Business Processes Supported by SCM Information Systems

Questions:

1. Briefly describe the business processes supported by a Supply Chain Management (SCM) information system. In a global business like Emerson what are the advantages and disadvantages of using a SCM information system? With Emerson’s many divisions using different suppliers, what would be the benefits of using a single SCM information system for all of its divisions?

2. Global companies like Emerson have suppliers, manufacturing, distribution, and retail operations. List and briefly describe the technologies and devices (used for input, output, and communication) that are used with SCM information systems. Choose two different input devices and discuss the advantages and disadvantages of each. Discuss the benefits that they provide to the business?

3. Consider that you have to implement a new SCM information system for Emerson. Describe each of the different implementation options. Discuss the advantages and disadvantages of the different implementation options. Make a recommendation and justify?

4. Modern SCM information systems and with the use of other technologies have supported businesses in improving environmental sustainability by reducing carbon emissions. Research and find an example. Briefly describe the system and how it works and how carbon emissions where reduced. Discuss what decision making is performed and how does the SCM information system contribute to the decision making. Discuss the advantages and disadvantages to the business?

1. Supply chain management is the process of integrating the demand and the supply process with the flow of information material. Due to the rapid increase in the technology and information system development, global companies like Emerson are focusing on increasing their growth and enhancing their operations by integrating all the support activities with the primary activities of the organization through the helps of latest technologies. The implementation of information system in the supply chain management of Emerson or similar companies provide them a huge opportunity to take competitive advantage. The information system allows the organization to integrate various activities with the supply chain and make a real time framework(Kart, Moser and Melliar-Smith, 2010).

There are various advantages of using the supply chain management information system for the global business like Emerson. This system helps the organization to be faster and efficient. Further the implementation of this system enhances the demand and supply process and allows the firms to make their entire business process cost and time efficient. This provides the firm with an opportunity to sustain in this competitive environment with low cost (Olson, 2012). Also this information system enhances the delivery process speed by enabling the suppliers to deliver the materials at the right time to the right place. Thus implementing the supply chain management information system permits the organization like Emerson to make their overall process just-in-time and give a real-time status of all the related activities (Greeff and Ghoshal, 2004).

However, improper implementation of Supply chain management information system might cause severe drawbacks to the company. As the implementation of the system is quite difficult, it is very important for all the employees to have a proper knowledge of the system to enhance the business operations. This is one the major issue to train all the employees about the system and make them learn about its usage and operation. Another issue can be linking the objectives of the organization with the current change in the framework. 

Advantages and Disadvantages of SCM Information Systems in Global Business

2. Using latest technologies like internet based technologies, web-based, mobile based and the cloud computing technologies help the organizations like Emerson to make the process of supply chain faster and effective. Through the transaction processing software the organization can increase the efficiency of recurring exchange of information among the partners of supply chain. This kind of software would help to make the order processing, dispatching process, billing process, verification process faster. Similarly using the planning and collaboration supply chain tools helps to forecast demand, increase the effectiveness of production capacity, inventory information and demand information intentions. Then the delivery coordination and order tracking system ensures efficient monitoring of the shipments and orders in timely manner by conveying the right information at the right place. Thus utilizing the latest technologies and devices would help Emerson to decrease the level of errors in their production process and also enhance the service quality and increase the satisfaction level of their potential customers.

The top technologies and devices that can be used for Supply chain includes(SOLUTIONS, 2007):

• E-Auctions: This technology helps to make on-line contracts for the rising array of indirect and direct materials
• Dock Door Scheduling and Yard Management System: These software tools give visibility to inventory of yard and also optimize the rendezvous scheduling and implementation of outbound and inbound dock doors. It is very easy to understand the environment changes of the business through these tools.
• Wireless in Warehouse: Using RFID or the wireless terminals in the warehouse would help to reduce the paper based works and also communicate easily with the other processes of the business.
• Transportation Management System: Integrating this system with the supply chain management process would help to computerize the planning and execute process, decrease the freight costs, consolidate the shipment process and also automate with the carriers.
• Supplier Portals: This technology ensures effective communication process among the suppliers via web portals. This system increases the scope of various activities right from purchasing the order management, increasing the demand visibility, developing dynamic inbound shipments etc.

Discussing the advantages and disadvantages of two systems or the technologies, it can be said that the supplier portal enables the suppliers to automate the routine transactions of the supply chain process. This process also helps to reduce the investment in training and development as one PC connected with internet can connect to portal making the thousands of suppliers interact electronically.  Further, this system acts a platform for the buyer and supplier to share common view and collaborate the right actions to improve the performance of supply chain. However one of the major disadvantages is to make all the suppliers to learn about the portal and also encourage them to participate in the interaction process.

Similarly, the wireless technology reduces the cost as there is no need of cables among the computers also requires less maintenance cost. This system is quite versatile and mobile making the process more easy and quick. However, the disadvantage is that it has limited bandwidth which limits the expandability. It also has the security risks and increases the issues of hacking.

