Supply Chain Management

1610 Words7 Pages
Enterprise systems can be helpful to solve diverse business problems and optimize numerous processes in commercial organizations. Though the CIO is interested in different types of these systems being used, particular emphasis is placed on Supply Chain Management (SCM), which can be defined as “the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability” (Baltzan, 2014). In order to profoundly evaluate the impact that these systems can have on different types of organizations, the paper will analyze two case studies, whose objective was to “promote further understanding of this process of adoption and integration of supply chain management…show more content…
Organization 2
The second organization, also based in Australia, focuses on design, manufacture and distribution of women’s outerwear. Numbering 140 employees, this company annually generates $50,000,000 AUD. The company supplies its products nationally, competing with 3 local and numerous external companies. The company exports 75% of its products overseas with the view of higher profits, though it results in decreased quality control.
Problems to be Solved
Organization 1
The use of enterprise systems in this organization was motivated with various factors. According to the case study (Sohal, Power & Terziovski, 2002), the organization thus aimed to solve the following business problems:
Implementation of the Quick Response (QR), initiated by a major trading partner
• Reduction of inventories and operational costs to maximize revenue
• Increasing the company’s poor delivery ‘in full on time’ performance of 5%
• Improving the efficiency of resource allocation to products
• Stimulating marketing with differentiators on quality, delivery and reliability
• Achieving higher compliance with customer requirements
Organization 2
The problems faced by the company were restricted to the field of customer satisfaction. As specified in the case study (Sohal, Power & Terziovski, 2002), the only factor that
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