CHAPTER 10 - EXTENDING THE ORGANIZATION-SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

• The average company spends nearly half of the every dollars that it earns on production
• In  the past, companies focused primarily on manufacturing and quality improvement to influence their supply chains.

BASICS OF SUPPLY CHAIN

The supply chain has three main like :

1. Materials flow from suppliers and their "upstream" suppliers at all levels
2.Transformation of materials into semi finished and finished products through the organization's   own production process
3.Distribution of products to customers and their "downstream" customers at all levels

• Organizations must embrace technologies that can effectively manage supply chains.

 

 

 

 

 

INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN

• IT's primary role is to create integration or tight process and information linkages between functions within a firm.

 

 

 

 

 

 

VISIBILITY

 

• Supply chain visibility- the ability to view all areas up and down the supply chain
• Bullwhip effect- occurs when distorted product demand information passes from one entity to the next throughout the supply chain

 

CONSUMER BEHAVIOR

 

• Companies can respond faster and more effectively to consumer demands through supply chain enhances
• Demand planning software -generates demand forecasts using statistical tools and forecasting techniques

COMPETITION

 

• Supply chain planning (SCP) software -uses advanced algorithms to improve the flow and efficiency of the supply chain
• Supply chain execution (SCE) software -automates the different steps and stages of the supply chain.

 

 

 

 

SPEED

 

• Three factors fostering speed

 

 

SUPPLY CHAIN MANAGEMENT SUCCES FACTORS

 

 

 

 

 

• SCM industry best pratices include :
• Make the sale to suppliers
• Wean employees off traditional business practices
• Ensures the SCM systems supports the organizational goals
• Deploy in incremental phases and measure and communicate success
• Be future oriented

SCM SUCCES STORIES

 

• Top reasons why more and more executives are turning to SCM to manage their extended enterprises 

 

 

 

 

SCM SUCCES STRORIES



 

• Numerous decision support system (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains
• DSSs allow managers to examine performances and relationships over the supply chain and among :
• -Supplier, Manufacture, Distributors and Other factors that optimize supply chain performance