Supply Chain

1 IT, Manuf Tech & Trans Tech all integral parts of the SCM process. SC has progressed rapidly due: advances in Computers & Comm - affected all aspects of the SC.

IBM set the standard years ago, leveraging from advances in these 3 key areas, and Wal-Mart is global market leader in SCM today. In partic, electronics and logistics industries have provided backbone for SCM developments in recent years. All been evolving the SC, albeit at different speeds.

2 IT has had greatest impact on SCM, due primarily to advances in Comp & Comm.

Now being used to gain competit adv. & evident in case of W M.- uses cutting edge tech & distrib systems

W M - refined Quick Response concept of bringing key department stores together to agree to share demand, production, and shipping data.

- evolved into Vendor Managed Inventory process (placing new requirements on its suppliers - obliged manage inventory replenishment via electronic access to WM POS data. - Middle man phased out - producers shipped direct to WM distribution centers or to stores. System of continuous replenishment has evolved with shipments now synchronized - originally to daily barcode-scanned retail sales and now incorporating Radio Freq ID to further manage & track inventory supplies.

3 Manuf - Re-eng of electronics began mid-80's - small moves twd modular suppliers.

HP and CalComp invited sheetmetal fabricators to load wiring and other components into metal frames and skins. Evolved - more M's required to do similar thing.

- reducing no. suppliers

- shrinking of production cycle & strengthening of supply base

- total structural transformation of electronics industry: Solectron and Flextronics moved up food chain into production, and even design, of whole PCs for Hewlett-Packard and NEC. Injection

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