Monday, June 14, 2010

Chapter 7-8 Q6: Define the relationship between information technology and the supply chain.

IT’s primary role is to create integrations or tight process and information linkages between functions within an organisationThe five factors driving the explosive growth of SCM include:




• Information technology – only recently have advances in IT made it possible to bring the idea of a truly integrated supply chain to life
• Visibility – More visible models of different ways to do things in the supply chain have emerged. High visibility in the supply chain is changing industries, as Wal-Mart demonstrated
• Consumer behavior – Companies must respond to demanding customers through supply chain enhancements.
• Competition – Increased competition makes any organization that is ignoring its supply chain at risk of being obsolete
• Speed – As the pace of business increases through electronic media, an organization's supply chain must respond efficiently, accurately, and quickly

The following are the SCM industry best practices:

1. Make the sale to suppliers - A large part of any SCM system extends beyond the organization to the suppliers. Since the organization has very little control over anything external to itself, these pieces are typically the most complicated. Be sure suppliers are on board with the benefits that the SCM system will provide to ease SCM implementation difficulties.
2. Wean employees off traditional business practices - If the organization cannot convince people that using the SCM software is worthwhile, the employees will probably find a way around using the software.
3. Ensure the SCM system supports the organizational goals - Be sure to select SCM software that supports organizational goals and strategies
4. Deploy in incremental phases and measure and communicate success - Designing the deployment of the SCM system in incremental phases is the most successful deployment method. The BIG BANG approach – implementing everything at once – fails 90 percent of the time
5. Be future oriented - An SCM system, like all systems, must scale to meet future demands.



http://techsci.msun.edu/wilke/BUS%20Courses/BUS%20406/Summer%2006%20Distance/Notes/chapter_ten.htm






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