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.
R. M and partners use the fundamentals of supply chain management and the steps that are mentioned above. To illustrate more the chain will start from the supplier network that include raw material such as aluminum, fiberglass, and glecoat then the components, which can be transmission, seats, and so on. The next step is the subassembly for example engines, wiring, and chassis.
The next step in the chain is the boat manufacturers (assembly line), which include R. M and all boat manufactures, then it goes on to the most important step which is the marketing channels (dealer network) and then to the buyers. To exemplify more we will take Wal-Mart as an example. Wal-Mart one of the retailers that have an efficient supply chain, Wal-Mart a lower price retailer for wide variety of mass consumption of consumer goods. The strategy of efficient supply chain designed to deliver products at the lowest cost possible. Efficiency is achieved in variety of ways.
For example, Wal-Mart keeps low inventory levels, and most are stocked in stores available for sale, not in warehouse gathering dust, the low inventory arises Wal-Mart’s innovative use of the cross-docking process. Cross docking allow Wal-Mart to operate only a small number of distribution centers. Moreover the company invested significantly more than its competitors in information technology to operate its supply chain. The company has a full feed back information about customers’ requirements and demands from it stores back to the suppliers. In addition Wal-Mart obtain their products from small suppliers, and those suppliers depend on Wal-Mart as a main buyers, as a result Wal-Mart can apply the pressure and have the products needed delivered twice or maybe three times a month.
At the end supply chain management help business to improve and satisfy there everyday needs. Supply chain management one of the most efficient and profitable process. 1.Cost Accounting A Managerial Emphasis by Charles Horngren 2.Effective Management by Hartley.3.http://www.keepmedia.com/pubs/SupplyChainManagementReview/2004/03/01/459506.4.http://www.manufacturing.net/scm/article/NEb0727044.9sw.html?industry=Supply+Chain+News;industryid=2380.5.http://www.walmart-martstores.com