1. BUSINESS DRIVEN TECHNOLOGY
Chapter Ten:
Extending the Organization – Supply Chain Management

2. LEARNING OUTCOMES 10.1 List and describe the components of a typical
supply chain
10.2 Define the relationship between decision
making and supply chain management
10.3 Identify three of the factors driving supply chain management’s explosive growth
10.4 Summarize the best practices for implementing a
successful supply chain management system

3. CHAPTER TEN OVERVIEW
The 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 chains
Today, companies are focusing on all of the following to influence their supply chains:
Suppliers, assemblers, shipping/logistic firms, sales/marketing channels, third-party customers support firms, other business partners

4. The supply chain has three main links:
CHAPTER TEN OVERVIEW
The supply chain has three main links:
Materials flow from suppliers and their “upstream” suppliers at all levels
Transformation of materials into semifinished and finished products through the organization’s own production process
Distribution of products to customers and their “downstream” customers at all levels

5. CHAPTER TEN OVERVIEW
Organizations must embrace technologies that can effectively manage and oversee their supply chains

6. SUPPLY CHAIN MANAGEMENT’S EXPLOSIVE GROWTH
Top reasons why more and more executives are turning to SCM to manage their extended enterprises

7. SUPPLY CHAIN MANAGEMENT’S EXPLOSIVE GROWTH
Five Factors Driving SCM’s Explosive Growth

8. USING SUPPLY CHAIN MANAGEMENT TO ENHANCE DECISION MAKING
Numerous decision support systems (DSSs) are being built to assist decision makers in the design and operation of integrated supply chains
DSSs allow managers to examine performance and relationships over the supply chain and among:
Suppliers
Manufacturers
Distributors
Other factors that optimize supply chain performance

9. SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

10. SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS
The following are the SCM industry best practices:
Make the sale to suppliers
Wean employees off traditional business practices
Ensure the SCM system supports the organizational goals
Deploy in incremental phases and measure and communicate success
Be future oriented

11. OPENING CASE STUDY QUESTIONS Revving Up Sales at Harley-Davidson
Describe how Harley-Davidson’s SCM system, Manugistics, might improve its business operations
Provide an illustration of Harley-Davidson’s SCM system including all upstream and downstream participants

12. CHAPTER TEN CASE BudNet
Anheuser-Busch’s top-secret nationwide data network, BudNet, knows every time a six-pack moves off of a store shelf.
Information is entered into BudNet nightly from several thousand Anheuser-Busch distributors and sales representatives
Anheuser-Busch has made a deadly accurate science out of determining what beer lovers are buying, as well as when, where, and why

13. CHAPTER TEN CASE QUESTIONS
Describe how an SCM system can help a distributor such as Anheuser-Busch make its supply chain more effective and efficient
SCM is experiencing explosive growth. Explain why this statement is true using BudNet as an example
Evaluate BudNet’s effect on each of the five factors that are driving SCM success