Professional Documents
Culture Documents
Submitted by:
Muhammad Qasim
Reg - No 2143812
MBA - 1th Semester
Section - (A)
Submitted To:
Sir Mudassir Aziz
SCM in Business
Clearly, the impact that SCM has on business is significant and exponential. Two of the main ways SCM
affects business include:
Boosts Customer Service
SCM impacts customer service by making sure the right product assortment and quantity are delivered in a
timely fashion. Additionally, those products must be available in the location that customers expect. Customers
should also receive quality after-sale customer support.
Improves Bottom Line
SCM has a tremendous impact on the bottom line. Firms value supply chain managers because they decrease
the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain. Also,
cash flow is increased because if delivery of the product can be expedited, profits will also be received quickly.
SCM in Society
Supply chain management is necessary to the foundation and infrastructure within societies. SCM
within a well-functioning society creates jobs, decreases pollution, decreases energy use and increases the
standard of living. Two examples of the effect of SCM within societies include:
Hurricane Katrina 2005
In 2005, Hurricane Katrina flooded New Orleans, LA, leaving residents without access to food or clean water.
As a result, a massive rescue of the inhabitants had to be made. During the first weekend of the rescue effort,
1.9 million meals and 6.7 million liters of water were delivered.
Foundation for Economic Growth
A society with a highly developed supply chain infrastructure that includes interstate highways, a large railroad
network, ports and airports is able to trade many goods at low cost. Business and consumers are able to obtain
these goods quickly, resulting in economic growth.
Example No:1
Coca-Cola Enterprises
Challenge:
Required a more modern and
consistent supply chain
Needed a consistent process
to assist with acquisitions
Solution:
Deploy SAP ERP
Outsource applications to CSC
Results:
Implemented a new supply
chain process featuring increased
automation
Brought newly acquired operations
online more quickly
Can see linked supply-and-demand
For Coca-Cola, achievements like this are byproducts of a vision and an operating
framework that is built on excellence. At Coca-Cola Enterprises (CCE), the
exclusive Coca-Cola bottler for its territories in Western Europe, the companys goal
is to be the number 1 or strong number 2 choice in every category it competes in.
But on the road to long-term, sustainable growth, CCE faces similar challenges to
many other manufacturing and logistics businesses. A top priority is replacing
dated systems with a modernized platform across markets to create a cohesive
view of metrics and streamlined processes.
Bottling iconic brands in Europe
CCE is one of the worlds largest marketers, producers and distributors of Coca-Cola
products. CCE buys concentrate from The Coca-Cola Company and combines it with
other ingredients to create some of the most popular beverages in Belgium, Great
Britain, France, Luxembourg, the Netherlands, Norway and Sweden.
CSC is playing a major role in expediting the delivery of Genesys across CCEs operations, allowing
CCE to deploy Genesys at multiple-country locations at a much faster pace than if CCE had forged ahead
alone.
There are a lot of technology areas that require some capacity that we might not have or some
technology areas that we might not have the knowledge about, says Sezer. So whenever we have those
knowledge gaps, we turn to our strategic partner CSC to fill in. Whenever an accelerated deployment
need arises, we leverage
CSC, and we can generate value much more quickly.
3. Deregulation
Greatly reducing government regulation in order to allow freer markets to create a
more efficient marketplace. After the stock-brokerage industry was deregulated in
the mid-1970s, commissions were no longer fixed. After the banking industry was
deregulated in the early 1980s, banks were given greater freedom in setting interest
rates on deposits and loans. Industries such as communications and transportation
have also been deregulated, with similar results: increased competition, heightened
innovation, and mergers among weaker competitors. Some government oversight
usually remains after deregulation.
4. Globalization
Process by which the experience of everyday life, marked by the diffusion of
commodities and ideas, is becoming standardized around the world. Factors that have
contributed to globalization include increasingly sophisticated communications and
transportation technologies and services, mass migration and the movement of
peoples, a level of economic activity that has outgrown national markets through
industrial combinations and commercial groupings that cross national frontiers, and
international agreements that reduce the cost of doing business in foreign countries.
Globalization offers huge potential profits to companies and nations but has been
complicated by widely differing expectations, standards of living, cultures and
values, and legal systems as well as unexpected global cause-and-effect linkages.
5. Technology
In order to stay competitive globally and remain on the cutting edge of a complex
business world, more companies are incorporating technology into their supply chain
management systems today. In recent years, consumers have become increasingly
demanding, setting their expectations high when it comes to quality and service. At
the same time, supply chain managers have come to realize that the latest technology
can help them ensure better accountability and visibility, allowing them to maintain
tight control and stay ahead of the pack.
Todays technology has extensive capability when it comes to keeping a companys
production on track, anticipating and repairing mistakes, and making modifications
that guarantee a top-quality product. Every link in the supply chain can be monitored
simultaneously, and automated notification systems are especially valuable for
sending a single message to many players through a variety of media channels.
Computerized shipping and tracking, and electronic invoicing, are also core
components of a modern supply chain management system that is designed to keep
customers satisfied.