Supply Chain Management

connections that allow separate systems to communicate directly with each other, eliminating the need for manual entry into multiple systems.
Forward Integration
takes information entered into a given system and sends it automatically to all downstream systems and processes.
Backward Integration
takes information entered into a given system and sends it automatically to all usptream systems and processes.
Two Methods for Integrating Databases
1. Forward and Backward Integration
2. Central Repository
Enterprise System
provide enterprise wide support and data access for a firm's operations and business processes.
Enterprise Application Integration (EAI)
connects the plans, methods, and tools aimed at integrating separate enterprise systems.
Legacy System
a current or existing system that will become the base for upgrading or integrating with a new system.
several different types of software that sit between and provide connectivity for two or mroe software applications.
Enterprise Application Integration Middleware
takes a new approach to middleware by packaging commonly used applicatiosn together, reducing the time needed to integrate applications from multiple vendors.
Supply Chain
consists of all parties involved, directly or indirectly, in obtaining raw materials or a product.
Five Basic Supply Chain Activities
Plan, Source, Make, Deliver, Return
Supply Chain Management
the managment of information flows between and among activites in a supply chain to maximize total supply chain efectiveness and corporate profitability.
Supply Chain Management 3 Business Processes
1. Materials flow from suppliers and their upstream suppliers at all levels. 2. Materials are transformed into semi-finished and finished prodcuts. 3. Products are distributed to customers and their downstream customers at all levels.
Effective SCM Systems:
1. Decrease buyer power.
2. Increase supplier power.
3. Increase switching costs reducing threat of substitute products/services.
4. Creaty entry barriers to reduce threat of new entrants.
5. Increase efficiency and competitve advantage.
Benefits of SCM
1. Imrpoved Visibility
2. Increases Profitability
Supply Chain Visibility
the ability to view all areas up and down the supply chain in real time.
Supply Chain Planning System
use advanced mathematical algorithms to improve the flow and efficiency or the supply chain while reducing inventory.
Supply Chain Execution
ensure supply chain cohesion by automating different activities of the supply chain.
Electronic Data Interchange (EDI)
a standard format for the electronic exchange of information between supply chain participants.
Bullwhip Effect
occurs when distorted product-demadn infomration ripples from one partner to the next throughout the supply chain.
Demand Planning Systems
generate demand forecasts using statistical tools and forecasting techniques, so companies can respond faster and more effectively to consumer demands through supply chain enhancements.
Common SC Metrics
back roder, inventory cycle time, customer order cycle time, inventory turnover
Challenges of SCM
1. Cost
2. Complexity
Collaborative Demand Planning
reduces inventory investments, while improving customer satisfaction
Collaborative Engineering
reduces product development costs.
Selling Chain Management
automates order processes from initial customer inquiry to final product delivery.
Supply Chain Event Management
increase real-time information sharing among supply chain partners focusing on reducing response time to unexpected events.