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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
1
CHAPTER 11
SUPPLY CHAIN
MANAGEMENT
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
2
Learning Objectives
• Learn about the supply chain network and management
drivers.
• Understand the complexity and importance of the
integration of supply chain.
• Learn about supply chain components, processes, and
flows.
• Know the different levels of supply chain integration.
• Examine the impact of the ERP on supply chain
management.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
3
Preview
• A good supply chain management (SCM) system can
act as a digital nerve center for the entire business and
save the company millions of dollars in costs in order
fulfillment and other back-end support processes.
• SCM gives companies access to all of the critical
information they need to plan their operations in an
efficient way whenever and wherever they need it.
• SCM improves efficiencies and reduces costs
substantially while also giving companies the
adaptability to modify their business processes.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
4
Supply Chain Management
• Supply chain is the network of services, material, and
information flow that link a firm’s customer relations,
order fulfillment, and supplier relations processes to
those of its suppliers and customers.
• Michael Potter
– A business value chain consists of a series of processes or
activities conducted by the company to add value to the existing
product or service and to provide a competitive advantage in the
market.
• Companies need to understand their supply chain and
build the strategy such that its competitive strategy and
supply chain strategy are aligned.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
5
Supply Chain Management (Contᾼ
d)
• Corporations are striving to focus on core competencies
and become more flexible and reduced their ownership
of raw materials sources and distribution channels.
• All the functions of a company’s supply chain contribute
to its success or failure and they all need to work
together to ensure success.
• To achieve strategic fit, a company must ensure that its
supply chain capabilities support its ability to satisfy the
targeted customer segments.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
6
Figure 11-1 Collaboration in Supply Chain
Information
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
7
SCM Drivers
Facilities
• Facilities are the places in the supply chain network
where product is manufactured, stored, or shipped.
• The two major types of facilities are production sites
(plants) and storage sites (warehouses).
• A company needs to decide how many suppliers,
manufacturing facilities, distribution centers, and
warehouses to have.
Information
• Information consists of data and analysis concerning
facilities, inventory, transportation, and customers
throughout the supply chain.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
8
SCM Drivers (Contᾼ
d)
Inventory
• Inventory is the raw materials, work in process, and
finished goods that belong to the company.
• A successful inventory management policy is to achieve
that right balance of responsiveness and efficiency.
Transportation
• Transportation moves the product between different
stages in a supply chain.
• The type of transportation a company uses also affects
the inventory and facility locations in the supply chain.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
9
SCM Flows
Three Categories
• Product Flow - The product flow includes the movement
of goods from a supplier to a customer, as well as any
customer returns or service needs.
• Information Flow - The information flow involves
transmitting orders and updating the status of delivery.
• The finance Flow - The financial flow consists of credit
terms, payment schedules, and consignment and title
ownership arrangements.
Figure 11-2 Flows in a Typical Supply Chain
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
10
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
11
Software and Technology
• Increasing numbers of companies are using the Internet
and Web-based applications as part of their SCM
solution.
• There are two main types of SCM software.
– Planning Applications: Use advanced algorithms to determine
the best way to fill an order.
– Execution Applications: Track the physical status of goods, the
management of materials, and financial information involving all
parties.
• Extended Enterprise
– Some SCM applications are based on open data models that
support the sharing of data both inside and outside the
enterprise.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
12
SCM Processes
• Procurement
– Procurement is the business-to-business purchase and sale
of supplies and services.
• Outsourcing and Partnerships
– An arrangement in which a company provides services for
another company that could also be done or have usually
been provided in-house.
• Manufacturing Flow Management
– The manufacturing process is to produce and supply products
to the distribution channels based on past forecasts or point of
sales (POS) data.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
13
SCM Processes (Contᾼ
d)
• Order Fulfillment
– Process that responds to customer demand by
merging several important functions: order
management, storage, and delivery of finished goods.
• Customer Service Management Process
– Source of customer information and also provides the
customer with real-time information on promising
dates and product availability through interfaces with
the company’s production and distribution operations.
