You have been asked to submit a report to your Organisation’s Board of Directors to present and get their approval on transforming from the current primitive purchasing practices to fully IT based integrated value addition supply chain management approach; in order to improve the overall performance of the organization and support future growth, expansion, and cost minimization. In your report include the following: Note: Select an organization and undertake a full review of how it manages its supply chain and logistics. You will need to produce a report that includes how the management of the supply chain impacts on business performance, the role of IT in managing the supply chain, and the role of procurement and logistics management. The final part of the report will be a plan for a strategy to improve the organisation’s supply chain and logistics management.
Task 1
1.1 / 1.2 / 1.3: Understand the relationship between supply chain management (SCM)and organizational business objectives Concepts: demand and supply management; push and pull models; enterprise resource planning (ERP); vendor managed inventory (VMI); efficient consumer response (ECR); value chains; lean supply; global SCM; contribution to business objectives Development: physical distribution management; materials management; logistics management and SCM (upstream and downstream) Organisational objectives and business functions: financial, marketing, sales, operational, manufacturing, human resource Key drivers: facilities; inventory; transportation; information; sourcing; pricing; globalisation; technology; customer expectation Integrated supply chain: strategic goals; culture change; roles and responsibilities of staff; organizational rationalisation; higher volume and speed of transactions; enhanced market position; reduced supply chain complexity; potential for smooth process operations following complex initial setup; enhanced, lean and agile systems
Answer the following questions in the case study
LO 1.1. Explain the importance of effective supply chain management in achieving organizational objectives
LO 1.2. Explain the link between supply chain and other business functions in an organisation
LO 1.3. Discuss the key drivers for achieving an integrated supply chain strategy in an organisation
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