We already learned about supply chain in the previous chapter, but in this chapter it tells us about relationship decision making and SCM. Next, shows how IT driving supply chain that resulting a changed. Also, the success of SCM and their stories.
Basics 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.
- Organization must embrace technologies that can effectively manage supply chains.
- Plan :company must have plan for managing all the resources that meet customers
demand.
- Source : carefully choose suppliers.
- Make : manufacture product and services, scheduling activities.
- Deliver : able to receive orders from customers.
- Return : must create a network for receiving defective and excess product and support customers who have problems with delivered products.
Information Technology’s role in the supply chain
- Visibility : more visible models of different ways to do things in the supply chain have emerged. The ability to view all areas up and down the supply chain.
- Customer behavior : companies can respond faster and more effectively to consumer demands through supply chain enhances.
- Competition : Supply chain planning (SCP) software is uses advanced mathematical algorithms to improve the flow and efficiency of SCM. Supply chain execution (SCE) software is automates the different steps and stages of the supply chain.
- Speed : serving customer in the best, more efficient and effective.
Supply chain management success factors
SCM success stories
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