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ultimate goal of scm - Create value for services and goods for end
customers, which provides benefits to the firms in the scm
process integration - Sharing info and coordinating resources to jointly
manage a process
the supply chain management integration model - 9 steps
objective is to establish an efficient system that allows for suppliers to better
understand and fulfill buyer needs
scm integration step 1 - identify critical sc trading partners
- allows the firm to focus on managing relationship with these companies
use trusted suppliers that supply majority of the firm's critical products
scm integration step 2 - review and establish sc strategies
- constantly reviewing the processes, annually identifying strats that each partner
uses and make sure they align with the strats of the firm
everything should align
scm integration step 3 - align sc strats with key sc process objectives
, - functional silos are bad, affects integration
- functional silos are departments that only care about itself
key sc processes (8) - - customer relationship management CRM
- customer service management CSM
- demand management
- Order fulfillment
- Manufacturing flow management
- Supplier relationship management
- Returns management
- Product development and commercialization
CCDORSP
Customer relationship CRM - tailoring product and service agreements to
meet customer needs
Measuring customer profitability and the firm's impact on customers
customer service mnagement csm - providing info to customers such as
product availability, shipping dates, order status
Monitor and report customer service performance
Demand management - balancing customer demand with firms output
capacity
- increase accuracy forecasts
- forecast demand and coordinating with production, purchasing and distribution