More and more businesses are realizing the importance of managing their supply chains and taking advantage of the new concepts. Pepsi , the popular producer and distributor of softdrinks, has recently started to use eProcurement by PeopleSoft to help them with their supply chain. With the aid of eProcurement, the company has enabled itself to maximize connections between suppliers, manufacturing, distribution, and customers. When considering supply chain management, a company should follow a guideline to aid in the development of its new system, and employ a model that has relevance across its particular network of supply with the focus on the market of choice. These five areas should be addressed repeatedly in deciding which ones provide opportunities for the organization.
Strategy involves taking into consideration the overall direction of the company.
A manager must figure out what is required to align the supply chain with the business strategy. He or she must also decide what level of customer service will be provided to each customer segment and which channels of distribution best meet their goals and their customers needs. Grasping these aspects allows the company to pinpoint the appropriate locations where the best improvement tools and technology should be implemented. Then the program could electronically indicate to resupply that specific store. A company must consider how the physical network of plants and distribution should be structured.