SCM+Systems

=Supply Chain Management (SCM) Systems= Tuesday, September 20, 2011 <>

**Topic overview:**
Supply Chain Management systems help companies coordinate the flow of the goods and services they need as inputs for their operations. These systems help with planning, visibility, scheduling, and optimization of the flow of goods throughout an organization's suppliers. SCM systems are generally large, enterprise grade systems that require significant effort, planning, and investment to roll out. In addition to the challenges an organization faces successfully implementing any enterprise system, successful implementation of an SCM system also requires cooperation and coordination with the firm's suppliers and trading partners. When these systems are successfully implemented the rewards in improved efficiency and agility can be substantial.

By the end of today's class you should:
 * Be able to identify the primary components of a supply chain management system, describe the role of each of these components in the overall system, and describe how they relate to each other.
 * Understand the different types of inputs needed to make an SCM system work effectively, and the types of information (outputs) that an SCM system can provide to a business's managers and employees.
 * Be able to explain how an SCM system can help with the strategic management of a company's operations, as well as the day-to-day tactical operations of the business.

**Preparation for class:** Prior to class, you will need to read chapters 10 and B8 from the book:


 * Stephen Haag, Paige Baltzan, and Amy Phillips, Business Driven Technology, 3rd Edition, McGraw-Hill Irwin, 2009, ISBN 978007337645.

A digital reserve version of the reading is available on Blackboard in the 'Course Materials' section. As you read this material, focus on how it helps you address the learning objectives listed above. Also, be sure to read and think through the case study example(s)

Reference materials:
Slides:

**Student questions:**
As preparation for today's class, you need to provide at least one thoughtful question raised by your reading of the material you have been asked to prepare for class today. Your question should be posted by noon on the day of the lecture.

[Bob Monroe] How should an organization measure the success or failure of an SCM systems project? Are the benefits usually easy to quantify? Why or why not?

[Ayah Abujarbou] what would be the direct result of a sudden change or a mistake on a company's supply chain management? and could a company easily overcome such incidents?

[Fatima Al-Khayat]: One of the keys to SCM success is to “WEAN EMPLOYEES OFF TRADITIONAL BUSINESS PRACTICE”. So, how can an organization convince workers that using software is beneficial and worth their time?

[Khadeejah Al-Husseiny] When and how often should an organization decide to change the SCM system? If the system in place is giving good results is that necessarily an indication that the system cannot be changed or improved?

[Nahan Arif] SCM works best in which 'size' of a business? Will it be useful and work well for a small company? Will all of the Design points necessary?

[Ahmad Al-Sarraf] Why should companies apply SCM system in incremental phases? Don't you think it is going to take time to do so while they need to do it fast to gain competitive advantage?

[Mohammed Kamal]: Can you have success in an SCM system without IT? or the SCM system can't work without IT? But how did suppliers and businesses operate in an industry 40 years ago when IT was not popular?

[Walied El Hag Ali]: Is there any possible way for organizations to increase both efficiency and effectiveness simultaneously? Or does one always come at the cost of the other?

[Abdullrahman Al-Muftah]: The chapter discusses many of the positive effects an SCM system can have on a business. It gives little or no attention to its drawbacks. What are some the consequences of having an overly intricate SCM system?

[Hussain Hejji]: What are the seven principles of supply chain management that the author listed out in order to achieve success, and how do they really achieve success?

[Aisha Al-Zaman] In terms of revenue, how does the destribution of profit managed among suppliers, manufacturers, distributors and retailers? This model of supply chain might be effective, however, will it be much profitable when the model consists of only suppliers and their direct relation with the customer?

[Fatima Abdulla]: One of the SCM success factors is to be future oriented, and the " key is to be certain that the software will meet future needs, not only current needs", so to what extent should the organization believe that their SCM system will meet the future needs since the technology is developing each year?

[Hind Al Khulaifi]: What is the criteria for merging SCM systems of a company with its suppliers?

[Layal Al-Alami]: what are the disadvantages, difficulties and challanges of introducing a SCM to a company? And can the SCM work if suppliers are not cooperative?

[Maryam Al-Subaie]: What are the biggest challenges of running global supply chains? How can manufacturers deal with implementing SCM software in developing countries? Are there other (technological and non-technological) barriers that need to be taken into account before the implementation?

