Transportation Research Part E 39 (2003) 95–121 www.elsevier.com/locate/tre Adopting new technologies for supply chain management
Kirk A. Patterson a, Curtis M. Grimm b, Thomas M. Corsi a c,*
c
Department of Operational Sciences, Graduate School of Engineering and Management, Air Force Institute of Technology, USA b Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA Supply Chain Management Center, Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA
Abstract Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain
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. . and create and commercialize a stream of new products and processes that shift the technology frontier, progressing as fast as their rivals catch up’’ (Porter and Stern, 2001, p. 28). One area of innovation that has been the focus of significant discussion is information technology adoption. US executives allocate 40% of new capital equipment investment to technology (Hitt and Brynjolfsson, 1996). Innovative information technologies have the capacity to impact organizational structure, firm strategy, communication exchange, operational procedures, buyer– supplier relationships, and bargaining power (Bowersox and Daugherty, 1995; Lewis and Talalayevsky, 1997; Williams et al., 1997; Clemons and Row, 1991). Information technology may also increase organizational productivity, flexibility, and competitiveness (Cash and Konsynski, 1985) and stimulate the development of interorganizational networks (Daugherty et al., 1995). Information systems have become so pervasive that they are now considered to be a requirement for doing business in todayÕs competitive marketplace (Clemons and McFarlan, 1986; Dawe, 1994; Rogers, 1990; Rogers et al., 1992). Supply chain management is recognized as an important area for information technology innovation and investment (Bowersox and Daugherty, 1995). Supply chain management has been defined by The Global Supply Chain Forum as ‘‘. . . the integration of key business processes from end user through original suppliers that
Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
Chase, R. B., & Jacobs, F. R. (2011). Operations and Supply Chain Management, 13e. Boston: McGraw-Hill Irwin.
Numerous organisations have effectively executed supply chain ideas with terrific results. Proficient supply chains have empowered these firms to contend better. What were the purposes behind their triumphs? What were the obstacles these firms confronted in their excursions to accomplish joining in their systems? How were they ready to beat
By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer
W.C. Benton, J. (2010). Purchasing and Supply Chain Management (2nd ed.). New York: McGraw-Hill Irwin.
Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.
Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.
Supply Chain Management : The vertical integration in the supply chain led them to achieve shorter time frame of release and also helped them to
As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri
With the rapid emergence and massive growth in IT sector, there is a need for the IT industry to change itself according to the upcoming challenges in the near future. When it comes to IT sector investments in supply chain management, it is considered as spring board in removing the difficulties in the industry. It is essential for the executives dealing with supply chain to reconsider the IT investment strategies, when technologies such as Cloud Computing, Web, and social media are being used widely.
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
While researching on line I came across an article that described the affect that the Internet is having on supply chains today. “E-enabled supply chain management is fast emerging as a core strategy that organizations worldwide are adopting for sustainable business advantage”. (4)
Allows the label surface maximum bending degree to be 90 degrees, that is to say the GM code can be read whatever right angle, concave or convex deformation. Also, it has strong recognition ability if the label was printed or pasted with waves.
The implementation of Information Technologies(IT) into Supply Chain Management (SCM) into any industry’s firm is an essential and crucial part for successful and productive firm performance: it’s knowledge about market demand, customer and supplier relationship. The main idea of this paper is to describe a framework for IT implementation and its impact on Supply Chain Management in the Kazakhstan Industry of Mining, Oil and Gas. The work will present in general IT types in SCM and the benefits they can create being implemented in different stages of production: purchasing, operations, logistics, customer and supplier relationship. The focus will be made on Kazakhstani local environment and development of firms in