LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Logistics and Supply Chain Management

Logistics and Supply Chain Management

Chapter I

Introduction

Business organizations today are facing a more complex and competitive environment than ever before (Kaushik K.D., & Cooper, M. 2000, 122-34). Business success is no longer a matter of analyzing only the individual firm, but rather the chain of delivering and supplying organizations; the individual firm is only a single part of the supply chain. Therefore, companies are focusing on supply chain strategies to streamline internal operations, boost plant productivity, improve product quality, and reduce manufacturing costs. (Kaushik K.D., & Cooper, M. 2000, 122-34)

One reason for these initiatives is the substantial cost reductions to be achieved by improving the firm competences of supply chain management. Another reason is the advent of the Internet economy. The internet is challenging the traditional supply chain structures that firms have employed to get goods and services to markets. Markets are becoming more transparent; customer demands are being met in a more customized manner, and the rate of change in the business world keeps increasing. All these developments are having a profound impact on the enterprises of supply chains. Therefore, how to enhance the firm competences on supply chain management is becoming more important. (Kaushik K.D., & Cooper, M. 2000, 122-34)

First, definitions of those terms are provided, and compared with recent usage. Second, a review of past research on ERP and SCM is presented to illustrate the ERP benefits and supply chain competences. A conceptual research model is proposed. Third, data collected from Taiwanese IT firms through a survey and interviewing of experts is presented. The respondents to the survey were, primarily, chief information officers or IT industry related engineers or users and other top IT executives. And fourth, the confirmation of the overall proposed model is important because it provides empirical evidence that ERP impact on the supply chain did lead to better overall SCM competences. The results confirm that ERP provides benefits in the following areas lead to significant improvement in the firm competences of SCM: (1) operational benefits, relating to cost reduction, cycle time reduction, productivity improvement, quality improvement, and customer service improvement; (2) business process and management benefits, relating to better resource management, improved decision making and planning, and performance improvement; and (3) strategic IT planning benefits, involving building business flexibility, IT cost reduction, and increased IT infrastructure capability.

Chapter II

Literature review

Supply chain management and firm competences

Supply chain management (SCM) is a 21st century paradigm of IT infrastructure. It focuses on globalization and information management tools that integrate procurement, operations, and logistics from raw materials to customer satisfaction (Kaushik K.D., & Cooper, M. 2000, 122-34). Further, it increases manufacturing flexibility, transportation speed, and information availability, as well as management complexity. In recognition of these challenges, practicing managers and academic researchers have realized that SCM has been a major component of competitive strategy to enhance organizational productivity and profitability. (Kaushik K.D., & Cooper, M. 2000, 122-34)

Not everyone, however, means the same thing by the term “supply ...