IS CH10 Supply chain management
Supply chain management keys to success
1. Make the sale to the supplier 2. Support organizational goals 3. Change traditional business processes 4. Delaying in incremental phases & measure & communicate success
Factors fostering supply chain speed
1. Pleasing customers 2. Information for managers to reduce inventory & human resource requirements 3. Information flows
Principle 1 of supply chain management
1. Segment customers by service needs, regardless of industry and then tailor services to those particular segments
Growing SCM components
1. Supply Chain event management 2.selling chain management 3. Collaborative engineering 4. Collaborative demand planninv
3 radio frequency identification components
1. Tag 2. Reader 3. Computer network
Principle 2 of supply chain management
2. Customize the logistics network and focus intensively on the service requirements and on the profitability of the preidentified customer segments
Tag
A microchip holds data, in this case an electronic product code, a set of numbers unique to an item
The manufacturer
A reader scans the tags as item leaves the factory
Selling chain management
Applies technology to the activities in the order life cycle from inquiry to sale
Supply chain execution(SCE) software
Automated the different steps and stages of the supply chain
Principle 4 of supply chain management
Differentiate products closer to the customer, since companies can no longer afford to hold inventory to compensate for poor demand forecasting
Computer network
Each computer in supply chain recognizes the electronics product code (EPC) and pulls up information related to the item, such as dates made and shipped, price and directions for use, from a server maintained by the manufacturer. Computer track the item's locations through the supply chain
Supply chain event management(SCEM)
Enables an organization to react more quickly to resolve supply chain issues. Its software increases real-time info sharing amount supply chain partners and decreases their response time to unplanned events. It's demand will skyrocket as more and more organizations begin to discover the benefits of real-time supply chain monitoring
Demand planning software
Generates demand forecasts using statistical tools and forecasting techniques
Collaborative demand planning
Helps organizations reduce their investment in inventory, while improving customer satisfaction through product availability
Supply chain visibility
Is the ability to view all areas up and down the supply chain
Principle 3 of supply chain management
Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand
Bullwhip effect
Occurs when distorted product demand information passes from one entity to the next throughout the supply chain
Radio Frequency Identification in the Retail Supply Chain
RFID tags are added to every product and shipping box. The manufacturer to the distribution center to the store to the home
The distribution center
Readers in the unloading area scan the tags on arriving boxes and update inventory, avoiding the need to open packages
The store
Tags are scanned upon arrival to update inventory. As items leave the store, inventory is updated. Manufacturers and retailers can observe sale patterns in real time and make swift decisions about production, ordering and pricing.
Radio frequency identification (RFID)
Technologies use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers
The home
The consumer can have the tag disabled at the store for privacy or place readers in closets to keep track of clothes.
Supply chain planning(SCP) software
Uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory
Reader
Uses radio waves to read the tag and sends the electronic product code to computers in the supply chain
Supply chain management
Visibility, consumer behavior, competition & speed
Collaborative engineering
allows an organization to reduce the cost and time required during the design process of a product