Supply Chain Management

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TABLE OF CONTENTS
INTRODUCTION……………………………………………………………………………..3 WHAT IS SUPPLY CHAIN MANAGEMENT……………………………………………….4
Three flows of supply chain management………………...……………………………4 FIVE COMPONENTS OF SUPPLY CHAIN MANAGEMENT……………………………..5 VALUE CREATION THROUGH SUPPLY CHAIN MANAGEMENT……………………..6
Three sources of data integration…………………………………………………….....7 SUPPLY CHAIN MANAGEMENT SOFTWARE CATEGORIES……………………….….8 TYPES OF SUPPLY CHAIN MANAGEMENT SOFTWARE………………………….……8 RFID TECHNOLGY…………………………………………………………………………..9

Components of RFID………………………………………………………………......9 AN IMPORTANT QUESTION TO ASK BEFORE INSTALLING A SUPPLY CHAIN MANAGEMENT SYTEM……………………………….…………………………………...10 POTENTIAL PROBLEMS ASSOCIATED WITH IMPLEMENTING A SUPPLY

CHAIN MANAGEMENT SYSTEM……………………………………………………...….11 SOLLUTIONS OFFERED BY SUPPLY CHAIN MANAGEMENT………………………..12 SUPPLY CHAIN ALLIGNMENT……………………………………………………………12 ALIGNING SUPPLY CHAIN STRATEGIES WITH PRODUCT UNCERTAINTY……….13

Matched Strategies……………………………………………………………………..14 THE TRIPLE-A SUPPLY CHAIN……………………………………………………………14
Building the Triple-A Supply Chain…………………………………………………...15 STRATEGIC ALLIANCE THAT DELIVERS SUPPLY CHAIN AGILITY………………..16 SUMMARY……………………………………………………………………………………17 REFERENCES………………………………………………………………………………...18

Introduction
Supply chain management is a topic that has been widely studied; more so since the 1980’s when companies realized that they needed to create competitive advantage, create value and stay ahead of the competition. In using and utilizing supply chain management not only were companies able to sustain competitive advantage by being responsive to customers’ needs, they also streamlined their processes, and were able to drastically cut cost and increase efficiency in areas such as collaboration using just-in–time systems to deliver products when they are needed instead of holding inventory on hand, and paying the cost of doing so. Although the just-in-time system of inventory management is not new, it has been fine-tuned over the years with the help of information technology.

With information technology being more widespread and easily accessible, it is almost impossible for businesses to stay ahead of the game if their technological system has not been created in such a way that creates value for the company. An article written by Hau L. Lee states that, “the best supply chains aren’t just fast and cost-effective. They are also agile and adaptable, and ensure that all their companies’ interests stay aligned” (October 2004). When the supply chain of a company is agile, it will be able to respond to sudden changes in supply and demand. Being adaptable is the ability of the supply chain to evolve overtime with economic increase or decline, political changes, demographic trends and technological trends. As with the information systems strategy triangle, the supply chain needs to be aligned with the interests of all the participants in the supply chain so that maximum efficiency can be realized.

When all parts of the supply chain are working in harmony then the supply chain is functioning efficiently and will as a result optimize the chain’s performance. In this paper, I will highlight supply chain integration and take an in-depth look at how Wal-Mart and Proctor & Gamble have effectively utilized this process to their advantage and have created value for customers in the process. This research will also look at some trade-offs that this practice presents, practices in supply chain management and supply chain management software that is used in the supply chain integration process.

What is supply chain management?
Supply chain management can be defined as a sequence of processes that goes into improving the way that a company coordinates its activities to obtain the raw materials needed to meet the needs of its customers. This process involves coordinating and integrating processes between and among manufacturers, suppliers, transporters,...
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