Supply Chain Management Initiatives in Companies
Procurement
Supplier reduction programs, vendor managed inventory (VMI), partnering with the supplier
Companies in which supply chain management initiatives are mainly in procurement, the procurement executive is chosen as the supply chain executive.
Logistics
Typical activities including modeling or automating warehouses, distribution centers, or transportation networks to reduce cost.
Information
Electronic Data Interchange (EDI) is an early example of improving communication among supply chain participants, Wal-mart was successfully move point-of-sales data of its retail outlets to its suppliers. This increased demand driven planninng in the supply chain
Strategic Management
Some companies have taken the view that design and operation of supply chain is a strategic decision or a lever which provides strategic advantage of competitive advantage. A effective and efficient supply chain will increase customer satisfaction, sales volume, sales prices and reduce costs. To achive this supplier relations have to be improved, logistics has to be improved, information systems are to be improved, and industrial engineering (It is basically reengineering engineering elements) and business process reengineering have to be implemented across the supply chain.
The authors stated that they were presented tools that help the companies to design and operate supply chains as part of strategy,
BPR's Application to Supply Chain
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