Chapter 2
       Chapter 2
    MAJOR BUSINESS 
    MAJOR BUSINESS 
       INITIATIVE
       INITIATIVE
    Gaining competitive 
    Gaining competitive 
     advantage with IT
     advantage with IT
   SUPPLY CHAIN MANAGEMENT
   SUPPLY CHAIN MANAGEMENT
  • Distribution 
   chain – the 
   path followed 
   from the 
   originator of a 
   product/servic
   e to the end 
   consumer
  What are Supply Chain Management 
  What are Supply Chain Management 
          Systems?
          Systems?
  • Supply chain management (SCM)  - tracks 
   inventory and information among business 
   processes and across companies
  • Supply chain management (SCM) system - 
   an IT system that supports supply chain 
   management activities by automating the 
   tracking of inventory and information among 
   business processes and across companies
 What are Supply Chain Management 
 What are Supply Chain Management 
       Systems?
       Systems?
      Strategic and Competitive 
      Strategic and Competitive 
      Opportunities with SCM
      Opportunities with SCM
   • A well-designed supply chain management 
    system helps by optimizing:
    – Fulfillment
    – Logistics
    – Production
    – Revenue and profit
    – Spend