Top 5 Economic Myths
When analyzed in financial terms, it turns out that the world is in a precarious position. However, there seems to be no sense of urgency amongst the people. This may be because of the fact that newspapers, as well as other forms of media, are not warning the people that a recession might be around […]
Role of Customers in Total Quality Management
Total Quality management refers to a continuous effort of management along with the employees of a particular organization to improve the quality of products and services. Businesses need to emphasize on quality of their products rather than quantity to survive the fierce competition. Remember in today’s scenario, there is no dearth of competitors in the […]
Economic Impact of the Failed Coup in Turkey
In 2016, Turkey faced an attempted military coup. The coup was supposedly orchestrated by a US citizen of Turkish origin. His name is Fethullah Gulen. Apparently, the coup did not go as planned and President Erdogan was able to come out victorious. However, this attempted coup has made him paranoid. This has led him to […]
Return on Investment (ROI) in ERP Project
When a proposal is put forward for implementing an ERP system, two questions are invariably asked i) How much it is going to cost ii) What is the pay back period. It is always preferable to have a cost benefit analysis before embarking on ERP project. A properly done ROI analysis builds a business case […]
America’s Response to China’s Belt and Road Initiative
China ambitious Belt and Road Initiative has attracted the attention of many economists worldwide. Many of these economists believe that the Belt and Road Initiative is part of China’s vision of a world where America will no longer be the dominant superpower. It is possible that this may be true. China has committed a large […]
Supply Chain Management is a broad-based function that encompasses all business and operational processes involved in but not limited to Procurement, Manufacturing, and Finished Goods Transportation, warehousing & Distribution and Inventory Management.
In a globalized business scenario characterized by Geographically spread markets, raw material procurement sources across the world and cheaper manufacturing and labor markets being available in developing world, the business of meeting demand with supply is constantly changing and evolving.
Global business has been fuelled and enabled by the IT Technology which has redefined all aspects of business today. All businesses today are run on ERP - Enterprise Resource Planning which provides the organizations with tools to manage all the functions including procurement, production, sales, and finance management in seamless and integrated manner.
These software systems like SAP, Oracle, People soft, etc., have taken over and enhanced the business processes that were traditionally being managed manually.
Demand planning, Forecasting, Global procurement management are some of the enabling tools on which the Global procurement strategies are built and managed. The availability of these sophisticated systems has further enabled companies to implement good and cost effective manufacturing practices like JIT, Kanban, VMI, etc.
Finished goods distribution, transportation, and inventory management, besides sales process is again driven by the various ERP modules combined with additional specific applications as required.
ERP has enabled companies to manage their business processes in different markets and countries under one common business process thus providing standardization and control.
The complex network of various processes, software platforms and applications and different software tools used by various vendors and agents in the entire chain drive the supply chain of the companies.
E commerce has further redefined the way business is carried on. Online purchase has impacted the way supply chains are organized and markets are driven. Customer behavior and preferences are changing as online marketing is establishing a one to one contact with the customer and can offer a personalized experience. The instant delivery of the information through internet elicits immediate response and action from the customer. The sales lead time is rapidly decreasing. The demanding customer, therefore, needs to be serviced immediately at the same speed.
The internet technology has further opened up the geographical boundaries for the companies. Any person sitting in any corner of the globe can purchase a product online at the click of a button. The companies have to be well equipped with the logistics and supply chain network to be able to service the customer.
When in a global scenario, goods and services move through multiple chains involving very many agents including transporters, forwarders, customs, distribution centers, distributors and lastly the retail outlets, availability of data, documentation and information becomes the lifeline for the organization to be able to take decisions and ensure seamless processes and control the supply chain.
IT is one of the most important enabler of the Supply chain in complex modern world of Global Businesses.
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