3. There are different options for implementation of supply chain management system that are justified even despite saying. These include: Assessing opportunities of supply chain, customer service technique, exchange review, mapping of value chain and also communication process. Each of these ways has its own particular benefits and faults. A definitive premise to execute supply chain management framework is to bestow more prominent visibility of the supply chain process along with its integrated parts(Hermans, 2014). The usage of this framework gives opportunity to innovate the strategies of doing business. At the point when key goals, plans and project deliverables have been examined, the implementation procedure can be organized in four separate stages. These are assembling stage, test stage, training stage, and documentation stage. With effective implementation of supply chain management framework, the firm may decrease waste, reduce the delay in shipments, and even overhead expenses extraordinarily. Another advantage of implementing such system upon the business firm may be enrolled as: quality affirmation where the firm may enhance its operation through successful quality strategies; inventory buffers where the inventory level can be managed with past patterns of supply chain process (Seuring, 2010).

However, to make the process effective, it is always necessary to integrate all the activities of the organization with each other. Thus it is recommended to firstly assess the various opportunities of supply chain for the organization, and then develop a vision and strategies to gain those opportunities. Developing the best alternative solutions, integrate the process with the current supply chain management information system and align it with the organization structure. Set up a proper information and communication network for making the communication process easier and then translate the strategies into actions.  Implementing such an integrated system would help the organizations like Emerson to reduce the cost of transportation, warehousing, packaging and also inventory. Further aligning the strategies with the organizational structure would help to enhance the revenue because of effective decision making process(IMA, 1999).

4. Due to changing demand of the customers and globalization in the industries, the organizations have recognized the importance of focusing on the environment to make their process eco-friendly and differentiating them from other competitors in the market. Thus most of the global companies are aiming at aligning its product line with environment to enhance the community and also brand reputation (An, 2008). Similarly, Unilever also focused on reducing CO2 emission through their supply chain process.

To attain to these destinations, the administration of Unilever Europe chose to firstly construct a carbon emanation estimation system in collaboration with the Technical University of Eindhoven. The test of building your own particular carbon apparatus is brought on by the unpredictability of supply chains and the measure of obliged information.

In any case, the significant playing point of creating a particular carbon tool is that it guarantees that the instrument fits to current working methods, schedules, steams of information and information accessibility (Unilever.com, 2014). This makes the future use of the apparatus less time devouring, and it improves the probability that the apparatus and its results will be acknowledged by the association. Further, they have decided to implement projects that would focus on (Stein, n.d.):

• Improving the compressed air systems
• Implementing lighting system that is energy efficient
• sheathing to decrease the heat losses
• Reusing the by-products that are delivered out of their manufacturing process

Further they have also decided to efficiently use the fuel and make use of rails. Also they have started exploring the alternative to diesel.

This system has helped the organization to reduce the cost. This process will not only help to reduce the emission of CO2, it would also help to make the logistic process efficient and also make huge annual savings. Further, this would also help to enhance the brand image by reducing the emission of CO2. However, this system has issues for Unilever (unilever.nl, n.d.). One the biggest issue is cost. Implementing this system is costly right from designing to monitoring the system. Each stage requires expertise to carry the operation effectively. Otherwise this might provide wrong outcomes making a great failure in the system.

References

An, H. (2008). The Construction of Green Supply Chain Management System. International Journal of Information Systems and Supply Chain Management, 1(3), pp.70-79.

Greeff, G. and Ghoshal, R. (2004). Practical E-manufacturing and supply chain management. Oxford: Newnes.

Hermans, E. (2014). You can work with a partner that goes beyond implementing a tool or designing a processes to drive, execute and sustain a supply chain. [online] Supply & Demand Chain Executive. Available at: https://www.sdcexec.com/article/11419950/you-can-work-with-a-partner-that-goes-beyond-implementing-a-tool-or-designing-a-processes-to-drive-execute-and-sustain-a-supply-chain [Accessed 10 Jan. 2015].

IMA, (1999). Implementing Integrated Supply Chain Management for Competitive Advantage. [online] imanet.org. Available at: https://www.imanet.org/PDFs/Public/Research/SMA/Implementing%20Integrated%20Supply%20Chain.pdf [Accessed 10 Jan. 2015].

Kart, F., Moser, L. and Melliar-Smith, P. (2010). An Automated Supply Chain Management System and Its Performance Evaluation. International Journal of Information Systems and Supply Chain Management, 3(2), pp.84-107.

Olson, D. (2012). Supply chain information technology. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press.

Seuring, S. (2010). Supply chain management for sustainable products – insights from research applying mixed methodologies. Bus. Strat. Env., 20(7), pp.471-484

SOLUTIONS, S. (2007). The Top 10 Supply Chain Technologies and Strategies for 2007. [online] Scdigest.com. Available at: https://www.scdigest.com/assets/FirstThoughts/07-01-25.cfm [Accessed 14 Jan. 2015].

Stein, W. (n.d.). Carbon Emissions Mapping at Unilever Europe. [online] escf.nl. Available at: https://www.escf.nl/sites/escf.silverarrows.nl/files/Unilevercase.pdf [Accessed 14 Jan. 2015].

Unilever.com, (2014). Reducing GHG from Manufacturing | Sustainable Living | Unilever Global. [online] Available at: https://www.unilever.com/sustainable-living-2014/reducing-environmental-impact/greenhouse-gases/reducing-ghg-from-manufacturing/ [Accessed 14 Jan. 2015].

unilever.nl, (n.d.). Working together towards sustainability. [online] Available at: https://www.unilever.nl/Images/SustainableLiving3ENtcm164273569.pdf [Accessed 14 Jan. 2015].