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электронного правительства, улучшить качество и доступность оказания государственных услуг.
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UDK: 339.37:658.7 005.96
Милетич1 Л., Ничич2 M, Буха1 В., Трбович1 J.,
Факультет менеджмента проектами и инновациями, Белград, Сербия
2Высшая школа профессиональных изучений, Нови-Сад, Сербия
ЭФФЕКТЫ ИНТЕГРАЦИИ ИТ И УПРАВЛЕНИЯ ЦЕПОЧКАМИ ПОСТАВОК - ПРИМЕР ИССЛЕДОВАНИЯ В СЕРБИИ
В сегодняшней конкурентной среде ключевым фактором выживания и развития предприятия становится разумное и эффективное использование ресурсов и современных информационных и коммуникационных технологий. Глобальный аспект бизнеса приводит к увеличению интереса глобальных компаний к эффективному управлению цепочками поставок и поиску новых современных решений, которые одинаково приемлемы как для поставщика, так и для пользователей. Ключевую роль в этом играют новые информационные и коммуникационные технологии, поскольку они позволили эффективно управлять всеми подразделениями в цепочке поставок в дополнение к новому способу связи на основе их взаимосвязи, сотрудничества и более эффективного выполнения своих задач. В настоящем документе представлено всестороннее исследование для выявления критических критических факторов и основных преимуществ внедрения систем планирования ресурсов (СПР) в управлении цепочками поставок (УЦП) с использованием ответов от конкретных отобранных компаний на сербском
Ключевые слова:
УПРАВЛЕНИИ ЦЕПОЧКАМИ ПОСТАВОК, ПРИНЦИПЫ ИНТЕГРИРОВАННОГО УПРАВЛЕНИЯ, ЭФФЕКТЫ ИНТЕГРАЦИИ СПР И
УЦП
1. Introductory considerations time-related obstacles and meet their customers'
Although the concept of Supply Chain Manage- requirements and demands for good quality. Man-ment - SCM is several decades old, its routs aging the supply chain requires to coordinate dated back to the time of the struggle of pro- different participants such as manufacturers, ducers and distributers to fight spatial and suppliers, distributers, transporters and
sellers. Supply chanin management aims at delivering the right products (of requested or expected quality), at the right place, at the right time, under acceptable terms and conditions and at adequate (economical) rates.
The origine of supply chain can be tracked back from the time of evolution of logistics, which has been developing for the last half of the century from strictly operational function to basic strategic elements of production and distribution companys, and the concept of managing supply chains has evolved along with it, as well. Evolution process can be devided into five phases [1], where the first phase can be described as the period of decentralized logistics, while during the second phase, logistics has evolved from functional decentralizations towards organized centralization with progressive ideas on optimization of costs and customer services. Throught the phase three and four, logistics has expanded to include more and more functions to bring supply chain finally into phase five after the discovery of internet. Striving towards certain parameters that would bring successful supply chain management resulting in profitable business marks the phase five. Information visibility, responsiveness and promptness are the main requirements the supply chain has to respond to. Information on variability and accuracy, analytics and control as well as flexibility and stability are to be constitute within this phase. Having that context in mind, IT support to SCM has been more and more important and useful.
Since the purpose of managing supply chains is to reach integrated planning through all processes in order to manage activities of purchasing, production and distribution of products from supplier to customer in efficient and integrated manner, SCM has strategic implications in form of reaching significant competitive advantages. Due to that reason, the future of managing supply chains has been closely connected to controlling and manging information flows and/or promptness and accurate directing of pieces of information that will enable all related parties to adjust quickly to needs and requirements of customers, simultaneously controlling and reducing their own costs. This shall mean: defining and applying moder practices of information flows and identifying adequate systems; identifying acceptable iformation technology (IT) tools or advanced systems compatible to chosen IT, establishing new distribution channels, particularly electronic markets and implementing optimization of processes, as support to companies in solving complex business challneges.
Supply Chain
There are numerous definitions and explanations for the term supply chain. According to [2], supply chain include network of organizations that are on two-way basis connected through different processes and activities, crating value in form of products and services for end-user. Chow [2], however emphasizes that supply chain included all companies participating in production/processing, selling and distribution of products from the sources of raw materials to end-users, while Mentzer [4], observes supply chain as series of three or more organizational or individual entities in two-way flows of products, services, finances and/or information from the source to user. And [5], says that supply chains consist of such logictic and information elements permeated with aggregated market requirements on one side, and delivery of specific product/service to the user on the other side.
