Supply Chain Management--Case Study on Ibm - 2376 Words

1.0 Introduction All business is both customers for some other businesses product and services, and suppliers of products and services to their own customers or other business. So no operation, or part of operation, can be seen as existing in isolation. Every operation is part of a network of suppliers and customers. In this age of international market and competition, a company s competitiveness rests on its ability to provide desired goods and services. Supply chain management is one of the hot topics in business today. Render (1997) has defines supply chain management is the integration of activities that procure materials and services, transform them into intermediate goods and final product, and deliver them to customers. The†¦show more content†¦the distribution centers would warehouse shipments until needed for a customer order originating in the country in which the distribution center was located. This approach placed the inventory close to the customer. When an order was received, the distribution center would configure it, which amounted to grouping the elements of the order, such as system units, monitors, country-specific keyboards, cables, documentation in the appropriate language, and various peripheral accessories. Once configured, the distribution center would ship the order to the customer and receive replenishment inventory from Greenock. A fundamental decision is where to stock an inventory of finished goo ds. As what the IBM used a forward placement in this case as its inventory finished goods. Forward placement means locating stock closer to customers at a warehouse or distribution center or which wholesaler or retailer. It is proved that in this case, the company is not suitable for using the forward placement inventory. There are two serious problems with IBM of implementing of supply chain management. First, customer service levels were low. 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