Chapter 5 Operations Management and Supply Chain Management Flashcards
What is SCM?
Supply Chain Management is a management discipline that involves applied management and coordination of complex business operations that involve multiple business types (manufacturers, wholesale dealers, transportation companies – ocean, rail, road, air, customs brokers, freight forwarders) spanning the globe. SCM has many moving parts and trade offs between partners and they depend on the flow of meaningful information in order to function.
SCM involves managing information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Four components are supply chain strategy, partners, operation and logistics.
What are best practices for implementing a successful supply chain management system?
Make the Sale to Suppliers: Suppliers need to be on board with the benefits that SCM system will provide.
Wean Employees off Traditional Business Practices: encourage employees to transition from telephones/fax machine to SCM system
Ensure the SCM System Supports the Organizational Goals
What is Operations Management? How can IS support OM?
OM is the management of systems or processes that convert or transform resources (including human resources) into goods and services. OM is responsible for managing the core processes used to manufacture goods and product services.
IS helps influence OM decisions including productivity, costs, flexibility, quality, and customer satisfaction. Also, it helps with operational decisions,
Information Systems and SCM
Supply chain management SCM is the integration and management of supply chain organizations and activities through collaboration, effective business processes and high levels of information sharing. The supply chain concept has become a concern due to global competition and increasing customer demand for value. Thus, the information must be available in real time across the supply chain and this can not be achieved without an integrated software system for supply chain management. Supply chain members have to collaborate, sharing information for improving customers satisfaction. Web technologies enable enterprises to become more effective, to trade with suppliers and customers over the Internet in real time. For this, businesses have to integrate their information systems and applications with those of their suppliers and customers. First, companies have to redesign their supply chain to create an integrated value system and afterwards, companies can develop business to business applications across supply chain structure for the optimization of the supply chain . The implementation of the supply chain information systems in companies facilitates an increase in their competitiveness and their profits.
