A competitive company requires tools that allow it to increase its productivity. Managing the supply chain is one of these tools, which together with other systems and a solid base of principles and goals, allow the company to achieve real economic savings and provide unprecedented services.
The information technologies that exist today and the globalization of the markets allow these processes to be established more easily and economically in the company. The basis of the supply chain is also based on relational principles; It is essential to get to know everyone who makes up our business circle, and based on this and together with strategic planning, implement the different information management systems and processes, including the supply chain.
Keywords: Globalization , Supplies, Hardware, Software, Technologies, SCM and ERP.
principles-in-managing-the-supply-chainINTRODUCTION
Today globalization is part of the daily life of companies, many are the challenges and difficulties but also the opportunities to establish new businesses and enter new markets. Technological advancement, especially in communication, has generated a new type of client that is much more informed and therefore more demanding and insightful. It is no longer necessary to travel great roads or undertake great searches to find a certain product and its suppliers, it is enough to enter a computer, to have at our disposal an almost infinite supply of goods and services, anywhere in the world, twenty-four hours a day. day and at all imaginable prices.
Likewise, the proliferation of information systems has led us to a more competitive market, where companies have established efficiency as the main objective, and the strategy: "to provide the best product and / or service, at the best possible price and with the lower costs ”(Verdicchio & Colombetti, 2002).
This is where the well-known "Supply Chain Management" or supply chain management in Spanish comes in. SCM is a business network that allows raw material to be collected, transformed into products and finally delivered to the consumer through a defined distribution system. Through this system it is possible to redefine key processes in the company and thus optimize resources.
There are many options that a company has to establish an SCM system, however the challenges and transformations that it must carry out are also numerous. Throughout this article, the necessary guidelines will be established to prepare the company in these information systems and the crucial factors for their correct operation, which range from internal changes to learning how to interact with suppliers. We will also know the advantages that SCM has and its productive impacts.
Companies must know that “competitive success is no longer a function of individual efforts, it depends, to a great extent, on how well our supply chain, compared to the competition chains, is capable of delivering value to the consumer ”(Kumar, 2001). The business vision has changed significantly, it is no longer only necessary to focus on high quality and profits, now it is also necessary to focus on survival. We are no longer the only ones in the market, but we can be the best. We must generate competitive advantages, which differentiate us from the rest and make us more productive; and one of the means to achieve this is through the implementation of the SCM.
METHODOLOGY
The article was produced thanks to an exhaustive investigation of several publications and investigations, all of them contained within the digital library of the Tecnológico de Monterrey and its various databases, including: EBSCO Business Source Premier, ACM Digital Library, EMERALD, GARTENER and PROQUEST.
CONCEPT OF SUPPLY CHAIN MANAGEMENT
Supply chain management or “Supply Chain Management” (SCM) is an information management system that provides high levels of business planning and facilitates the strategic decisions that are necessary to coordinate and execute multi-organizational activities both in production and distribution processes (See Figure 1).
Fig. 1 The supply chain.
(Source: http://www.oasis.com.co/modules.php?op=modload&name=Soluciones&file=scm, 2007)
The management of the supply chain is based on computer programs that seek to create a productive performance in the company, through the correct union between the external operations of suppliers, customers and other members, with the internal operations of the company (See Figure 2). The heart of the matter is to be able to correctly integrate the supply chain in order to achieve its correct management (Kim, 2006).
Fig. 2 IT and the supply chain.
(Source: http://www.cirko-mes.com/Scm.html, 2006)
BASIC REQUIREMENTS TO ALIGN SUPPLY MANAGEMENT AND INFORMATION TECHNOLOGIES
Effective supply chain management requires the synchronization of technology strategies with business objectives. Five key areas are identified where information technologies must be coordinated with the business to allow the circulation of two-way information that is required to establish a joint strategy of technologies with supply management (Payne, 2007), these are:
- Agility and adaptability in the business process Information management Analytical and performance management of the supply chain Collaboration in the supply chain Sensory networks
All of them together, allow to generate a positive environment to establish information technology systems, so the company must develop these strengths.
MAKING RELATIONSHIPS
As mentioned above, the management of the supply chain requires a correct relationship between customers and suppliers, that is, the buyer and the seller, from more than computer systems. According to Ireton (2007), it is necessary to establish three basic guidelines to establish a lasting and fruitful relationship:
First of all, Compliance, which establishes that the most important and basic thing in a new relationship is to know the other party very well, this involves knowing our clients, our suppliers, and their clients and suppliers. Ignorance of the laws does not absolve us of guilt. It is essential to know with whom we establish our supply chain and make sure that it is within the framework of the law.
