Enterprise Resource Planning in Distribution

by Lawrence, F. Barry; Jennings, Daniel F.; Reynolds, Brian E.

• ISBN13: 9780324178722
• ISBN10: 0324178727
• Format: Hardcover
• Copyright: 2004-03-05
• Publisher: Cengage Learning

Summary

ERP in Distribution explores current and developing issues in Enterprise Resource Planning (ERP) systems. The book also covers the general information technology context for these advanced systems and explore likely future technology developments. Included will be real ERP stories, with real companies and real names.

Table of Contents

Preface	xiii
About the Authors	xv
part 1
The Roots of Distribution Information Management	2	(17)
Introduction	3	(1)
File Cabinets and the Black Hole of Information	4	(1)
The Distribution Operation: The Nexus of an Information Tidal Wave	5	(4)
Problem: Integration of Information	6	(1)
Adding Functionality: Pre-Y2K Systems	7	(2)
The ``Valley of Despair'': Early ERP Applications in Distribution	9	(3)
Phasing It In	10	(2)
ERP Can Go Live	12	(1)
Riding the Wave: Information Automation	12	(1)
Conclusion	13	(2)
Case Study: Life Before ERP	15	(3)
Case Challenges	18	(1)
Strategic Use of Distribution ERP Systems	19	(21)
Introduction	20	(1)
The New Supply Chain Manager	21	(4)
Information Power and Use	25	(8)
Using IM Power to Advantage	27	(1)
Realizing Cost Savings	27	(2)
The Strategy and Structure of the Information-Driven Distributor	29	(4)
Justifying the ERP Investment	33	(2)
Quantifying the Benefits	33	(2)
Conclusion	35	(2)
Case Study: ROI and Justifying the ERP System	37	(2)
Case Challenges	39	(1)
Information System Tactical Planning	40	(26)
Introduction	42	(1)
Process Mapping for Information Automation	42	(2)
Distribution Process Drivers	44	(4)
Changing Processes to Suit Information Systems	46	(1)
Same Tasks, Multiple Processes	46	(1)
Gatekeepers	47	(1)
Laying Out a Tactical Plan	48	(2)
Automating Processes	50	(3)
Process Mapping Distribution Functions	53	(4)
When to Modify Your Processes and When to Modify the System	57	(1)
Process Planning	57	(1)
Conclusion	58	(2)
Case Study: Matching Your Processes to the ERP System	60	(4)
Case Challenges	64	(2)
part 2
The Selection Process	66	(22)
Introduction	67	(1)
Forming the Selection ``Delta Team''	68	(1)
Defining the Mission Statement of the Delta Team	69	(3)
Conducting Needs Analysis	72	(1)
Creating Process Flow Models	73	(1)
Establishing System Selection Criteria	74	(2)
Initial Product Demos	76	(1)
Technical Support Resources	77	(1)
Channel-Specific Consultants	77	(1)
Creating a Test Database and Test Order Type	78	(1)
Current User Site Visits	79	(2)
Making the Decision	81	(1)
Conclusion	81	(2)
Case Study: ERP Selection	83	(3)
Case Challenges	86	(2)
ERP Implementation	88	(17)
Introduction	90	(2)
Team Building and Deploying	92	(1)
Developing a Project Management Process	93	(2)
Data Scrubbing	95	(1)
Implementing Modification Change Management Process	96	(2)
Conducting a Modification Testing and Approval Methodology	98	(1)
Pretesting the System	98	(1)
Activating ERP Processes	99	(1)
Establishing the War Room	99	(1)
System Acceptance and Go-Live	100	(1)
Conclusion	100	(2)
Case Study: ERP Implementation	102	(2)
Case Challenges	104	(1)
The ERP Components	105	(25)
Introduction	107	(2)
Sales Order Processing	109	(5)
Distribution Systems Planning	114	(3)
Warehouse Operations	117	(4)
General Ledger and Financials	121	(1)
Executive Information Systems	121	(1)
Conclusion	121	(3)
Case Study: What to Activate?	124	(4)
Case Challenges	128	(2)
part 3
Automating Sales and Marketing	130	(27)
Introduction	133	(1)
The Challenges	134	(3)
Supporting the Sales Force	137	(7)
Real-Time Order Processing	144	(3)
Data Collection and Integrity	147	(2)
