In the previous chapter we already learn about Supply Chain, but in this chapter it tells us about relationship decision making and SCM. Next, it will shows how IT driving supply chain that resulting a changed and the success of SCM and theirs stories.
BASIC 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.
INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN
FACTORS DRIVING SCM
- VISIBILITY :
- Bullwhip Effect occurs when distorted product demand information passes from one entity to the next throughout the supply chain.
- CONSUMER BEHAVIOR :
- Demand Planning Software generates demand forecast using statistical tools.
- COMPETITION :
- Supply Chain Execution (SCE) Software automates the different steps and stages of the supply chain.
- SPEED : There are the factors that fostering speed
SCM SUCCESS FACTORS
SCM industry best practices include :
- make the sale to suppliers.
- wean employees off traditional business practices.
- ensure the SCM system supports the organizational goals.
- be future oriented.
SCM SUCCESS STORIES
TOP REASONS WHY MORE EXECUTIVES ARE TURNING TO SCM
- Numerous decision support system (DSSs) are being built to assist decision makers.
- DSSs allow managers to examine performance and relationship over the supply chain and among the suppliers, manufacturers, distributors and other factors that optimize supply chain performance.
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