CHAPTER 10....SUPPLY CHAIN MANAGEMENT..

1)List and describe the components of a typical supply chain.

Supplier’s Supplier, Supplier, Manufacturer, Distributor, Retailer, Customer,  Customer’s customer.

Define the relationship between decision making and supply chain management.
Supply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings. SCM enhances decision making. Collecting, analyzing, and distributing transactional information to all relevant parties and  SCM systems help all the different entities in the supply chain work together more effectively. SCM systems provide dynamic holistic views of organizations. The Users can “drill down” into detailed analyses of supply chain activities in a process analogous to DSS. Without SCM systems, organizations would be unable to make accurate and timely decisions regarding their supply chain.Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible.

Describe the four changes resulting from advances in IT that are driving supply chains.
Visibility:the ability to view all areas up and down the supply chain.Changing supply chain requires a comprehensive strategy buoyed by information technology.

 

Consumer behavior:the consumers has changed the way business complete.Customer will leave if a company does not continually meet their expectations.

 

Competition:supply chain management  software  can be broken down into(1) supply chain planning software and (2)supply chain execution software both increase a company ability to compete.

 

Speed:During the past decade,competition has focused on speed. New forms of serves.telecommunications,wireless applications and software are enabling companies to perform activities that were once never thought possible.

 

 

4)  Summarize  the best practices for implementing a successful supply chain      management system. 

 

 Collect the right information 

 An effective CRM system uses the data it collects to enhance the customer experience in some way, and as a result strengthen the customer-brand bond.  CRM success depends on your ability to carefully consider all of the data available, but collect only that which can be utilized effectively to meet your vision.  Look at the data you’re capturing, or want to capture, and measure that against your goals and expectations.  If it does nothing to enhance the customer relationship, or help you meet one of your goals or provide a metric to quantify your expectations, throw it out. 

Empower your people

 

Effective customer relationship management is almost impossible if your team members don’t have the authority and backing of senior management to make on-the-spot decisions in the interest of better customer relationships and CRM success.  Requiring “approval from above” frustrates both the customer and the employee, and is contrary to the concept of timely customer response.  Train your people on your CRM vision, goals, and expectations, and train them on the software programs as well as effective and complete data collection methods. Then give them the freedom to make decisions on behalf of the organization.  Reward employees who demonstrate customer-focused thinking. 

 

 Use technology to enhance your CRM systems, not replace them 


  A well-functioning CRM system has, at its core, people.  People make the customer relationship work effectively.  Businesses often look to technology as a way to displace staff or collect more data, and in the process, ignore the fact that people are an absolutely essential part of CRM success, and that the technology is only a means to strengthen that success.  Technology should be used to collect and analyze meaningful data, and provide staff with the information needed to engage the customer and build your brand.

Embrace continuous improvement 

Your relationships with customers will continue to grow only if your organization continuously evaluates its CRM systems and finds ways to improve them.  Customers are dynamic, and as such, your CRM program must evolve as well.  You must continuously analyze your data to look for changing trends or patterns in consumers, constantly re-evaluate your vision, goals, and expectations, and find new ways to measure the pulse of your customers if you expect to achieve the highest levels of CRM success.