CHAPTER 10 :EXTENDING THE ORGANIZATION -SUPPLY CHAIN MANAGEMENT

LEARNING OUTCOMES

10.1 List and describe the components of a typical supply chain.

10.2 Define the relationship between decision making and supply chain management.

10.3 Describe the four changes resulting from advances in IT that are driving supply chains.

10.4 Summarize the best practices for implementing a successful supply chain management system.

1.SUPPLY CHAIN MANAGEMENT 

⇨From raw material to semi material.

➨It also to solve problems .

➔In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains.

2.BASIC OF SUPPLY CHAIN

*The supply chain has three main links :

1)Materials flow from suppliers and their "upstream" suppliers at all levels.

2)Transformation of materials into semi finished and finished products through the organization's own production process.

3)Distribution of products to customers and their "downstream" customers at all levels.

*Organizations must embrace technologies that can effectively manage supply chains.

➙Plan : Company must have a plan managing all the resources to meet customer demand for products or services.
➙Source:Company must carefully choose reliable suppliers that will deliver goods and services required for making products.
➙Make:Company manufacture their products or services such as production,testing,packaging and preparing for delivery.
➙Deliver(Logistic):Company must able to receive orders from customers,fulfill the orders via network  of warehouses and implement a billing and invoicing system to facilitate payments. 
➙Return:Customers will return products if there are defect or problem .Company also can return to supplier if there are defect products.


3.Information Technology's Role in the Supply Chain

➤i)Visibility :more visible models of different ways to do things in the supply chain have emerged.Supplier can see and know the down stream.Eg: Nowadays ,if we use Pos Laju services we can know where our products .

    ➥Supply chain visibility: ability to view all downstream and upstream.
    ➥Bullwhip effect :occurs when distorted product demand information from one entity to next throughput the supply chain.

➤ii)Consumer behaviour :Company can respond faster and more effectively to consumer demands through supply chain enchances.If using this system so can predict how much it increase or decrease.

    ➥Demand planning software: generates demand forecasts using statistical tools and forecasting techniques.

➤iii)Competition:

    ➥Supply chain planning(SCP) software :to get accurate number.
    ➥Supply chain executive(SCE) software:What you already plan so it will executive .It also can detect all process and works will be more faster.

➤iv)Speed :To fulfill customer demand and meet customer objectives.It also flow every department different.


4)Supply Chain Management success factors

*SCM industry best pratices include:

➤Make the sale to suppliers.
➤Wean employees off traditional business practices.
➤Ensure SCM systems meet organizations goals.
➤Deploy in incremental phases and measure and communicate success.
➤Be future oriented to create good relationship.

5)SCM success stories

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

*DSSs allow managers to examine performance and relationships over the supply chain and among :

➤Suppliers 
➤Manufactures 
➤Distributors
➤Other factors that optimize supply chain performance.