One of the most recent developments in the world of business is an area called the supply chain. Similar to logistics, the supply chain is focused on how materials are procured and how they get from place to place in the most timely and effective manner. The supply chain involves distribution as well as the handing of returns, defective goods, and raw materials. While years ago these problems would be attended to by operations managers, the supply chain has broken off from operations management into its own field.
Naturally, with the production of new technology, supply chain management has evolved. Before the internet, all orders and purchases were made either in person or over the phone. There was no rush or priority shipping until very recently, and many times there was a certain window of time that needed to be allowed for materials to arrive because of plain uncertainty. Procuring materials is now done primarily over the internet, and the speed at which materials travel has increased at a dramatic rate.
The new wave in supply chain management made possible by technology is Enterprise Resource Management (ERP). Now companies have managed to place all of their inventory as well as procured materials into a computer system so that they can keep track of them and know where they are at all times.
While it seems very simple and obvious that technology has improved the supply chain, that is not necessarily the case. Many suppliers are now hesitant to enter the ERP system because of the cost of it, which has possibly decreased the total available supply of materials around the world. Also, there is the ever-present stigma people have about technology, and many are afraid to integrate more of it into their businesses.
Questions to ask Professor Turner (who worked in the supply chain at Toys 'R' Us):
1. How did the Toys 'R' Us' ERP system work, and how was it similar or different than the systems that other companies were using at the time?
2. Do you feel that the improvements in technology while you were working for Toys 'R' Us was a benefit or a nuisance to the company's supply chain management department?
A summary of the importance of technology and the supply chain:
http://audioboo.fm/boos/1329187-supply-chain
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