THE TENTH CHAPTER

       

               Hai guys , so on this 10th chapter the topic is about EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT . This topic is so interesting . Im so excited to tell you more about this chapter !!

 Basic of supply chain

Factor driving Supply Chain Management :

• Visibility
the ability to view all areas up and down the supply chain

• Consumer behavior 
companies can respond faster and more effectively to consumer demands through supply chain enhance

• Competition 
Supply chain planning (SCP) software – uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain
Supply chain executive (SCE) software – automates the different steps and stages of the supply chain

• Speed 
3 factors fostering speed :
- Pleasing customer has become something of a corporate obsession. Serving the customer in the best, most efficient , and most effective manner has become critical, and information about issues such as order status, product availability, delivery schedules and invoices has become a necessary part of the total customer services experience.
- Information is crucial to managers’ abilities to reduce inventory and human resource requirements to a competitive level.
- Information flows are essential to strategic planning for and deployment of resources.
Supply chain management success factors

7 principle of supply chain management :

1. Segment customers by service needs, regardless of industry and then tailor services to those particular segments.
2. Customize the logistics network and focus intensively on the services requirements and on the profitability of the preidentified customer segments
3. Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand
4. Differentiate product closer to the customer since companies can no longer afford to hold inventory to compensate for poor demand forecasting.
5. Strategically manage resources of supply , by working with key suppliers to reduce overall costs of owning materials and services.
6. Develop a supply chain information technology strategy that supports different levels of decision making and provides a clear view of the flow product, services and information.
7. Adopt performance evaluation measure that apply to every link in the supply chain and measure true profitability at every stage.

SCM industry best practices include :

• Make the sale to supplier
• Wean employee off traditional business practices
• Be future oriented