Table of Contents
Introduction 2
Supply Chain Strategy 2
The process of SCM 4
Benefits of SCM Strategy 5
Benefits of IT supported SCM 6
How to develop a SCM strategy 6
IT and Process Design 7
How to choose the most suitable IT support (SCM software) 11
References 17
Introduction:
Today, transforming raw materials into finished goods in a cost-effective way, while
providing dependable delivery of those goods day after day, requires a clear understanding
of supply chain. It also requires having control of a realistic plan and the ability to
implement it.
Supply chain management is a relatively new field of study. Due to supply chain
integration, logistic professionals are now occupying more influential positions on the
organization charts of their respective companies. IT supported solutions will be the future
trend for supply chain management.
Senior executives at leading companies view supply chains as critical drivers of
shareholder value and competitive differentiation. Confirming that perspective, the
research shows a strong connection between high-performance supply chains and financial
success.
Leading companies incorporate supply chains into their business strategies and devote
significant attention to designing integrated operating models. For example, Nokia
frequent and a very flexible and efficient global supply chain supports rapid product
market innovations, which are major contributors to fast revenue and profit growth. In
effect, Nokia has altered the playing field with rapid-response manufacturing, quick-ship
logistics and a global supply web that links Nokia suppliers and plants; the company also
supports vendor-managed inventory and collaborative planning.
Another example is Zara, a Spanish clothing manufacturer and retailer. The company
supply chain strategy: dictate industry standards for time to market, costs, order-fulfillment
and customer satisfaction.
Zara owns nearly all of its 582 retail stores. Its managers send customer feedback to
in-house designers via handheld devices, keeping the designers instantly abreast of
fast-changing trends, which helps Zara reject less desirable merchandise more quickly. The
result is better-managed inventories, tighter links between supply and demand, and
reduced obsolescence costs.
Zara also acquires fabrics in only four colors and postpones dyeing and printing until close
to manufacture, thus reducing waste and minimizing the need to clear unsold inventories.
With these supply chain innovations, Zara can deliver new styles in three to six weeks,
compared with up to five months for competitors.
Companies that excel in supply chain management build innovation into their operating
models, with particular regard to outsourcing the information technology solution,
internal/external integration, and matching supply and demand.
A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials; transformation of these materials into intermediate
