Strategic Supply Chain Management - Supply Chain Online

64 Strategic Supply Chain Management
data. Despite the advent of enterprise application integration tools, the skills
needed to create bulletproof integration were not available, and software vendors
were slow to provide off-the-shelf integration for common ERP packages.
Advances such as portal technology, which can connect multiple
locations with multiple applications, are helping to resolve these integration
challenges, but many companies still have “applications islands” (see Figure
2-5)— stand-alone applications that support only one piece of the end-to-end
process.
The best supply chains have an integrated flow of information.
Unfortunately, too many companies use nonintegrated applications that
require manual data reentry, changes in data formats, and multiple quality
checks. Missing links between processes and information systems result
in fragile supply chains that depend on specific individuals, manual handoffs,
and work-arounds. The result is a high risk of error, longer cycle
times, and added costs.
FIGURE 2–5
Application islands do not support process integration.
Schedule Order
for “In Stock”
OM System
Order Management
Schedule Order
for “Not In Stock”
Excel
Backlog Management
Split Order
Check Incoming
Goods
Fax
Production Planning
Application Islands
Process Flow
Schedule Order
for Incoming Goods
Register
Backlog