Page 47 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 2: ERP and Related Technology

During the past decades, globalization, outsourcing and information technology have enabled notes
many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative
supply networks in which each specialized business partner focuses on only a few key strategic
activities.
Supply chain management (SCM) is the process of planning, implementing, and controlling the
operations of the supply chain as efficiently as possible. Supply Chain Management spans all
movement and storage of raw materials, work-in-process inventory, and finished goods from
point-of-origin to point-of-consumption.
The definition one American professional association put forward is that Supply Chain
Management encompasses the planning and management of all activities involved in sourcing,
procurement, conversion, and logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service providers, and customers. In essence, Supply Chain Management integrates
supply and demand management within and across companies.
figure 2.10: supply chain

Some experts distinguish Supply Chain Management and logistics, while others consider the
terms to be interchangeable.
Supply Chain Management is also a category of software products:

Supply chain event management (abbreviated as SCEM) is a consideration of all possible
occurring events and factors that can cause a disruption in a supply chain. With SCEM possible
scenarios can be created and solutions can be planned.
2.14.2 supply chain management problems

Supply chain management must address the following problems:
1. Distribution Network Configuration: Number and location of suppliers, production
facilities, distribution centers, warehouses and customers.

2. Distribution Strategy: Centralized versus decentralized, direct shipment, cross docking,
pull or push strategies, third party logistics.

LoveLy professionaL university 41