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b2b Supply Chain means Adding Value trough supply chainmanagement (SCM)
Supply Chain Management – Concept or temporary fashion? Supply Chain Management addresses the configurations of all processes to maintain and improve the competitiveness in areas of integrated as well as stand-alone undertakings.
As a direct result of the process of concentration on core competences as well as globalizing markets value-added processes will be divided more and more into single proceedings. Only interlocking all processes and their participants along the value-added chain systematically will satisfy customers needs and hereby provide the chance of new advantages in competition. The technical and organizational concepts within the framework of Supply Chain Management improve effectiveness and efficiency of the flow of goods, information and mediums of exchange within and between companies. Modern management concepts will be evaluated on how they contribute to a compay's worthiness. Supply Chain Management is targeted on improving the operational functionality of a company – better to say the network of companies of a value-added chain – in order to maintain and upgrade the competitiveness.
Main effects in focus:
Increase of venues through:
- higher level of availability of goods
- better adherence to delivery dates
- shorter delivery dates
- more attractive services
Reduction of costs by means of:
recent information- and communication technologies for rationalizing business processes (automized buying department, gaining information, invoice processing and encashment between companies)
minimizing the frequency of faults
usage of modular products- and postponement strategies in logistics
Reduction of bounded assets by means of:
- shorter periods of commissions
- correct invoicing
- automated encashment (shortened Cash-to-Cash-Cycle Time)
- shorten time to market
Connecting planning systems within the supply chain as well as adjusting business principles (e.g. Vendor Managed Inventory, Continuoues Replenishment, adjusting prizing, improved inner- and inter-organisational communication, abdication of to work to capacity utilization in single segments of the production in favour of an overall optimization of all processes) stocks can be reduced without loosing quality in service of delivery. Flexible processes in production and distribution improve the profitability of small lot sizes.
Reduction of operational risks through:
- educed stocks and short term debtors
- develop new services and products together with co-operation partners
To date many companies have troubles running their organizational interfaces between different departments. Making interfaces between different companies to real working joints is even more challenging. A clear stated business model and aiding ICT-technology are essential. When upgrading an existing ICT structure with a Supply-Chain-Management software it is essential to be aware of overlapping functionalities of joint working processes, e.g. the product-dates management. Usage of standardised data formats and contents is the key to effective and efficient exchange of information. The well directed use of a Supply-Chain-Management-Softwaretool helps to create, steer and supervise business processes within and between companies