Email This BlogThis! The goals behind implementing a global SAP project were: There are reduced needs for inventories with increased sales by focusing on selling what the customers want.
For example, each product-type division addresses business concerns specific to a group of product lines. Issues in a product-type division are typically contained within that division. Such containment helps minimize costs in managing the business. Geographical Divisions. Such scale of operations requires regional focus in large corporations.
In this way, the company has managerial focus specific to regional market conditions. Functional Groups. This structural characteristic results in a corporate hierarchy that reflects the levels of management and decision-making in the business. This structural foundation boosts brand competitiveness.
For example, each geographical division adjusts strategies to suit business needs specific to regional or domestic consumer goods markets. The success and growth of the company are partly based on the appropriateness of its organizational structure. This integration of the supply-chain information systems will become increasingly important both for enhancing business-to business electronic commerce and for supporting the increasing volume and customization in business-to consumer electronic commerce.
Together they use technology as a method to drive costs, and openly share data to better understand the joint customer - the consumers. Wal-Mart was just coming online with a new data warehouse that allowed them to track sales of all products in each of their stores. The data highway concept was straight forward, Wal-Mart had scanners in all. Wal-Mart collected its own data then analyzed the results.
Leveraging technology to drive costs out of the supply system is another important aspect. The delivery of products to the end consumer involves a series of steps including raw material delivery, conversion to a finished product, transportation to a distributor or customer distribution center, transportation to the store and placement on the store shelf. The degree to which all parties involved can drive costs out of these systems result in corresponding savings that can be passed on to the consumer in the form of lower product costs.
Information Sharing and Continuous Replenishment: An important strategy for managing integrated supply chains is to share information. One of the main benefits of sharing information is the reduced need for inventory. As a result, the supply chain achieves better performance in terms of financial returns, service level, and turn-around times.
With information shared among the manufacturer and the retailer, the manufacturer can use the information about the inventory level of the retailer to manage the frequency, quantity,and timing of the shipments-- instead of waiting for the retailer to place orders. This practice,referred to as continuous replenishment process CRP , enables the manufacturer to reduce the. This process also dramatically increased inventory turns which resulted in.
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