[6], are of opinion that supply chain can be defined through all activities relating to the delivery of products to the user, and that includes: supplying raw materials and parts, production and assembly, warehousing and tracking stocks, entering oreder and managing realization of the order, distribution through all channels, delivery to customers as well as information systems necessary to monitor all mentioned activities. Supply chain is also observed as integrated system synchronizing series of mutually dependent business processes, aiming at transforming purchased raw materials into new value in form of finished goods for the distribution and promotion either to users or sellers.
[7]. Of course this means that it is very important to facilitate the exchange of information among different business entities (suppliers, producers, distributers, logistics providers and retail) Frazelle [8], observes the supply chain at macro level and sees it as the network of different facilities (warehouses, plants, terminals, ports, retail facilities and households), transportation means (trucks, trains, airplanes and overseas vessels) and logistics information systems interconnected through suppliers' suppliers and custemers' customers.
Integrated Supply Chain Management Approach
From the above it can be seen that integrated supply chain means integration of necessary processes in order to enable transformation of input raw materials (semi-finished goods) into finished goods and to deliver them to end customers through distribution centers and/or rea-tail. This means, at the same time, that integrated supply chain management means managing integrated processes, shown on figure 1.
Figure 1
Figure 1 shows that supply chain components: suppliers, production,
- SCM-integrisani proces, Source [8]
includes four distribution
and consumers, wher each component of the chain can consist of large number of other installac-tions and capacities within each component. It is well known that main purpose of managing supply chains is synchronizing users' requests to flow of materials from suppliers, with the need to achieve balance between the quality level of service provided to user, level of stocks at the warehouse and costs and expenses [4]. To that sense, integrated SCM approach mean implementation of adequate information and communication technologies [10] and modern software solutions, that will enable managers to manage suplly chain actively by raching balance between the quality of service, stocks and total costs and expenses, and the price consequently.
Application of modern technologies requires optimal choice of sophisticated solutions that will enable efficient supply chain management. When deciding on adequate software tools, since customers in the era of globalization and modern technologies are more and more demanding, both in terms of higher level of quality of products/servies and lower preices. All of that pointing to the necessity of not only the integration of specific participants in the supply chain but also the need to use integrated approach for managing SCM. At the same time, integrated supply chain management means that certain participants (companies) within the supply chain strive to raise above their own goals and personal interests and to focus, with long-term strategic integrated plans harmoniyed with plans of all other participant in the supply chain, to maximization of satisfaction of end-user, because only such integrated approach can bring them stabile competitive position in highly demanding global market. It should be noted that there is no universal concept for the modern (read: integrated) supply chain management, because each company modifies its SCM depending on its needs, so it is important for all companies in the supply chain to comply with the basic principles, and to take care of scope, objectives, participation and planning in the implementation of SCM. For modern integrated supply chain /chains management, Anderson emphasizes the importance of respecting the following seven principles [11]:
1. Adjusting the supply chain to customer needs - enables revenue growth and greater customer satisfaction, multiple supply chain capability, or flexibility in the supply chain design;
2. Adapting the logistics network to the customer's requirements - it contributes to greater utilization of resources, based on a wide Logistic Network, which allows customer interactions;
3. Harmonizing demand planing within supply chain - supports the utilization of resources through greater harmonization of the production programms to demand and scientific forecasting of demand based on customer demand.
4. Customizing the product to the requirements of the customer - it enables the reduction of costs and means of use and implies greater mutual cooperation among the functions of marketing, sales and engineering functions;
5 Managing owership strategically - allows the reduction of total costs of ownership and includes total strategic forecasting (togal cost of ownership, TCO) for purchased materials and services,
6 Developing and implementing information technologies - enable multi-level decision-making and greater utilization of resources as new systems allow tracking short-term transaction needs, planning and strategic analysis.
7. Adopting vertical measures for each channel, as they enable revenue growth, the use of resources and cost reduction based on a transparent cost review that enables all participants
in the supply chain to inspect the activities and costs accompanying them.
