SUPPLY CHAIN MANAGEMENT

A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material

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 profitability

The supply chain has three main links:

• Materials flow from suppliers and their “upstream” suppliers at all levels.

• Transformation of materials into semi-finished and finished products through the organization’s own production process.

• Distribution of products to customers and their “downstream” customers at all levels.

BASIC SUPPLY CHAIN

INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN

IT’s primary role is to create integrations or tight process and information linkages between functions within a firm

1.VISIBILITY

Supply chain visibility – 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

2.CONSUMER BEHAVIOR

Companies can respond faster and more effectively to consumer demands through supply chain enhances 

Demand planning software – generates demand forecasts using statistical tools and forecasting techniques

3.COMPETITION

Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain

Supply chain execution (SCE) software – automates the different steps and stages of the supply chain

SCP and SCE in the supply chain

 4.SPEED

 

Three factors fostering speed

SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

—

---