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- Integrated Information system allows Purchasing to make the best decision
- to use, the purchase order is transmitted to vendor System can be configured to fax o vendor, transmit it electronically through EDI (electronic data interchange), or send it ove Internet Detailed Scheduling Detailed plan of what is to be produced, considering machine capacity and available labor
- Production schedules should be determined by evaluating the costs of equipment setup and inventory holding.ERP systems can play a Key role in collaborative planningERP and Suppliers (cont'd) Supplier collaboration requires trust and shared data through common formats.o SAP ERP updates inventory levels automatically after confirmation.- An integrated information system helps simplify this analysis because it: Main idea: An integrated information system makes production scheduling decisions easier and more accurate by providing automatic cost analysis.
Original text
- Integrated Information system allows Purchasing to make the best decision
- to use, the purchase order is transmitted to vendor System can be configured to fax o
vendor, transmit it electronically through EDI (electronic data interchange), or send it ove
Internet
Detailed Scheduling
Detailed plan of what is to be produced, considering
machine capacity and available labor - Production schedules should be determined by evaluating the costs of equipment
setup and inventory holding. - An integrated information system helps simplify this analysis because it:
Main idea:
An integrated information system makes production scheduling decisions easier
and more accurate by providing automatic cost analysis.
Providing Production Data to Accounting
In the manufacturing plant, ERP packages do not directly connect •
.with production machines
Data can be entered into SAP ERP through a PC, scanned by a •
barcode reader or radio frequency identification (RFID) technology, or
.a mobile device
In an integrated ERP system, the accounting impact of a material •
.transaction can be recorded automatically
Let me know if you need any of these points explained further! •
.Receiving department records a goods receipt in SAP ERP
• Goods receipt is matched with the purchase order.
• SAP ERP updates inventory levels automatically after
confirmation.
ERP systems can play a Key role in collaborative planningERP and Suppliers (cont’d)
Supplier collaboration requires trust and shared data through
common formats.
:Advantages
Supply chain: all activities that occur between the
Well-developed ERP system can facilitate SCM-
Needed production planning and purchasing systems already in place-
With ERP system, sharing production plans along the supply chain can -
1- Metrics
Show the effects of better supply chain management
2- Cash-to-cash cycle time
Time between paying for raw materials and
collecting cash from customer
3- SCM costs
Include cost of buying and handling inventory,
processing orders, and information systems support-
• - Initial fill rate
Percentage of the order that the supplier
provided in
the first shipment - Initial order lead time
Time needed for the supplier to fill the order - On-time performance
If supplier agreed to requested delivery
dates, tracks
how often supplier actually met those date
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