BUSINESS DRIVEN TECHNOLOGY Chapter Ten: Extending the Organization – Supply Chain Management

1. BUSINESS DRIVEN TECHNOLOGY Chapter Ten: Extending the Organization – Supply Chain Management

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

3. 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

4. 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 organization’s own production process • Distribution of products to customers and their “downstream” customers at all levels

5. CHAPTER TEN OVERVIEW • Organizations must embrace technologies that can effectively manage and oversee their supply chains

6. SUPPLY CHAIN MANAGEMENT’S EXPLOSIVE GROWTH • Top reasons why more and more executives are turning to SCM to manage their extended enterprises

7. SUPPLY CHAIN MANAGEMENT’S EXPLOSIVE GROWTH • Five Factors Driving SCM’s Explosive Growth

8. 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

9. SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

10. 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

11. OPENING CASE STUDY QUESTIONSRevving Up Sales at Harley-Davidson • Describe how Harley-Davidson’s SCM system, Manugistics, might improve its business operations • Provide an illustration of Harley-Davidson’s SCM system including all upstream and downstream participants

12. CHAPTER TEN CASEBudNet • Anheuser-Busch’s 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

13. 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 BudNet’s effect on each of the five factors that are driving SCM success