1. CHAPTER 6 SUPPLY CHAIN MANAGEMENT

2. SCM – some definitions
Supply chain management (SCM) The coordination of all supply activities of an organization from its suppliers and partners to its customers
Upstream supply chain Transactions between an organization and its suppliers and intermediaries, equivalent to buy-side e- commerce
Downstream supply chain Transactions between an organization and its customers and intermediaries, equivalent to sell-side e-commerce.

3. Members of the supply chain: (a) simplified view, (b) including intermediaries

4. A simple model of supply chain
Acquisition of resources (inputs)
Transformation (process)
Products and services (outputs)

5. What is logistics?
Used to refer specifically to the management of logistics or inbound and outbound logistics
Inbound logistics: The management of material resources entering an organization from its suppliers and other partners
Outbound logistics: The management of material resources supplied from an organization to its customers and intermediaries

6. Push and pull approaches to supply chain management
Push and pull supply chain models
Push and pull approaches to supply chain management

7. The Value Chain
A model that considers how supply chain activities can add value to products and services to be delivered to the customer

8. Restructuring the internal value chain
Some weaknesses in the traditional value chain:
Most applicable to manufacturing of physical products
It is a one-way chain involved with pushing products to the customer
Does not emphasise the importance of value networks
Deise et al. (2000) adapted a new model

9. Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model

10. Towards virtual organization
An organization which uses information and communication technology to allow it to operate without clearly defined physical boundaries between different functions
Lack of physical structure
Reliance of knowledge
Use of communications technology
Mobile work
Boundaryless and inclusive
Flexible and responsive

11. Options for restructuring the supply chain
The characteristics of vertical integration, vertical disintegration and virtual integration

12. Benefits of applying IS to SCM
Increased efficiency of individual processes
Benefit: reduced cycle time and cost per order as described in Chapter 7
Reduced complexity of the supply chain
Benefit: reduced cost of channel distribution and sale
Improved data integration between elements of the supply chain
Benefit: reduced cost of paper processing
Reduced cost through outsourcing
Benefits: lower costs through price competition and reduced spend on manufacturing capacity and holding capacity. Better service quality through contractual arrangements?
Innovation
Benefit: better customer responsiveness.

13. IS-supported upstream SCM
RFID (radio-frequency identification microchip)
Microchip-based electronic tags are used for monitoring anything they are attached to

14. IS-supported downstream SCM
Involves selling direct to customers
Operating a strategy of disintermediation by reducing the role of its branches

15. Alternative strategies for modification of the e-business supply chain