Lost Sales and Backorder Tracking	148	(1)
Sales Force Data Entry	148	(1)
Customer Data Entry	148	(1)
Conclusion	149	(2)
Case Study: Automating the Sales Force	151	(5)
Case Challenges	156	(1)
Replenishment	157	(30)
Introduction	159	(2)
Forecasting	161	(11)
Data Extracts	162	(1)
ERP Forecasting Tool	163	(2)
Forecast Error Metrics	165	(7)
Lead-Time Tracking	172	(1)
Setting the Reorder Point	173	(3)
Selecting the Fill Rate	174	(2)
Buying Decisions	176	(2)
Inventory Classification	178	(1)
Automating Purchase Orders	179	(1)
Aggregate Planning	179	(1)
Conclusion	180	(2)
Case Study: Demand Management	182	(4)
Case Challenges	186	(1)
Operations Management	187	(21)
Introduction	188	(2)
Inventory Tracking	190	(3)
ABC Layouts	193	(2)
Automated Parts Identification	195	(3)
Pick Slips	198	(2)
Cycle Counts	200	(1)
MRP and Work Order Processing	201	(2)
Conclusion	203	(2)
Case Study: Work Order Processing	205	(2)
Case Challenges	207	(1)
Executive Information Systems	208	(28)
Introduction	209	(2)
Setting Strategic Objectives Based on Supply Chain Goals	211	(5)
Connecting Strategic Objectives to Financial Measures	216	(4)
Connecting Financial Measures to Tactical Objectives	220	(3)
Connecting Tactical Objectives to Operational Metrics	223	(3)
Aggregating Measures for Executive Decision Making	226	(2)
Sharing Information in the Firm	228	(1)
Conclusion	228	(3)
Case Study: Targeting Success	231	(4)
Case Challenges	235	(1)
Managing the System	236	(20)
Introduction	237	(4)
Enterprise Thinking	241	(3)
Organizing and Deploying Human IT Resources	244	(2)
Domain Experts	246	(1)
The Physical and the Information Networks	247	(3)
Matching Information Flows	250	(1)
Conclusion	251	(5)
part 4
Standardization and Putting the System to Work	256	(16)
Introduction	257	(1)
Standardization Issues	258	(6)
Information Systems and Standardization Challenges	258	(1)
Interconnecting the Functional Departments of the Firm	259	(1)
Creating Standards	260	(2)
Modifications and Other Special Issues	262	(1)
Standards Organizations	263	(1)
Commoditization and Standardization	264	(2)
Data Standardization	266	(1)
Process Standardization	267	(2)
Standardization Rollout	269	(1)
Conclusion	269	(3)
Customer Relationship Management Modules	272	(27)
Introduction	274	(1)
CRM Components	275	(4)
The Roots of CRM: Order Processing	275	(1)
Sales/Marketing Tools	276	(1)
Sales Force Automation	276	(2)
Customer Service/Call Centers	278	(1)
Integrated Logistics	279	(1)
SFA and Firm Productivity	279	(4)
Contact Management	279	(1)
Quotes	280	(2)
Task Management	282	(1)
Web Order Processing	283	(1)
Forecasting Modules	283	(7)
Data Mining and Customer Profiling	290	(1)
System Capabilities	291	(2)
What to Do When the System Will Not Support Your Needs	291	(1)
Valuing Functionalities	292	(1)
Choosing Bolt-Ons	292	(1)
Conclusion	293	(1)
Case Study: What to Do About CRM	294	(3)
Case Challenges	297	(2)
Logistics and Procurement Systems	299	(20)
Introduction	301	(1)
Logistics Optimization	302	(2)
Is Your Firm Ready?	304	(3)
Significance of Automation	305	(1)
Automation Challenges	306	(1)
Lack of Training	307	(1)
Procurement	307	(5)
ERP versus Best of Breed	307	(1)
Dynamic Reorder Points	308	(4)
E-Procurement	312	(1)
Transportation	312	(2)
Getting to Real Time	314	(1)
Conclusion	314	(2)
Case Study: Operations Automation	316	(1)
Case Challenges	317	(2)
Building a Best-in-Class ERP	319	(15)
Introduction	321	(1)
When the Bolt-Ons Make Sense	321	(4)
Are ASPs a Good Idea?	325	(1)
Designing Your Modular System	326	(8)
Customer Relationship Management	326	(3)
Enterprise Resource Management	329	(1)
Business Intelligence	329	(3)
Manufacturing Relationships	332	(2)
Conclusion: The Next Generation of ERP	334	(2)
Index	336