Supply Chain Management

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Supply Chain Management

• Applied IT At Its Finest

by Nik Nelson, for IT600
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What Is Supply Chain Management?

• An approach that improves the way a company finds
  raw components it needs to make a product, or
  service, manufactures, that product or service
  and delivers it to customers.( book )
• The oversight of materials, information, and
  finances as they move in a process from supplier
  to manufacturer to wholesaler to retailer to
  consumer.( searchCIO.com )

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A Linear Supply Chain

• Raw materials, goods, services flow sequentially

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A Non-Linear Supply Chain

• Raw materials, goods, services can move between
  points independent of other flows and points.

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What Is Supply Chain Management? ( cont. )

• Involves the free flow(s) of information and
  products between parties.
• Requires collaboration and IT resources.
• Allows linkage of customer and suppliers in a
  single network.
• Allows for optimization of costs and
  opportunities for all companies involved.

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Supply chain management flows can be divided into
three main types

• The product flow includes the movement of goods
  from a supplier to a customer, as well as any
  customer returns or service needs.
• The information flow involves transmitting
  orders and updating the status of delivery.
• The finances flow consists of credit terms,
  payment schedules, and consignment and title
  ownership arrangements.

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SCM Requires IT Resources

• Secure networks/networking
• A synthesis of business and IT processes
• Software
• - Planning applications use advanced algorithms
  to determine the best way to fill an order.
• - Execution applications track the physical
  status of goods, the management of materials, and
  financial information involving all parties.

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Allows linkage of customer and suppliers in a
single network
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Allows for optimization of costs and
opportunities for all companies involved.
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Allows for optimization of costs and
opportunities for all companies involved ( cont. )
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In Conclusion

• Supply chain management involves coordinating and
  integrating flows of products/services,
  information and finance both within and among
  companies.
• Only possible through collaboration and IT
  resources.
• Allows for optimization of costs and
  opportunities for all companies involved.

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Works Cited

• Pearlson, Keri E. and Saunders, Carol S. (2006)
  Managing Using Information Systems. United
  States of America Wiley
• Lapide, Larry(2008). The Operational Performance
  Triangles. Retrieved December 2, 2008 from Supply
  Chain Management Review http//www.scmr.com/artic
  le/CA6611886.html?industryid48316
• No author (2006). Supply Chain Management.
  Retrieved December 3, 2008 from searchCIO.com
  http//searchcio.techtarget.com/sDefinition/0,,sid
  182_gci214546,00.html