• Forecasting
– Seeks to predict levels of weekly or monthly product
activity over a time horizon.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
14
E-business and Supply Chain Management
(E-SCM)
• A Web-enabled supply chain management (e-SCM)
solution is the digital nerve center of the entire business.
• e-SCM is the optimal combination of technology and
business processes that optimizes delivery of goods,
services, and information from the supplier to the
consumer in an organized and efficient way.
• e-SCM can use e-business concepts and Web
technologies to manage inventory and information
beyond the organization, both upstream and
downstream.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
15
E-SCM Components
• Replenishment Systems
• E-procurement
• Collaborative Planning
• Collaborative Design and Product Development
• E-logistics
• Supply Webs (Exchanges)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
16
ERP System and Supply Chain
• ERP focus is on providing an integrated transaction
processing that enhances organizational performance by
increasing information consistency and transaction
efficiency.
• SCM, on the other hand, are aimed at providing a higher
level of business planning and decision support
functionality for effective coordination and execution of
inter-organizational business processes.
• Web-based technologies have revolutionized the way
business is carried on and SCM and ERP are no
exceptions.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
17
Figure 11-3 Example of Enterprise Level Portal
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
18
Figure 11-4 ERP/Legacy Systems Linkage
Across the Supply Chain
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
19
ERP versus SCM
Point of Comparison ERP SCM
Comprehensiveness Covers a wide range of
functionality
Limited to specific supply
chain functionality
Complexity Highly complex Relatively less complex
Sourcing tables Relatively static Relatively dynamic
Constraints handling All the demand, capacity, and
material constraints are
considered in isolation of
each other
Simultaneous handling of
the constraints
Functionality Relatively less dynamic
because they are mainly
concerned with transaction
processing speed and
capacity
Relatively more dynamic
because it performs
simulations of transaction
adjustments with regard
to the constraints in real
time
Processing Speed Relatively slower Faster
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
20
Supply Chain Integration
• To stay competitive, enlightened companies have strived
to achieve greater coordination and collaboration among
supply chain partners.
• Information integration refers to the sharing of information
among members of the supply chain.
• Planning synchronization refers to the joint design and
execution of plans for product introduction, forecasting,
and replenishment.
• Workflow coordination refers to streamlined and
automated workflow activities between supply chain
partners.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
21
Supply Chain Integration Dimensions
Dimension Elements Benefits
Information
Integration
• Information sharing
and transparency
• Direct and real-time
accessibility
• Reduced bullwhip effect
• Early problem detection
• Faster response
• Trust building
Synchronized
Planning
• Collaborative planning,
forecasting, and
replenishment
• Joint design
• Reduced bullwhip effect
• Lower cost
• Optimized capacity utilization
• Improved service
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
22
Supply Chain Integration Dimensions (Contᾼ
d)
Dimension Elements Benefits
Workflow
Coordination
• Coordinated production
planning and operations,
procurement, order
processing, engineering
change, and design
• Integrated, automated
business processes
• Efficiency and accuracy gains
• Fast response
• Improved service
• Earlier time to market
• Expanded network
New Business
Models
• Virtual resources
• Logistics restructuring
• Mass customization
• New services
• Click-and-mortar models
• Better asset utilization
• Higher efficiency
• Penetrate new markets
• Create new products
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
23
Integrating ERP and SCM Systems
• ERP systems help in automating the business processes
and enabling reliable information capture and retrieval.
• SCM systems offer capabilities to integrate various
entities that make up the supply chain and facilitate the
seamless flow of information between all the supply chain
partners.
• Integration of ERP and SCM is a very tough task because
each member in the supply chain may have different
hardware and software.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
24
Enterprise Application Integration
• Facilitates the flow of information and straps
transactions among disparate and complex applications
and business processes within and among the
organizations.
• Provides a broad range of services that range from
security management to protocol management to data
mapping, among other related functions.
• Many of the companies today are embracing the
component-based applications either by developing a
new application or by componentizing their existing
applications.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
25
Phases of Enterprise Application Integration
Process
• Solution outline phase
• Architecture phase
• Design phase
• Implementation phase
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
26
Benefits of Enterprise Application Integration
• Increased Efficiency: Automation of processes.
