1. Chapter 1 Information
Technology and Supply
Chain Management
SCM 614
Dr. Huei Lee
Eastern Michigan University
Copyright© 2003-2007, Huei Lee

2. Stockless Inventory Compared to Traditional and
Just-in-time Supply Methods

3. Information Technology for
Supply Chain Management
 Software Systems
 Electronic Data Interchange (EDI)
 Material Requirements Planning (MRP)
 Manufacturing Resource Planning (MRP II)
 Enterprise Resource Planning (ERP)
 Supply Chain Management Systems (SCM)
 Customer Relationship Management (CRM)
 Internet-based Software
 Network Infrastructure
 Wide Area Network
 Internet (for E-commerce: B2B, B2C)

4. III. ERP

5. Enterprise Resource Planning
(ERP) Systems
 Enterprise resource planning (ERP) is a
term used to refer to a system that links
individual applications (for example,
accounting and manufacturing applications)
into a single application that integrates the
data and business processes of the entire
business.

7. Major ERP Systems
 SAP
 Oracle

8. IV. Supply Chain Systems

9. Supply Chain Management
(SCM) Systems
 The two basic types of SCM system software are:
 Supply Chain Planning software (SCP): uses
mathematical models to predict inventory levels
based on the efficient flow of resources into the
supply chain
 Supply Chain Execution software (SCE): is used
to automate different steps in the supply chain such
as automatically sending purchase orders to vendors
when inventories reach specified levels

10. Major Supply Chain Planning
(SCP) Players
 Oracle
 SAP
 Advanced Planner and Optimizer (APO)

11. Levels of SAP APO
Supply Network Design (SND)
The Supply Chain Cockpit (SCC)
Demand Planning (DP)
Supply Network Planning (SND)
Collaborative Planning,
Forecasting, and Replenishment
(CPFR)
…
SAP R/3

13. PARTIAL SAP CLIENT LIST
Spacenet

14. Some SAP Products
 APO
 Customer Relationship Management
(CRM)
 Business process improvement (BPI)
 Strategic Enterprise Management (SEM)
 Business Warehouse (BW)

15. V. Hardware Considerations
for SCM systems

16. Intranet vs. Extranet
 Intranet is to use Internet technology
and protocol (TCP/IP) for the internal
communications
 Extranet is to use Internet technology
and protocol for the internal and
suppliers’ communications

17. Network Infrastructure: Wide
Area Networks (WANs)
 WAN Technologies
 Ordinary telephone line and telephone modem.
 Send your data over the Internet securely, using
Virtual Private Network (VPN) technology
VPN