Supply Chain Management & IT Roles as its Enabler

Overview of SCM

Basic Supply Chain (APICS): Global network used to deliver products and services from raw material to end customers

SCM: Design, plan, execute, control, and monitor of supply chain activities

Supply Chain Operations Reference

SCOR Model: Reference model developed by SCC as cross-industri SCM standard

Process in SCOR:◦Plan◦Source◦Make◦Deliver◦Return

Features of SCOR: Not static, focus on process

People Competency According to SCOR

NoviceBeginnerCompetentProficientExpert

Types and Stages of Supply Chain

Types of Supply Chain:◦Vertical & Horizontal Integration

Stages in Supply Chain◦Multiple Dysfunction◦Semifunctional Enterprise◦Integrated Enterprise◦Extended Enterprise

Supply Chain Stakeholders

Supply Chain firmsEnd customersInvestorsLendersCommunityGovernmentEmployees

Values of Supply Chain

Financial:◦Gains must be equally distributed◦Takes money to make money

Social:◦Deliver socially desired products/services◦Avoiding/reducing negative environmental side

effects◦Integrating sustainability to the supply chain

Impact of Globalization on SCM

Interdependence creating new opportunities

Having to contend with new hurdlesEquals dramatic change in SCM

SCM Strategy

Customer Focus and AlignmentFunctional vs Innovative ProductsForecast Driven Enterprise vs Demand

Driven Enterprise

Changing Strategy – When and Why

Changes in the marketBusiness decision

Competitive Priorities

DifferentiationNicheLow PricingResponse to Demand

Roles of IT in SCM

Computerized shipping and trackingInstant customer notifications