• Value of Information: Redundant databases are aligned,
eliminating duplicate data.
• Lower Costs: One interface per application lowering the
cost of upgrades.
• Increased Productivity: Results from business process
automation and access to real-time information.
• Improved Customer Service: Employees have real-time
access to give accurate information to customers.
• Enhanced Access: Ability to extend applications to more
users from anywhere and anytime over the VPN
RFID
• Allows for real-time automation of many data collection
functions originally conducted by paid employees.
• Hardware - Each hardware implementation will need to be
designed specifically to meet the needs of purchaser as
there are no off-the-shelf alternatives
• Software - Much easier to design. There are cases where
a near vanilla implementation would be sufficient giving
the company some cost savings
• Changing any process where these steps occur to
automated RFID data collection will eliminate the
possibility of human error
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
27
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
28
Implications for Management
• Managers should understand that SCM is an important
component for the successful implementation of ERP
systems.
• Balancing the supply chain efficiency and
responsiveness is more an art than science.
• E-Supply chain provides great competitive advantage in
today’s Web-enabled economy.
• Integrating is the key issue to the success of the supply
chain.
– Integration must occur at multiple levels, and not just at the network or
hardware platform level.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
29
Summary
• Supply Chain Management (SCM) is a central piece of
technology in today’s enterprise system.
• SCM provides a link for services, materials, and
information across the value chain of the organization.
• ERP vendors have started including SCM as a
component or module of the software.
• There are four main drivers for the SCM system
performance:
– Facilities
– Inventory
– Transportation
– Information
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
30
Summary (Contᾼ
d)
• SCM involves the operation or management of many
organizations’ processes and procedures.
• SCM plays a major role in the success of e-business and
e-commerce.
• A good SCM is designed in collaboration with the
organizations’ partners rather than stand-alone.
• Integration with SCM system is of many types (e.g.,
supply chain, ERP system, and enterprise application).
• Enterprise Application Integration process is very
complex and has a multiphase life cycle.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
31
Review Questions
1. What are the motivations for an organization to have a
good supply chain management (SCM) system?
2. Define SCM in your own words.
3. List the four drivers of SCM and how they impact the
system’s responsiveness.
4. What are the major types of SCM software?
5. Briefly describe the SCM processes.
6. Why is SCM implementation critical for the success of
e-business?
7. What are the major components of e-SCM?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
32
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc.
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Publishing as Prentice Hall

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ch11.pdf

  • 1. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 1 CHAPTER 11 SUPPLY CHAIN MANAGEMENT
  • 2. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2 Learning Objectives • Learn about the supply chain network and management drivers. • Understand the complexity and importance of the integration of supply chain. • Learn about supply chain components, processes, and flows. • Know the different levels of supply chain integration. • Examine the impact of the ERP on supply chain management.
  • 3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3 Preview • A good supply chain management (SCM) system can act as a digital nerve center for the entire business and save the company millions of dollars in costs in order fulfillment and other back-end support processes. • SCM gives companies access to all of the critical information they need to plan their operations in an efficient way whenever and wherever they need it. • SCM improves efficiencies and reduces costs substantially while also giving companies the adaptability to modify their business processes.
  • 4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4 Supply Chain Management • Supply chain is the network of services, material, and information flow that link a firm’s customer relations, order fulfillment, and supplier relations processes to those of its suppliers and customers. • Michael Potter – A business value chain consists of a series of processes or activities conducted by the company to add value to the existing product or service and to provide a competitive advantage in the market. • Companies need to understand their supply chain and build the strategy such that its competitive strategy and supply chain strategy are aligned.
  • 5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 5 Supply Chain Management (Contᾼ d) • Corporations are striving to focus on core competencies and become more flexible and reduced their ownership of raw materials sources and distribution channels. • All the functions of a company’s supply chain contribute to its success or failure and they all need to work together to ensure success. • To achieve strategic fit, a company must ensure that its supply chain capabilities support its ability to satisfy the targeted customer segments.
