EXTENDING THE ORGANIZATION SUPPLY CHAIN MANAGEMENT

Basics of Supply Chain

• Three main links of supply chain:

            * 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.

• Technologies that effectively manage supply chains must be embrace by an organization.

# Plan 

> Aim

= Plan for managing all the resources that go toward meeting customer demand for products or services.

> Activity

= Develop a set of metrics to monitor the supply chain so that it is efficient, cost less and  delivers high quality and value to customers

# Sources

> Aims

= Choose reliable suppliers that will deliver goods and services required for making products

= Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.

# Make

> Activity

= Include scheduling the activities necessary for production, testing, packaging and preparing for delivery.

# Delivery

• Also known as logistic.

> Logistics

= The set of processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers.

> Activity

= Companies must be able to receive order from customers, fulfill the orders via a network of warehouse, pick transportation companies to deliver the products and implement a billing and invoicing system to facilitate payments.

# Return

> Activity

= Create a network for receiving defective and excess products and support customers who have problems with delivered products.

Information Technology's Role in the Supply Chain.

•  IT's primary roles is to create integrations or tight process and information linkages between functions within a firm.

• Factors Driving SCM

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 trough supply chain enhances.

> Demand planning software

= Generates demand forecasts using statistical tools and forecasting techniques.

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.

• SCP and SCE in the supply chain

Speed

• Three factors fostering speed:

         

Supply Chain Management Success Factors.

• SCM industry best practices includes:

         * Make the sale to suppliers

         * Wean employees off traditional business practices

         * Ensure the SCM system supports the organizational goals.

         * Deploy in incremental phases and measure and communicate succes

         * Be future oriented.

SCM Success Stories.

•  Top reasons why more executives are turning to SCM to manage their extended enterprises.

• Decision Support Systems (DSSs) are built to assist decision makers in the design and operation of integrated supply chains. It also allow managers to examine performance and relationships over the supply chain and among:

                * Suppliers

                * Manufacturers

                * Distributors

                * Other factors that optimize supply chain performance.