6.1IntroductionReview:Effective SCM (by definition) implies:* Efficient integration of suppliers,manufacturers, warehouses, and stores.* Coordinate activities across the supply chain* Improve performance:reduce cost, increase service level, reducethe bullwhip effect, better utilize resources, andeffectively respond to changes in the market place. How to integrate? Issues? Challenges?11
6.1 Introduction Review: Effective SCM (by definition) implies: Efficient integration of suppliers, manufacturers, warehouses, and stores. Coordinate activities across the supply chain Improve performance: reduce cost, increase service level, reduce the bullwhip effect, better utilize resources, and effectively respond to changes in the market place. How to integrate? Issues? Challenges? 11
TraditionalManagementSupplyChainIntegrationPurchasingProductionMarketing*MaterialInformation/PlanningRequirementsPlanningPhysicalaterialsDistributipnManagemeVendorFurchasingProductidnCustomerMarketing*MasterProductionDRPMRPMRPMRPMPSDRPDRPScheduling*DistributionInventoryDeploymentRequirementsPlanning12
Traditional Management Supply Chain Integration Material Requirements Planning Master Production Scheduling Distribution Requirements Planning 12