Evolution of supply chain management Assignment

Evolution of supply chain management - Assignment Example b) Integration era – the integration era marked the use of Electronic Data Interchange (EDI) systems and Enterprise Resource Planning (ERP) systems. This era stressed on value added and cost reduction supply chain management through integration. c) Globalization era – the globalization era was characterized by the emergence of global system of vendors and suppliers and the expansion of supply chain over national and international boundaries. In this era, organizations aimed to attain competitive advantage by creating value added services and products. At the same time, it aimed to reduce costs through global sourcing. d) Specialization era (Phase I – Outsourced manufacturing and distribution) – this era saw the creation and development of the specialization model which composed of numerous individual supply chains specifically for products, suppliers and customers who worked together to manufacture, design, market, distribute, sell and service a particular product. e) Specialization era (Phase I – Supply chain management as a service) – the commencement of warehouse management, transport brokers and freight carriers has matured into the aspects of collaboration, supply planning, performance management and execution. All this was possible due to the breakthroughs achieved in technology. f) Supply Chain Management 2.0 – this terminology was coined to explain the changes within the supply chain industry and the evolution of methods, tools and processes used to manage resources now. It is very important for an organization to develop supply chain strategy as it creates value for the organization. The first step is to develop a supply chain strategy. For this the first step is to understand the business strategy. If the business strategy is to reduce costs, then the supply chain strategy must be developed to support the same. It is important to find out supply chain competencies and leverage them for the benefit of th e organization. The next step is to access the extended supply chain. This is attained by conducting a realistic, detailed monitoring of capabilities existing within the firm and the extended supply chain. Once the assessment is complete it is very necessary to prioritize and review the recommendations, define the risks, validate the opportunities and the requirements for implementing the supply chain strategy. 2. Explore strategies used by organizations to develop and maintain effective supplier relationships: ? determine suitable strategies with regard to the development of relationships with suppliers, using appropriate web-based technologies ? evaluate the effectiveness of strategies used by an organization ? devise effective systems for relationship maintenance The breakthroughs achieved in web-based technology have made us realize the importance of information exchange that can play a vital part in the competitive strategies adopted by different organizations. It is possible t o maintain good business to business and business to consumer supplier relationships by means of web based techniques. Extensive telecommunication networks are used to develop and maintain effective supplier relationships. Electronic trading is one such method which has effectively helped to maintain vendor relationships (Croom 2000). Another web based technique used to maintain effective supplier relationship is that of electronic warehouse management. It is now possible to inform a client well in