CHAPTER PREVIEW
The success of many organizations, private, public, and military, depends on their ability to manage the flow of materials, information, and money into, within, and out of the organization. Such a flow is referred to as a supply chain. Because supply chains may be long and complex and may involve many different business partners, we frequently see problems in the operation of the supply chains. These problems may result in delays, in customers’ dissatisfaction, in lost sales, and in high expenses of fixing the problems once they occur. World-class companies, such as Dell Computer, attribute much of their success to effective supply chain management (SCM), which is largely supported by IT. In this chapter we describe the nature and types of supply chains and explain why problems occur there. Then we outline the IT-based solutions, most of which are provided by integrated software such as MRP and ERP. Next we show you how EC can cure problems along the supply chain. Finally we describe the problems of fulfilling orders in e-commerce systems and some of the solutions used.
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CHAPTER OUTLINE
10.1 10.2 10.3 10.4 10.5 10.6 Supply Chains and Their Management Supply Chain Problems And Solutions IT Supply Chain Support and Systems Integration Enterprise Resource Planning (ERP) E-Commerce And Supply Chain Management Order Fulfillment in E-Commerce
LEARNING OBJECTIVES
1. Understand the concept of the supply chain, its importance, and its management. 2. Describe the various types of supply chains. 3. Describe the problems in managing supply chains. 4. Describe the major categories of supply chain solutions. 5. Explain the need for software integration and describe the available software. 6. Explain how EC improves supply chain management. 7. Describe EC order-fulfillment problems and solutions.
HOW DELL MANAGES ITS SUPPLY CHAIN www.dell.com The Business Problem
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