This document discusses system support in distribution management. It explains that there are two levels of system support: systems that support operations and systems that support decision making. It also discusses how ERP software packages can integrate information across functions by preparing a brief of integration needs. Previously, functions like stock records and sales records were managed separately without interconnection, but ERP allows for cross-functional integration of information. The overall aim of system support is to reduce costs, improve customer service, and make more accurate decisions through integrated data.

1. Welingkar’s Distance Learning Division
CHAPTER-4
System in Distribution Management
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2. System Support
•
•
Increased complexities in logistics functions
computer and system supports are an
integral part of the distribution process
Can be at two levels
1. System supporting the operation
2. System supporting the decision process
Systems in Distribution Management

3. Aims of system support
• Cost reduction through increase in
productivity
• Improved customer service
• Improved decisions through more accurate
input data
• Integrate various functions through a common
data base
Systems in Distribution Management

4. Software programmes
• One stage application programs, served
limited purpose of speeding up individual
operations, maintaining accuracies in those
respective areas.
• Cross functional integration of information
such as stock records and sales records or the
two functions ran software which were
separate and not interconnected
Systems in Distribution Management

5. ERP
• Enterprise resource planning have contributed
enormously to this initiative
• ERP software packages, such as SAP, J D
Edwards, Oracle prepares a brief of the
integration and information needs
Systems in Distribution Management

6. ERP
• The packages provides studies on
– The existing processes and procedures
– The information and material flow patterns
– The workloads at various points
– The organization structure
– The existing systems in place
– The IT language platform in use
– No. of persons using system
Systems in Distribution Management

7. IT head should collect following details
• All tasks and activities that are followed in the
organization
• The linkages between several functions
• The dependence of any task in one function
on another task
• Evaluate the activities and procedures in the
light of industry best standards
Systems in Distribution Management

8. IT head should collect following details
• Estimate the type and extent of master data
to be created
• Agree on the system disciplines that will be
required to be maintained.
Systems in Distribution Management

9. ERP System will help organization in
• Happening online, which in other words
mean, any task taking place anywhere will be
in the system
• Will enable the company to have real time
data, because the task taking place on the
system is being recorded as data
Systems in Distribution Management

10. Example 1 of optimizers
Factory
1
Guwahati
C&FA
CWH
Factory
2
Systems in Distribution Management

11. Example 2 of optimizers
Factory
1
Guwahati
CWH
Kolkata
Factory
2
Hyderabad
Systems in Distribution Management

12. Implementing technology means
• Extending the ambit of real time, online
transaction processing, backwards up to
suppliers.
• Hooking up the sales/delivery/stock system of
the distributor, or retailer.
• Such initiatives com with substantial costs
Systems in Distribution Management

13. Summary
• System support can be at two levels
1. System supporting the operation
2. System supporting the decision process
• ERP software packages, such as SAP, J D
Edwards, Oracle prepares a brief of the integration
and information needs
• Cross functional integration of information such as
stock records and sales records or the two functions
ran software which were separate and not
interconnected
Systems in Distribution Management