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Chapter 10 – Extending the Organization – Supply Chain Management BASICS OF SUPPLY CHAIN SCM – the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability The supply chain has three main links. 1.        Materials flows from suppliers and their upstream suppliers at all levels 2.        Transformation of materials into semi-finished products, or the organization’s own production processes 3.        Distribution of products to customers and their downstream customers at all levels INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN  Information technology’s primary role in SCM is creating the integrations or tight process and information linkages between functions within a firm such as marketing, sales, finance, manufacturing, and distribution – and between firms, which allow the smooth, synchronized flow of both information and product between customers, suppliers an
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Chapter 9 – Enabling the Organization-Decision Making Decision Making Ø   Reasons for Growth of Decision Making Information System -           People need to analyze large amounts of information – Improvements in technology itself, innovations in communication, and globalization have resulted in a dramatic increase in the alternatives and dimensions people need to consider when making a decision or appraising an opportunity -           People must make decisions quickly – Time is of the essence and people simply do not have time to sift through all the information manually -           People must apply sophisticated analysis techniques, such as modeling and forecasting, to  make good decisions – Information systems substantially reduce the time required to perform these sophisticated analysis techniques -           People must protect the corporate asset of organizational information – Information systems offer the security required to ensure organizational informati