Chapter 10: Extending the Organization- Supply Chain Management
In this chapter I learn more deeply about the supply chain management. Information technology 's primary roles is creating the intergration or tights process and information linkages between function within a firm.
The supply chain has three main links:
Materials flow from suppliers and their
“upstream” suppliers at all level.
Transformation of materials into semifinished and
finished products through the organization’s own production process
Distribution of products to customers and
their “downstream” customers at all levels.
The Five Basic Supply Chain Management Component:
IT primary roles is to create integration or and tight process and information linkages between function in within a firm. there are four factor that driving the supply Chain Management which are visibility, competition, visibility and speed. next, i learn that Bullwhip effect occurs when distorted product demand info passes from one entity to the next throughout the supple chain.
SCM industry best practices include:
- Make the sale to suppliers
- Wean employees off traditional business practice
- Ensure the SCM system supports the organizational goals
- Deploy in incremental phases and measure and communicate succeses
- Be future oriented
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