[Sara Al-Mannai]: Is there a relative size of a successful SCM system? If there is one, what are the most important steps that guarantee it's success?

[Najla Al-Madhadi]: How can IT governance contribute to the success of an SCM system?

[Al-jawhra Al-Mana]: How big does a company have to be to use a SCM system? Are there different SCM systems for different sizes of organizations?

[Orkhan Rustamzade]:CRM can be very challenging to MNC companies like Qatar Airways how can they improve their CRM?

[Noor Al-Mohannadi] Given their complexity and difficulty to build can companies test the changes made on SCM systems before implementations ?

[Jevika Shetty]: Are there certain standard measures or methods of SCM that can be used constantly throughout all kinds of organizations, irrespective of their size, complexity, etc?

[Nasser Al Khori] What are the challenges in the implementation of an SCM system for small scale companies and businesses in underdeveloped nations?

[Noof Al-muzaffar] : what are the problems or difficulties that the organization might face from implementing SCM ? How can the organization determine their operation desifn and depending on what ?

[Mashael Al-Misnad]: Throughout this reading we are somewhat blinded to the downfalls of an SCM on an enterprise, what are some of these downfalls? Also, we were introduced to several success storeis, what are some failed attempts at an implementation of an SCM system? How does excess capacity decrease efficiency?

[Fatima Fikree]: Is it worth it for a company to spend billions on creating a unified supply chain planning/execution system when working with other companies? What is the impact of strategic supply chain planning and execution on a company's competition?

[Dua'a Althabatah]: The chapter states that the customer's behavior is changing and customers are now more aware about their expectations, how will SCM change according to this fact? and does the companies update their SCM accordingly too? lastly, how does this affect the strategic plan for the company?

[Mohammed Al-Rawahi]: Can a better supply chain management benefit every organization in the chain, or will it benefit some at the expense of others? What is the impact of supply chain management on the economy?

[Dalia Hassan]: The chapter saying that there is five basic of SCM components which are: Plan, source, make, deliver and return. What would happen if one of those basics didn't work well? Dose it will affect the SCM badly or we can fix it in another way?

[Anas Ali Chaudry]: SCM is beneficial for firms in a competitive industry. Firms might compete on the production cost and SCM might help them to control the costs. What incentive does a monopolist have if it employs SCM in it's production process?

[Patrick Steinhagen]: Is there an ideal size for a business, at which it unfolds the maximum potential of SCM?

[Mughees Ahmed]: Does a Supply Chain Management System create heterogeneity in a corporation? How does SCM contribute towards the initiative of a firm's success in both the short/long run?

[Nijat Ibrahimov] how would u measure efficiency of Supply Management System in particular organisation? How flexible SCM is, if we want to apply to different organisations?

[Ognjen Popovic]: Let's imagine a scenario in which we have two companies that have two independently developed SCM's that they use, and that are suppose to start cooperating (one is supplier, the other one is manufacturer). If their SCM's are fairly different, but equally effective, how should they approach the process of syncing these two systems? Should they continue to use them independently thus increasing the complexity of their processes? Should they develop a strategy to sync the two systems that would change both of their SCM's drastically? Most importantly, would having two different but effective SCM's represent an advantage or an obstacle for these two companies?

[Mohammed Hadi Takiddin]: To what level can the supply chain influance the level of efficiency and productivity of the organization.

[Firas Bata]: The reading suggests that the best way to develop an effective SCM, is to do it in stages rather than all at once. In the incremental approach, would it be better to start off with Suppliers, Distributors, Retailers or Costumers? Assuming that we should firstly develop SCM that deals with in-house (Manufacturing) operations, which part of the SCM should be preferred to develop next and why?

[M Hammad Abbasi] What is the relationship between global supply chain management and the SCM system? What does the reading suggest?

[Hamsa M Al-Massri]: "Wall Mart's supply chain emphasizes efficiency,but also maintains an adequate level of effectiveness." Can we generalize the type of efficiency that a specific kind of organization an have?

[Mohammed Al Ahmadani]: Do you think their will come a point where, Like IT, SCM systems will be a means for companies to survive rather than give them a strategic advantage?