Supply chain management processes Process evolution

Curran T, Keller G (1998) SAP R/3 Business Blueprint understanding the business process reference model, Prentice Hall, Upper Saddle River Datta S, Betts B, Dinning M, Erhun F, Gibbs T, Keskinocak P, Li H, Li M, Samuels M (2004) Adaptive Value Networks, In Chang YS, Makatsoris H, Richards H (eds) Evolution of Supply Chain Management. Kluwer Academic Publishers, Norwell, MA, pp 3-68... 

Over the last 30 years, there has been more progressive thinking on the evolution of manufactnring processes than on any other area of supply chain management. Improvements propelled growth and enabled the building of the global supply chains. 

In the evolution of supply chain management, the first horizontal processes were transactional. They were billing systems created to automate the order-to-cash and procure-to-pay processes. These systems of record were implemented using standard out of the box functionality in enterprise resource planning. However, for these new horizontal processes, there is no standard out of the box system for implementation. 

This process innovation was a wake-up call for the Samsung management team. The leadership team at Samsung became innovators in inventory management and supply chain processes championing horizontal process evolution of S OP, revenue management, and supplier development to never have to write off inventory. 

As a firm progresses with S OP, it reaches a point at which something more advanced is necessary, particularly as the company moves into Level 3 of the supply chain evolution. In Figure 7.8, the proeess reaches the point at which it becomes an important element in the senior management review process. A firm can expect that the level of detail requested will expand, as well as the elements included in the planning process. 

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