Q9-4 How Does SAP Improve Supply Chain Processes at CBI? Flashcards
How does SAP improve supply chain processes at CBI?
SAP improves supply chain processes by automating, simplifying, and accelerating various processes such as procurement, Supplier Relationship Management (SRM), Returns Management, and Supplier Evaluation.
These processes are integrated and managed with real-time data sharing.
What is Supplier Relationship Management (SRM) in the context of SAP?
SRM is a process that helps companies reduce procurement costs, build collaborative relationships with suppliers, manage supplier options, and improve time to market.
What is the Returns Management process in SAP?
The Returns Management process handles the returns of faulty products, such as managing customer complaints, tagging returned items, and determining the cause of the defect.
What is the Supplier Evaluation process in SAP?
The Supplier Evaluation process determines the criteria for selecting suppliers and managing the list of approved suppliers, including adding and removing suppliers as needed.
What is Supply Chain Management (SCM) in SAP?
SCM refers to the design, planning, execution, and integration of supply chain processes.
SAP uses SCM tools to help businesses develop integrated supply chains that support organizational strategy.
What is Data Sharing in supply chain processes?
Data sharing is the practice of distributing the same data to multiple processes within or between organizations. It allows different parts of the supply chain to have access to relevant information, improving efficiency and decision-making.
How can data sharing improve the supply chain?
Data sharing improves the supply chain by allowing real-time access to data, which can lead to:
Reduced lead time for orders.
Improved inventory management.
Better coordination between suppliers and buyers.
Faster response to demand changes.
What are examples of processes that can benefit from data sharing?
Examples of processes that benefit from data sharing include:
Returns Management sharing data about defective products with Supplier Evaluation to remove unreliable suppliers.
Procurement sharing sales data with Suppliers’ Sales to better anticipate raw material needs.
What is the bullwhip effect in the supply chain?
The bullwhip effect refers to the phenomenon where fluctuations in customer demand lead to increasingly larger fluctuations in orders upstream in the supply chain.
It typically occurs when companies overreact to changes in demand by ordering more supplies than needed.
How can data sharing reduce the bullwhip effect?
Data sharing reduces the bullwhip effect by providing real-time sales data to suppliers, allowing them to better anticipate demand and adjust production accordingly, thus minimizing the risk of over-ordering and excess inventory.
What is an example of data sharing within a company?
An example of data sharing within a company is sharing defective bike part data from the Returns Management process to the Supplier Evaluation process. This ensures that suppliers with high defect rates are removed from the list of approved suppliers.
What is an example of data sharing between a company and its partners?
An example of data sharing between a company and its partners is sharing CBI Sales Data from the Procurement process with Suppliers’ Sales to help suppliers better anticipate future orders and plan production accordingly.
Why is real-time data sharing critical for inventory management?
Real-time data sharing is critical for inventory management because it allows suppliers to respond quickly to changes in demand, reducing lead times and minimizing excess inventory. It also helps prevent production delays caused by shortages of raw materials.
What is Process Integration in supply chain management?
Process integration refers to the coordination and alignment of different processes so that they are mutually supportive. When one process is done well, it helps achieve the objectives of another. This integration improves efficiency and effectiveness across the supply chain.
How does process integration benefit supply chain processes at CBI?
Process integration at CBI helps different processes work together to improve overall efficiency.
For example, integrating Returns Management with Production allows CBI to reduce defects in bike production by using data collected from returns to improve production processes.
