- You are the CEO for a new retail company that you’ve recently launched. You’ve been studying Amazon and Wal-Mart and how they manage their supply chains, and are impressed by how successful both organizations have been with their supply chain management processes
COMPANY IS ATTACHED
- In a minimum of 3 pages, discuss the following:
- The macro process that you selected and how it relates to your new company
- Describe the Enterprise Planning (ERP) system and IT software that your company will use and how it will be leveraged to manage your selected macro process.
- Discuss advantages and disadvantages of the IT software that your company will use, including its reliability.
- Discuss how Wal-Mart and Amazon uses technology to support their processes. Is this similar or different than the approach that your organization will take?
Information technology (IT) is a key driver in supply chain because it functions as the glue that allows other supply chain drivers to work collectively with the goal of creating a coordinated, integrated supply chain. IT is also critical to supply chain performance because it supplies the foundation on which managers make decisions and supply chain processes execute transactions. Without IT, a manager cannot know how much inventory is in stock, what customers want, and when more products should be produced or shipped.There is a focus on applying information technologies when managing the macro processes of a supply chain, which include Customer Relationship Management (CRM), Internal Supply Chain Management (ISCM), and Supplier Relationship Management (SRM). This week for your project, you will choose one of these areas to focus on.Your project this week will require you to conduct research. For your research, you will need to do the following:
- Select a macro process to discuss in your design plan (CRM, SRM, or ISCM). Research the process and the technologies used to support the process.
- Research Wal-Mart and Amazon and how they use technology to support their macro processes.
- You will need to use a minimum of 4 credible sources for your research,
HElPFUL INFO :The traditional practice by logistics providers in supply chain management systems did not spend substantial periods of time on measuring and managing performance, with only focusing on operational execution and meeting only the most basic of measurable criteria. This is changing, driven by competition and especially as a result of increasing demands from customers who want to be assured of effective management of their business. The following driving forces behind the increased use of performance measurement in a supply chain/logistics context are as follows:
- Increased reliance on contract manufacturers/outsourcing or make-versus-buy decisions.
- Strategic importance of logistics service providers, as they often have a greater impact on the end customer.
- Adoption of manufacturing management principles like just-in-time, total quality management, six sigma, and lean principles.
- Impact on customer experience/satisfaction through performance tools like quality programs, surveys/polls, and customer service metrics.
- Increased competition, with global logistics service providers, (with economies of scale), in a low-margin business requiring significant capital investments.
- Information technology improvements, both in warehousing and transportation, to control and track shipments, with a greater availability of data.
- Empowerment practices allowing lower level employees with SCM tasks/responsibilities, but requiring better monitoring/use of KPI (Key Performance Indicators).
- Employee motivation tools through efforts into communicating SCM metrics for productivity and continuous improvements
THECHNOLOGY:Today’s market-driven global supply chains are information intensive and require adaptive information systems to manage logistics complexities. Regarding the role of information, from earlier coursework we determined in any supply chain there are three key flows, namely material, resource and information flows. Material flows enable delivery of freight and resource flows such as finance ensure supply partners get paid. Information flows are more complex and multifaceted since information is the key that unlocks supply chain responsiveness to demand.The many benefits of supply chain-spanning
information technologies include all of the following: Customer-oriented operations; time compression; reduced schedule variability; shorter planning periods/order lead times; consistent partnerships with suppliers, intermediaries and customers; supply chain synchronization, coordination and optimization; a single point of control, or “from the tower”; and integrated information systems.While gaining information visibility and transparency is the goal, barriers preventing this include those dealing with cultural, financial, technical and organizational matters.The following are informational technology common core applications in supply chain management:
- e-Business or purchasing freight and services online for B2B (Business-To-Business) and B2C (Business-To-Consumer)
- Electronic Data Interchange, including RFID (Radio Frequency Identification), and AIDC (Automatic Identification and Data Capture)
- ERP (Enterprise Resource Planning) controls all resources required from receipt of order to delivery of freight
- Collaborative Planning, Forecasting and Replenishment to fill inter-organizational gap that ERP does not address
- VMI (Vendor Managed Inventory), or outsourcing inventory management to suppliers for a single point of control
- Warehouse Management Systems, which manages and controls warehouses and distribution centers.
- Capacity Requirements Planning – Matches the internal manufacturing and outsourcing capabilities with demand
- Demand Planning – Reviews historical order patterns/experiences with actual orders
- Manufacturing Planning – Plans internal actual production capacities with demand
- Distribution Planning – Coordinates the replenishment of stock and inventory
- Logistics Planning- Plans the forward and reverse flows and storage
- Transportation Planning – Optimizes the best warehouse and transportation choices for cost/benefit trade-offs