“Supply chain management is the flow of goods, services, and information from the initial sources of materials and services to the delivery of products and activities occur in the same organization or in other organizations”(Horngren695). This approach enables Regal Marine (R.M) to be highly effective, efficient, and profitable. More over supply chain management effectively manage your supply chain by synchronizing the demand for your products with your production capabilities, optimizing your resource usage, and maximizing your throughput so there are less disruptions and fewer fires to put out.
Supply chain management requires companies to use the Internet to be most effective. Nevertheless Companies are failing to adapt to the Internet technology to enable effective supply chain management. “In addition Research shows companies failing to use Internet technology for Supply chain management, despite the need to satisfy customer demands and it revealed:
(1) Only forty eight percent currently use Internet technology to manage product order and delivery, yet over half state that responding to customer demands and improving service is the main reason for changing supply chain requirements. (2) Only fifteen percent use Internet technology right through the supply chain at all levels, with twenty three percent planning to implement a total web-enabled supply chain soon. Moreover almost half of the companies interviewed currently outsource parts of the supply chain by using an Application Service Provider. (3) Thirty-seven percent of companies were using the Internet to streamline their processes.
We mentioned earlier the disadvantages of supply chain management, now we will the advantages and the process of supply chain management. Supply Chain Management Solutions helps companies transform supply strategy into a competitive advantage. By combining the expertise, technology and information to help companies bring immediate value and profit. Supply management is clear and direct. The process help companies find the money in their supply base, get the money to the bottom line quickly and keep the money coming with a renewable and repeatable approach. But to make supply chain management effective companies need to:
(1) Get Perspective. (2) Don't Underestimate Learning Costs. (3) Reconsider What's Efficient. (4) Serve the Partnerships. (5) Don't Overestimate. ...