Bài giảng Business Driven Technology - Chapter 10 Extending the Organization—Supply Chain Management

CHAPTER 10Extending the Organization—Supply Chain ManagementLEARNING OUTCOMES10.1 List and describe the components of a typical supply chain10.2 Define the relationship between decision making and supply chain management10.3 Describe the four changes resulting from advances in IT that are driving supply chains10.4 Summarize the best practices for implementing a successful supply chain management systemSUPPLY CHAIN MANAGEMENTThe average company spends nearly half of every dollar that it earns on production In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chainsBASICS OF SUPPLY CHAINThe supply chain has three main links:Materials flow from suppliers and their “upstream” suppliers at all levelsTransformation of materials into semifinished and finished products through the organization’s own production processDistribution of products to customers and their “downstream” customers at all levelsBASICS OF SUPPLY CHAINOrganizations must embrace technologies that can effectively manage supply chainsBASICS OF SUPPLY CHAININFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAINIT’s primary role is to create integrations or tight process and information linkages between functions within a firmINFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAINFactors Driving SCMVisibilitySupply chain visibility – the ability to view all areas up and down the supply chainBullwhip effect – occurs when distorted product demand information passes from one entity to the next throughout the supply chainConsumer BehaviorCompanies can respond faster and more effectively to consumer demands through supply chain enhances Demand planning software – generates demand forecasts using statistical tools and forecasting techniquesCompetitionSupply chain planning (SCP) software– uses advanced mathematical algorithms to improve the flow and efficiency of the supply chainSupply chain execution (SCE) software – automates the different steps and stages of the supply chainCompetitionSCP and SCE in the supply chainSpeedThree factors fostering speedSUPPLY CHAIN MANAGEMENT SUCCESS FACTORSSUPPLY CHAIN MANAGEMENT SUCCESS FACTORSSCM industry best practices include:Make the sale to suppliersWean employees off traditional business practicesEnsure the SCM system supports the organizational goalsDeploy in incremental phases and measure and communicate successBe future orientedSCM SUCCESS STORIESTop reasons why more and more executives are turning to SCM to manage their extended enterprisesSCM SUCCESS STORIESNumerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chainsDSSs allow managers to examine performance and relationships over the supply chain and among:SuppliersManufacturersDistributorsOther factors that optimize supply chain performanceSCM SUCCESS STORIESOPENING CASE STUDY QUESTIONSSecondLifeWould you need supply chain management systems in a virtual world such as Second Life? Why or why not? How could a real company augment its supply chain management system through Second Life? If you were an apparel company, such as Nike or REI, what would your virtual SCM system look like? Create a drawing of this system and be sure to include all upstream and downstream participants?CHAPTER TEN CASERFID – Future TrackingWhat are some advantages and disadvantages of tagging students with RFID tags?What are some advantages and disadvantages of tagging children’s pajamas with RFID tags?Do you agree or disagree that tagging students with RFID tags is a violation of privacy rights? Explain whyCHAPTER TEN CASERFID – Future TrackingDo you agree or disagree that tagging children’s pajamas with RFID tags is a violation of privacy rights? Explain whyDescribe the relationship between privacy rights and RFIDDetermine a way that schools could use RFID tags without violating privacy rights