Supply Chain Management Systems ( Scm ) Systems - 1776 Words

Supply Chain Management Systems Supply chain management (SCM) systems have been a new and steady buzz word from late last century up to today. Large companies depend on SCM systems to reduce cost and increase revenue. This article explores the relevant use of SCM systems in today’s business world through different means of analysis, such as SCM performance, variables associated with cost and revenues, and business, supplier and customer relationships. It advocates for their use and provide quantitative analytics to support their position. Claim This article claims that suppliers and buyers are inextricably tied together in acquiring raw materials, creating finished goods, and selling products to the consumer, all while measuring†¦show more content†¦Their warrant implies that when an ideal and predictable product-driven business effectively implements and uses a SCM system, its future tends to be more profitable (Ramdas Spekman, 2000, p. 3). This warrant tends to be inherently true for most businesses in ideal operating conditions of consistent demand and supplier relationships. Its warrant is further judicious since it is not broadly stating all businesses, but rather captures the intent of a business with steady demand in place and a long term deliverable product for consumers. This warrant cannot be trumped due to the fact it is currently a unique business operating concept that is very in depth in all facets of a business model from inception to sale of a given product (Booth, Colomb, Williams, 1995, pp. 15 6-158). Research Methodology Before one can deduce the reason and evidence associated with each claim in this article, one must understand the research method behind it all. This article is very clear in data collection. It surveyed six broad industry groups across three different continents by utilizing a questionnaire, in which it had a 75% response rate, of which, 85% were valid. Within this sample of six industries were customer firms, suppliers, and operations and marketing personnel. They distributed the results of the data into six categories that focused on inventory, time, order fulfillment, quality, customer focus, and customer satisfaction (Ramdas