Operations Management: An Integrated Approach, 5th Edition

SCM ACROSS THE ORGANIZATION

Supply chain management changes the way companies do business. Consider how supply chain management affects different functional areas within the organization.

Accounting shares some of the benefits and responsibilities of supply chain management. As inventory levels decrease, customer service levels increase. Accounting is exposed to the risks of information sharing and involved in developing long-term partner ships. With information sharing comes the need for increased confidentiality and trust.

Marketing benefits by improved customer service levels achieved by POS data collection. A shared database provides marketing with current demand trends and eliminates demand filtering between levels of the supply chain. POS data also facilitate quicker customer response time. Global supply chains facilitate access into local markets.

Information systems are critical for supply chain management. Information systems provide the means for collecting relevant demand data, developing a common database, and providing a means for transmitting order information. Information ...