'Hello IT !': CHAPTER 10: EXTENDING THE ORGANIZATION

CHAPTER 10: EXTENDING THE ORGANIZATION- SUPPLY CHAIN MANAGEMENT

Assalamualaikum u olls..! Today I would like to post a new chapter in IT which is extending the organization which is Supply Chain Management (SCM)

BASIC OF SUPPLY CHAIN BASIC

· 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

· Organizations must embrace technologies that can effectively manage supply chains

INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN

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

Diagram below show the Factors driving SCM

VISIBILITY

· Supply chain visibility – the ability to view all areas up and down the supply chain

· Bullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chain

CONSUMER BEHAVIOUR

· Companies can respond faster and more effectively to consumer demands through supply chain enhances

· Demand planning software – generates demand forecasts using statistical tools and forecasting techniques

COMPETITION

· Supply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain

· Supply chain execution (SCE) software – automates the different steps and stages of the supply chain

Here some picture shows the SCP and SCE in the supply chain.

SPEED

There are 3 factors that fostering speed

SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

According picture below it is show that there 7 principles of SCM

TQ for reading my blog...

'Hello IT !'