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7. Why is an ERP system important for both internal and external process integration? What other IT considerations are there?
ERP systems provide a view of the entire organization, enabling decision makers within each function to have information regarding customer orders, production plans, work-in-process and finished goods inventory levels, outbound goods in-transit, purchase orders, inbound goods in-transit, purchased item inventories and financial and accounting information. ERP systems thus link business processes and facilitate communication and information sharing between the firm’s departments. Since the key business processes overlay each of the functional areas, the firm eventually becomes process oriented rather than functionally oriented as ERP systems are deployed. It is this visibility of information across the organization that allows processes to become integrated within the firm. A globally linked ERP system allows the firm to use a common database from which to make product, customer and supplier decisions. Information is captured once, reducing data input errors; information is available in real time, eliminating delays throughout the organization as information is shared; and, finally, information is visible throughout the organization—all transactions taking place can be seen and accessed by everyone on the system. As the firm moves away from legacy systems and toward a fully integrated ERP system, as organization-wide cross-functional teams are created to link key processes to the supply chain strategy and as process performance is monitored and improved, the firm will become more focused on managing the key supply chain processes in an integrated fashion.
10. How can RFID tags help to enable external process integration?
A number of factors can impede external process integration along the supply chain, causing loss of visibility, information distortion, longer cycle times, stockouts and the bullwhip effect, resulting in higher overall costs and reduced customer service capabilities. Radio-frequency identification tag (RFID), devices can be attached to pallets or cases to relay information on the products’ whereabouts as they move through the supply chain. Thus, a firm’s supply chain system can access real-time inventory information and instigate a replenishment order as inventories are drawn down.
16. Define the term collaborative education and explain what this has to do with supply chain management.
Training of supply chain partner employees is also known as collaborative education and can result in more successful supply chains and higher partner returns. As technologies change, as outsourcing increases and as supply chains are expanded to foreign sources and markets, the pressure to extend software and management training to trading partners increases.
17. Describe an incidence either personally or at work where you have been involved in shortage gaming.
Toward the end of the USAF life of the F-111 getting parts in the Avionics shop was getting scarce and hard to fill due to the aircraft being retired and some sold to Australia. So when it was time to order some of the throw away smaller parts and items not requiring a turn in we would order 2 or 3 extra to have on hand in case we needed them and didn’t wish to wait on supply. Same thing when working on the F-15 when we went TDY, order an extra to have one on hand to keep the planes flying.
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19. What are demand-driven supply networks, and what role do performance measures play in these networks?
Demand-driven supply networks is when a company transforms its operations to allow consumer demand to drive its supply chains, the idea is to design supply chains with enough flexibility to respond quickly to changes in the marketplace. Performance measures help these networks by providing internal users and supply chain members with visibility into its business
