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