SUPPLY CHAIN MANAGEMENT ( SCM )

CHAPTER 3

4 basic components of supply chain management

Production

Production is a key element of supply chain management. This element focuses on what products the market is demanding and what products customers want. In the element of production, many aspects are considered. A company first decides what products to make. The company then determines how many to make and what aspects of production will be outsourced.

1. Supply and Inventory

   • The second key element of supply chain management is supply. This element focuses on the abilities and capacities of the company's plant operations. The company determines how much is economically and efficiently feasible to produce. This is where the company begins looking into outsourcing. Many companies outsource a portion of the production needs to other companies. This occurs when it is determined that this is the most feasible option. Within this element, companies also begin finding suppliers to provide raw materials for production. In choosing a supplier, many attributes are compared including the cost of the goods and the quality.

   Location and Transportation

   • Location and transportation are elements of supply chain management that work together. An organization determines the best locations to produce the desired goods. The company focuses on the best methods for producing, stocking and distributing the goods produced. This decision is based on the available resources and current customers. If a huge customer is located near one of the company's plants, the company may choose to manufacture the goods that company purchases, at the plant located nearby. Other factors included in this decision are the location of suppliers. Within this element, companies decide what methods of transportation are most suitable for delivering goods. Some options include using air transport, sea or rail. The company tries to choose the method that would provide the smoothest distribution of goods as possible.

   Information

   • The final element of supply chain management is information and how it is used. Companies utilizing supply chain management must implement methods of recording and passing information that are effective and accurate. This includes using computerized software and linking all computer systems together.
     
                   Four components of supply chain management
     
     

     
     
     Supply chain strategy  

     
     
     

     Company must know what customer needs and find a way to achieve needs (satisfy customers)

     
     

     
     Supply chain partner

     
     

     Example : company partner > supply :develop , identify partnership 

     
     

     
     Supply chain operation

     
     

     Determine when to buy the customer goods from supplier

     
     

     When we want to buy things ( customer)

     
     

     Supply chain logistics 

     
     

     Involve delivery , transportation

     
     

     
     

     

     
     

CHAPTER 2 CASE : SAY " CHARGE IT " WITH YOUR CELL PHONE.

Questions : jeng jeng jenggggg!!!

1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology ?

2. Using Porter's Five Forces describe the barriers to entry for this new technology ?

3. Which of Porter's three generic strategic is the technology following ?

4. Describe the value chain of the business of using cell phones as a payment method.

5. What types of regulatory issues might occur due to this type of technology ?

YEaah that's my Answer :)

1 :)

It is a potential threat to the company because this new technology can make the existence company loss their customer. So, the existence company have to use differentiation strategy to adapt to this new changes that happen in the world today. By doing that,company create competitive advantages by differentiate their cell phone on 1 or more important features to the customer. These specials features also may give them price advantages and stimulate demand.

2 :)

Barriers to entry is the threat of substitute products or services. Customer might think that these new modern telephone company may have more expertise in this new technology. So, easily they can change to new cell phone, and the old fashion technology can loss customer.

3 :)

The Three Generics Strategies in the new technology is Differentiation. This strategies may allow the company to put a higher price because of the special features they have in their products. Based on this case, as the traditional company already have name, so, they just need to step up their game by putting this new technologies into their new coming product.

 4 :)

For example, a girl buy a new bag from TOMMY HILFIGER using direct debit transaction. So, the bank will directly deduct the money from our account and pay Tommy Hilfiger that  certain amount of money. The bank may charges a few ringgit for the service provided to the customer. from that, they can gain some profit through online payment. Once Tommy Hilfiger get the money, they will deliver the products to the customer.

 5 :)

Fraud can happen from internet payment is fraud by the customer and by the company itself. customer may use others account to do payment or use different identity. So, if no payment is made, the company can't trace them. 

terima kasih ^______^ 

MICHAEL PORTER'S FIVE FORCES MODEL

is the useful tool to aid organization in challenging decision whether to join a new industry or industry segment.

tadaaa !!!!

BUYER POWER

• high - when buyer have many choices of whom to buy.
• low - when their choices are few.
• it to reduce buyer power and create competitive advantage.
• best practices of IT based on loyalty program in travel industry example reward.

the competitive environment 

bargaining power of customers

• customer can grow large and powerful.
• many choices of whom to buy from
• low when come to limited items
• example: tesco card

SUPPLIER POWER

• high - when buyer have a few choices
• low - when their choices are many.
• example : b2b marketplace 

THREAT OF SUBSTITUTE PRODUCTS & SERVICES

The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Note that this should not be confused with competitors' similar products but entirely different ones instead. Contohnya la kan, tap water might be considered a substitute for Coke, whereas Pepsi is a competitor's similar product. Increased marketing for drinking tap water might "shrink the pie" for both Coke and Pepsi, whereas increased Pepsi advertising would likely "grow the pie" (increase consumption of all soft drinks), albeit while giving Pepsi a larger slice at Coke's expense.

ting ting ting!!!

• Buyer propensity to substitute

• Relative price performance of substitute

• Buyer switching costs

• Perceived level of product differentiation

• Number of substitute products available in the market

• Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product.

• Substandard product

• Quality depreciation

TREAT OF A NEW ENTRANTS

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will tend towards zero (perfect competition).

• The existence of barriers to entry (patent) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.
• Economies of product differences
• Switching costs 
• Capital requirements
• Access to distribution
• customer loyalty to established brands
• Absolute cost
• Industry profitability; the more profitable the industry the more attractive it will be to new competitors.

RIVALRY AMONG EXISTENCE COMPETITORS

For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

• Sustainable competitive advantages through innovation
• Competition between online and offline companies
• Level of advertising expense
• Powerful competitive strategies
• Flexibility through customization, volume and variety

arigato kozaimas !

chapter 1 business driven technology

assalammualaikum..

First time buat blogs. tak tahu apa-apa.. buta it kan..tapi takpa sekurang-kurangnya mahu belajar kan. eh rasa janggal plak taip bahasa buku nih. i`m from kedah tapi cakap bahasa buku..herrrr~ 

  hari ni ayu kena create blog tentang business driven technology. fewww.. formal sangat kan, ok from that ayu dapat belajar macam mana nak describe the relationships among people, information technology and information. then dapat distinguish the four different types of organizational information cultures and and and i also can decide which culture applies to my school.

                              
information technology ( IT)
it ni penting sangat untuk succes and innovation in business. ia juga field to concerned with the use of technology in managing and processing information,  its also covering many field that deal with the use of electronics computers. haa.. banyak kan..

MANAGEMENT INFORMATION SYSTEMS (MIS)
~ it is a business function just as marketing, finance and human resources.
~ is the general name for the business function and academic discipline.
system is for solve the business problem.

IMPORTANT ELEMENT OF MIS.
~ data, information and business intelligence,
~ IT resources
~ IT cultures.

business intelligence. the applications and technologies that are used gather, provide access to and can analyze data. it's also helps companies gain a more comprehensive knowledge.

IT RESOURCES.
have three key resources.
           > people 
           > information
           > information technology.

IT CULTURES
culture may influence the way people use information from their information behavior.
organizational information cultures:
 information functional culture > means of exercising influence 
 information sharing culture > employees across departments trust each other
 information inquiring culture > search info to better understand the future
 information discovery culture > open a new insights about crises and radical         changes.
  

                                   ~ TAMAT ~