CHAPTER 10:EXTENDING THE ORGANIZATION -SUPPLY CHAIN MANAGEMENT

1.List and describe the component of a typical supply chain.

• supplier
• manufacturer
• distributor
• retailer
• customer

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

-VISIBILITY

• is the ability to view all areas up and down the supply chain.Changing supply chain requires a comprehensive strategy buoyed by information technology.

-CONSUMER BEHAVIOR

• has changed the way businesses compete.Customer will leave if a company does not continually meet their expectations.They are more demanding because they have information readily available they know exactly what they want and they know when and how they want it.

-COMPETITION

• use advanced mathematical  algorithms to improve the flow and efficiency of the supply chain while reducing inventory. SCP depends entirely on information for its accuracy.

-SPEED

• these system raise the accurancy between internal users.Another aspect of speed is the company ability to satisfy continually changing customer requirements efficiency accurately and quickly.

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

-MAKE THE SALE TO SUPPLIER

• not only will the people in the organization need to changes the way they work.,but also the people from each supplier that is added to the network must change.

-WEAN EMPLOYEES OFF TRADITIONAL BUSINESS PRACTICES

• Operation people typical deal with phone call,faxes and order 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 gives organizations an advantages in the areas most crucial to their business success.

-DEPLOY IN INCREMENTAL PHASES AND MEASURE AND COMMUNICATE SUCCESS

• For instance istead of installing a complete supply chain management system across the company and all supplier at once start by getting it working with a few key supplier.

-BE FUTURE ORIENTED

• the supply chain design must anticipate the future state of the business  because scm system likely will last for many more years than originally planned manager need to explore hoe flexible the system will be when changes are required in the future.

4.Define the relationship between decision-making and supply chain managament

-involve the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.