Implementation of Supply Chain Management Essay

Supply chain management is an prudence of processes when moving goods from the stage of node order to the raw material stage and it includes the release, crosswayion and distribution of products to the customer. every(prenominal) organization has supply chain of assorted levels, depending upon their size and type of product they argon manufacturing. Their aim is to will the customer with enough information necessary to give the value that they demand and to gain the information regarding the customer too. The ultimate goal for any supply chain management is to reduce its inventory.For a successful supply chain, bundle frames are provided with web interfaces to provide the customer with enough information they demand. Hershey Foods Corporation and NIKE inc. are two very renowned organizations, unrivalled known for its food products and the other for athletic footwear, equipment and accessories for sports and fitness activities. Both of these organizations adopt supply chai n management systems in order to lower down their inventories and to increase their profit. But twain of them failed in achieving their objective which was to reduce the inventories.The main mistake made by Hershey Food Corporation was, that they chartered a supply chain system costing $112 million from SAP AG, Manugistics, and Siebel systems. The supply chain system was supposed to put in data of everything from production to delivery. But getting software from three different providers created unpredicted delays and complex problems in implementation. Also, another mistake made by the organization was that they implemented the unit system at once instead of in stages. So thusly they faced problems in placing the orders and accordingly executing them to warehouse for fulfillment.The problem faced by NIKE, inc. was a bit more complex, as give tongue to by 12 technologies marketing Chief Katrina Roche NIKE problems were not tied to the software but to the way the software was inst each(prenominal)ed. (Sridharan, Caines, & Patterson, 2005) Moreover he says that his company accepts the responsibility for not being more aggressive in intercourse them that they needed to follow our implementation methodology. (Sridharan, Caines, & Patterson, 2005) 12 technologies wanted to track each and every little product of NIKE which made the job more complex and therefore it took their time more than they had expected.The NIKE people made the comparable mistake as Hershey foods, that they implemented the system before they were ready to execute it. (Sridharan, Caines, & Patterson, 2005) So overall at initial stage supply chain systems were a bad experience for Hershey Foods and NIKE, Inc. There are authoritative things which if the company would have followed then hopefully the things must have been the other way round. First of all only one supply chain system provider must be hired for the software, as more than one supply chain systems for same job results in failu re.Then providers implementation methodology is very important for client to follow in supply chain systems in particular when they are modified to suit clients requirement. More over supply chain systems are very complex as they have to track over numbers of product varieties so therefore it must be implemented in stages rather than executing it at once. And if the company is switching from one system to another then first the system should be tested in order to interference whether it is fulfilling the companys requirements or not. ?