The next level is Conduct, every company that is going to be part of our supply chain, has more to be within the law, must have a sustainable vision and conduct and in accordance with ethics and good labor practices. We must ensure that they employ ecologically viable production methods, ensure respect for their workers and use raw materials of equal quality and origin.
(Source: Ireton, 2007)
Finally there is the monetary aspect or Strategic Financing; the buyer will always seek to pay as little as possible and the seller will seek to charge as much as possible. In order not to create an environment of inequality and abuse, it is essential to form pricing strategies so that both the seller and the buyer feel that their work is recognized.
TECHNOLOGIES IN THE MANAGEMENT OF THE SUPPLY CHAIN
In order to understand the technologies necessary to establish an automated process in the management of the supply chain, it is essential to understand all the decisions that are involved in it; Basically and according to Kumar (2001), these are divided into operational, tactical and strategic, Figure 3 summarizes in a better way these results:
Fig. 3 Decision stages.
(Source: Kumar, 2001)
The supply chain is part of a whole in the company, and requires a joint infrastructure that allows the exchange of information between all areas of the company (Ball, Ma, Raschid, and Zhao, 2002). An effective supply chain management system is generally integrated into an ERP (Enterprise Resource Planning) system, which in turn connects all areas of the company (See Figure 4). In this way, it is possible to achieve a correct and truthful flow of data and information for both suppliers, customers and the company itself.
Fig. 4 ERP and the company
(Source: http://erp.manufacturer-supplier.com/, 2007)
Currently, it is possible to find an infinity of software and hardware that allow the development of a supply chain (Singh, 2003). SAP, Oracle, and Invensys are some of these information technology providers; There are many others that allow similar functions to be carried out at more affordable prices for small and medium-sized industries. Prices and capacities vary considerably, depending on the distributor and the amount of information we want to handle; It is essential to know our business in depth and the future strategy to make the correct selection of technologies.
(Source: www.sap.com, 2007) (Source: www.oracle.com, 2007) (Source: www.invensys.com, 2007)
In general, there are technologies to: capture information, transmit data, archive data, order information, summarize data and present them clearly and easily to the user. The acquisition of software and hardware will vary depending on the company and the degree of development that the company has. It is possible to find companies that only require certain programs or physical systems.
ADVANTAGES OF INSTALLING A SUPPLY CHAIN MANAGEMENT SYSTEM
If the basic guidelines outlined above were established correctly, the company will surely obtain some of the following advantages:
- Cost reduction Better customer service Reduced waste and delays Higher productivity Streamlined processes Better relationship with suppliers Decreased infrastructure Staff motivated and aware of all company objectives
It should be noted in conclusion that the degree of improvement will depend on the type of system used (degree of technology), the company, its people, resistance to change, culture, etc.
CONCLUSION
Managing the supply chain is part of a global system and its characteristics will largely depend on the type of company in which we are involved. To be able to deal with today's fast and changing scenarios, it is essential that the company guides its entire production chain (plan, purchasing, manufacturing, distribution and sales) through three basic pillars (Kumar, 2001): Firstly place a well-defined and future strategy that establishes demand planning and supply supply. Second, a shorter-term, tactical move that includes manufacturing and deployment planning. And finally an operational control, where the SCM will be involved, allowing to perfectly organize and establish the efficient development of supply, production,distribution and sales.
The SCM also involves a flow of information within the company (intra-organizational) and between companies (inter-organizational) (Ball et al., 2002), the correct handling and assurances that are given to this information will be basic to maintain this system. In addition, as we have established, SCM can lead to great economic losses if it is not well focused or if the guidelines between the supplier and buyer are not established correctly from the beginning; and the importance of maintaining mutual collaboration.
In the market it is possible to find a diversity of software and communication technologies ranging from systems for obtaining data, computer optimization programs and even artificial technology. All of them together with the internet, will allow total connectivity between companies, their suppliers and their customers. However, SCM does not necessarily mean investing thousands of dollars in technological programs and equipment, it is fundamentally based on correctly organizing our operations, to obtain our raw materials, process them and deliver them quickly and economically, using a link that allows our "inputs" to be in total contact with our company and thus achieve quality “outputs”.
SCM implies a total knowledge of the company, its processes, its people, its resources and its customers. Everything must be previously organized and within the reach of the entire organization. The creation of the supply chain must follow a perfectly planned process and defined in the company's strategies. Without these bases it would be impossible to think of SCM or any other information system.
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