- Material flow from the suppliers and their ''upstream '' suppliers at all levels.
- Transformation of materials into semifinished and finished products through the organization's own production process.
- Distribution of products to customers and their '' downstream'' customers at all levels.
Information Technology's Role in the supply chain.
Planning and control supply chain integration
-example: supply chain planning, collaborative product development.
Information Integration
-example: Inventory visibility, performance metrics
Business process integration
-example: Commerce web sites.
Factor driving SCM
visibility
- Supply chain visibiliy-the ability to view all areas up and down the supply chain.
- Bullwhip effect-occurs when distorted product demand information passes from one entity to the next throughout the supply chain.
- Companies can respond faster and more effectively to consumer demands through supply chain enchances.
- Demand planning software-generates demand forecasts using statistical tools and forecasting techniques.
- supply chain planning (SCP)- uses advanced mathematical algorithms to improve the flow and effiency of the supply chain.
- supply chain execution (SCE) software-automates the different steps and stages of the supply chain.
factor fostering speed
- Information is crucial to manager's abilities to reduce inventory and human resources requirements to a competitive level.
- Information flows are essential to strategic planning for and development of resources.
- Make the sale to suppliers.
- Wean employees off traditional business practices.
- Ensures the SCM system supports the organizational goals.
- Deploy in icremental phases and measures and communicate success.
- Be future oriented.
- DSSs allow managers to examine performance and relationships over the supply chain and among:
- suppliers, manufactures, distributors, other factors that optimize supply chain performance.
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