Decision-making process supply chain management

The framework is mainly based on the supply chain management framework of Rohde et al. (2000). Rohde s work is gradually enhanced to address the aspects of synchronized decision making within the value chain and the integration of supply, demand and value management concepts as shown in fig. 17. The framework is structured into the areas value chain, processes and methods. 

As you consider changes to your oiganization and its supply base, the first area that needs to be looked at is the decision whether you will make a product or whether you will buy that product. This is the first decision that is involved in the supply chain management process. Chapter 4 will deal with this topic in detail. 

Keith Kennedy of CGR Management Consultants describes the next level as proactive systems. These systems offer ways to produce competitive advantage using technology to speed the decision-making process. Later we describe how proactive systems can improve the cost effectiveness of supply chain operations. 

Horizontal and vertical integration. Supply chain management processes are executed across functional domains within individual units, as well as across enterprises involved in the supply chain network. Sharing of data and processes should be supported at a level desirable for a particular decision-making problem. Its implementation should enable relatively simple replacement of components comprising the architecture of the supply chain information system. 

Risk management is part of decision making. Supply chain management covers many decisions that should take the aspects of risk into accoimt in order to assure the security and continuity of flow processes. 

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