CHAPTER 10: EXTENDING THE ORGANIZATION- SUPPLY CHAIN MANAGEMENT

List and describe the component of a typical supply chain

• PLAN : REFER TO THE OVERALL STRATEGY OF SCM PROGRAM INCLUDING THE DEVELOPMENT OF SCM METRIC TO MONITOR.
• SOURCE: REFER TO THE SUPPLIER WHO WILL PROVIDE OF GOODS AND SERVICE NECESSARY FOR TO RUN BUSINESS.
• MANUFACTURING COMPONENT: EXECUTION OF PROCESSES NEEDED TO PRODUCED, TEST AND PACKAGE PRODUCT OR SERVICE.
• DELIVERY: REFER TO THE SYSTEM FOR RECEIVING ORDERS FROM CUSTOMER, DEVELOPING A NETWORK PF WAREHOUSES GETTING THE PRODUCT TO THE CUSTOMER AND RECEIVING PAYMENT FROM THEM.
• RETURN: SYSTEM OF PROCESSING CUSTOMER RETURN OR SUPPORTING CUSTOMER PROBLEM WITH THE PRODUCT THEY RECEIVED.

Describe the four changes resulting from advances in IT that are driving supply chain

Visibility

• ABILITY TO VIEW ALL AREAS UP AND DOWN THE SUPPLY CHAIN
• BULL WHIP EFFECT OCCURS WHEN DISTORTED PRODUCT 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 FORECAST USING STATITICAL TOOLS AND FORECASTING TECHNIQUES
• ONES AN ORGANIZATION UNDERSTAND CUSTOMER DEMAND ITS EFFECT ON THE SUPPLY CHAIN IT CAN BEGGING TO ESTIMATE THE IMPACT THAT ITS SUPPLY CHAIN WILL HAVE ON ITS CUSTOMER AND ULTIMATELY THE ORGANIZATIONS PERFORMANCE

Competition

• SUPPLY CHAIN PLANNING SOFTWARE, USES ADVANCED MATHEMATICAL ALGORITHM TO IMPROVE THE FLOW AND EFFICIENCY OF THE SUPPLY CHAIN WHILE REDUCING INVENTORY.
• SUPPLY CHAIN EXECUTIVE (SCE) SOFTWARE AUTOMATES THE DIFFERENT SYSTEM AND STAGE OF THE SUPPLY CHAIN.

Speed

• NEW FORM OF SERVE, TELECOMMUNICATION ENABLING COMPANIES TO PERFORM ACTIVITIES THAT WERE ONCE NEVER THOUGHT POSSIBLE.
• ABILITY TO SATISFY CONTINUALLY CHANGING CUSTOMER REQUIREMENT EFFICIENCY, ACCURATELY AND QUICKLY.

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

• MAKE THE SALE TO SUPPLIER: SCM IS IT COMPLEXITY BECAUSE A LARGE PART OF   THE SYSTEM EXTENDS BEYOND THE COMPANY WALLS
• WHEN EMPLOYEES OF TRADITIONAL BUSINESS PRACTICES: OPERATION 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 SUPPORT THE ORGANIZATIONAL GOALS: SCM SOFTWARE THAT GIVE ORGANIZATION AND ADVANTAGE IN THE AREAS MOST CRUCIAL TO THEIR BUSINESS SUCCESS.
• DEPLOY IN INCREMENTAL PHASES AND MEASURE COMMUNICATE SUCCESS:  DESIGN THE DEPLOYMENT OF SCM SYSTEM IN INCREMENTAL PHASES.
• BE FUTURE ORIENTED: THE SUPPLY CHAIN DESIGN MUST ANTICIPATE THE FUTURE STATE OF THE BUSINESS