Supply Chain Management
The role of information systems in Supply Chain Management
Introduction
The purpose of this essay is to explore and evaluate the various approaches that can be taken to facilitate the management of supply chains.
Supply Chain Management – A terminological background
The Institute for Supply Chain Management has defined supply management as “the identification, acquisition, access, positioning and management of resources an organisation needs or potentially needs in the attainment of its strategic objectives.” The essence is a shift of focus away from business units such as warehouses or factories to a more holistic view of a supply chain. For a given company this might include parts suppliers, manufacturers, transport, logistics and retailers.
Origins of SCM
SCM has is origins in organisational extension theory first proposed by Mallen in 1963. Mallens theory was developed within the context of marketing and advocated the extension of an organization to include all members of the distribution channel.
Why use SCM
Supply chain management as a concept has been evolved to address a number of issues that effect modern companies as follows.
The number of suppliers that companies use has tended to increase greatly, for example Sun Microsystems has three factories of its own but uses its supply base to increase its
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