Contents Objectives 1 Company Background 2 Introduction of Supply-Chain-Management 2 Key Individuals and their Effectiveness 3 Companies Involved 5 Organizational Issues: 6 Business Processes Impacted 7 Management Takeaway 10 Areas of Agreement 10 Areas of Disagreement/Concerns 11 Recommendations: 12 Lessons Learnt 16 References 17
Objectives
(What do you think the author is trying to demonstrate or bring out in the case?)
* A company’s competitive position and profitability can be improved through the use of Supply Chain Management System (SCMS) which if successfully implemented will lead to exemplary customer service. (Oz, 2009) * System requirements should be clearly defined and the necessary
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He believed that improving customer service would give MMI competitive advantage and subsequently pushed to develop the company’s Supply Chain Management (SCM) by reengineering its business processes and having efficient information systems to support this drive. He used his seniority to motivate workers to do their best. It can be argued that Woodson was very effective in carrying out his role and drove change within the organization by utilizing several soft techniques. After all, he promoted the project among employees, extolling its benefits and how it would ultimately improve the company. His knowledge about the system and strategies was not shared with others, hence when he departed in 2000, the project was in trouble. Being responsible for a project of this magnitude, he could have ensured that the policies and procedures re succession planning were properly developed and documented. Overall, Woodson was effective given the limitations identified above.
2. George Leach, Director of Planning in Construction Division Although Leach was a sophisticated IT user, he never had the IS expertise to undertake the SCMS project. The case postulates that he understood the SCM process. However, understanding SCM and being a user of technology does not necessarily translate into someone who has the skills/expertise to ensure that the system is well
In last week’s reading it states, “the primary goals of SCM are (1) to optimize service quality in terms of an organization’s internal information flow processes, while reducing costs and delivery time, and (2) to achieve increased efficiencies with regard to information flows and exchanges between the organization and its external parties, including all its vendors and suppliers” (Tann & Cobb, 2010, p. 72-73). Other elements of SCM is controlling redundancy, managing contracts, obtain products, maintain operational efficiency, order tracking, purchasing and inventory of supplies, and effectively communicating with suppliers and traders (Tann et al., 2010). There are many elements of a supply chain system, and
Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.
An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.
Supply chain is starting point before transforming product to customer. Supply Chain Management (SCM) as defined by Tom McGuffog is "Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market." Supply Chain Management has allowed company to rethink their entire operation and restructure it so that they can focus on its core competencies and outsource processes that are not within the core competencies of the company.
To start, Schroeder, R., Goldstein, S., and Rungtusanatham define supply chain as “the set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier.” Schroeder, R., Goldstein, S., and Rungtusanatham goes on to identify supply chain management as “the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.” Organizations have to prepare themselves to the best of their ability in order to provide or their customers. Customers expect to receive the upmost service, regardless of the type of organization they make contact with.
The ultimate goal is to effectively change the nature of the relationships between vendors and buyers from a traditional perspective to a non-traditional one. Comparatively, when implementing SCM, firms must take in to consideration the impact of the human side of the equation whereas, CRM though relationship based, affects all aspect of supply chain and directly influence performance. More than likely, the base setup such as the information and technology systems needed to implement the supply chain system will be readily available and can be executed almost immediately. Even with all this in place, there are instances where a number of supply chain and customer relationships initiatives fail due to lack of communication or clear and concise expectations from all parties involved. The customer relationship aspect is usually assumed by managers of a firm, and thus tries to merge the SCM and CRM, the result of said merger often end up being one the most difficult part of the integration.
Young (2012) writes that supply chain management (SCM) is a function of collaborating firms working to improve operating efficiency and to leverage strategic positioning. In addition, Young references this function as not only the physical attributes of product distribution, but also to include related information, such as production or delivery status, and the capability to access such information. Such capabilities allow SCM to be an important link in fulfilling customer needs and providing value. Young adds that in the current customer-driven market, the perceived value of the entire relationship
Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between
Additionally, to better balance supply and demand, a company must coordinate its supply chain management (SCM) strategies with its customer-relations management (CRM) strategies. This is essential because SCM strategies often focus on economic metrics while CRM strategies often focus on customer feedback. Thus, if both strategies can be integrated to work in unison, the company should be able to develop a
Supply chain management (SCM) systems have been a new and steady buzz word from late last century up to today. Large companies depend on SCM systems to reduce cost and increase revenue. This article explores the relevant use of SCM systems in today’s business world through different means of analysis, such as SCM performance, variables associated with cost and revenues, and business, supplier and customer relationships. It advocates for their use and provide quantitative analytics to support their position.
Supply chain management is composed of different elements that play a crucial role in the survival and success of a business. Supply chain management is a chain of elements that consists of customers, planning, purchasing, inventory, production and transportation which are managed through tactical, strategic and operational levels. Technology covers a major functional role in supply chain without which the activities and responsibilities of supply chain may not be achieved. The global issue of supply chain revolves around communication where it is important to communicate in supplier communities. Other issues of communication involve language barrier and difference in cultural behaviors. Other considerations involve political stability of the country in which the businesses are resourcing. Some factors to be aware of the type of governments in the market, the level of civil unrest and the possible terrorism concerns. Sustainable supply chain is a critical business issue where companies need to strengthen their supply chain by setting stronger policies and higher standards for environmental and social performance. Supply chains are critical links that synchronizes the inputs of the companies with its outputs. Critical businesses challenges are always involved in any type of business some of them are in concern with supply chain are bringing the prices down, making sure of on time delivery and decreasing transportation time for a better reaction to business
DIMCO may gain many advantages by implementing supply management chain. Implementing SCM can reduce problems within the company’s internal functions, external suppliers, and external distributors. Some advantages DIMCO can gain from implementing SCM are as follows; the supply chain would improve the quality of service to the end user; reduce channel cost; and create a competitive advantage. (Reid & Sanders, 2010) The implementations of SCM will strengthen DIMCO partnership with suppliers and distributors. Supply chain management can also prevent such challenges such as the bullwhip effect, caused by erratic replenishment of orders placed on different levels in the supply chain that have no apparent link to final product demand. (Reid & Sanders, 2010) An effective and efficient SCM will allow partners to share information concerning health, safety, government regulations and environmental issues. SCM will provide a common network for communications, suggestions, and feedback. This will assist DIMCO in meeting the need of customers quickly and in an efficient manner. Overall, SCM would assist in
This paper articulates that supply chain management is all about providing the right products, at the right time, to customers at low cost. To attain competitive advantage, organizations should think radically about business process optimization to maximize profits and gain new customers. Forward looking companies are going beyond improving customer service, partnering commitment and improved quality controls in service supply chain. Successful companies are managing warranty costs, improving their product through upgraded service supply chain operations, which generate more revenues. Firms must identify what the company can do to improve their practices and services while classifying what their employees are capable to perform at
Improvements in transportation process and technology enablement make available the most achievable way for most companies today to flush out supply chain costs and advance quality, reliability and customer satisfaction. Companies across nearly every industry sector are motivated to become supply chain management leaders. SCM leaders attain this rank in their markets by extensively dropping cycle times and operating expenses, increasing supply chain
Supply Chain Management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. It is related with efficiency of a company’s supply, the goal of SCM is, to reduce cost caused by bullwhip effect, or other dummy cost in supply chain.