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SCM, CRM, & ERP (Henry C. Co)
? VMI became one of the key programs in the grocery industry's pursuit of “efficient consumer response” and the garment industry's “quick response.”
SCM, CRM, & ERP (Henry C. Co)
? What Is ERP? Why ERP? ? The Major Players ? ERP Market Outlook
SCM, CRM, & ERP (Henry C. Co)
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1. Supply Chain Management
The Beer Game
12-minute Video
SCM, CRM, & ERP (Henry C. Co)
5
An Illustration of the Bullwhip Effect
Source: Johnson & Pike, 1999
SCM, CRM, & ERP (Henry C. Co)
6
Mitigating the Bullwhip Effect
? The supplier monitors the buyer's inventory levels (physically or via electronic messaging) and makes periodic resupply decisions regarding order quantities, shipping, and timing.
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The VMI Partnership
? The supplier—usually the manufacturer but sometimes a reseller or distributor —makes the main inventory replenishment decisions for the consuming organization.
“SCM, CRM, and ERP”
Henry C. Co Technology and Operations Management, California Polytechnic and State University
Outline
1. Supply Chain Management
? The Beer Game –the Bullwhip Effect ? What Is SCM? Why Is SCM Important? ? E-Enabled SCM Solutions ? Collaborative Planning, Forecasting and
? Transacti源自文库ns customarily initiated by the buyer (like purchase orders) are initiated by the supplier instead.
? The purchase order acknowledgment from the supplier may be the first indication that a transaction is taking place; an advance shipping notice informs the buyer of materials in transit.
? Everyday low pricing eliminate forward buying of bulk orders
? Changes in pricing and trade promotions and channel initiatives, such as VMI, CPFR, continuous replenishment can significantly reduce demand variance.
The Bullwhip Effect
? Stakeholders along the supply chain have different and frequently conflicting objectives.
? Accordingly, they often operated independently, resulting in a phenomenon called the bullwhip effect on demand and supply.
? Postponement
? Etc.
SCM, CRM, & ERP (Henry C. Co)
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Vendor Managed Inventory
? Wal-Mart and Procter & Gamble, Late 1980s
? Other companies in the United States, including Campbell Soup and Johnson & Johnson, and by European firms like Barilla (the pasta manufacturer).
? EDI and the Internet
? The information available to supply chain partners, and the speed with which it is available, has the potential to radically reduce inventories and increase customer service.
Replenishment
2. Customer Relationship Management
? What Is CRM? Why Is CRM Important? ? CRM Components and Technologies
3. Enterprise Resources Planning
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