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Logistics and Supply Chain Management
Notes development of standardized income statements and balance sheets for divisions, geographic
regions, or for the entire global operation. The typical transactions include accounts receivable
and payable, invoicing, financial accounting, and management reporting.
6.7.4 Service Applications
The service module supports post sales product service and warranty support. Customers of
expensive capital equipment such as manufacturing, medical, communication, or transportation
equipment require strong after-sales support for maintenance and repair.
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Caution The system has to track equipment types and versions to ensure that the correct
repair parts are available and can be dispatched to the required location quickly.
The service module can also track usage and repair records to anticipate potential problems
with preventative maintenance or equipment adjustment.
6.7.5 Human Resource Applications
The human resource module tracks employee records, assignments, and performance. This
information is used to support payroll, tax, and work history documentation. In addition to the
typical human resource applications, this module aids in costing supply chain activities by
tracking time individuals spend on an order, an activity, or a process. Detailed activity tracking
allows supply chain managers to determine the relative expense associated with customized or
specialized cost of manufacturing and service.
6.7.6 Reporting Applications
The reporting module generates the standard and customized management reports for
monitoring, performance measurement, and decision support. Using the central data warehouse,
these report applications provide management with the capability to monitor activity levels
and identify performance deficiencies and issue.
6.7.7 Common ERP Systems
Just as in manufacturing, the software industry, particularly for ERP software, is experiencing
substantial consolidation. The result is that there are fewer and larger providers of ERP software.
While a limited number of providers focus their efforts on specialized industries, most of the
major systems incorporate a broad range of functions and features and market to a broad range
of industries.
Self Assessment
Fill in the blanks:
13. The central database is the relational information repository for the entire …………………
system.
14. The …………………… module tracks employee records, assignments, and performance.
6.8 SC Information System Design
The supply chain information system is the backbone of modem logistics operations. In the past,
this infrastructure focused on initiating and controlling activities required taking, process, and
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