Page 182 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes The function of Supply Chain Management (SCM) is to plan, organize, and coordinate all
the supply chain’s activities.

Enterprise Resource Planning & Supply Chain Management is a formal method to effectively
plan all the resources in the business enterprise.
Enterprise Resource Planning (ERP) integrates internal and external management
information across an entire organization, embracing finance/accounting, manufacturing,
sales and service, customer relationship management, etc.

There are various issues relating ERP implementation that companies need to understand
in order to increase the success rate of the ERP project.

10.7 Keywords

BOM: A Bill of Materials (BOM) is a list of the parts or components that are required to build a
product.
CRM: CRM means “customer relation management.” which is a software designed to manage
all customer interactions in an organized way.
Data Redundancy: It means some data are kept in the multiple locations or some data can be
derived from other data.

Entrepreneur: An entrepreneur is an individual who accepts some sort of risk usually financial
in the pursuit of new ventures.
ERP: Enterprise Resource Planning (ERP) is an enterprise-wide information system designed to
coordinate all the resources, information, and activities needed to complete business processes
such as order fulfilment or billing.
HRM: Human Resource Management (HRM) is the function within an organization that focuses
on recruitment of, management of, and providing direction for the people who work in the
organization.
SCM: Supply Chain Management (SCM) plans, organizes, and coordinates all the supply chain’s
activities.

Supply Chain: Supply chain refers to the flow of materials, information, payments, and services
from raw material suppliers, through factories and warehouses, to the end customers.

10.8 Review Questions

1. Explain the concept of ERP with example.

2. What is customer relation management? Illustrate how CRM is becoming a vital part of
ERP.
3. What is the function of supply chain management? Discuss.

4. Discuss the relationship between ERP and SCM.
5. Many SCM applications are reliant upon the kind of information that is stored in the most
quantity inside ERP software. Comment.

6. What are the advantages of ERP system? Discuss.
7. What are the different strategies used by the different companies to grow up their business?
Discuss.

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