817 essentials of business information systems

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Unformatted text preview: stributors, logistics services, and, sometimes, to retail customers to improve coordination of external supply chain processes. 8.17 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Global Supply Chains and the Internet • Global supply chain issues • Global supply chains typically span greater geographic distances and time differences • More complex pricing issues (local taxes, transportation, etc.) • Foreign government regulations • Internet helps companies manage many aspects of global supply chains • Sourcing, transportation, communications, international finance 8.18 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Global Supply Chains and the Internet • Supply chain management systems • Push-based model (build-to-stock) • Schedules based on best guesses of demand • Pull-based model (demand-driven) • Customer orders trigger events in supply chain • Sequential supply chains • Information and materials flow sequentially from company to company • Concurrent supply chains • Information flows in many directions simultaneously among members of a supply chain network 8.19 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Push- Versus Pull-Based Supply Chain Models The difference between push- and pull-based models is summarized by the slogan “Make what we sell, not sell what we make.” 8.20 Figure 8-5 Essentials of Business Information Systems Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Supply Chain Management Systems Business Value of Supply Chain Management Systems • Match supply to demand • Reduce inventory levels...
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This document was uploaded on 02/11/2014.

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