BUS 311 ch. 8

collection of companies and processes involved in moving a product from the suppliers of raw materials to the suppliers of intermediate components then to the customer

flow of materials from suppliers to customers

• Electronic Data Interchange
• refers to computer-to-computer communication following certain standards

access points through which a business partner accesses secured, proprietary information.

• managed by a downstream company
• single buyer to multiple suppliers

• managed by upstream company
• single supplier to multiple buyers

• operated by third party vendors 
• generate revenue by taking a small commission for each transaction
• allow many buyers and sellers to come together

markets comprised of firms operating within a certain industry sector

parts arrive right when they are needed

business model in which the suppliers manage the manufacturers inventory

small shift in demand for an end product can lead to tremendous fluctuations in demand for parts or raw materials

• accelerate product development
• reduce costs

• Supply Chain Management
• improve the coordination of suppliers, product or service production, and distribution

extent to which a company's supply chain is focusing on minimizing procurement, production, and transportation costs, sometimes sacrificing customer service

focuses on maximizing customer service

• Supply Chain Planning
• develop resource plans to support efficiency and effectiveness of production of goods
• demand planning and forecasting
• distribution planning
• production scheduling
• inventory and safety stock planning

• This is where SCP begins
• examine historical data to develop accurate forecasts

moving products to distributors

focuses on coordination of all activities needed to create product

focuses on development of inventory estimates

Execution of SCP

movement of goods from the suppliers to production to distribution to consumer

• radio Frequency Identification 
• replace bar codes

movement of info along the supply chain.

• Extensible Markup Language
• standard for exchanging structured information over the web

XML based specification for publishing financial information

movement of financial assets throughout the supply chain

ability to track products and even foresee external events

use of key performance indicators to monitor performance of entire supply chain.

• attract potential customers
• create customer loyalty
• portray positive corporate image

• 24/7 operation
• individualized service
• improved information and problem identification
• optimized processes
• improved integration product development and planning

• policies and business processes
• customer service
• Employee training
• Data collection, analysis, and sharing

• Operational CRM
• Analytical 
• Collaborative

• includes the system used to enable customer interaction
• Sales force automation
• customer service and support
• Enterprise Marketing management

support day to day sales activities.

modules that automate service requests, complaints, product returns, and info

help a company in the execution of the CRM strategy by improving the management of promotional campaigns.

• systems for providing effective and efficient communication with the customer form the entire organization. 
• greater customer focus
• lower communication barriers
• increased information integration