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Supply Chain Management
CHAPTER 13 Supply Chain Management
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CHAPTER OUTLINE 13.1 Supply Chains 13.2 Supply Chain Management 13.3 Information Technology Support for Supply Chain Management
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LEARNING OBJECTIVES Describe the three components and the three flows of a supply chain Identify popular strategies to solving different challenges of supply chains Explain the utility of each of the three major technologies that supports supply chain management
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Supply Chains
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The Flows of the Supply Chain
Material flows Information flows Financial flows
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13.2 Supply Chain Management
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Supply Chain Management
Supply chain management (SCM) Interorganizational information system (IOS) Push and Pull Model
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Problems Along the Supply Chain
Poor customer service Poor quality product High inventory costs Loss of revenues
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Solutions to Supply Chain Problems
Using inventories Just-in-time inventory Information sharing Vendor-managed inventory
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13.3 Information Technology Support for Supply Chain Management
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EDI Benefits Minimize data entry errors Length of messages are shorter
Messages are secured Reduces cycle time Increases productivity Enhances customer service Minimizes paper usage and storage
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EDI Limitations Significant initial investment to implement
Ongoing operating costs are high due to the use of expensive, private VANs Traditional EDI system is inflexible Long startup period Multiple EDI standards exist
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Types of Extranets A company and its dealers, customers or suppliers
An industry’s extranet Joint ventures and other business partnerships
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Closing Case #1 IT Helps Cannondale Manage Its Complex Supply Chain
The Problem The Solution The Results
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Closing Case #2 Driving Innovation
The Problem The Solution The Results
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