ISOM Quiz III Chpt 10
Terms
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- The supply chain has three main links:
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1)Materials flow from suppliers and their “upstream†suppliers at all levels
2)Transformation of materials into semifinished and finished products through the organization’s own production process
3)Distribution of products to customers and their “downstream†customers at all levels -
upstream means towards _______
downstream mean towards ______ - supplier; consumer
- Factors Driving SCM:
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Visibility
Consumer Behavior
Competition
Speed
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-the ability to view all areas up and down the supply chain
-not possible without IT
-bullwhip effect - occurs when distorted product demand information passes from -one entity to the next throughout the supply chain (can result in excessive or insu - Visibility
- companies can respond to demanding and changing customers through supply chain enhancements enabled by IT (e.g. demand planning software using statistical and forecasting techniques)
- Consumer Behavior
- increased competition and adoption of IT advances in supply chain management, makes any organization that is ignoring its supply chain modernization at risk of becoming obsolete
- Competition
- as the pace of business increases, an organization's supply chain must respond efficiently, accurately, and quickly (both the increases in the pace of business, and the consequent responses in the supply chain are IT driven)
- Speed
- DSSs allow managers to examine performance and relationships over the supply chain and among:
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Suppliers
Manufacturers
Distributors
Other factors that optimize supply chain performance -
uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain
--SCP depends entirely on information for its accuracy - Supply chain planning (SCP) software
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automates the different steps and stages of the supply chain
--SCE can be as simple as electronically routing orders from a manufacturer to a supplier - Supply chain execution (SCE) software
- The following are the SCM industry best practices
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1)Make the sale to suppliers
2)Wean employees off traditional (outdated) business practices
3)Ensure the SCM system supports the organizational goals
4)Deploy in incremental phases and measure and communicate success
5)Be future oriented