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Chapter 2

Chapter 2 Notes

Financial Accounting
Course Code
Tim Richardson

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Chapter 2 Notes
Supply Chain Management (SCM)
distribution chain is simply path a product or service follows from the originator of the product or service to the end consumer
holding onto inventory in a distribution chain costs money, because whoever owns the inventory has to pay for the operation of a
warehouse or stores while waiting for someone to buy it
SCM involves planning, implementing, and controlling/monitoring the supply chain in order to increase efficiency
SCM controls the movement and storage of RM, WIP inventory, and FG from suppliers through producers to consumers
SCM can also involve SCM software, which automates and manages supplier relationships and other crucial business processes
SCM tracks inventory and information among business processes and across companies
a SCM system is an IT system that supports supply chain management activities by automating the tracking of inventory and
information among business processes and across companies
JIT is a method for producing or delivering a product or service just at the time the customer wants it
SC systems also focus on ensuring that the right number of parts or products are available; not too many and not too few
inter-modal transportation is the use of multiple channels of transportation to move products from origin to destination
Strategic and Competitive Opportunities with SCM
the primary focus of supply chain management may be described as: overall cost leadership (from Porter’s three generic
strategies); bottom-line initiative (cost reduction); and running the organization (run-grow-transform framework)
a well-designed SCM system helps an organization by optimizing the following specific supply chain activities:
ofulfillment—ensuring that the right quantity of parts for production or products for sale arrive at the right time
ologistics—keeping the cost of transporting materials as low as possible consistent with safe and reliable delivery
oproduction—ensuring that production lines function smoothly because high-quality parts are available when needed
orevenue and profit—ensuring that no sales are lost because shelves are empty
ocost and price—keeping the cost of purchased parts and prices of products at acceptable levels
cooperation among supply chain partners for mutual success is another hallmark of modern supply chain management systems
information partnerships—companies integrating their IT systems and providing customers with the best of what each can offer
Customer Relationship Management (CRM)
a CRM system uses info about customers to gain insights into their needs, wants, and behaviours in order to serve them better
customers interact with companies in many ways, and each interaction should be easy, enjoyable, and error free
multi-channel service delivery is term that describes a company’s offering multiple ways in which customers can interact with it
a fundamental goal of a CRM system is the management and tracking of all interactions
customer relationship management (CRM) systems typically include such functions as sales force automation, customer service
and support, and marketing campaign management and analysis
sales force automation (SFA) systems automatically track all the steps in the sales process, including contact management, sales
lead tracking, sales forecasting and order management, and product knowledge
Strategic and Competitive Opportunities with CRM
overall, a well-designed CRM system focuses on increasing revenue by providing delightful experiences for the customer in a
variety of ways—tailored product and service offerings, seamless interaction, product knowledge, and so on
thus, the primary focus of CRM is differentiation and focus (Porter’s three generic strategies); top-line initiative (revenue
enhancement); and growing the organization (run-grow-transform framework)
e-collaboration is the use of technology to support (1) work activities with integrated collaboration environments; (2) knowledge
management with knowledge management systems; (3) social networking with social networking systems; (4) learning with e-
learning tools; and (5) informal collaboration to support open-source information
Work Activities with Integrated Collaboration Environments
virtual teams are teams whose members are located in varied geographical locations and whose work is supported by specialized
ICE software or by more basic collaboration systems
a collaboration system is software designed specifically to improve performance of teams by supporting sharing and flow of info
Knowledge Management with Knowledge Management Systems
a knowledge management (KM) system is an IT system that supports the capturing, organizing, and dissemination of knowledge
(i.e., know-how) throughout the organization
the objective of KM systems is to be sure that a company’s knowledge of facts, sources of information, solutions, patents,
trademarks, and best-practice processes are available to all of its employees whenever needed
Informal Collaboration to Support Open-Source Information
integrated collaboration environments (ICEs), KM systems, and e-learning tools are vitally important organizational resources
a wiki is a Web site that allows you—as a visitor—to create, edit, change, and often eliminate content—or open-source info
open-source info is content that is publicly available (in a broad sense), free of charge, and most often updateable by anyone
IT Culture—An Organizational Perspective
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