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Unit 2: ERP and Related Technology

5. Inbound operations, including transportation from suppliers and receiving inventory. notes
6. Production operations, including the consumption of materials and flow of finished
goods.
7. Outbound operations, including all fulfillment activities and transportation to customers.
8. Order promising, accounting for all constraints in the supply chain, including all suppliers,
manufacturing facilities, distribution centers, and other customers.

2.14.3 supply chain Business process integration

Successful SCM requires a change from managing individual functions to integrating activities
into key supply chain processes. An example scenario: the purchasing department places orders
as requirements become appropriate. Marketing, responding to customer demand, communicates
with several distributors and retailers, and attempts to satisfy this demand. Shared information
between supply chain partners can only be fully leveraged through process integration.
Supply chain business process integration involves collaborative work between buyers and
suppliers, joint product development, common systems and shared information. According
to Lambert and Cooper (2000), operating an integrated supply chain requires continuous
information flows, which in turn assist to achieve the best product flows. However, in many
companies, management has reached the conclusion that optimizing the product flows cannot be
accomplished without implementing a process approach to the business. The key supply chain
processes stated by Lambert (2004) are:
1. Customer relationship management
2. Customer service management
3. Demand management
4. Order fulfillment

5. Manufacturing flow management
6. Supplier relationship management
7. Product development and commercialization
8. Returns management

figure 2.11: Distribution architecture

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