N. & Belihu, 2010). In the present dynamic business environment of globalization and free trade, SCM that is cost effective is considered as the matter of survival for obtaining the services and goods, which accounts to around 80% of total revenue of sales. Relying on this, the significance of effective Supply Chain Management must be viewed as competitive advantage, as it’s the heart of corporate strategy of the company (Trung, H. N. & Belihu, 2010). Along with this, the consumer’s external pressure also needs the companies to focus over lower prices, good quality, high cost efficiency, and shorter lead times. Therefore, there is an increasing demand to follow the Supply Chain Management as the holistic view for securing the profitable results for every party involved in the supply chain (Thakkar, J., Kanda, A.
Without information, it would be hard for managers to forecast customers’ needs and wants, how much inventory is in stock and when and where more products should be produce or ship; in summation, without information managers can only make decision blindly, therefore information is vital when it comes to the performance of supply chain, because it provide the supply chain management with the necessary data to go about making the right decision so as to satisfy customers’ needs and generating profit. Information technology, however, is the instrument which “consist of the tools used to gain awareness of information, analyze this information, and execute on it to increase the performance of the supply chain”, (Chopra & Meindl, 2001, p.489). Information technology serve as the eyes and hear of supply chain, sometime a percentage of the brain in the supply chain management. It’s also consist of hardware, software, and people throughout a supply chain that gather, analyze, and execute upon information. The IT system help bill and improve performance with the use of information that is analyzed consequently has significant impact on the supply chain performance.
Business is getting increasingly sophisticated due to the huge concurrence of global markets. Each organization either small or big has to stick to a kind of structure and strategy within its operations to make projects successful. During the last decades, companies moved from Logistics Management in 1986 to Supply Chain Management. Today’s Supply Chain Management also includes production and distribution by creating a chain of information from suppliers to costumers through the company. Since the customers’ expectations and global markets’ demand are getting more consequent, companies are forced to invest in and to pay attention to their supply chain to manage both cost and customers’ requirements.
Supply Chain Management includes coordination and collaboration between partners, which can be suppliers, intermediaries, third party service providers and customers. Supply Chain Management integrates supply and demand management within and between companies to serve the needs of the end-customer (Council of SCM, 2017). Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability ( Rouse, 2018) . Supply chain risks are the elements which causes non-performance in operations. Effective supply chain risk management is mandatory to have a successful business.
Le May et al. (1999), identified job training needs for supply chain managers. These needs are dominated by interpersonal skills (e.g., communication and meeting facilitation), cross-functional knowledge, and office equipment skills. They also suggested supply chain managers should be able to apply project management techniques, organize and coordinate meetings, conduct training, and use decision-making skills. Stank et al.,1998, had focused on the development of personal skills, such as assertiveness, passion, grooming, and dress.
Introduction to Enterprise Resource Planning (ERP) Supply chain management (SCM) is the overlook of the company’s information, materials needed in the process from supplier to manufacturer to wholesaler to retailer and lastly to the consumer. In addition, supply chain management’s function is to coordinate and integrate the flows within or among the companies. An effective supply chain management can help the company to reduce the inventory; it means that if the company applied supply chain management effectively, then the company can make sure their products are available when they needed. There are three main floes in supply chain management flows which are product flow, information flow, and finances flow. Product flow means the goods move
3.THEORETICAL BACKGROUND OF THE STUDY 1.1 MEANING OF SUPPLY CHAIN Supply chain consist of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers and even customers themselves. Within every organisation, such as manufacturer, the supply chain includes all functions involved in perceiving and fulfilling a customer request. These functions include, but not limited to, new product development, marketing, operations, distribution, finance and customer service. Supply chain is dynamic and involves the constant flow of information, product, and funds between different stages.
However, many company feel that the process of apply Supply Chain Segmentation is a very difficult and complex strategy for the complex global marketplace. Although this is a complex strategy, Supply Chain Segmentation is become more important for now competitive marketplace. The single-supply chain companies is more and more harder and difficult for them to meet the requirement of their target market because the rise of globalization and outsourcing. In this complicated market, the relation and interdependent among company and supplier is very high related to adapting supply chain processes which to meet the need of the customer for
According to Chow and Heaver (1999), a supply chain is “a group of manufacturers, suppliers, distributors, retailers and transportation, information and other logistics management service providers that are engaged in providing goods to consumers. A Supply Chain comprises both the external and internal associates for the corporate”. From the above definition, it can be seen that supply chain is about various players which are found both inside and outside a firm who come together to ensure satisfaction of
Abstract Evolution of supply chain management and logistics domain has seen several factors, both global and local, interplay and interact with each other to refine the supply chain practices. This refinement of supply chain management and logistics practices are endless as newer and newer challenges emerge in the volatile and ever changing global market place. An effective supply chain can make companies profitable as well as adaptive to the changing market requirements. The key to smooth functioning of any such effective supply chain is based on the availability of information. Information technology (IT) provides the tools required to extract the information, process and analyses it and provide valuable insight which help in optimal decision