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

o    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.

o     

Location and Transportation

o    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

o    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 change it with your cell phone..

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

- Yes, I agree with this technology  has a potential threat to traditional telephone companies. The counter strategy could traditional telephone companies adopt to prepare for this technology is

 "Differentation " It is because we can improve the traditional phone to be IT phone that can connect with internet .Within this we can high the price of phone but not over high cost compare samsung, blackberry and so on . Samsung we have many function like android, pictures, whatsapp, and so on and balckberry have few differentation compare to samsung.

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

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

3) Which of Porter's three generic strategies is the new technology following ?

- The porter's three generic strategies is the new technology is differentation. This strategy may allow company to put a higher price because of the special features they have in their products. Based on this case , as the traditional already have name, so, they just need to step up their game by putting this technology into their coming products.

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

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

5) What type of regulatory issue might occur due to this type of technology?.

- Fraud can happen form internet payment. Fraud is by the customer and by the company itself. Customer may use other account to do payment or use different identify. So if no payment is made, so the company can't trace them .

IDENTIFYING COMPETITIVE ADVANTAGE....




What is Identifying Competitive Advantage???

• to survive and thrive an organization must create a competitive advantage
• competitive advantage - a product or service that an organization's customers place a greater value on than similar offerings from a competitor.

• first mover advantage - occurs when an organization can significantly impact its market share by being first to market with competitive advantage. 

Competitive advantage is a product or service that an organization.

THE FIVE FORCES MODEL EVALUATING BUSINESS SEGMENTS

Porter's five force model
determines the relatives attractiveness of an industry

• Buyer power - assessed analyzing the ability of buyers to directly impact the price they are willing to pay for an item.
• ways to reduce buyer power include:
• switching cost - cost that can make customers reluctant to switch to another product or service.
• loyalty program - rewards customers based on the  amount of business they do with a particular organization.

• supplier power - assessed by the suppliers' ability to directly impact the price they are charging for supplies.
• supply chain - consists of all parties involved in the procurement of a product or raw material.

• threat of new entrants - high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market.
• entry barrier - a product or service feature that customers have come to expect from organization in a particular industry and must be offered by an entering organization to compete and survive.

• threat of substitute product or service - high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

RIVALRY AMONG EXISTING COMPETITORS

• Rivalry among existing competitors - high when competition is fierce in a market and low when competition is more complacent.

Asassalamualaikum..

    hai,,hellow,,sawadikap,ni hawma n sewaktu denganny.....in my blog 2 day i want 2 share something interesting information 2 all of u...harap2 sudi2lh bca en...the short story about me..that is..sy study dekat UiTM Kampus Alor Gajah about 2thn lebih agakny in Diploma Pengajian Perniagaan (Insurans).. n now sy dah part 5...seniorrrrraaalh knony ..heeeee..dan sem ni sy amik subject MGT300 that is business driven technology....


In Chapter 1 selaluny it will be introduction for this subject so ape sy faham dan belajar dlm chapter ini dan ape objective y dia nk kita faham adelah:

kita kne tahu dia pnya:
> management information system
> information technology
>  dia pnya relationship among people
> kita boleh identify 4 different   department in a typical business n kita bolehlh terangkn mcm mne technology boleh tlg kita utk berkerjasama...
> tidak ketingaln juga kita boleh bezekn $ jnis organization information cultures....

bnyak impact y kita dpt bila kita bijak dlm IT ni contoh on business..biaselahkn sy beljar under business so mstilh sy nak taw ape y pnting dlm business.. dah abis kt c2....heeeeeeeee
k selaluny bila kita ckp psal impact IT dlm business selaluny dia akn mbntu dlm reducing productivity.,improving productivity,n generating growth...

INFORMATION TECHNOLOGY

• a filed concerned with the use of technology in managing and processing information.
• is an important enabler of business success and innovation.

MANAGEMENT INFORMATION SYSTEMS ( MIS )

• MIS is the business function, similar to Accounting, Finance, Operations, and Human Resources.
• when beginning to learn about IT it is important to understand the following :
• DATA - raw fact that describe the characteristic of an event.
• INFORMATION - data converted into a meaningful & useful context.
• BUSINESS INTELLIGENCE - provide access to and analyze data and information support decision-making efforts.

IT RESOURCES

• people
• information technology to work with
• information