Supply Network Planning Models Using Enterprise Resource Planning Systems

Abstract

The advent of the Web as a major means of conducting business transactions and business-to-business communications, coupled with evolving Web-based supply chain management (SCM) technology, has resulted in a transition period from “linear” supply chain models to “networked” supply chain models. Various software industry studies indicate that over the next five to seven years, interenterprise business relationships, information structures, and processes will evolve dramatically. Enterprises will blend internal production and supply chain processes with those of their external trading partners. Currently, organizations are finding creative ways to mitigate supply chain costs while maintaining operational efficiency. New approaches, technologies, and methodologies are aiding with these cost-cutting measures to drastically reduce supply chain costs and increase customer satisfaction. This chapter discusses the background of supply chain planning and execution systems, their role in an organization, and how they are aiding in collaboration. The chapter concludes with a case study on how a supply chain management system could help an organization be more effective.