CHAPTER 10: EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

•          The supply chain has three main links:

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

2.       Transformation of materials into semifinished and finished products through the organization’s own production process

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

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

FACTORS DRIVING SCM

•          SCM industry best practices include:

1.       Make the sale to suppliers

2.       Wean employees off traditional business practices

3.       Ensure the SCM system supports the organizational goals

4.       Deploy in incremental phases and measure and communicate success

5.       Be future oriented

•          Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains

•          DSSs allow managers to examine performance and relationships over the supply chain and among:

1.       Suppliers

2.       Manufacturers

3.       Distributors

4.       Other factors that optimize supply chain performance