Saturday, 12 September 2015

Chapter 10: Extending the Organization- Supply Chain Management

Chapter 10: Extending the Organization- Supply Chain Management

Supply Chain Management

  • involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.


Basics of Supply Chain

  • the average company spends nearly half of every doolar that it earns on production needs-goods and services it needs from external suppliers to keep producing.
  • materials flow from suppliers and their upstream suppliers at all levels
  • transformation of materials into semi-finished and finished products,or the organization's own production processes.
  • distribution of products tp customers and their downstream customers at all levels.
10.1: A Typically Supply Chain



Information Technology;s Role in the Supply Chain
  • information technology's primary role in SCM is creating the integration or tight process and information linkages between functions within a firm
10.2: The Five Basic Supply Chain Management Components




10.3: The Integrated Supply Chain



10.4: Factors Driving Supply Chain Management



Visibility
  • the ability to view all areas up and down the supply chain.
  • changing supply chains requires a comprehensive strategy buoyed by information technology.
  • the bullwhip effect occurs when distorted production demand information passes from one entity to the next throughout the supply chain.
Consumer Behavior
  • demand planing software generates demand forecasts using statistical tools and forecasting techniques.
  • companies can respond faster and more effectively to consumer demands through supply chain enhancements
Competition
  • supply chain planning(SCP) software uses advanced mathematical 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
  • new forms of servers,telecommunications,wireless applications,and software are enabling companies to perform activities that were once never thought possible.
10.5: Supply Chain Planning and Supply Chain Execution: Software's Correlation to the Supply Chain



10.6: Three Factors Fostering Speed



10.7: Seven Principles of Supply Chain Management



Supply Chain Management Success Factors
  • Make the sale to suppliers
  • Wean employees off traditional business practices
  • Ensure the SCM system supports the organization goals
  • Deeply in incremental phases and measure  and communicate success
  • Be Future Oriented
SCM Success Stories
  • build to order and configure to order manufacturing capabilities
  • web enabled configure to order entry and order status for customers buying directly from Apple at Apple.com
  • Real-time credit card authorization
  • Available to promise and rules based allocations
  • Integration to advanced planning systems
10.8: Top Reasons Executives Use SCM to Manage Extended Enterprises



10.9 :Companies Using Supply Chain Management Technologies to Drive Operations


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