Previous

Part - III

SCE applications are less dependent upon gathering information from around the company, so they tend to be independent of the ERP decision. But chances are, you'll need to have the SCE applications communicate with ERP in some fashion. It's important to pay attention to SCE software's ability to integrate with the Internet and with ERP or SCP applications because the Internet will drive demand for integrated information. For example, if you want to build a private website for communicating with your customers and suppliers, you will want to pull information from SCE, SCP and ERP applications together to present updated information about orders, payments, manufacturing status and delivery.

What is the goal of installing supply chain management software?

Before the Internet came along, the aspirations of supply chain software devotees were limited to improving their ability to predict demand from customers and make their own supply chains run more smoothly. But the cheap, ubiquitous nature of the Internet, along with its simple, universally accepted communication standards have thrown things wide open. Now, theoretically anyway, you can connect your supply chain with the supply chains of your suppliers and customers together in a single vast network that optimizes costs and opportunities for everyone involved. This was the reason for the B2B explosion; the idea that everyone you do business with could be connected together into one big happy, cooperative family.

Of course, the reality behind this vision is that it will take years to come to fruition. But considering that B2B has only been around for a few years, some industries have already made great progress, most notably consumer-packaged goods (the companies that make products that go to supermarkets and drug stores), high technology and autos.

When you ask the people on the front lines in these industries what they hope to gain from their supply chain efforts in the near term, they will all respond with a single word: visibility. The supply chain in most industries is like a big card game. The players don't want to show their cards because they don't trust anyone else with the information. But if they showed their hands they could all benefit. Suppliers wouldn't have to guess how much raw materials to order, and manufacturers wouldn't have to order more than they need from suppliers to make sure they have enough on hand if demand for their products unexpectedly goes up. And retailers would have fewer empty shelves if they shared the information they had about sales of a manufacturer's product in all their stores with the manufacturer. The Internet makes showing your hand to others possible, but centuries of distrust and lack of coordination within industries make it difficult.

Next

Source: The Net