Supply Chain Logistics Management
Chapter 8: Enterprise Resource
Planning and Extension Systems
Typical Legacy System Status
Financial
Human
resource
Order
management
Warehouse
management
Material
planning
Region/ Division Region/ Division Region/ Division Region/ Division
A
B
C
D
FS1
FS2
FS1
FS4
HR1
HR1
HR1
HR1
OM1
OM2
OM3
OM4
WM1
WM2
WM3
WM4
MP1
MP1
MP2
MP3
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Application Market 2000 Fig. 8-2
Buyer-side
In-side
(Retail) Seller-side
Supply Chain
ERP
CRM
$4B
$21B 2004?
e.g.i2, Manugistics
Aspen, SAP APO, IBS
$17B
$21B 2004?
e.g., SAP, Oracle,
Peoplesoft, JDEdwards
$4B
$20B 2004?
e.g., Siebel, Clarify,
Oracle, Vantive, Onyx
eProcurement
$1B?
$5B 2004?
e.g., Ariba, Commerce
One, mySAP, i2
Marketplace
Enterprise Application
Integration (EAI)
Call/Contact Centers
(IVR, ACD, CTI)
$0.5B
$5B 2004?
e.g., MQ Series, Forte,
BEA, Neon, TIBco, Vitria
e.g., Nortel, Cisco,
Lucent, Genesys,
Kana (e-mail, WWW)
Data Warehouse $1B
Overall EA Market:
e.g., Oracle, Teradata
eCommerce
$3B
$16B 2004?
e.g., Broadvision,
Sterling, Vignette, Oracle,
Freemarkets, Commerce
One, mySAP
Intranet (e-mail Web)
& PC
Msoft: $20B
e.g., Lotus Notes,
Exchange, MS-Office
1999 $27B
2004 $78B?
© Peter Seddan?? June ????
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
ANATOMY OF AN ENTERPRISE SYSTEM
Managers and
Stakeholders
Reporting
Applications
Financial
Applications
Sales and
Delivery
Applications
Sales Force
Customers and Customer
Service Reps
Central
Database
Manufacturing
Applications
Back-office
Administrators
and Workers
Suppliers
Service
Applications
Human
Resource
Management
Applications
Inventory
and Supply
Applications
Employees
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Harvard Business Review July-Aug 1998
Supply Chain System Architecture
Planning-Coordinating
Strategic
Objectives
Capacity
Constraints
Forecasting
Order
Management
Order
Processing
Logistics
Requirements
Manufacturing
Requirements
Procurement
Requirements
Transportation
and Shipping
Procurement
Inventory
Deployment
Inventory
Management
Distribution
Operations
Operations
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Logistics Requirements
+ Forecasts (sales, marketing, input, histories, accounts)
+ Customer Orders (current orders, future committed
orders, contracts)
+ Promotions (promotion, advertising plans)
= Period Demand
- Inventory-on-hand
- Planned Receipts
Period Logistics Requirements
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
APS System Modules
Resource Management
Requirements
Optimization
Demand Management
Resource Allocation
ERP/Legacy System
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Operations System Functionality
Order Management
Order Processing
Inventory
Management
Distribution
Operations
Transportation
Shipping
Order entry (manual,
electronic, blanket,
Create blanket order
Forecast analysis
and modeling
Assign and track
storage locations
Carrier selection
Match and pay
Credit check
Generate invoice
Forecast data
maintenance and
updates
Inventory cycle
counting
Carrier scheduling
Open order review
Inventory availability
Generate order
selection documents
Forecast parameter
selection
Labor scheduling
Dispatching
Purchase order
entry
Order
acknowledgement
Inventory
reservation
Forecast technique
selection
Equipment
scheduling
Document
preparation
Purchase order
maintenance
Order modification
Process blanket
order
Inventory parameter
selection
Lot control
Freight payment
Purchase order
receipt
Order pricing
Release reserved
inventory
Inventory simulation
and testing
Order selection
location
replenishment
Performance
measurement
Purchase order
status
Order status inquiry
Reassign order
source
Inventory
requirements
planning
Receiving
Shipment
consolidation and
routing
Quote request
Price and discount
extension
Release blanket
order
Promotion data
integration
Put away
Shipment rating
Requirements
communication
Promotion check
Verify shipment
Replenishment
order build, release,
and scheduling
Storage
Shipment
scheduling
Schedule receipt
appointment
Define service
objectives
Performance
measurement
Shipment tracing
and expediting
Supplier history
Returns processing
Service
management
and
Procurement
Vehicle loading
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
TMS Extension System Functionality
•Order Consolidation
•Route Optimization
•Carrier Rate Management
•EDI Links With Carriers
•Internet Based Shipment Tracking
•Integrated Claims Management
•Identify Most Economical Mode
Parcel, Less-than-Truckload, Truckload, Pool
Distribution, Stops in Transit
•Calculate Best Route
•Carrier Selection Based on Cost and Service
Including Performance
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Execution Systems
• Enterprise
– Warehouse Management Systems (WMS)
– Transportation Management Systems (TMS)
– Integrated transportation tracking
• Manufacturing
– Shop floor control
• Customer Relationship Management (CRM)
– Promotion planning and accounting
– Mix customization and integration
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
Enterprise Execution Suite
Advanced WMS
Functionality
Yard
Management
Receiving
Task
Management
Opportunistic
Cross Dock
Putaway
QA
Inventory
Control
Labor
Management
Cycle Count
Warehouse
Optimization
Advanced WMS
Functionality
Core WMS Functionality
Pick
Replenishment
Pack
Work Order
Management
Ship
VAS
Planned
Cross Dock
Reverse
Logistics
Translation and Messaging Bus Backbone
ERP
TMS
OMS
SCP
Material
Handling
Equipment
Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper
Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.