10 essentials of business information systems chapter

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Unformatted text preview: ent business processes and functional areas throughout the enterprise 8.10 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems The Supply Chain • Network of organizations and processes for: • Procuring raw materials • Transforming them into products • Distributing the products • Upstream supply chain: • Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them • Downstream supply chain: • 8.11 Organizations and processes responsible for delivering products to customers Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Nike’s Supply Chain Figure 8-2 This figure illustrates the major entities in Nike’s supply chain and the flow of information upstream and downstream to coordinate the activities involved in buying, making, and moving a product. Shown here is a simplified supply chain, with the upstream portion focusing only on the suppliers for sneakers and sneaker soles. 8.12 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Information and Supply Chain Management • Inefficiencies cut into a company’s operating costs • Can waste up to 25% of operating expenses • Just-in-time strategy: • Components arrive as they are needed • Finished goods shipped after leaving assembly line • Safety stock • Buffer for lack of flexibility in supply chain • Bullwhip effect • 8.13 Information about product demand gets distorted as it passes from one entity to next across supply chain Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems The Bullwhip Effect Figure 8-3 Inaccurate information can ca...
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This document was uploaded on 02/11/2014.

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