BUSINESS DRIVEN TECHNOLOGY

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BUSINESS DRIVEN TECHNOLOGY Chapter Ten
Extending the Organization Supply Chain
Management
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LEARNING OUTCOMES

• 10.1 List and describe the components of a
  typical
• supply chain
• 10.2 Define the relationship between decision
• making and supply chain management
• 10.3 Identify three of the factors driving
  supply chain managements explosive growth
• 10.4 Summarize the best practices for
  implementing a
• successful supply chain management system

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CHAPTER TEN OVERVIEW

• The average company spends nearly half of every
  dollar that it earns on production
• In the past, companies focused primarily on
  manufacturing and quality improvements to
  influence their supply chains
• Today, companies are focusing on all of the
  following to influence their supply chains
• Suppliers, assemblers, shipping/logistic firms,
  sales/marketing channels, third-party customers
  support firms, other business partners

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CHAPTER TEN OVERVIEW

• The supply chain has three main links
• Materials flow from suppliers and their
  upstream suppliers at all levels
• Transformation of materials into semifinished and
  finished products through the organizations own
  production process
• Distribution of products to customers and their
  downstream customers at all levels

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CHAPTER TEN OVERVIEW

• Organizations must embrace technologies that can
  effectively manage and oversee their supply
  chains

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SUPPLY CHAIN MANAGEMENTS EXPLOSIVE GROWTH

• Top reasons why more and more executives are
  turning to SCM to manage their extended
  enterprises

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SUPPLY CHAIN MANAGEMENTS EXPLOSIVE GROWTH

• Five Factors Driving SCMs Explosive Growth

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USING SUPPLY CHAIN MANAGEMENT TO ENHANCE DECISION
MAKING

• Numerous decision support systems (DSSs) are
  being built to assist decision makers in the
  design and operation of integrated supply chains
• DSSs allow managers to examine performance and
  relationships over the supply chain and among
• Suppliers
• Manufacturers
• Distributors
• Other factors that optimize supply chain
  performance

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SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS
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SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

• The following are the SCM industry best
  practices
• Make the sale to suppliers
• Wean employees off traditional business practices
• Ensure the SCM system supports the organizational
  goals
• Deploy in incremental phases and measure and
  communicate success
• Be future oriented

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OPENING CASE STUDY QUESTIONSRevving Up Sales at
Harley-Davidson

• Describe how Harley-Davidsons SCM system,
  Manugistics, might improve its business
  operations
• Provide an illustration of Harley-Davidsons SCM
  system including all upstream and downstream
  participants

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CHAPTER TEN CASEBudNet

• Anheuser-Buschs top-secret nationwide data
  network, BudNet, knows every time a six-pack
  moves off of a store shelf.
• Information is entered into BudNet nightly from
  several thousand Anheuser-Busch distributors and
  sales representatives
• Anheuser-Busch has made a deadly accurate science
  out of determining what beer lovers are buying,
  as well as when, where, and why

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CHAPTER TEN CASE QUESTIONS

• Describe how an SCM system can help a distributor
  such as Anheuser-Busch make its supply chain more
  effective and efficient
• SCM is experiencing explosive growth. Explain
  why this statement is true using BudNet as an
  example
• Evaluate BudNets effect on each of the five
  factors that are driving SCM success