Saturday 16 December 2017

Chapter 10 - Extnding the Organization - Suppy Chain Management

Supply Chain Management
  • The average company spends nearly half of every dollar that it earns on production
  • In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains
Basics of Supply Chain
  • The supply chain has three main links.
1.       Materials flow from suppliers and their upstream suppliers at all levels

T    2.   Transformation of materials into semi-finished products, or the organization’s own production processes
3.       Distribution of products to customers and their downstream customers at all levels



Basic of Supply Chain







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 forecast using statistical tools and forecasting tecniques
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






Supply Chain Management Success Factors
  • SCM industry best practices include:
  1. Make the sale to suppliers
  2. Wean employees off traditional business practices
  3. Ensure the SCM system supports the organizational goals
  4. Deploy in incremental phases and measure and communicate success
  5. Be future oriented


SCM Success Stories
  • Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains
  • DSSs allow managers to examine performance and relationships over the supply chain and among:
- Suppliers
- Manufacturers
- Distributors
- Other factors that optimize supply chain performance


No comments:

Post a Comment

Chapter 14 - Creating Collaborative Partnerships

Teams, Partnerships, and Alliances Organizations create and use teams, partnerships and alliances to: - Undertake new initiatives ...