chapter 1 introduction to supply chain Management
Introduction
operating successfully today requires organizations to become much more involved their suppliers and customers. As global markets expand and competition increases, making products and services that customers want means that businesses must pay closer attention to where materials come from, how their suppliers' products and are designed, produced and transported, their own products and services are produced and distributed to customers, and what their direct customers and the end-product consumers really want.
over the past twenty-plus years, many large firms or conglomerates have found that effectively managing al of the b usiness units of a vertically integrated firm-a firm whose business boundaries include former suppliers andor customers is quite difficult. Consequently, firms are selling off many business units and otherwise paring down their organization to focus more on core capab es, while trying to create alliances or strategic with suppliers, transportation and warehousing companies, distributors and other customers they do. This collaborative approach to making and distributing products and services to customers is becoming the most effective and efficient way for firms to stay and is practice of supply chain management (scM)
Several factors require today's fi work together more effectively than ever before. Communication and information exchange through computer networks using enterprise resource planning (ERP) systems (discussed further in Chapter and the Internet have made global teamwork not only possible for compete in most markets. Communication technology continues change rapidly, making global partnerships and teamwork much easier than ever before. Competition is expanding rapidly in all industri and in all markets around the world, bringing new materials, products, people and resources together, making it more difficult for the ocal, individually owned, "mom-and-pop" shops to keep The global made customers more cost-conscious seeking higher levels of which is requiring organiza while simultaneously ons to find even ways to New markets are opening up as governments change and consumers around the world learn of new products from television, the Internet, and contact with tourists. Customers are demanding socially responsible and environmentally-friendly activities from organizations. Considering all of these chan to the environment it is indeed an exciting companies seeking to develop new find new customers and compete more successfully. New jobs and opportunities are opening up in the areas of purchasing, operations, logistics and supply chain management as firms build better competitive infrastructures, read this textbook, you will be introduced to the concepts of supply chain management and how these concepts to become better managers global use examples throughout the text the topics discussed we provide online cases each of the textbook to you to test your problem ving, decision-making and writing skills in supply chain management. that by the end of the text you will have gained an of supply chain management and will be able to apply have learned, both in your profession future courses in supply chain management. of its importance, term supply chai anagement is defined, including a discussion some of the history and developments The chapter ends with a look at current trends in supply management.