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Supply Chain Management Accelerating Cost Effectiveness Supply Chain Management The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and customers. Today, the talk is of supply networks, parallel chains, enhanced concurrent activities, and “customer centric” with new information platforms and technology set to cut both inventory and lead-times throughout the delivery pipeline further. Top Issues Facing SCM Professionals SCM Benefits Move From Push To Pull Move to Cross-Functional Business Processes Supply Chain Optimization Cross-Functional Supply Chain Metrics Sharing and Collaboration Full Value Procurement Strategic Souring Logistic and Transportation Manufacturing Forecasting and Planning Top Issues Facing SCM Professionals The Impact of e-Business on SCM e-Business affects four broad categories that determine the production and transaction costs of a firm: The cost of executing a sale The costs associated with procuring production inputs The costs associated with making and delivering a product or service The cost associated with logistics The Cost of e-Business SalesAccessibility An e-Business web site is open 24 hours per day, 7 days per week. A business no longer has to build separate physical establishments to attract a larger customer base. A virtual storefront also allows an e-business to manage one store instead of multiple stores, thus eliminating duplicate inventory costs. The Cost of e-Business SalesOrder Rework Another aspect of e-Business is that it enables more efficient order configuration. For example, both General Electric (GE) and Cisco Systems reported nearly one-quarter of their pre-Web-site orders had to be reworked because of errors--a total of more than 1 million orders, in the case of GE. Since adopting a Web-enabled customer interface, Cisco reports an error rate of only 2 percent. The Cost of e-Busin
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