  • 6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 6 Figure 11-1 Collaboration in Supply Chain Information
  • 7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7 SCM Drivers Facilities • Facilities are the places in the supply chain network where product is manufactured, stored, or shipped. • The two major types of facilities are production sites (plants) and storage sites (warehouses). • A company needs to decide how many suppliers, manufacturing facilities, distribution centers, and warehouses to have. Information • Information consists of data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain.
  • 8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8 SCM Drivers (Contᾼ d) Inventory • Inventory is the raw materials, work in process, and finished goods that belong to the company. • A successful inventory management policy is to achieve that right balance of responsiveness and efficiency. Transportation • Transportation moves the product between different stages in a supply chain. • The type of transportation a company uses also affects the inventory and facility locations in the supply chain.
  • 9. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9 SCM Flows Three Categories • Product Flow - The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. • Information Flow - The information flow involves transmitting orders and updating the status of delivery. • The finance Flow - The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
  • 10. Figure 11-2 Flows in a Typical Supply Chain Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10
  • 11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 11 Software and Technology • Increasing numbers of companies are using the Internet and Web-based applications as part of their SCM solution. • There are two main types of SCM software. – Planning Applications: Use advanced algorithms to determine the best way to fill an order. – Execution Applications: Track the physical status of goods, the management of materials, and financial information involving all parties. • Extended Enterprise – Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise.
  • 12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12 SCM Processes • Procurement – Procurement is the business-to-business purchase and sale of supplies and services. • Outsourcing and Partnerships – An arrangement in which a company provides services for another company that could also be done or have usually been provided in-house. • Manufacturing Flow Management – The manufacturing process is to produce and supply products to the distribution channels based on past forecasts or point of sales (POS) data.
  • 13. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 13 SCM Processes (Contᾼ d) • Order Fulfillment – Process that responds to customer demand by merging several important functions: order management, storage, and delivery of finished goods. • Customer Service Management Process – Source of customer information and also provides the customer with real-time information on promising dates and product availability through interfaces with the company’s production and distribution operations. • Forecasting – Seeks to predict levels of weekly or monthly product activity over a time horizon.
  • 14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 14 E-business and Supply Chain Management (E-SCM) • A Web-enabled supply chain management (e-SCM) solution is the digital nerve center of the entire business. • e-SCM is the optimal combination of technology and business processes that optimizes delivery of goods, services, and information from the supplier to the consumer in an organized and efficient way. • e-SCM can use e-business concepts and Web technologies to manage inventory and information beyond the organization, both upstream and downstream.
  • 15. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 15 E-SCM Components • Replenishment Systems • E-procurement • Collaborative Planning • Collaborative Design and Product Development • E-logistics • Supply Webs (Exchanges)
  • 16. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16 ERP System and Supply Chain • ERP focus is on providing an integrated transaction processing that enhances organizational performance by increasing information consistency and transaction efficiency. • SCM, on the other hand, are aimed at providing a higher level of business planning and decision support functionality for effective coordination and execution of inter-organizational business processes. • Web-based technologies have revolutionized the way business is carried on and SCM and ERP are no exceptions.
  • 17. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 17 Figure 11-3 Example of Enterprise Level Portal
  • 18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 18 Figure 11-4 ERP/Legacy Systems Linkage Across the Supply Chain
  • 19. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 19 ERP versus SCM Point of Comparison ERP SCM Comprehensiveness Covers a wide range of functionality Limited to specific supply chain functionality Complexity Highly complex Relatively less complex Sourcing tables Relatively static Relatively dynamic Constraints handling All the demand, capacity, and material constraints are considered in isolation of each other Simultaneous handling of the constraints Functionality Relatively less dynamic because they are mainly concerned with transaction processing speed and capacity Relatively more dynamic because it performs simulations of transaction adjustments with regard to the constraints in real time Processing Speed Relatively slower Faster
  • 20. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 20 Supply Chain Integration • To stay competitive, enlightened companies have strived to achieve greater coordination and collaboration among supply chain partners. • Information integration refers to the sharing of information among members of the supply chain. • Planning synchronization refers to the joint design and execution of plans for product introduction, forecasting, and replenishment. • Workflow coordination refers to streamlined and automated workflow activities between supply chain partners.
