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Supply processes & Technology (The supply management process (Supply …
Supply processes & Technology
Managing processes, understanding and clarifying how each processes interacts with other processes & activities are critical to the success of the organization as a whole.
The supply management process
Has beginning & end, occurs in specific sequence and has inputs & outputs.
Supply
process
1.Recognize and describe need
Identify potential sources
Select source.
Determine
&
follow up and expedite
8.Maintain records & relationships
5 major reasons for developing a robust process are:
Large # of items
Large dollar volume
Need for audit
Severe consequences of poor performance
Potential contribution to effective organisational operations
Focus on " Where, when & how can personnel contribute to short & long term goals and strategies for the organisation?
Ensuring compliance: Process improvements and consistent delivery of results to internal business partners may increase compliance.
Organizational culture affects compliance
Information systems & supply process
Include interconnected components that collect, process & store raw data and distribute information to support decision making, control and coordination within the organization.
Benefits of information system
and efficiency gains.
Faster
Dedicate resources to strategic issues.
Data
Monetary
Technology options
Types
Operational level
Management level
Knowledge level
Procurement systems
EDI: Exchange business documents between 2 organisations.
E-Marketplaces: Virtual shopping malls
Online reverse auctions: Used for commercial transactions for centuries
RFID: Tags contain a chip and antenna that emit a signal, using energy from a radio frequency reader.
Enable effectiveness in two ways:
Make data more transparent
Relieve supply decision makers
