce the threat of substitute products or services (lock in customers), create entry barriers thereby reducing the threat of new entrants (reduce competition), and increase efficiencies while seeking a competitive advantage through cost leadership (increase profits)

Three technologies that are reinventing the supply chain

Procurement, logistics, materials MGMT

Technologies that are reinventing the supply chain (Tarjan’s Take)

3D Printing, RFID, Drones, Robotics, Blockchain, Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), Computer-Integrated Manufacturing (CIM)

3D Printing

rapid prototyping/custom manufacturing through additive deposition of materials

RFID

inexpensive, accurate tracking of physical objects throughout the supply chain

Drones

potential for rapid, inexpensive movement of physical objects through the supply chain

Robotics

cheaper, more accurate production and transportation physical objects through the supply chain

Blockchain

potential for more secure and accurate transmission of data to support the entire supply chain

Computer-Aided Design (CAD)

provides the ability to rapidly render physical design graphically, simulate perfromance, and generate digital specifications

Computer-Aided Manufacturing (CAM)

provides the ability to rapidly set up machines for production via digital specifications

Computer-Integrated Manufacturing (CIM)

an integrated system that supports planning, procurement, inventory, design, manufacturing, and distribution (basically the entire manufacturing supply chain)

Procurement

purchasing of goods and services to meet the needs of the supply chain

Logistics

processes that control the distribution, maintenance, and replacement of materials and personnel to support the supply chain, activates that govern the flow of tangible, physical materials through the supply chain such as shipping, transport, distribution, and warehousing

Materials Management

Integration

allows separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems

Application Integration

works with other systems

Data Integration

compatibility of data across systems

Forward Integration

Sends data/updates forward to other applications
Ex: Sales System and Order Entry System

Backward Integration

send data/updates back to other applications
Ex: Order Fulfillment System and Billing System

Enterprise System

Provides enterprise0wide support and data across for a firm’s operations and business processes

Enterprise Application Integration (EAI)

connects the plans, methods, and tools aimed at integrating separate enterprise systems

Enterprise Application Integration (EAI) (Tarjan)

software that accesses common data in a database to support multiple functions (sales, production, accounting, etc.)

Common Types of Enterprise Systems

Supply Chain MGMT, Customer Relationship MGMT< and Enterprise Resource Planning

Supply Chain for Manufactured Goods

Plan, Source, Make, Deliver, and Return

Plan

prepare to manage all resources required to meet demand

Source

build relationships with suppliers to procure raw materials

Manufacture

manufacture products and create production schedules

Deliver

plan for transportation of goods to customers

Return

support customers and product returns

Downstream

Retailer, customer, customers’ customer

Upstream

Manufacturer, Supplier, Suppliers’ Supplier

Supply Chain for Soap

managing the supply chain effectively requires good data/information at every step of the process