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Supply Chain Management (SCM) Phenomena

Read this article entitled, “Why Do You Need To Know About Supply Chain Management (SCM)?” Write a 3-4 page MS Word APA formatted paper from the article. Be sure to follow the assignment details and the APA cheat sheet when completing your assignment.


Why Do You Need To Know About Supply Chain Management (SCM)?

January 11, 2011, | SCRC SME

Supply chain management is as much a philosophical approach as it is a body of tools and techniques, and typically requires a great deal of interaction and trust between companies to work. For right now, however, let’s talk about three major developments that have brought SCM to the forefront of management’s attention. • The information revolution

• Increased competition and globalization in today’s markets

• Relationship management

The Information Revolution

In the early 1960s when computers were first developed, a mainframe computer filled an entire room. With the development of the integrated circuit, the cost and speed of computer power increased exponentially. Today, a laptop computer exceeds the storage and computing capacity of mainframe computers made only 15 years ago. With the emergence of the personal computer, optical fiber networks, and the Internet, the cost and availability of information resources allow easy linkages and eliminate information-related time delays in any supply chain network. Wal-Mart’s ability to send daily sales information to its suppliers is just one example.

Organizations are moving towards a concept known as electronic commerce, where information transactions are automatically completed via Electronic Data Interchange (EDI), Electronic Funds Transfer (EFT), Point of Sale (POS) devices, and a variety of other approaches. The late 1990s and early 2000s saw the emergence of online “trading communities” that put thousands of buyers and sellers in touch with one another.

Ariba is just one example of a business-to-business (B2B) exchange.) The old “paper”-type transactions are becoming increasingly obsolete. At the same time, the proliferation of new telecommunications and computer technology has made instantaneous communications a reality. Such information systems — like Wal-Mart’s satellite network — can link together suppliers, manufacturers, distributors, retail outlets, and ultimately, customers, regardless of location.