E-Business Management MIS066 PDF

MIS066 E-Business Management Asst Prof Merve Yurdabak 6: E-SCM E-SCM Supply Chain Management The management of the flow of goods, data, and finance related to a product or service from the raw material procurement process to the delivery of the product to its...

MIS066 E-Business Management Asst Prof Merve Yurdabak 6: E-SCM E-SCM Supply Chain Management The management of the flow of goods, data, and finance related to a product or service from the raw material procurement process to the delivery of the product to its final destination. Supply chain and logistics should not be considered the same because logistics is only one component of the supply chain. Today's digital-based SCM systems include material handling and software capabilities for all parties involved in product or service creation, order fulfillment, and information  Supply Chain Management (SCM) is the integrated management of the flow of materials, information and money that ensures that the right product reaches the customer at the right time, at the right place, at the right price, at the lowest possible cost for the entire supply chain. In other words, it is the creation of strategies and business models that will increase customer satisfaction by ensuring the integration of basic business processes within the chain. Supply Chain A supply chain is the set of relationships and connections that enable the movement of products between suppliers, manufacturers, wholesalers, distributors, retailers and ultimately consumers. It covers all the successive links from the procurement stage of goods and services to production and delivery to the final consumer. From a business process perspective, the supply chain includes many areas such as the sales process, production, inventory management, material supply, distribution, procurement, sales forecasting and customer service. In supply chain management, Strategic level, where to produce and what the best sourcing strategy is. Tactical level, forecasting, planning, ordering short-lead materials and meeting production needs. Operational level, inventory distribution, detailed scheduling and what to do with an order when a machine breaks down are addressed.  Supply chain management uses advanced technology, information management, and operations research mathematics to plan and control an expanding mix of factors to better produce and deliver products and services to customer satisfaction. At the advanced level, it uses technical tools such as relational databases and similar programs.  In supply chain management, all functions that make up the chain must be integrated. A series of functions fulfill certain tasks in line with basic objectives in the delivery of products from the supplier to the end user: Demand and order management Purchasing Planning Production Inventory (Stock) management Warehouse management Shipping (Transportation)  Supply chains have existed since the earliest times, starting with the first product or service created and sold. SCM has become more complex with industrialization, allowing companies to produce and deliver goods and services more efficiently. For example, Henry Ford’s standardization of automobile parts revolutionized mass production and allowed him to meet the demands of a growing customer base. Over time, advances (such as the invention of computers) have made SCM systems even more complex. Yet SCM has remained a linear function managed by supply chain experts for generations.  But that has changed with the internet, technological innovation, and the explosion of a global economy driven by demand. Today’s supply chain is no longer a linear entity. It is a complex structure of different networks accessible 24 hours a day. At the center of these networks are consumers who want their orders fulfilled when they want them, the way they want them.  We are entering a period of global business and trade where technology is constantly evolving and customer expectations are rising. Today’s best SCM strategies require a demand-driven operating model that successfully brings together people, processes, and technology around integrated capabilities to deliver goods and services at an extraordinary pace.  While SCM has always been a corporate foundation, today the supply chain is more important than ever for business success. Companies that can effectively manage their supply chains to adapt to today’s ever-changing and evolving technology-driven business environment will survive and thrive. Industry 4.0 & SCM The application of today’s radical new technologies to manufacturing has been called Industry 4.0 or the “fourth industrial revolution.” In this latest step of industrialization, technologies such as artificial intelligence, machine learning, the Internet of Things, automation, and sensors are transforming the way companies produce, maintain, and distribute new products and services. It could be said that Industry 4.0 is built on the supply chain.  In Industry 4.0, the way businesses apply technology to their supply chain is fundamentally different from how they did in the past. For example, in the past, businesses would often wait for a machine to break down before repairing it as part of their maintenance function. Smart technology has changed that. Now, a failure can be predicted before it happens and steps can be taken to prevent it so that the supply chain can continue uninterrupted. Today, SCM is about using technology to make the supply chain and the business smarter.  Industry 4.0 SCM has significant advantages over traditional SCM because it provides significant cost savings while also facilitating planning and execution. For example, companies operating under the “plan production” model, where product production is tied as closely as possible to customer demand, must create an accurate forecast. To do this, many inputs must be taken into account in order to produce in line with market demand without overdoing production and causing costly excess inventory. Intelligent SCM solutions can simultaneously meet customer demand and financial targets.  The basic requirement for corporate customer loyalty is to be able to meet customer expectations quickly and accurately. In order to provide the product to the customer within a reasonable time frame, raw materials, production, logistics, trade and order management must all be coordinated. To achieve this, companies need to look at their supply chains through the eyes of their customers. The important thing is not to deliver the order to the customer on time, but to do everything right before, during and after the order is delivered. SCM Advantages Improves delivery performance Provides customer satisfaction Reduces inventory Increases order fulfillment rate Increases demand forecast accuracy Shortens supply cycle time Reduces logistics costs Provides efficiency and capacity increase  Increases customer satisfaction Ensures continuity of production by ensuring the supply of inputs Increases quality by meeting consumer demands in the best way Reduces total costs Enables quicker response to changes in the market  SCM- Cloud Since cloud-based applications are flexible and adaptable to change, cloud and SCM naturally complement each other in today's conditions. In today's corporate environment, problems such as an unexpected interruption in resource supply can constantly arise. It is quite difficult to respond to such problems with in-house and specially designed applications. Cloud solutions are naturally designed to better utilize the technologies that are becoming widespread in the Industry 4.0 model.  Retrofitting your environment so that these technologies can work with legacy applications is both complex and expensive. Another key benefit of integrating the cloud into your SCM system is being able to adopt specific elements of cloud-based SCM based on your business needs before making a full-scale transition. SCM-Blockchain It is necessary to know what is happening in every area of ​the supply chain at all times. A system that provides visibility and insight can be achieved by using blockchain. This provides traceability and trust opportunities throughout the supply network. It allows the company to make accurate predictions, increase visibility and profitability while managing a complex supply chain and creating a deep trust network between the company and its customers. SCM-Future The supply chain of the future is about responsiveness and customer experience, understood and managed as a network rather than a linear model. Each link in the chain must address factors such as sourcing, trade policies and shipping methods, and must be adaptable and flexible to the needs of the consumer.  Advanced technology will increasingly be used to increase transparency and visibility across this network, as well as to enable connectivity and SCM utilization. The entire SCM planning function will become smarter to account for consumer demands. Adaptability will be a must.  In the past, supply chain planning was a regular business practice. In the future, this practice will be continuous. Future SCM systems will increase the harmony between planning and execution, which is currently inconsistent in many organizations. The need for speed and accuracy in SCMs is constantly increasing. A supply chain supported by an Intelligent SCM system integrated with technologies will be ready for the future.