Supply Chain Management (SCM)? in a nutshell what SCM is the management of information flows and between and among stages in the supply chain to maximize effectiveness and profitability.
Information Technology's Role in the Supply Chain
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The notion of virtually seamless information links within and between
organizations is an essential element of integrated supply chain.
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Information technology's primary role in SCM is creating the
integration or tight process and information linkages between functions
within a firm.
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Information technology integrates planning, decision -making processes,
business operating processes, and information sharing for business
performance management.
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Considerable evidence shows that this type of supply chain integration
results in superior supply chain capabilities and profits.
+VISIBILITY
Supply chain visibility is the ability to view all areas up and down the supply chain.
Bullwhip effect occurs when distorted products demand information passes from one entity to the next through the supply chain.
*Information technology allows additional visibility in the supply chain.
+CONSUMER BEHAVIOR
Demand planning software generates demand forecasts using statistical tools and forecasting techniques.
Ones
an organization understand customer demand and its effect on the supply
chain it can begging to estimate the impact that its supply chain will
have on its customers and ultimately the organization's performance.
+ COMPETITION
Supply chain management can be broken down in"
Supply chain planning software: uses
advanced mathematical algorithms to improve the flow and efficiency of
the supply chain while reducing inventory. SCP depends entirely on
information for its accuracy.
Supply chain executive (SCE) software automates the different stems and stages of the supply chain.
+SPEED
During
the past decade, competition has focused on speed. New forms of severs,
telecommunications enabling companies to perform activities that were
once never thought possible.
Another
aspect of speed is the company's ability to satisfy continually
changing customer requirements efficiently, accurately, and quickly.
Supply Chain Management Success Factors
To succeed in today's competitive markets, companies must align their supply chains with the demands of the markets key serve.
To
achieve success such as reducing operation costs, improving asset
productivity, and compressing order cycle time, and organization should
follow the seven principles of SCM outlines.
One
of the benefits is to know immediately what is being transacted at the
customer and of the supply chain instead of waiting days or weeks for
the information to flow.
Organizations
should study industry best practices to improve their chances of
successful implementation of SCM systems. The following are keys to SCM
success.
+ MAKE THE SALE TO SUPPLIERS
The hardest part of any SCM system is its complexity because a large part of the system extends beyond the company's walls.
+ WEAN EMPLOYEES OF TRADITIONAL BUSINESS PRACTICES
Operations
people typically deal with phone calls, faxes, and orders scrawled on
paper and will most likely want to keep it that way.
+ENSURE THE SCM SYSTEM SUPPORTS THE ORGANIZATIONAL GOALS
It
is important to select SCM software that give organizations and
advantage in the areas most crucial to their business success.
+ DEPLOY IN INCREMENTAL PHASES AND MEASURE AND MOMMUNICATE SUCCESS
Design the deployment of the SCM system in incremental phases.
+ BE FUTURE ORIENTED
The supply chain design must anticipate the future state of the business
-goodbye-
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