There are several major underlying trends that have

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Unformatted text preview: several major underlying trends that have formed the key drivers for supply chain management. The first is the globalization of businesses. Modern businesses attempt to deploy global resources to maximize the potential opportunities in the global community. This, however, entails the challenges of dealing with long delivery lead times, high buffer stock, complex logistics and high cost of coordination, as companies try to coordinate the three flows across the globe. Another driver is the innovations in the retail landscape. General merchandise store chains like Wal-Mart, wholesale clubs like Price Club, category spet chains like Toys-R-Us, mail order companies like Lands’ End, and virtual electronic stores like Amazon have revolutionized the retail side of supply chains. Innovations like Vendor-Managed Inventory (VMI), everyday low pricing , activity-based costing and cross-docking have triggered industry-wide efforts in supply chain management like Efficient Consumer Response (ECR) or Efficient Foodservice Response (EFR) On the supply side, a key driver of supply chain management is the availability of cost-effective information technologies (IT). In fact, although it is recognized that a supplv chain that makes decisions based on global information would clearly dominate one with disjoint decisions by separate and independent entities in the supply chain, a well coordinated supply chain has not been easy to achieve. Significant investments are required to allow information to be shared across entities so that the activities and decisions throughout the supply chain can be coordinated. Recent advances in costeffective IT have, however, made the cost-benefit tradeoff favorable toward well I coordinated supply chain management. Specific examples of such technologies include client-server architecture, TCP/IP, relational DBMS (Data Base Management Systems), ERP (Enterprise Resource Planning), EDI (Electronic Data Interchange), object-oriented programming environments, wireless communications and the Internet. Thanks to t...
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This note was uploaded on 11/06/2013 for the course ISYE 6202 taught by Professor Staff during the Fall '08 term at Georgia Institute of Technology.

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