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SUPPLY CHAIN MANAGEMENT & E-COMMERCE.
Term Paper ID:28677
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Essay Subject:
Compares & contrasts terms, macro & micro managing.... More...
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6 Pages / 1350 Words
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Paper Abstract:
Compares & contrasts terms, macro & micro managing.
Paper Introduction:
Are Supply Chain Management and E-Commerce Mutually Exclusive
Introduction
Before determining whether or not these terms can be considered either mutually exclusive, or mutually inclusive, it is essential to agree upon definitions of both terms. “Supply Chain Management” is usually considered to be interchangeable with the science of “logistics,” of which it is a subset. The primary arbiter of the concept of logistics is the non-profit standards association, the Council of Logistics Management.
The definition they give is "the process of planning, implementing, and controlling the efficient, effective flow, and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements" (Minahan, 1996, 48). This or
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(1997), A closer look at the interface between theproduct lines of manufacturers and the assortments of retailers,International Journal of Retail & Distribution Management, 197-2 3. Instant receivables analysis . Interorganizational systems (IOS) are the main results of theinformation technology that has significantly influenced channels ofdistribution in recent years, usually along the lines of speeding the flowof information and allowing closer integration among all elements of thesupply and logistics chain which also affects business relationships.Information systems technology today has enabled networks to be developedthat that cut across company boundaries (Masters, Allenby, La Londe &Maltz, 1992, 48). Records money owed and money due . Credit Memos . Sales analysis, including charts and graphs . (Wilson, 1996,35). Pre defined income, deduction, accruals, and employer expenses . There is certainly an aspect of "commerce"in this situation. Minahan, T. Paché, G. Automatic returns and adjustments . Calza, F.; Passaro, R. Automatic calculation of payroll taxes . Is one good more important or more valuable than the other?Before coming to a quick answer, consider the possibility that the E-mailmessage contains instructions to transfer payment of $1 billion from a bankin Malaysia to a bank in Mecca? This organization, by extension and conventionalusage, then determines that "supply chain management is the implementationof macro-and-micro management techniques that are designed to ensure thatproducts are delivered on time and on budget" (Minahan, 1996, 5 ). Micromanaging is essential to supply chainmanagement. The definition they give is "the process of planning, implementing,and controlling the efficient, effective flow, and storage of goods,services, and related information from point of origin to point ofconsumption for the purpose of conforming to customer requirements"(Minahan, 1996, 48). Macro Managing Within the logistics framework, this term refers to all of the controlfactors that must be observed between the point of origin and the point ofconsumption. Are therelogistical concerns with the E-mail? (1998, February), A transactional approach to globalsourcing: application to French food retailers, International Journal ofRetail & Distribution Management, 26: 88-96. Although originally intended to refer to hard goods thatmight be transported from point A to point B, taking into considerationsuch variables as type of transportation (rail, truck, ship, bus), pointlocations (are A and B in the same city, same state, same country) and timeelements, the concept of logistical management can be applied to theelectronic data that is the heart of E-commerce. Are Supply Chain Management and E-Commerce Mutually Exclusive Introduction Before determining whether or not these terms can be considered eithermutually exclusive, or mutually inclusive, it is essential to agree upondefinitions of both terms. Customizable invoices and statements . Supply chain management isessential to profitability. Given this, we can make theassumption that there are in the field of supply chain management, and inthe field of E-commerce, certain significant and observable comparisons.We shall examine these major comparisons point by point. (1997, April) EDI network and logisticsmanagement at Unilever-Sagit, Supply Chain Management, 2:4, 158-17 . As Pache (1998) observes,the stronger difficulties of logistics control occur when there are twocultures that must be macro-managed. Expiring discounts . The fact that the message is brokendown into electronic packets, converted into digital signals, transmittedover land lines or air, and then reconverted back into meaningful messagein micro-seconds suggests amazing logistical macro-managing. This fact confirms the organic relationship between the twoconcepts, making them, in effect, mutually inclusive (Calza & Passaro,1997). In fact, the E-mail message went through more countries(and even into outer space) than the container shipment. (1996, March 7), Contract logistics: hype vs. Masters, J.; Allenby, G.; La Londe, B.J.; and Maltz, A. Mostbills of lading have the "Acts of God" clauses that indemnify the shipperor shippers from events and circumstances beyond normal means of control.But what affect does such a circumstance have on companies in the countryof origin and the country of consumption who need the products each otherhas routinely sent to each other in more peaceful times? Recurring and pending invoices . Variable credit terms per customer or per invoice . This requires greater cultural sensitivity on the part of both the pointof origin and the point of consumption (Pache, 1998, 96). With this realization, many companies havebegun to focus on increasing operational effectiveness through supply chainmanagement (Cadeaux, 1997, 199). Computers are essential to effectively micromanage. Micro-Managing Today's global marketplace calls for effective logistics managementto achieve excellence. The primary arbiter of the concept of logistics is the non-profitstandards association, the Council of Logistics Management. Virtually limitless wage, deduction and accrual categories Conclusion Although the terms "supply chain management" and "E-Commerce" appearto be mutually exclusive, it is apparent, upon closer examination that theyare, indeed, two sides of the same coin. Before a company can achieve excellence in micro-managing itssupply chain, it is necessary to establish a system (and backup systems)that allow the right elements in the right place in a timely manner inorder to fuel productivity. It is essential to micro-manage the efficiency ofhow goods are moved, which, in turn, affects product cost and productquality. It is a generally accepted fact that people forget, and computersdon't. Performance to date analysis and graphs . Is there a difference in shipping a container of computers from SanFrancisco to Riyadh, and sending packets of E-mail from San Francisco toRiyadh? reality.Purchasing, 12 :3 48-59. "Supply Chain Management" is usually consideredto be interchangeable with the science of "logistics," of which it is asubset. Invoice formats: service, item, professional, and others . Gives real-time update to balance sheet and P&L statement . "E-Commerce" is a much more unwieldy term, used in the literature to suggesteverything from selling books online to transferring bank accountinformation between governments. Instant access to critical information, including sales, payables and inventory analysis . Invoices include automatic calculation of sales taxes . (1992,February), On the adoption of DRP, Journal of Business Logistics, 13:1 47-67. For instance, if the point of origin is in a country that has alonger work week (Japan for example) and the point of consumption is in acountry that has a more flexible work week and attitude (such as Jordan orGreece) there could be frustrations on the part of the Japanese managerwhen goods are not delivered on time because of siesta or national holiday. For example, the mostbasic software programs for PCs will handle these basics of micro-managingtransactions: . The academic and management literature all concur that whentechnological change combines with organizational change, higherproductivity is achieved. Taking the broadest definition of E-Commerce,that of using technology to enhance or facilitate the transaction ofbusiness, it is apparent even to the casual observer that enormous advancesin micro-managing via the computer have been made. References Cadeaux, J.M. Because it is unwieldy, and is used by so many scholars to mean somany things, the term is also very flexible and can be used in anyargument, when its broadest interpretation, that of doing electronicallywhat was once done manually, is considered. Likewise, when the country of origin and the country of consumptionboth have stable governments, ones which allow normal transport throughair, land and sea transportation channels, then there are few problems.But what about when a country of consumption (or origin) like Indonesia isgoing through the political unrest that it is enduring right now?
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