Wednesday, December 21, 2011

Supply Chain Small business Approach Integration

So You Want to Start a Business?

Ask yourself if people will part with their hard earned cash for your service/product as without money coming into the business you will not stay in business long. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. The key supply chain processes stated by Lambert (2004) are:• Customer relationship management • Customer service management • Demand management • Order fulfillment • Manufacturing flow management • Supplier relationship management • Product development and commercialization • Returns management One could suggest other key critical supply business processes combining these processes stated by Lambert such as:a. Customer service management b. Procurement c. Product development and commercialization d. Manufacturing flow management/support e. Physical distribution f. Outsourcing/partnerships g. Performance measurement a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers.Customer service provides the source of customer information. According to Lambert and Cooper (2000), managers of the product development and commercialization process must:1. coordinate with customer relationship management to identify customer-articulated needs; 2. develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. Customer Service 3. External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) customer perception measurement, and 2) best practice benchmarking.Components of supply chain management are 1. Customisation[edit] Supply chain management components integrationThe management components of SCMThe SCM management components are the third element of the four-square circulation framework. Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link. The literature on business process reengineering,[4] buyer-supplier relationships,[5] and SCM[6] suggests various possible components that must receive managerial attention when managing supply relationships. A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are supporting the primary ones. For customer service management: Includes the primary level component of customer relationship management, and secondary level components such as benchmarking and order fulfillment. 2. For product development and commercialization: Includes the primary level component of Product Data Management (PDM), and secondary level components such as market share, customer satisfaction, profit margins, and returns to stakeholders. 3. For physical distribution, Manufacturing support and Procurement: Includes the primary level component of enterprise resource planning (ERP), with secondary level components such as warehouse management, material management, manufacturing planning, personnel management, and postponement (order management). 4. For performance measurement: This includes the primary level component of logistics performance measurement, which is correlated with the information flow facility structure within the organization. Often if the inventory does not sell, the vendor (supplier) will repurchase the product from the buyer (retailer).

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