1. SUPPLY CHAIN MANAGEMENT

2. SCM - Definisi
Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers
Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e- commerce
Downstream supply chain Transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce.

4. Figure Members of the supply chain: (a) simplified view, (b) including intermediaries

5. ECR
Table Objectives and strategies for effective consumer response (ECR)

6. Using technology to support SCM
Early implementation:
PC-based EDI purchasing system
Electronic trading gateway:
EDI-based but involved a wider range of parties
The move towards Internet commerce: 1996 onwards
Provide a lower-cost alternative to traditional EDI

7. Figure A typical supply chain (an example from The B2B Company)

8. A simple model of supply chain
SCM
Acquisition of resources (inputs)
Transformation (process)
Products and services (outputs)

9. What is logistics?
SCM
Used to refer specifically to the management of logistics or inbound and outbound logistics
Inbound logistics: The management of material resources entering an organization from its suppliers and other partners
Outbound logistics: The management of material resources supplied from an organization to its customers and intermediaries

10. Push and pull supply chain models
Figure Push and pull approaches to supply chain management

11. The Value Chain
SCM
A model that considers how supply chain activities can add value to products and services to be delivered to the customer

12. Restructuring the internal value chain
SCM
Some weaknesses in the traditional value chain:
Most applicable to manufacturing of physical products
It is a one-way chain involved with pushing products to the customer
Does not emphasise the importance of value networks
Deise et al. (2000) adapted a new model

13. Value chain analysis
Porter and Millar (1985) propose the following five-step process.
Step 1. Assess the information intensity of the value chain (i.e. the level and usage of information within each value chain activity and between each level of activity).
Step 2. Determine the role of IS in the industry structure (for example, banking will be very different from mining).
Step 3. Identify and rank the ways in which IS might create competitive advantage (by impacting on one of the value chain activities or improving linkages between them).
Step 4. Investigate how IS might spawn new businesses (for example, the Sabre computerized reservation system spawned a multi-billion-dollar software company which now has higher earnings than the original core airline business).
Step 5. Develop a plan for taking advantage of IS. A plan must be developed which is business-driven rather than technology-driven.

14. Figure Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model
Source: Figure 6.4(b) adapted from Deise et al. (2000)

16. Towards virtual organization
SCM
An organization which uses information and communication technology to allow it to operate without clearly defined physical boundaries between different functions
Lack of physical structure
Reliance of knowledge
Use of communications technology
Mobile work
Boundaryless and inclusive
Flexible and responsive

17. Options for restructuring the supply chain
Figure The characteristics of vertical integration, vertical disintegration and virtual integration

18. Figure Barriers to implementing information and communications technology
Source: DTI (2004), Fig. 5.2f

19. Benefits of applying IS to SCM
Increased efficiency of individual processes
Benefit: reduced cycle time and cost per order as described in Chapter 7
Reduced complexity of the supply chain
Benefit: reduced cost of channel distribution and sale
Improved data integration between elements of the supply chain
Benefit: reduced cost of paper processing
Reduced cost through outsourcing
Benefits: lower costs through price competition and reduced spend on manufacturing capacity and holding capacity. Better service quality through contractual arrangements?
Innovation
Benefit: better customer responsiveness.

20. Benefits to buying company
SCM
Increased convenience through 24 hours a day, 7 days a week, 365 days ordering
Increased choice of supplier leading to lower costs
Faster lead times and lower costs through reduced inventory holding
The facility to tailor products more readily
Increased information about products and transactions such as technical data sheets and order histories

21. Figure A typical IS infrastructure for supply chain management

22. Figure Alternative strategies for modification of the e-business supply chain

23. Program S2 PJJ Konsorsium APTIKOM-AMIKOM