Basics of Supply Chain
- Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profatibility
- The supple chains has three main links
- Materials flow from suppliers and their upstream suppliers at all levels
- Transformation of materials into semi-finished and finished products, or the organization's own production process
- Distribution of products to customers and their downstreams customers at all levels
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| The five basic supply chain management activities |
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| A typical supply chain |
Information Technology's Role in the Supply Chain
- Information technology integrates planning, decision-making processes, business operating processes, and information sharing for business performance management
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| The integrated supply chain |
Supply Chain Management Success Factors
- Make the sale to suppliers
- Wean employees off traditional business practises
- Ensure the SCM system supports the organizational goals
- Deploy in incremental phases and measure and communicate sucsess
- Be future oriented