Given the wide realm of information we have discussed, it is important to develop a framework that helps a manager understand how this information is utilized by the various segments of IT within the supply chain.
Supply chain management has helped companies make business decisions in a more efficient way. This scope has been extended beyond the function of optimizing performance across the division to the enterprise, and now to the entire supply chain.
Why Supply Chain Macro Processes?
As the performance of an enterprise becomes more closely related to the performance of its supply chain, firms should concentrate on these macro processes. To achieve breakthrough performance a firm needs to consider the whole supply chain, not just internal processes.
In the supply chain the goal should be to increase the overall profitability of the supply chain. If you want to gain profits from a supply chain, you must have a supply chain management software.
Customer Relationship Management (CRM). When the organization and its customers interact with each other, the process focuses on that side of the story. Without CRM there is no better management you won’t be able to track the queries, feedbacks and the requirements of the clients.
- Marketing management
- Selling perspective
- Order management and tracking
- Call follow up service management
- Trackback and feedbacks management
Internal Supply Chain Management (ISCM). The internal operations within the company focus on processes that are effective. The software industry typically calls supply chain management, even though the focus is the enterprise. Supply chain management includes all three macro processes, CRM, ISCM, and SRM, so we will define it accordingly.
- Strategic planning
- Demand planning
- Supply planning
- Field service
Supplier Relationship Management (SRM). The process takes into account upstream interactions between the enterprise and its suppliers. The underlying structure of macro processes is the fourth building block.
Transaction management foundations consist of basic ERP systems, infrastructure software and integration software. The three macro processes should communicate with each other through transaction management foundation (TMF). The infrastructure is main part of supplier relationship management.
Source of the product, collaboration for the design of the product, negotiate for the supply and the buying execution as well as supply coordination.
Future of Information Technology in Supply Chain
At the highest level, we believe that the three supply chain management macro processes will continue to drive the evolution of enterprise software. To this end, we expect to see software focused on the macro processes become a larger and larger share of the total enterprise software landscape and software firms that focus on the macro processes to be much more successful than those that focus elsewhere.
For firms targeting a macro process, we see functionality, the ability to integrate across macro processes, and the strength of their ecosystems as the keys to success. This conclusion has important implications for companies that are users of software. As we mentioned earlier, the criteria for successful software companies were chosen precisely because they are the characteristics of software that improve the performance of its users.
Thus, a user of supply chain software should first identify areas within the three macro processes where improvement will provide the maximum leverage. Software and IT decisions should then support the goal of improving performance along these processes.
There is one final note worth mentioning with regard to the future of new software players in this area. One might conclude from our analysis that it will be very difficult for a new company to break into the ranks of successful enterprise software companies, given the lead in functionality, integration, and ecosystems that existing firms
We believe, however, that there are two potential paths for a company to enter the market. The first is through superior functionality, whether it be specific functionality needed by a particular industry or an application with vastly improved ease of use. In this area, we see start-ups adding value to enterprise software, although it is a very difficult path to take given the advantages the ERP players hold today.