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