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BPR and SCM Relationship - Essay Example
Author : leonardschiller
Pages 12 (3012 words)
In supply chain management, the key issues are the unforeseen risks caused by lack of management strategies, especially in relationship to technology and communication as significant factors that inhibit the supply chain (Atkinson 2004). Supply chains should include "a collaborative supply chain framework is composed of five connecting features of collaboration, namely collaborative performance system, information sharing, decision synchronisation, incentive alignment, and integrated supply chain processes" (Simatupang and Sridharan p 257 2005)…
Business process re-engineering (BPR) is applied at the local, managerial, and corporate levels of the business. This concept has a significant impact on the various phases of the business process, where the changes that occur can be related to the flow of information and products (Desel & Erwin, 2000). BPR is used in SCM to renovate the managed and integrated processes that create a capable and viable business environment (Chan and Qi 2003). The crucial tenants of BPR is that it reduces tension between inter-organisational departments and business partners, particularly when the there is friction within the SC process (McCormack & Johnson, 2000). Business process re-engineering, specifically related to the main focus of technology and communication in supply chain management includes:
(1)Further integration of activities between suppliers and customers across the entire supply chain;(2) on-going changes in supply chain needs and required flexibility from IT; (3) more mass customization of products and services leading to increasing assortments while decreasing cycle times and inven ...