Our topic for today is Example of Supply Chain Management Information System & How it Works for your business? The tasks that make up the supply chain process are together by a system for managing the supply chain. The manufacturer, the wholesaler, the distributor, and the retailer are all significant parts of the supply chain solutions.
A supply chain management system’s goals are to give customers more value and give the company a reliable edge over the competition. If any small business is involving itself in supply chain management, they should know how they can fit themselves into this system and how this job can achieve successful results.
Example of Supply Chain Management Information System: Synchronization at the Point of Sale
When all parts of the example supply chain management information system have the same information simultaneously, data lags are eliminated, and costs are saved. Milliken & company was known to be among the first companies to use the data from the concept of retail stores’ point-of-sale systems to hence link up with the rest of the factories.
Before the efforts to sync up, it would take the company 18 weeks to fill an order from a retailer. Through the usage of better data, Milliken was capable of cutting that time down to almost three weeks.
Example of Supply Chain Management Iformation System: Web-based system for managing the supply chain
Internet technology has made it possible for businesses to talk to each other quickly and like never before. The U.S. Department of Agriculture allowed farmers and ranchers to talk to distributors and wholesalers through the Internet.
This Web Supply Chain Management System is made up of software packages. These packages are available for purchase. They all work together to make buying, tracking, and ordering agricultural products easier.
Example of Supply Chain Management Information System: SAP Business Software
SAP, a business software company, has made a set of products for managing the supply chain. The SAP SCM suite has different functions for shipping, making, and buying.
Unlike some example of supply chain management information system, which depends on different software programs and databases being able to talk to each other, the SAP suite’s parts talk to each other using the same standards. Costs can be high for such a complete system, especially for small businesses with limited funds.
Problems in the supply chain
When the supply chain’s management system doesn’t work, every part of the chain feels the effects. In 1999, the giant store Toys”R” Us said that all online orders placed by December 10 would get delivered by Christmas. The company’s Internet servers weren’t locating upon to handle all the traffic so they couldn’t fill thousands of orders.
The company got a lot of angry emails and phone calls, and some employees filled the orders for seven weeks straight without a day off. So, Toys”R” Us hired Amazon.com to handle its order fulfillment.
Supply Chain Management (SCM) and How It Works
Supply chain management (SCM) is how the suppliers have been making it. They are using the supply chains for cost-effective mediums. Supply chains include everything from making things to coming up with new product ideas. It even highlights the information systems necessary to run all these things.
SCM is making an effort to link and control the shipping. It often involves the production and the product distribution from different places. Through the use of supply chains, companies can easily cut costs. It will let the customers have the products.
You can make it happen by keeping a tighter grip on the company’s internal inventories. It will also involve the production, distribution, sales, and the vendors’ inventories.
What are the 5 Main Parts of Supply Chain Management?
In the SCM sector, the supply chain manager is in charge of the supply chain. The manager coordinates the logistics of five different significant parts of the supply chain. Those parts are:
- The scheme or a proper plan
- The origin of different raw materials or services
- Manufacturing is all about productivity and efficiency
- Shipping and transportation
- Return of defective products
The person in charge of the power chain will avoid all the shortages and keep the cost low. Logistics and buying stock are not the only parts of the job. Salary.com says that supply chain managers oversee and manage an organization’s overall supply chain and logistic operations. This will make it as efficient as possible and keep costs as low as possible.
Supply Chains vs. SCM: What is the difference?
A supply chain is a group of businesses, people, activities, resources or technologies. They all work together to sell or make any service or product. This process will start when suppliers send the raw materials to the manufacturers. It will end at the point when the customer finally delivers the product.
SCM is responsible for every part of a company’s product or service. This will be when it is first available to when it is sold. There are many points in the supply chain where value can be added through efficiencies or lost through higher costs. Thus, good SCM can help a company make more money. They can spend less, and improve its bottom line.
What is the main link between ethics and supply chain management?
With time, the demand for ethics in supply chain management is becoming a lot more critical. And for that sake supply chain ethics have been introduced. These ethics are based on group of rules. Because of this, companies take steps to cut down on waste. They can improve working conditions. Thus it will have a make less of an impact on the environment.
Supply chain management is a lot important because it is letting the business to reach closer to its goals. Controlling the entire process of manufacturing will improve the overall product quality. It will also lower the recall risk and lawsuits and will build a powerful consumer brand relationship.
At the same time, keeping an eye on shipping procedures can help improve customer service by preventing shortages or times when there are too many items. Overall, supply chain management gives businesses a lot of ways to increase their profit margins. This is especially true for big, international businesses that have a lot of operations.