EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM)
Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
has three (3) main links:
Materials flow from suppliers and their “upstream” suppliers at all levels
Transformation of materials into semi-finished and finished products through the organization’s own production process
Distribution of products to customers and their “downstream” customers at all levels
Basics of Supply Chain
Plan
Make
Deliver
Source
Return
INFIRMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN
IT’s primary role is to create integrations or tight process and information linkages between functions within a firm
Information Integration
Business Process Integration
Planning and Control Supply Chain Integration
Factors Driving SCM
Visibility
Consumer Behavior
Competition
Speed
SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS
Make the sale to suppliers
Wean employees off traditional business practices
Deploy in incremental phases and measure and communicate success
Be future oriented
Ensure the SCM system supports the organizational goals
SCM SUCCESS STORIES
Cost control / savings
Productivity improvements
Inventory reductions / improvements