In addition to respecting the key principles of supply chain management, it should not be forgotten that the basic goal of modern SCM is to achieve the highest satisfaction of the final consumers of the target group in terms of: the expected product quality, the exact time by integrated planning, maintenance and efficient management of all processes in the supply chain and place of delivery, as well as acceptable (agreed) prices [12]. This implies good co-ordination and interaction between all participants in the supply chain (manufacturers, suppliers, distributors, transporters and sellers) [13]. In relation to the traditional supply chain management approach, there are many features supporting the application of modern SCM approach (Table 1) [14]. Based on the example of globally successful Russian company "COHfl" who is provider of IT outsourced services and leader in developing supply chain management software, business policy can be better observed, as well as all software solutions required by modern SCM. This company, aiming at strengthening own competitive advantage, optimization of increased offer and reduction in costs and expenses, has been prudently based on business strategy including in their offer a large number of developed software solutions. For the purpose of SCM, software for automation of following processes have been developed [15] : Managing supplier's offer; Managing contracting costs; Receiving a Bid and Order Management; Managing accounts; Setting up an account for payment of goods and services and Invoice processing.
3. Effects of Integrating ERP and SCM
The modern supply chain management cannot be imagined without the use of information technologies, as they have the role of integrators of all entities in the supply chain. In addition, within the functional area of the operation, all companies use a common database and exchange information among themselves, which is, inter alia, important for efficient integrated planning. The integration of IT and SCM gave the quality plus in the form of data accuracy and high flow rates, relevance of accessibility and availability of information. It all contributed and influenced the integration of IT and SCM tc significantly affect: cost minimization, increased levels of product and service quality, improved communication between supply chain companies, increased flexibility in scheduled delivery times, integration of information technologies with flows of all processes, shortening of time delivering and increasing the flexibility of products and services in order to meet the required quality of user needs.
The goal of creating an IT - ERP system was to provide improvements in production performances, based on managing the business processes and effectively organizing and planning the necessary resources. Permanent and dynamic changes in the global market have influenced the need to develop an efficient information system that, in addition to production, will include all other members of the supply chain, so that the ERP system integrates all the processes of the business system - enterprises, using the central database data grouped in five segments [16]: Manufacturing Resource Planing (MRP); Finance Resource Management (FRM); Customer Relationship Management (CRM); Human Resource Management (HRM); Supply Chain Management (SCM).
ERP software, used by many companies worldwide for the needs of internal supply chain management, has the goal of processing all transactions in each functional area and key entities in the supply chain, allows for an insight into the real state of the company's databases at every cross-section of time.
Table 1
Comparative overview of features of integrated and traditional SCM approach
Aspects Featurs of integrated SCM Features of traditional SCM
company's strategy Market Orientation Process Orientation Supply Chain Management Production Orientation Functional specialization Classical hierarchy Administrative management
Product Large assortment Shorter life cycle Application of high technology emphasizing product quality Small assortment Longer life cycle Application of lower technologies Emphasizing the low price of the product
Production High flexibility with full work load Unit and serial production Shorter optimized delivery path Low production costs Purchase of raw materials instead of production A small number of selected suppliers Low flexibility with full work load Large-scale and continuous production Longer supply path Low production costs Produce the raw material instead of buying Large number of suppliers
Market the target market's customers-orientation Great competition Globally Oriented Dynamic markets marketers-oriented Small competition National-oriented Static markets
Services High level of service Automation of logistics processes with low-level inventory High speed process Short transport times High level of service Large number of assets and inventory Slow Logistics Process long transport time
information and communication technologies Electronic data processing paperless 24-hour electronic data transfer method Elektronska obrada podataka Manual data processing Management announcement The classic way of data transfer
Unlike traditional IT systems, which have many limitations due to difficult connections in other functional areas, and the inability to track changes in the supply chain, the ERP system has far greater flexibility in the areas of: production, finance, marketing, engineering, procurement, etc. Which means that the ERP system seeks to integrate all of the information processes in the organization and use this interaction to improve performance primarily in line with the increasing demands of customers. In practical terms, ERP is a set of software modules that enable the company to automate key transactions for the needs of their business processes. This achieves greater data integrity, database availability, and consolidation of a large number of different incompatible systems. Figure 2 shows that the ERP system includes the following activities: financing, forecasting, order monitoring, sales analysis, local and global distribution and quality control of products and services. For these purposes, the ERP system uses powerful monitoring and reporting tools, but which are rather rigid and require well-defined data for application
Figure 2 - Integrating ERP and Supply Chain Management
In scientific literature, we mainly find the results of research carried out in Western European countries (Accenture company with the University of Stockholm and the Business School INSEAD), accoring to which, besides significant
advantages, ERP systems also have some difficulties in managing the supply chain. These studies point to significant financial difficulties in introducing the system, incompatibility with present business strategies, difficulties in adapting to both internal and external environment changes. In addition, the Delphy [17] study shows that the integration of ERP with SCM needs to be improved in the following segments: 1. better integration of activities between suppliers and customers; 2. Increase the system's flexibility to fluctuate in the needs of the supply chain; 3. Increasing the flexibility between the production program and reducing the supply chain cycle time and existing stock; 4. Focus on the supply chain, to companies with several independent companies. As a main criticism of ERP in increasing the efficiency of supply chain management, the survey also includes: modest possibilities for increasing SCM efficiency, insufficient adaptation to specific products, insufficient application of standardized processes and information, slow modernization of IT systems and insufficient market transparency.
