CHAPTER 10 - EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

BASIC OF SUPPLY CHAIN
1. The supply chain has three main links:
  • Materials flow form suppliers and their "upstream" suppliers at all levels
  •  Transformation of materials into semifinished and finished products through organization's own process.
  • Distribution of products to customers and their "downstream" customers at all levels.
2.Organizations must embrace technologies that can effectively manage supply chain.

  •  Plan - a company must have a plan for managing all the resources that go toward meeting customer demand for products or services 
  • Source- Companies must carefully choose reliable suppliers that will deliver goods and services required for making products.
  • Make - This is the step where companies manufacture their products or services.
  • Deliver - Companies must be able to receive orders from customers, fulfill the orders via network of warehouses, pick transportation companies to deliver the products and the implement a billing and invoicing system to facilitate payments.
  • Return - this is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.
INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN



 

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