Back office transaction

Similar to partnerships, information systems requirements will spring from many sources. We define the supply chain in terms of both physical movement and information movement. That information might be back-office transaction data or, increasingly, front-office market and sales applications and shop floor decision support. 

ERP is largely known as a "back office" transaction processing application. This has left a vacuum in the "front office." The front office covers the activities that bring the business into contact with customers. This category, while certainly important to the supply chain, is not included in lists like those produced by CEM, which focuses on distribution-related applications. Eike other categories, CRM suppliers are building bolt-on links with back office ERP systems. 

Of course, many organizations have completed large systems projects with better success. And often the fault lies with the implementers, not the software. The examples cite the application category called ERP. ERP systems automate back-office operations. The back office consists of the many transactions fundamental to the business. Examples are personnel records, booking sales, product bill of materials, and ordering materials. 

As with MRP and MRPII, there is no universal set of ERP functions. However, the fundamental characteristics of current ERP systems are i) it is packaged software which integrates the majority of a business processes, ii) it uses a data warehouse that allows real time access, and iii) it processes many of the firm s transactions and integrates them with planning. A typical ERP system contains three layers the production layer which consists mainly of manufacturing, the back-office layer which includes such core functions as human resource management and accounting, and the front-office layer which com-... 

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