Supply Chain Information

Complete an information system analysis for your organization or select a fortune 500 company (i.e. Amazon, Google, or Coca Cola). Be sure to identify the supply chain and logistics systems, while describing the interaction of supply chain information being available throughout the organization (real-time, accurate, and is the information trusted). Lastly, discuss how the information is shared. Are value-created activities the result of your organization’s supply chain information systems?

The requirements below must be met for your paper to be accepted and graded:

• Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
• Use font size 12 and 1” margins.
• Include cover page and reference page.
• At least 80% of your paper must be original content/writing.
• No more than 20% of your content/information may come from references.
• Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
• Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

LECTURE:

Navy ERP Overview

Designing for performance is not limited to the look and feel, but extends to the operational construct to achieve the desired fit, form, and functional parameters to maximize customer value. This is accomplished through information sharing. Business professionals clearly understand the imperative aspects of information dominance in today’s market. Traditional marketing and supply functions were independent versus integrated, and included vague ratio analyses and fulfillment benchmarks. This resulted in skewed data distributions with high and low control limitations leaving companies with costly marketing strategies and large inventories. In today’s global market, company strategies focus on customer segmentation, geographical interface, and psychographics, which allow for critical posturing to develop product support strategies.

These strategies maximize relations between production, marketing, logistics, finance, engineering, and quality professionals resulting in reduced operational costs including sales and purchasing, lean inventory management practices, and optimized maintenance services.

This lecture aligns with Chapter 12’s discussion of Enterprise Resource Planning (ERP) Systems in comparison to the Department of Defense’s (DoD’s) Navy Enterprise Resource Planning (NERP) database in accordance with the Assistant Secretary of Navy Financial Management and Comptroller. First, we will examine policies and procedures that have led to NERP implementation and associated cost functions as well as structure. Secondly, we analyze the functionality of NERP capabilities associated with DoD performance benchmarks. Lastly, we discuss the interface of NERP, e-commerce activities, and associated purchasing and inventory metrics conducive to optimizing business practices across the Space and Naval Warfare Systems Command (SPAWAR). As this lecture unfolds, note that the data results directly correlate with strategic planning, marketing capabilities, and logistics support activities.

NERP Development and Implementation

What is NERP to the DoD? Most commonly termed NERP is the financial system of record that enables the DoD. The NERP database uses highly-sophisticated business management software to streamline operations, primarily between financial and supply chain management. The NERP database enables financial transparency and accountability for systems commands which develop military weapon systems in accordance with the followings goals:

• Reducing the number and cost of IT systems
• Achieving significant labor cost savings through standardized business processes
• Producing auditable financial statements
• Reducing the cost and level of effort of conducting an audit
• Accessing a common set of secure data anywhere in the DoD
• Improving total asset visibility, increasing repairs, and decreasing replacements
• Driving productivity as the skills of DoD ERP users become transferable (Navy ERP Program, n.d.)

The NERP database program stems from the Office of Management and Budget based on three legislative acts representative of the framework to include:

• The Common Approach to Federal Enterprise Architecture, Executive Office of the President
• Office of Management and Budget, A-123, Management’s Responsibility for Internal Control
• Office of Management and Budget, A-130, Management of Federal Information Resources

The Office of Management and Budget (OMB) A-123 defines internal control requirements among managers across federal agencies to ensure compliance with the same financial constraints as placed on publicly-traded corporations in accordance with the Sarbanes-Oxley Act (SOX) of 2002 and the Financial Integrity Act of 1982. While the signature authority procedures differ from corporations, responsibility to control financial objectives through reliable financial reporting and compliance with applicable laws and regulations are correlated to the annual performance and accountability report. OMB A-130 defines the management of federal information resources tied to national security purposes and the Clinger-Cohen Act, while implementing a capital planning and investment control process that links to budget formulation and execution as associated with information systems. Lastly the Common Approach to Federal Enterprise Architecture “promotes increased levels of mission effectiveness by standardizing the development and use of architectures within and between federal agencies” (Executive Officer of the President, 2012).

NERP Functionality and DoD Benchmarks

The Enterprise Resource Planning (ERP) database spans the DoD; however our primary focus is relevant to NERP, which is specific to the Department of Navy (DON). As illustrated by Figure 1, the Home page hosts multiple features with an Access Enforcer tab that enables users and managers to oversee purchase orders, accounting reports, and multiple inventory management functions. The Employee Self-Service tab allows for time sheets to be completed, funding lines to be associated and leave, holiday, medical, and normal working hours to be tracked, also producing granular metrics defining the workforce productivity ratio by competency and program office. The Training tab supports user roles as employees develop and grow throughout their careers increasing their system accessibility as applicable to their job and functional activities.

Multiple metrics reports and information is derived from NERP to support organizational strategies and operation activities. Figure 2 below represents benchmarking goals to reduce inventories in accordance with lean practices and consolidation of system commonalities.

Evidenced by the timeline-projected goals of reducing inventory from $1.5 billion to $861 million was surpassed demonstrating the strategic planning and organizing database capabilities. SPAWAR hosts 16 individual Program Management Warfare (PMW) offices under the Program Executive Office (PEO) for Command, Control, Communications, and Computers (C4I) and Enterprise Information Systems (EIS). The PEOs are comprised of tactical networks, space communications, satellite communications, navigation, and enterprise business systems. NERP allows tracking of all cost allocations across each PMW and the multiple systems managed within each PMW. To describe granularities in reporting capabilities I will use Spares monies spanning all PMWs as illustrated in figure three.

Upon congress approving the budget at the beginning of each Fiscal Year (FY) PMWs feed planned purchasing activities to SPAWAR headquarters through NERP to track anticipated obligations. Based on research and development testing and configurations monies are obligated in purchasing commercial components and subcomponents or fabricated prototypes to ensure product supportability during design and engineering phases of the lifecycle. Figure 3 further distinguishes the past and current FY obligation and commitment trend rates. Further delineation of each burdened rate is measured by individual PMW offices to determine constraints as depicted by figure four.

Recognizing that PMW130 and PMW750 weren’t able to fully obligate funds allows for Logistics Element Managers (LEMs) to become involved to reprogram funds to other programs with material needs or to return the monies to the treasury, where another DoD agency can execute the funding as needed.

NERP Interfaces and Ecommerce Capabilities

NERP is a highly complex database that offers a significant amount of capability for an organization to gain process efficiencies and achieve long-term growth and development. End strength effectiveness also includes business purchasing activities such as credit card, small, medium, and large contracts, as well as securing data between open market transactions and classified correspondence. While I narrowed the subject lecture to Spares the entire SCOR model architecture is sustained enabling connection of all information throughout the SPAWAR organization.

References

• Executive Officer of the President. (2012). The common approach to federal enterprise architecture. Retrieved from