  • 21. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 21 Supply Chain Integration Dimensions Dimension Elements Benefits Information Integration • Information sharing and transparency • Direct and real-time accessibility • Reduced bullwhip effect • Early problem detection • Faster response • Trust building Synchronized Planning • Collaborative planning, forecasting, and replenishment • Joint design • Reduced bullwhip effect • Lower cost • Optimized capacity utilization • Improved service
  • 22. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 22 Supply Chain Integration Dimensions (Contᾼ d) Dimension Elements Benefits Workflow Coordination • Coordinated production planning and operations, procurement, order processing, engineering change, and design • Integrated, automated business processes • Efficiency and accuracy gains • Fast response • Improved service • Earlier time to market • Expanded network New Business Models • Virtual resources • Logistics restructuring • Mass customization • New services • Click-and-mortar models • Better asset utilization • Higher efficiency • Penetrate new markets • Create new products
  • 23. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 23 Integrating ERP and SCM Systems • ERP systems help in automating the business processes and enabling reliable information capture and retrieval. • SCM systems offer capabilities to integrate various entities that make up the supply chain and facilitate the seamless flow of information between all the supply chain partners. • Integration of ERP and SCM is a very tough task because each member in the supply chain may have different hardware and software.
  • 24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 24 Enterprise Application Integration • Facilitates the flow of information and straps transactions among disparate and complex applications and business processes within and among the organizations. • Provides a broad range of services that range from security management to protocol management to data mapping, among other related functions. • Many of the companies today are embracing the component-based applications either by developing a new application or by componentizing their existing applications.
  • 25. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 25 Phases of Enterprise Application Integration Process • Solution outline phase • Architecture phase • Design phase • Implementation phase
  • 26. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 26 Benefits of Enterprise Application Integration • Increased Efficiency: Automation of processes. • Value of Information: Redundant databases are aligned, eliminating duplicate data. • Lower Costs: One interface per application lowering the cost of upgrades. • Increased Productivity: Results from business process automation and access to real-time information. • Improved Customer Service: Employees have real-time access to give accurate information to customers. • Enhanced Access: Ability to extend applications to more users from anywhere and anytime over the VPN
  • 27. RFID • Allows for real-time automation of many data collection functions originally conducted by paid employees. • Hardware - Each hardware implementation will need to be designed specifically to meet the needs of purchaser as there are no off-the-shelf alternatives • Software - Much easier to design. There are cases where a near vanilla implementation would be sufficient giving the company some cost savings • Changing any process where these steps occur to automated RFID data collection will eliminate the possibility of human error Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 27
  • 28. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 28 Implications for Management • Managers should understand that SCM is an important component for the successful implementation of ERP systems. • Balancing the supply chain efficiency and responsiveness is more an art than science. • E-Supply chain provides great competitive advantage in today’s Web-enabled economy. • Integrating is the key issue to the success of the supply chain. – Integration must occur at multiple levels, and not just at the network or hardware platform level.
  • 29. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 29 Summary • Supply Chain Management (SCM) is a central piece of technology in today’s enterprise system. • SCM provides a link for services, materials, and information across the value chain of the organization. • ERP vendors have started including SCM as a component or module of the software. • There are four main drivers for the SCM system performance: – Facilities – Inventory – Transportation – Information
  • 30. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 30 Summary (Contᾼ d) • SCM involves the operation or management of many organizations’ processes and procedures. • SCM plays a major role in the success of e-business and e-commerce. • A good SCM is designed in collaboration with the organizations’ partners rather than stand-alone. • Integration with SCM system is of many types (e.g., supply chain, ERP system, and enterprise application). • Enterprise Application Integration process is very complex and has a multiphase life cycle.
  • 31. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 31 Review Questions 1. What are the motivations for an organization to have a good supply chain management (SCM) system? 2. Define SCM in your own words. 3. List the four drivers of SCM and how they impact the system’s responsiveness. 4. What are the major types of SCM software? 5. Briefly describe the SCM processes. 6. Why is SCM implementation critical for the success of e-business? 7. What are the major components of e-SCM?
  • 32. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 32 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Publishing as Prentice Hall