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Supply Chain Management
Supply chain management involves the management of interconnected businesses involved in providing products and services to customers. It includes the movement and storage of raw materials, work-in-progress, and finished goods from origin to consumption. Electronic data interchange and extranets allow information to flow electronically between organizations to facilitate purchase order fulfillment and collaboration between business partners in a supply chain.
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Supply Chain Management
- 1. Supply Chain M anagement Aizell A.B ernal 102 M GNT
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- 5. T F he lowsof the Supply Chain M aterial flows Information flows F inancial flows
- 6. Supply Chain Supply ChainM anagement (SCM - is the ) M of a network of anagement management interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, workin-process inventory, and finished goods from point of origin to point of consumption. Interorganizational Information System (IOS) - is one which allows the flow of
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- 8. P M ull odel Dellcustomer order Dell customer Dell factory
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- 10. Solutions to Supply ChainP roblems Using inventories Just-in-time inventory Information sharing Vendor-managed inventory
- 11. Information T echnology Support forSupply Chain M anagement E lectronic data interchange (E DI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system E xtranets - is a computer network that allows controlled access from the
- 12. E B DI enefits Minimize data entry errors Length of messages are shorter Messages are secured Reduces cycle time Increases productivity Enhances customer service Minimizes paper usage and storage
- 13. E L DI imitations Significant initial investment to implement Ongoing operating costs are high due to the use of expensive, private VANs Traditional EDI system is inflexible Long startup period
- 14. Comparing P urchase Order F ulfillmentW ithout E DI
- 15. Comparing P urchase Order F ulfillmentW E ith DI
- 16. E xtranets The maingoal of extranets is to foster collaboration between business partners. An extranet is open to selected B2B suppliers, customers and other business
- 17. T Structure ofan he E xtranet
- 18. T ypes of E xtranets Acompany and its dealers, customers or suppliers An industry’ s extranet Joint ventures and other business partnerships
Editor's Notes
- #4 Supply chain: refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end consumers. Upstream component of a supply chain: sourcing or procurement takes place. Internal component of a supply chain: packaging, assembly, or manufacturing takes place. Downstream component of a supply chain: distribution takes place.
- #5 Another look at a supply chain (from Figure 2.2).
- #6 Material flows are the physical products, raw materials, supplies and so forth that flow along the chain. Information flows are all data related to demand, shipments, orders, returns and schedules as well as changes in any of these data. Financial flows are all transfers of money, payments and credit-related data. A supply chain involves a product life cycle approach, from “dirt to dust”.
- #7 Supply chain management (SCM) is the function of planning, organizing and optimizing the supply chain’s activities. Interorganizational information system (IOS) involves information flows among two or more organizations.
- #11 Just-in-time inventory: a system in which a supplier delivers the precise number of parts to be assembled into a finished product at precisely the right time. Vendor-managed inventory: an inventory strategy where the supplier monitors a vendor’s inventory for a product or group of products and replenishes products when needed.
- #12 Electronic data interchange (EDI) is a communication standard that enables business partners to exchange routine documents, such as purchase orders, electronically. Extranets link business partners to one another over the Internet by providing access to certain areas of each other’s corporate intranets.
- #15 See Figure 10.3.
- #18 See Figure 10.4.
- #19 A company and its dealers, customers or suppliers – centers around one company. An industry’s extranet – major players in an industry team up to create an extranet. Joint ventures and other business partnerships – partners in a joint venture use extranet as a vehicle for communications and collaboration.