All these remarks certainly urge experts to work on further development and improvement of IT and software solutions for integrated supply chain management. Naturally, effective integrated application of IT and SPC implies that companies first distinguish between form and function of transactional information technologies and analytical information technologies [12] . Transaction IT (POS systems, quarterly sales reports, ERPs and e-commerce systems) aim to accept, process and merge rough data on previous and current supply chain operations. Analytical IT, on the other hand, is used to develop and implement systems for evaluation and decision-making by models built on the basis of possible supply chain decisions (prognostic systems, systems for optimizing the chain of shadowing networks, systems for time planning of production).
Benefits integracije ERP i SCM -case study in Serbia
ERP systems focuses on all transactions in the company and are very successfully used in SCM on the Serbian market. Based on the conducted analysis of the current knowledge and existing practices related to the use of IT in the Serbian market, it has been noted that, in comparison to the traditional way of business, companies that use IT-ERP for their strategic option to achieve competitive advantage realize increased profits and are more oriented towards customers and their needs [18] . According to the results of research carried out by MINECO Computers in Serbia in the field of information technology, in the last four years the value of the ERP market in Serbia has almost doubled and reaches the amount of about 22 million Euros, and more than a hundred ERP projects have been implemented on annual basis within prvious two years. Hence, at
Companies that participated in the survey
the moment there are currently around 1000 companies using the integrated ERP system in SCM in Serbia, and it is estimated that due to successful implementation and achieved results, another 1000 companies will be committed to the introduction of this integrated IT system (ERP and SCM) . If we look at the fact that several years ago, the main motive of regional companies in Serbia to introduce the ERP system, as a powerful management tool for everyday control and management of the company's resources, was to increase its value for sale or privatization or because of cooperation with foreign companies, [16] progress is evident. Table 2 shows the representative sample of Serbian companies that use the integration of ERP system and SCM system and conducted in the survey
Table 2
of integration of the ERP system and the SCM
Company Name Activities of the Company Years in Business Number of Employees Web site
Srpska fabrika stakla A.D. Glass industry 105 870 www.srpskafabri-kastakla.com
Swisslion Takovo Confectionery 17 2782 www.swisslion-ta-kovo.com
Holcim Srbija Manufacture of cement, aggregates and ready-mixed concrete 135 334 www.holcim.rs
JP PTT Srbija Postal services, e-commerce, internet 174 15336 www.posta.rs
Dijamant Zrenjanin Food industry 76 585 www.dijamant.rs
Source:Research conducted in enterprises in Serbia
Next table 3 presents the results of research related to the review of the reasons for implementing ERP solutions in the above mentioned Serbian companies, which show that every company has its priority reason for the introduction of modern ERP solution, which can be summarized in improving operations and creating positive effects of operations, increase of company value by creating competitive current global economic crisis. In the analyzed companies it is predicted that they shall, together and individu_Reasons for implementing ERP solut
ally, determine the respective roles and responsibilities in the project implementation of ERP solutions. The appropriate personnel working on a project is of the ulmost importance therefore, the personnel have to be carefully selected. The teams working on the project plan development and implementation of appropriate ERP solution are typically diverse teams made from staff belonging to the solution purchasers. Table 4 shows comparations IT acourding survey results of companies in Serbia, obtained before and after the introduction of the integral ERP and SCM.
