Essay on Supply Chain Management & IT
1690 Words7 Pages
Supply Chain Management & IT
Supply Chain Management (SCM) has become such an integral and essential part of every day business that entire fields of major are dedicated solely to it. SCM, pioneered by Wal-Mart, has grown in the last few years to include not only the management of the physical aspects of SCM, but also the electronic components, such as the Internet and many SCM tools, for instance SAP. Inventory being held across the retail supply chain at any one time amounts to $1 trillion, according to a report by Benchmarking Partners, based on U.S. Dept. of Commerce data. The Cambridge, Mass.-based consulting firm estimates 15 percent to 20 percent of those inventories ($150 billion to $200 billion worldwide; $40…show more content…
Effective supply chain management can impact virtually all business processes, leading to continuous improvements in areas such as data accuracy, reductions in operational complexity, supplier selection, purchasing, warehousing, and distribution. Other benefits include:
Improved delivery performance—quicker customer response and fulfillment rates Greater productivity and lower costs Reduced inventory throughout the chain Improved forecasting precision Fewer suppliers and shorter planning cycles Improved quality and products that are more technologically advanced Enhanced inter-operational communications and cooperation Shortened repair times and enhanced equipment readiness More reliable financial information. Impact of Supply Chain Management
Information and communications technologies are revolutionizing the scope and scale of e-supply chain infrastructures. Online data exchange is transforming business practices, allowing managers to capture and track complex data more effectively. Orders and various products related to that order can easily be traced. It also is possible to exchange information among entities within the value chain, thus greatly improving customer-provider relationships.
It is important that systems be designed to enhance open and rapid communication
Introduction to Supply Chain Management Essay
1209 Words5 Pages
As soon as an idea turns into a project, the organisation of the supply chain becomes vital to providing a quality service to the client yet at a minimal cost to the company involved. Vertical interpretation is required to deal with various constraints that arise in various stages of the project with the aim to keep the problems down and the efficiency high. Throughout this paper the author will describe how supply chain management (SCM) helps bring systems together to present a desirable outcome and the issues and practicalities that are involved.
John Hicks (2004) suggests that there are three main methods to help deliver the systems within budget and for them to perform smoothly, these are called ‘runners, repeaters and strangers’.…show more content…
The main objectives of CRM are to find, attract, and win new clients. Once they have gained business with the client, the aim should be to nurture and retain them. Any clients lost should be enticed back into the company and the costs of marketing and client service should also be reduced.
The buyers of the product should feel valued by the company and O’Brian and Marakas (2009, pg 305) suggest by ‘using CRM software it enables a business to identify and reward its loyal customers and further develop its targeted marketing and relationship marketing initiatives’. However, marketing alone does not always satisfy customer needs and this is why getting to know the customer and to create a good line of communication is fundamental to a successful supply chain. The client should feel valued by the company at all stages of the project. The service to them should be well-organised so that they have to do nothing but receive a quality product.
Interpretations of Supply Chain Management
There are various opinions on the definition of Supply Chain Management. Handfield and Nichols (2002) define supply chain management as; ‘the integration and management of supply chain organisations and activities through cooperative organisational relationships.’ Christopher (2005) goes on to describe how SCM is mainly operated as a customer based system; ‘The management of upstream and downstream relationships with suppliers and customers to deliver superior customer