Chapter Summary•An ERP system can improve the efficiency of production and purchasing processes.Efficiency begins with M
Posted: Wed Mar 09, 2022 9:06 am
Chapter Summary•An ERP system can improve the efficiency of
production and purchasing processes.Efficiency begins with
Marketing and Sales sharing a sales forecast. A production plan
iscreated based on that forecast and shared with Purchasing so raw
materials can beordered properly.•Companies can do production
planning without an ERP system, but an ERP system thatcontains
materials requirements planning capabilities allow a company to
link Production toPurchasing and Accounting. This data sharing
increases a company’s overall efficiency.•Companies are building on
their ERP systems and integrated systems philosophy topractice
supply chain management, a strategy by which a company looks at
itself as part ofa larger process that includes customers and
suppliers. Using information more efficientlyalong the entire chain
can result in significant cost savings. Because of the complexity
ofthe global supply chain, developing a planning system that
effectively coordinatesinformation technology and people and that
can help a company manage uncertainty is aconsiderable
challenge.
1. When a customer orders a product, such as a
custom-built car, the Supply Chain Management function must
interact with other functional areas in a company to complete this
order. List the functional areas involved in this process. What
information must pass between those areas and Supply Chain
Management to fill the customer’s needs?
2. What are potential sources of risk in Fitter’s supply
chain? How should Fitter prepare to minimize these risks? Research
this topic on the Internet, and use examples to support your
reasoning.
production and purchasing processes.Efficiency begins with
Marketing and Sales sharing a sales forecast. A production plan
iscreated based on that forecast and shared with Purchasing so raw
materials can beordered properly.•Companies can do production
planning without an ERP system, but an ERP system thatcontains
materials requirements planning capabilities allow a company to
link Production toPurchasing and Accounting. This data sharing
increases a company’s overall efficiency.•Companies are building on
their ERP systems and integrated systems philosophy topractice
supply chain management, a strategy by which a company looks at
itself as part ofa larger process that includes customers and
suppliers. Using information more efficientlyalong the entire chain
can result in significant cost savings. Because of the complexity
ofthe global supply chain, developing a planning system that
effectively coordinatesinformation technology and people and that
can help a company manage uncertainty is aconsiderable
challenge.
1. When a customer orders a product, such as a
custom-built car, the Supply Chain Management function must
interact with other functional areas in a company to complete this
order. List the functional areas involved in this process. What
information must pass between those areas and Supply Chain
Management to fill the customer’s needs?
2. What are potential sources of risk in Fitter’s supply
chain? How should Fitter prepare to minimize these risks? Research
this topic on the Internet, and use examples to support your
reasoning.