Table 3
ions in SCM to enterprises in Serbia_
Company Name Reasons for implementing ERP in SCM
Srpska fabrija stakla A.D. Improving the business increasing the company s value
Swisslion Takovo Greater efficiency and productivity of operations
Holcim Srbija Within its own corporate ERP
JP PTT Srbija The current system has unorganized data system ERP offers the owest business risk
Dijamant Zrenjanin Effective business management and replacement of existing information systems
Source:Research conducted in enterprises in Serbia
As it shown in table 4, that the greatest success of integration of ERP system and SCM is the provision of accessibility, visibility and consistency of data and information throughout the enterprise. Based on the offered options,
_Comparison of IT before and
regarding the implementation of the new ERP solution compared to the old software solutions, 80% of the respondents were satisfied with the new solution and the new user interface. Figure 3 shows some other positive results of the introduction of the new ERP system in companies in Serbia in relation to the old solution.
Table 4
after using ERP solutions in SCM_
Before using ERP solutions With the help of ERP solutions
Information Systems Unconected systems Integration system
Coordination Lack of coordination between business func-tions8e.g.production and sales) Supports coordination between business functions
Databases Unconected data Linking data
Maintenance Maintenance of individual IS Uniform maintenance
Interfaces Impossible exchange interfades between systems Unified interface between systems
Information Repetition, inconsistency Information is available in real time (customers, suppliers)
Architecture system Is not uniform Based on a client server
Processes Incompatible processes The integrated business processes based on business models
Applications Various applications Uniform applications-modules
Source: Source:Research conducted in enterprises in Serbia and Sumner M.,2004.
Positive effects of the implementation of the new ERP solution in the supply chain management have shown: cost reduction (80%) at the maximum level of company management, reduction of time in relation to the planned (60%) and performance of the budget with reduced budget in relation to the planned (by 40%) . It should be added that the expectations of the participants after the introduction of ERP solutions increased by 60%, and the level of knowledge quality that the participants adopted maximally increased.
100%
I J
I Dissatisfied
80% 60% 40%
20% 0%
New ERP Old ERP
Source : Research conducted in enterprises in Serbia Figure 3 - Comparative overview of the new and old ERP system
Implementation of the new ERP system solution in the organization of the company usually leads to structural changes, with the greatest reflection on technological changes and employees-related changes. The integration of the ERP and CSM system is a success that is measured beyond national borders, above all a higher level of quality of goal realization and a shortening of time for their realization. The main advantages of ERP ERP implementation are: Real time information across all functional areas; Standardization and accuracy of data, integrated information; Indicating best practice in the application and Standardization and acceleration of business processes [19]. It should be added that
in the previous years the following directions for the further development of the ERP system for the needs of integrated chain / value chain management have been identified [20]: Vertical-ization system; Moderniyation through the use of service-oriented archictecturre; Globaliyation which is not only a dharacteristic of large companies and Consolidation of the market with a large number of mergers and acquisitions of ERP manufacturers
Conclusion
Supply Chain Management is a challenge to modern management and entails accepting modern business concepts and focusing on managing global material flows, information, and planning and resource management, including finance. Supply chain management involves the management of all processes in the supply chain in order to meet the expected quality of end-users and imply mutual knowledge in the exchange of information and planning activities in their processes among all participants in the supply chain, from suppliers, manufacturers, distributors to the end user. This paper presents a comprehensive study to identify the critical success factors and key benefits of ERP systems implementation in SCM using responses from specific, selected companies on the Serbian market. The study uses the application of the modern ERP system based on the questionnaire conducted in large regional companies that operate in Serbia can serve corporate owners and ERP consultants as guidelines for more efficient implementation of new ERP software solutions, especially in limited resource conditions. The main goal of the author was to point out that the competitive business of the big ones, but also those smaller global and regional companies can be no longer imagined without applying modern integrated IT for efficient and reliable supply chain management. In our post-transitional business conditions, unambiguous business benefits have been shown to have an integral approach to management through the ERP system and the SCM system.
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