Author Question: Define and explain supply chain management systems, supply chain simplification, and collaborative ... (Read 167 times)

asd123 · **on:** Jul 7, 2018

Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts.

What will be an ideal response?

Question 2

What is the difference between accountable and sustainable supply chains?

What will be an ideal response?

daiying98 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Supply chain management systems coordinate and link the activities of suppliers, shippers, and order entry systems to automate the order entry process from start to finish including the purchase, production, and moving of a product from a supplier to a purchasing firm.

Supply chain simplification refers to the reduction of the size of a firm's supply chain. Firms today generally prefer to work closely with a strategic group of suppliers in order to reduce both product costs and administrative costs. Instead of open bidding for orders, large manufacturers have chosen to work with strategic partner supply firms under long-term contracts that guarantee the supplier business and also establish quality, cost, and timing goals. These strategic partnership programs are essential for just-in-time production models. They often involve joint product development and design, integration of computer systems, and tight coupling of the production processes of two or more companies.

Collaborative commerce is a direct extension of supply chain management systems and supply chain simplification. The goal is for organizations to collaboratively design, develop, build, and manage products throughout their life cycles. The focus has changed from the simplification of transactions to the relationships between the supply chain participants. Collaborative commerce fosters the sharing of sensitive internal information between suppliers and purchasers. A rich communications environment is cultivated so that inter-firm sharing of designs, production plans, inventory levels, and delivery schedules can take place. Strategic partners in a supply chain are connected for much broader purposes, including potentially the development of shared products.

Answer to Question 2

Accountable supply chains provide information to consumers about the labor conditions of employees of the firm's suppliers and ensure that these conditions are satisfactory to their consumers. Sustainable supply chains take a somewhat wider focus, as they take both social and ecological interests into account throughout the firm's decision making, including issues such as carbon footprints, impact on the environment and community.