MGT 300

CHAPTER 3: STRATEGIC INITIATIVES FOR IMPLEMENTING COMPETITIVE ADVANTAGES

SUPPLY CHAIN MANAGEMENT (SCM) – management of information flows between among stages in a supply chain to maximize total supply chain effectiveness & profitability.

 FOUR BASIC COMPONENT OF SCM:                                                                                                                                                                                            

v  SUPPLY CHAIN STRATEGY- manages all resources required to meet customer demand.

v  SUPPLY CHAIN PARTNERS- the partners chosen to deliver finished products, raw materials & services including pricing, delivery & payment process along with partner relationship monitoring metrics.

v  SUPPLY CHAIN OPERATION- schedule for production activities like testing, packaging & preparation for delivery. Measurement for this component includes quality & quantity.

v  SUPPLY CHAIN LOGISTICS- the product delivery process & elements such as orders, warehouse, carriers, defective product returns & invoicing.

~ Example of SCM system is Wal-Mart (Mydin), Procter & Gamble (P&G).

~ ADVANTAGES: saves time, reduce inventory & decrease order-processing costs.

EFFECTIVE & EFFICIENT SCM ENABLE:

CUSTOMER RELATION MANAGEMENT (CRM) – Manage all aspects of a customer’s relationship with an organization to increase customer loyalty & retention & organization’s profitability. Many organizations, such as Charles Schwab & Kaiser Permanente, have obtained great success through CRM systems. CRM is not technology but a strategy, process & business goal.

~ Example of CRM: rebate (Tesco) & flyers Courts Mammoth.

BUSINESS PROCESS REENGINEERING (BPR) – activities that accomplish a specific task, analysis & redesign of workflow within & between enterprises.

~ Example of BPR: Maybank2u

~ Principles:

1. §  Organize around outcomes, not tasks
2. §  Identify all the organization’s process & prioritize them in order of redesign urgency
3. §  Integrate information process work into real work
4. §  Treat geographically dispersed resources as tough they were centralized
5. §  Link parallel activities in the workflow instead of just integrating their results
6. §  Put the decision point where the work is performed & build control into the process
7. §  Capture information once & at the source

ENTERPRISE RESOURCE PLANNING (ERP) – integrates all departments & functions throughout an organization into a single IT system so employees can make decision by viewing enterprises wide information on all business operations.

~ Example of ERP: student portal